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HomeMy WebLinkAbout2517Borrower and l,ender rnvenaat and a~ee w folbvw: 1. Paymeat ot Principal and Ietere~~ Botrower shall promptly pay when due the principal of a~d intereat o~ the indebtedneas evidenced by the Note. prepayment and late cherges aa provided in the Note, end the principa! of and interest on eny ~ture Advances aecured by this Mortgage. 2. Fltnds for Taxes snd I~surance. Subject to applicable Iaw or to a written waiver by Le~der, Borrower shall pay to I.ende~ on the dey monthly installments of principal and intereat are payable u~der the Note, until the Note ia paid in tull, a sum (herein "Funds") equal to ona twelfth of the yearly taxes and aeseasments which mey attai~ priority over this MortgaQe. and gmund rents on the Properiy, if any~ plw one twelRh of yearly premium inetallmer-ts tor hezard insurance, plua onttwelRh of yearly ptemium installments tor moetgage insurance, i[any, all as reasonably eatimated initially and from time to time by t.ender on the basis o[asseasmenta and billa and reaaonable estimetes thereof. The FLnds ahall be held in an institution the depoeits or accounts of which are insured or guaranteed by a Federal or State agency (including L.ender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, aasesementa, ineurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifyi~g and rnmpiling said aeaeasmenfe and billa, unless Lender pays Borrower interest on the Ftinds and applicable law permits I.ende~ to make auch a charge. Borrowcr and Lender may agree in writing at the tuae of execution ot this Mortgage that intereat on the E1nds ahall be peid to Borrower, and unlesa such agreement is made or applicable lew requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the ~nds. Lender ahall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose fo~ which each debit to the Fuads wae made. The Funda are pledged as additional security for the auma aecured by this Morigage. _ If ihe amount of the Fl~nda held by Lender. together with the future monthly inetallmenta of Funds payable prior to the due dates of ta~ces. assesemenis. inaurance premiums a~d ground renta. shall excxd the amount required to pay aaid ta:es, asseasments, insurance premiums and ground renta se they la11 due, such exceas ahall be, at BormweT's option, eithe~ prompdy repaid to Borrower or rredited to Borrower on monthly inatallmenta of ~nds. I[ the amount of the Funds held by Lende~ ahall not be sut'ficient to pay tauea, aseeeaments, inaurance premiuma and ground rents ae they fall due, Borrower shall pay to Lender any amount neceseary to make up the deficiency within 30 days from the date notice is mailed by I.ender to Borrower requesting payment thereof. Upon payment in fuU of all aums secured by this Mortgage, l.ender shall pmmpUy refund w Borrower any funda held by Lender. If under paragraph 18 hereof the Property ie sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the eale of the Property or ite aequieition by l.ender, any Funda held by Lender at the time of application as a credit againat the aums aecured by this Mortgage. 3. Application of Paymenb. Unless applicable law provides otherwiee, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender first in peyment otamounta payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the IYote, and then w intereet and principal on any Futnre Advancee_ 4. Charges; Liens. Bormwer shall pay all taxes, assessments and otherrharges, fines and impositions attributable W the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Rorrower shall promptly fumish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promplly furnish to I.ender receipts evidencing such payments. Borrower shall promplly discharge any lien which has priorily o~er this Mortgage; provided, that E3orrower shal) not be reyuired to discharge any such lien so long as Borrowershall agree in writing to the payment of the obligation secured by such lien in a manner acceptable tu I.ender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent tAe enforcement of the lien or forfeiture of the Property or any part thereot. 