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HomeMy WebLinkAbout2889Borrower and Lende~ eovensnt aod a~ree w tolbwr 1. Payment ot Principal and Intere~t. Borrowe~ shall pmmptly pey when due the principal ot a~d inte~est on the indebtedneas evids~ced by the Nole, prepayment a~d late cha~ges w pmvided 'en the Nots, and the principal of aod interest on any Future Advancee secund by this Mort~age. 2. Ftinds tor Ta:es and Insurat~ce. Subject to applicable law o~ to a written waiver by I.ender, Borrower ahall pay to I.ender on 1he dey monthly i~etallmenta oi principal and iMe~eat are payable under the Note, until the Note ia paid in full, a sum Iherein "Fu~ds") equal to ont twelRh of the yearly taxes and easessments which may attain priority ove~ this Mortgage, and ground rents on the P~opeirty, if any, plus o~~ twelfth of yearly premium inatallmente for hezard insurance, plus onetwelRh ofyearly premium installments for morigage insurance, if any, all as reasonably eetimated inilially and from time to time by I.ender on the basis of asseaements and billa and ~eaaonable pstimatea thereof. The Fl~nda ahell be held in an institution the depoeits or accounts of which are insured or guaranteed by a Federal or Stats age~cy 'including I.ender if I.ender is such an institution). Lende~ ahall apply the Funds to pay aaid taaes, asseasments, insura~ce p~emiume and [~round rents. Le~der may not charge for so holding and applying the Funda, analyziog said account, or verifying and compiling said assessments and bills, unless Lende~ pays Borrower interest on the Fuoda and applicable lew permits Le~der to meke auch a cha~ge. Borrower and Lender mey agree i~ writing at the time of execution of this Mortgage that intereat on the Runds shal) be paid to Aorrower, and unless euch agreement is made or applicable lew requirea auch intereat to be paid, Lender shall not be required to pay Borrower any intereat or eamings on the Fl~nds. I.ender shall give to Borrower, without charge, an annual accounting otthe Funds ahowing credila and debita to the Funda and the purpose for which each debit to the ~nda wax made. The F unds are pledged as additional security tor the eume secund by thie Mortgage. If the amount of the ~nda held by L.ender. together with the future monthly inatallmente of Funda payable prior to the due detes of taxes, easeasments, inaurance premiuma and ground re~ta, shall excred lhe amounl reyuired W pay said ta:es, asaeasments, insurance premiums and gmund rents as they fall due, such exceas ehall be, at BoiTOwer s option, either pmmptly repaid to Borrower or credited w E3orrower on monthly installmente of Funds. It the amount of the Funde held by Lender shall not be sufficient to pay taxee, assesemente, inaurance premiuma and ground renta ae they fall due, Borrower shall pay to I.e~der any amount necessary to make up the deficiency within 30 daye from the date noti~e is rnailed by Lender to Eiorrower requesting payment thereof. Upon payment in full of all sume aecund by thie Mortgage, Lender ahall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereot the Property ia aold or the Property is otherwiae acquired by Lender, Lender ahall apply, no leter than immediately prior to the eale of the Pmperty or ita acquieition by l.ende'r, any Funda held by I.ender at the time of application as a credit againat the auma secured by this Mortgage. 3. Application of Payments. Unlesa applicable I~w pnovides otherwise, all payments received by l,ender under the Note and paragrapha 1 and 2 hereot ahall be applied by I.ender firnt in payment of amounts payable to Lender by Borrower unde~ paragraph 2 hereof, then to inteteat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. _ 4. Charges; Liene. E3orrower shall pay all taxes, as~essments and other charges, fines and impositions attributable to the Property which may attain a priority over this btortgage, and leasehold payments or ~arc-und renls, if any, in the manner provided under paragraph 2hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereo[ E3orrowershall prumptly furniah to Lender all notices of amounts due under this paragraph, a~d in the event f;c-rrower shall make paymenl directly, E;ormwer shall promptly furnish to I.ender receipls evidencing such payments. I~rrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be required to dischnrge any such lien s~ IonK as Borrower shall agree in writing to the payment of theobligation secured by auch lien in a manner acceptable to I.rnder, ur shall in R~wd faith ce~nte~t such lirn by, ordefend enforrnmentofsueh lien in, leKal proceedings which operate lo prevent lhr enfurcrment o[ the lien or forfeiture of the Pmperty or any part thereuf. 