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HomeMy WebLinkAbout0917 a~ ' ~ - Borrower and Lender oovenant and a~ree aa folbw~: 1. Pa,yment of P~iacipal and Interea~ Borrower ~hall promPtly pay w~hen due th~ princip~l of and interest on the indebt~ednas evide~ad by the Note. prepayment and late cbu~e~ sa provided in the Noee, and the principal of and i~tere~t on ar~y i~ture Advances stcured by thi~ Mo~~e. ' 2. I~luida tor Ta~ces end Iasuranoe. Subject to applicable law or to a written waive~ by Lender. BoROwer ahall pay to I.ender an the day mo~thly installments of principal and interest ane payable under the Note, until the Note is paid in full, a sum (herein •'Ftindi") equa! to oaa tweltih oilhe yearly taxes and e~sessme~ts which may attain pr~ority over thia Mortgage, and ground renta on the Properiy. itany, plw one twelRh of yearly premium installments for hazacd insura~?ce, plus ooctwelfth of yeariy premium inatallmenta for mortgage innurance, if any. ell e~ reasoaably eatimatsd initially end [rom time to time by I.ender on the baais of asaeesmenta and billa and ~tasonable eatimates thereof. The fl~nds ahaU be held in an inatitution the deposib or socounts of which are inaured or guaranteed by a Federal or State agenry •(?ncluding l.ender if Lendez is euch an inetitution). Lender ehall apply the Funde to pay said taxes, asaeeame~ta, insurance premiums sAd gmuad re~fe. I.ender may rwt cherge fot so hotding and applying the fl~nds, analyzing said accoun~ or verifying and compiling said aesenmenta and bilb, unless Lender pays Borrowe~ interest on the F`unds and applicable law permits I,ender to make euch a charge. Borrower aad Leader may agree in v?ritiaa at thetime of execution of this Mortgage that intereat on the ~nds ahall be paid to Borrower, and unlesa auch agreement is made or applicable law requira such interest to be paid, Lender shall not be requind to pay Borrower any interest or earnings on the ~nds. Lender shall give to Borrower, without charge, an annual accounting of the Funds ahovring credita and debits to the; Funds and the purpose for which each debit to the ~Lnds wae made. The Funds are pledged aa additional security for the suma ~ecured by this Mortgaga If the amount otthe E~nds held by Lender, together with the future monthly inatallments of Funds payable prior to the due datea of tane~, asseeaments, insurance premiutas and ground rents, ahall e:c~ted the amount required to pay said taxea, assesaments, insurance premiums and ground renta as they fall due, such e:cess ahall be, et Botrower'a option, either pmmpdy repaid to Borrower or credited w Borrower on moathly itsatal{ments of ~nds. if tfie amount of the Funds held by l.ender ahall not be sufficient to pay ta~ces, aaseasments, insurance premiums and ground rents as they fall due. Boesower ahall pay to Lender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by L.ender to Borrower requeating payment thereof. Upon payment in tuU o! all~eums secured by thia Mortgage, Lender ahaU promptfy refund W Borrower any funda held by Lender. If under pa~agraph 18 hereof the Property ia sold or 1he Property is otherwiee acquirnd by I,ender, l.ender ahall apply, no later than immediately ptrior to the sale of the Property or ita aoquieition by Lender, any Funda held 6y [.ender at lhe time of application ae a credit againat the aume secured by thia Mortgage. ~ 3. Application of Paymente. Unlesa applicable law provides otherwise, all paymenta received by Lender under We Note and paragraphs 1 and 2 hereof ehall be applied by Lender 6rat in payment of amounts payable to Lender by $orrower under paragraph 2 hereof. then to intereat psyable on the Note, then to the principal of the Note, and then to interest and principal on any Future. Advancea. 4. Charges; Giene. Borrowershall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priofity over tfiis 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 thereoL Bormwershall promptly furnieh to [.ender all noticea of amounts due under thia paragraph, and in the event f3orrower shall make pAyment directly, Borrower shall promptty fumish to l.ender receipta evidencing such payments. f;orrower shall promptly discharge any lien which has priority over this Mortgage; pmvided, that Borrower shaU not be required 1o discharge any sucfi lien so long as Borrower shal) agree in writing to the payment of the obligation secured by such lien in a manner acceptable to [.ender, or shall in good [aith cuntest such lien by, ordefend enfoTmment uf such lien in, legal proc^eedings which operate to prevent the enforcement of the lien or forfeiture of the Properiy or any part thereof. 5. Hazard Inaurance. Borrow~er shall keep the improvements nuw existing or hereaRer erected on the Property inaured againat loea by fi~e, hazards included ~tvithin the term "extended coverage," and auch other hazards as i.ender may require and in such amounta and for euch ii periods as I.ender may require; provided, that I.ender shall not require that the amount of such eoverage exceed that amount ot coverage f required to pay the sums secured by this MortKaQe. "Che insurance caRier providing the insurance sh.