5. Hazard Ineurance. Borrower shall keep the improvemeots now ezisting or hereafter erected on the Property ineured againat lose by fire, hazards included within the term "extended coverage," and such other hazards as l.ender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage ezceed that amount of coveray~e required to pay the sums serured by this Mortgage_ The insurance carrier prov~dinK the insuranm shall be chosen b} Korrnwer subject to approvat by l.ender; pro~•ided, that such approval shall not be unreasonably withheld. All premiums on insurance p~~lici~ shall be paid in the mannpr pmvided under paraRraph'l hereof or, if not paid in such manner, by Fiorrower making pa~yment, when due, directly to the incurance carrier. • _ All insurance policies and renewals thereof ahall be in form acceptable to l.ender and ahall include a standard mortgageclauae in favor of and in torm acceptable to I.ender. [.ender shall have the riqht to hold the policies and renewals thereof, and Borrower shall promptly furnish to -.ender all rnnewal notices and all receipts of paid premiums. In the event of loss, E3~rruwer shall give prompt notice to the insurance camer and ixnder. I.ender may make proof of loss if not made promptly by E3orrower_ Unless Lender and Rorrower otherwise agree in writing, insurance proceeds ahall be applied to restoration or rnpair of the Properiy damaged, provided such restoration or repair is econumically feasible and the security of this Mortgage ia not thereby impaired. If auch reatoration or repair is not pronomically feasible or if the security of this Mortgage would be impaired, the insurance proceeda shall be applied to the suma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property ia abandoned by Borrower, or if Borrower taila to respond to Lender within 3a days from the date nutice is mailed by I.ender to Borrower that the insurance carrier otiers to settle a claim for ineurance benefits. I.ender is authorized to collect and ~pply the insurance proceeds at Lender'a option either w reatoration or repair of the Property or the auma eecured by this Mortgage_ Unlesa Lender and Eiorrower otherwise agree in writinq, any such application of proceeds to principal ahall not extend ot postpone thedue date of the monthiy inatalimenta referred to in paragraphs 1 and 2 hereof or change the amount of such installmenta. If under paragraQh 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance pulicien and in and w the proceeda thereof reaultinq from damage to Property prior to the sale or acqu~sition shal) pass to Lender to the extent ot the auma secured by this Mortgage immediately prior to auch sale or acquisition. 6. Preservation and Maintenence of Prnperty: Leaseholda; Condominuma; Plannrd Unit Developments. Borrower shall keep the Property in good iepair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. It this Mortgage is on a unit in a condominium or a planned unit development, Bonower ahall perform all of E3orrower's obligat~ons under the declaration or covenanta creatinKor governing the condominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and rnnstituent documenls. If a condominium or planned unit development rider is exeruted by Borrower and recorded togelher with thia Mortgage, the eovenanta and agreements of such rider shall be incorporated into and shail amend and supplement thecovenants and agreements ofthis Mortgage as ifthe rider were a part hereof. 7. Protection ot Lender's 3ecvrity. If Borrower fails to perform the oovenents and agreements contained in this Mortgage, or if any action or pra.~eeding is commenoed which materielly affects I.ender i interest in the Pmperty, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangements or ptoceedings involving a bankrupt or decede~t, then Lendrr at I.ender's option.apon notice to Borrower may make auch appearences, disburse such aums and take such action a~ is neceasary to protect Lender i interest, including, but not limited to, disbursement of reasoneble attorney's fees and entry upon the Property to maice repairs. If Lender required mortgage ineurance es e condition of making the loan secured by thia Mortgage. Borrower shall pay the pre~niums required to maintain euch ineurance in effect until such time as the requirer.~ent for such insurance terminates in aecordance with Aorrower's end Lendei • written agreement or applicable I.aw. Bormwer shall pay the amount of all mortgage insurance premiume in the manner provided under paregraph 2 hereof. Any amounte diebursed by Lender persuant to this paragraph 7, wit#~ interest thereon, shall become additional indebtednee~ of Borrower secured by this Mortgage_ Unless Borrower and Lender agree to other trrms of payment, such amounts shall be payable upon notice from Lender to Bofirower requeating payment thereof, and shall bear interest from the date of disburaement at the rate payabk irom time to time on outetanding principal under the Note unleas payment of intereat at such rate would be oontrary to applicable law, in ~rhich event euch amounte ehal) bear interest at the highest rate permissible under applicable law. Nothing rnntained in thia paragreph 7, shall require [.ender to incur any expense or take any action hereunder. B~~K348 p~~E2515 - . . - ~._ ~ .~ = -- _ ~M~~ ~ _ a ~ ~_ r - ~ ~~