5. Hazard Ineurance. Borrower shall keep the improvements nuw exixting or hereafter erected on the Property insured againat loss by fire, hazards included within the term "extended coveraKe," and xuch other hazards as I.ender may requirn and in auch amounts and forauch periods :-s l.ender may require; pn-vided, that l.ender shall not require that the amount of such rnverage exceed that amount otcoverage rrquired to pay the sums secured by this MortKaKe. The insurance carrier pro~•idinK the insurance shall {x~ chos~~n hy KorrnN•er subject tn approval b~ Iw~nder, providerl, that such approva) ahall not be unrnasrmably withheld. All prrm~wns un insuran~•~• ~dii•irs shall 1~ paid in the mann~•r pruvidr~i undrr par~Qraph 2 hercr-f or, if not paid in such manner, by fi~~rruwer m.ikinK payment, whrn due. dirrctly tu the insurance rarrier. All insurance policies and renewals thereof shall be in form acceptable w I.ender and shall include a atandard mortgageclause in favor of and in form acceptable to I.ender. l.endershall have theright to huld the p~dicies and renewals thereof, and ~rrowershall promptly furnish to i.ender all renewal nuticea and aU receiptrs of paid premiums_ In the rve~~t of lo.~s, I3~~rn~wer shall Kive prompt nutice to lhe insurance carrier and l.ender. I.ender may make proof of loss if not made pmmptly by E3orrower. ~ Unless [.ender and Borrower otherwise agree in writing, insur:ince pruceeds shall be applied to rextoration or repair of the Property damaged, provided auch resloratiun ur ~epair is economically feasible and the security ot this Morigage is not themby impaired. If such reatoration or repair is not economically fexsil~le ~~r if the security of this Murtgage would be impaired, the insurance proceeda shall be applied to the aums secured by this Mortgage, with the excrss, if :~ny, paid tu ~rrower_ If the E'roperty ie abandoned by Borrower, or if Borrower faile to reaFond to Lender within :i0 days frum the date n~,tice is mailPd by I.ender u, E3orrower that the inaurance carrier offera to settle a claim for inaurance benefits, [.ender is auth~,rixrd to rnllrei and apply the insuran` e proceeds at Lender's option either to reatoration or repair of the Yroperty or the sums aecured by this MonK~ge. Unlesa I.ender and F3orrower otherwisc• :~Krer in writing, any such application of proceedsto principal ahall not extend or postpone thedue date of the monthly installmentx refenrd u, in par:+graphs l and'l F~ereof or change the amuunt of such installments. t[under paragraph 18 hereof the Pmperty is acquired by 1.ender, all right, title and interest of &,rrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the xale or acqwsition shall pass to Lender to the eatent of the sums secnred by this Mortgage immediately prior to such sale or acquisition. 6. Preeervation and Maintenance of Property: l.easehulds; ('ondominums; Planned Unit Developmenta. Burrowershall keep the Property in good rep:~ir and shall not commit waste ur permit impairment or deterioration of the Property and shall comply with the proviaione of any lease if this Alnrtgage is on a leasehnld. If this MortgaKe is on a unit in a conduminium or a planned unit development, Borrower shall perform all of F3~rrower's obligations under the declaratiun or covenants ereatinKor governmg the condominium or planned unit development, the by-lawx and reKulatiuns of the condominium or pianned unit development, and constituent documente. If a ~ondominium or planned unit devetopment rider is rxecuted by &-rrower and recorded tugether with thia Mortgage, the rnvenante and aKreemen44 of such rider shall F-e inc~,rporated into :~nd shall amrnd and ~cupplement the covenantx and agreements of this Mortg~geas if the rider were a part hereof. 7. Protection of Lender'e 3ecurity. If Borrower faila to perform the mvenante end agreemente contained in this Mortgage, or if any action or proceeding is rnmmenced which materially affecte Lender's interest in the Ptoperty, including, but not limited to, eminent domain, ineolvency, oode enforcemen~ or arrangements or proceedinga involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower mey make such appearances, diaburoe euch aums and take such action ae is neceasary to protect Lender i intere~t, including, but not limited to, diebursement ot reasonable attorney'e fees and entry upon the Property to meke repairs. lf Lenda required mortgage ineurance as a rnndition of ineking the loan secured by thie Mortgage, Borrower ehall pay the premiums required to maintain auch insurance in effect until auch time as the ~equirement tor such ~neurance terminates in accordance with Borrower's and Lender'~ written agreement or applicable Law. Borrower ehall pay the -amount of all mortgage ineurance premiume in the manner provided under paragraph 2 hereof. Any amounte diebureed by Lender pereuant to this paragraph ?, with interest thereon, ahall become additional indebtednees of Ek~rrower eecured by this Mortgage. Unlese Borrower and Lender agree to other terms of payment, such amounts shall be payeble upon notice trom [.ender to Borrower requesting payment thereof, and ehell bear interest from the date of disbursement at the rate payable from time to time on outetanding princi{-al under the Note unleas payment of intereat at auch ratr would be contrary to applicable law, in which event such amounta shall bear interest at the higheet rate permiasible under applicable law. Nothing rnntained in this paragraph 7. shall require I.ender to incur any e:pense or take any action hereunder. ~~' ~ i 6 5 • ~ x ~s_~>r. _.-. , .:; ~;i .,` . ~' ~~~i.'m~-'ar. ~~"y~'tr . -.. _ _ .~ B~~K,,40 FdGE28~~ E _,~ _ V~r ~a ."~~ ~. ~a .