~il be~ chusen b~ f;urrower subject to approval by l.ender, pro~~ided, that such approval shall not be unreasonably withheld. All premiums ~rn insur:+ncr p~~licies shall he paid in the manne~ pmvided under paragraph 2 hereof or, if not paid in such manner, by Korrower makinK p:iymrnt, when due, dircctl}• to the insurance carrier. i All insurance policies and renewals thereof shall be in form acceptable tu l.ender 1nd ehall include a standard mortgage clauae in favorof ~ ~ and in form acceptable to Lender. l.ender shall ha~ e the right to hold the policies and renewala thereof, and i3~rrower sha11 promptly furnish to ; ~ i.ender al) renewal notices and all receipts of paid premiums. In the event of loss, Borruwer shall ~cive prompt notice to the insurance carrier ; and Lender. Lender may make proof of loxs if not made promptly by Borrower. i ~ Unleas Lender and Borrower otherwise agree in writing, insurance proceeda shall be applied to restoration or repair of the Property I ~ damaged, provided such restoration or repair is economically [easible and the security oi this Mortgage is not theteby impaired. If such i ~ reatoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the insurance procecda ahall be applied ! to the aums aecured by this Mortgage, with the excess, if any, paid to Rorrower. lf the Property is abandoned by Borrower, or if E3orrower tails to i reapond to Lender within 30 days from the date notice is mailed by i.ender Lo Aorrower tfiat the insurance carrier offers to settle a claim for ineurance benefits. I.ender is authorized to collect and apply the insurance proceeds at Lendei s option either to restoration or rnpair ot the ~ Property or the suma secured by this Mortgage. Unleas Lender and Borrower otherwise agree in writing, any auch application of proceeds to principal shall not extend or poatpone thedue ~ date of the monthly inatallmente referred to in paragrapha 1 and'L tiereof or change the amount of auch inalallments. If under paragraph 18 hereof the Property ie acquired by Lender, all right, titte and interest o[ Korrower in and to any inaurance policies and in and to the proceeds ~ thereof resulting from damage to Property prior to the sale or acqu~sition shall pass to I.ender to the extent of the aums aecured by this ~ Mortgage immediately prior to sucfi sale or acquisition. f 6. Presetvation and Maintenance of Property; Leaeeholds; Condominusns; Planned Unit Developments. 8orrowerahall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the f proviaiona of any leaee if this Mortgage ia on a leasehold. If this MoRgage is on a unit in a condominium or a planned unit development, € E3orrower ahall perform aA of Borrowei s obligatiuns under the declaration or covenants creatingor governing the condominium or planned : unit development, the byIaws and regulations of the condominium or planned unit deveiapment, and conatituent documenta. If a t condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the wvenante and aKreementa of such rider shali be incorporated into and ~hall amend and supplement thecovenants and agreementsof thia Hlortgage ae ifthe ; rider were a part heceof. 7. Protection of Lender'e Security. If Borrower faile to perform the oovenants and agreements rnntained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender e interedt in the Property, including, but not limited to, eminent domain~ ineoivency, oode enfommeni, or arrangements or proceedings involving e bankrupt or deoedent, then Lender et Lender e option,upon notice to Bormwer may make such appeasances, disburse such auma and take such action as is neceasary to protect Lender i interert, including, but not limited to, disbursement of reasonable atWrney'e fees and entry upon the Piroperty to maice repain. If Leader tequirad mortgegt ineurance as a condition of malcing the ioan eecured by this Mortgege, Borrower ahall pay the premiums eequired to maintaia avch insurance in effect until such tia~e as the requirement [or euch insurance Lerminates in accordance with Borrowu's and I.endds ' written egreement or applicable Law. Borrower ehall pay ihe amount oi sU mortgage inaorancx premiums in the manner provided under ' paragraph 2 hereof. My amounts diebursed by Lender pereuant to thie paragraph 7, with intereet thereon, ehall become additional indebtedneea of F3orrower eecured by this Mottgage. Unleas Borrower and Lender agree W other terma of payment, auch amounts shell be payable upon notice from I.ender to Borrower requesting payment thereof. and aha!! bear interest tmm the date ot dirbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be rnntrary W epplicable law, in which event such amounte shall bear interest at the higheat rate permiasible under applicable law. Nothing rnntained in thii paragraph 7, shall require Lende~ to incur eny expense or take any aMion hereynder. ~ ~ BODK ch~~ P~ t~s s - ~ ~