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HomeMy WebLinkAbout0972 , ~ ~ i E3orrower and Lender rnvenant and a~roe aa lolbw~: 1. P~?ymeat ot Principal and InWre~t. Bortower ahall promptly pay whea due the principal oi and interest on the indebted~es~ evidenoed by the Note, prepayment and lete charges as provided in the Note, and the principal of a~d interest on any ~ture Advancea secured by this Mortsa~e. 2. Flutda for Tate~ and Iu~urence. Subject to applicable law or to a written waiver by [.e~der, Borrower shall pay to Lender on the day monthly inatallment~ of principal and interest are payable under the Note, until the Note ia paid in full, a aum (herein "Funds") equal to one~ twelfth of the yeatly taaces at?d eaeessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus ont twelith of yearly premium installmenQs [or hazaed inaursnce, plua onelwelfth olyearly premium installmenta for morlgage insurance, if any. . all aa reasonably eatimated initially and from time to time by L.ender on the basis of assessmenta and bills and rnasonable estimates thereof. The ~Lnds shall be held in an inatitution the deposita or accou~ta of which are inaured or guaranteed by a Federal or State agency lincludi~g Lendar if L,ender ia euch an inetitution). Lender ahall appiy the Funds to pay said taxee, asseasments, insu~ance premiums and ground ernta. Leader may not charge for so holding and applying the Funda, analyzing said a.~count, or verifying and compiling aaid aeeeeaments and bills, unleaa Lender pays Borrower intereet on the Funda and applicable law permits l.ender to make auch a charge. Bo?TOwer at?d I~eader may agree in writing at the time of e:ecution of this Mortgage that intereet o~ the ~nda ehall be paid t6 Borrower, and u~lees such agreeme~t is made or applicable law requires such intereet to be paid, Lender ahall not be required to pay Borrower any interest or earnings on the P1~nds. Lendes shal! give to $orrower, without charge, an annual accounting of the ~nds showing credita and debits to the Funda and the purpose for which each debit to the F~nds was made.'R?e Funda are pledged ae additional aecurity forthe auma secured by this Mortgaga. If the amonnt of the fi~nds held by Leader, together with the future monthly enataUments of Funds payable prior to theduedates of taues. asseBamente, inawance premiums and ground rents, ahall excxd the amo~nt required to pay said taxes, assesamente, inaurance premiums and ground renta as they fall due, auch excees ahail be, at Bmrower'a option, either pmmptly repaid to Borrower or credited to Borrower on monthly inatallments of Ftinde. If the amou~t of the Funda held by Lender ahaU not be eufficient to pay taxes, assesamente, insurance premiums and gr~ound rents ae they fall due, Borrower ahal! pay to l.ender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requeating payment thereof. Upon payment in full of all sums aecured by this Mortgage. Lender ahall promptly refund to Borrower any funda hetd by Lender. [f under paragraph 18 hereof the Propeirty ia sold or the Property is otherwise acquired by Lender, l.ender shall apply, no later than immediately prior to the sale of the Property or ita ac~uieition by Lender, any Funda held by I.ender at the time of application as a credit against the suma secured by thia Mortgage. _ 3. Application ot Payments. Unleas applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 at~d 2 hereof ahaU be applied by L,eader first in payment of amounts payable to Lender by Borrower under paragreph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. C6arges; Liene: Borrower shall pay all taxes, assessments and other rharges, fines and impositions attributable to the Pmperty which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereofor, ~f not paid in auch manner, by Borror~rer making paym,ent, when due, dirertly to the payee thereof. Borrower ahall promptly furnish to Lender a1! noticea of amounta due under this paragraph, and in the event E;orrower shall make payment directly, Borrower shall promptly furnishlo Lender receipte evide~cing such payments. Borrower shall promptly discharge any lien which has priority over this Morigage; provided, that Borrower shall not be required to discharge any such (ien so long as Borrower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shal) in good faith contest such lien by, or defend eniorcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or [orfeiture of the E'roperty or any part therenf. 5. Hazard Inaurance. Borro~rer shall keep the improvements now existing or hereaRer erected on the Property ineuted against loea by iire, hazards included within the term "extended coverage," and such oiher hazards as l.ender may require and in sueh amounts and for auch periods as L.ender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this MortgaKe. The insurance carrier providinR the insu~ance sh:d) tre chusen by Rorrower subject to approval by l.ender, pmvided, that such approval ahal! not be unreasonably withheld. All premium~ on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by F3orrower makinK payment, w•hen due, directly to the incurance carrier. All inaurance policies and renewals thereof shall be in form acceptable to l.ender and shal! include a standard mortgageclause in favorof and in form acceptable to Lender. txndershall ha~~e the right to hold the policies and renewals thereof, and Borrower shali promptly furniah to i.ender all renewal noticea and all receipts of paid premiums. In the event of loss, Burruwer shall give prompt nutice to the insurance carrier and Lender. Lender may make proof of loss i( not made pmmptly by Borrower. Unlesa Lender and Borrower otherwise agree in writing, insurance proceeds shail be applied Lo restoration orTepair of the Property~ darnaged, pmvided auch reatoration oi repair is economically feasible and the security of this Mortgage ia not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, theinsurance proceeds ahall be applied to the euma secured by this Mortgage, with the excess, if any, paid to E3orrower. If the Property ia abandoned by Borrower, or if Borrower faila to respond to Lender within 30 days from the date notice is mailed by I.ender to Borrower that the insuranee carrier offere to settle a claim for inaurance benefita, Le»der ia authorized to collect and apply the insurance proceeds at Lendei s option either to restoration or repair of the Property or the sums aecured by this MortgaRe. . Unlese Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall notextend or postpone thedne date of the monthly installmente referred to in paragrapha 1 and 2 hereotor change the amount of such inatallmenta. If under paragraph 18 hereof the Properiy ia acquired by Lender, all right, title and interest of Borrower in and to any insurance policiee and in and to the proceede thereof reaulting from damage to Property prior to the sale or acqu~sition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Mainteasnce otProperty; Leaseholda; Condominuma: Planned Unit Developmente. Borrower ahaU keep _ the Property in good repair and shall not com?nit waste or permit impairment or deterioration of the Property and ahall comply with the proviaione of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform alI of Borrower's obligations under the declaration or covenants creatingor governing thecondominium or planned unit developmeni, the by-lawa and regulations of the condominium or planned unit development, and rnnatituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenante and agreementa of auch rider ahall be incorporated into and shall amend and supplement thecovenants and agreements ofthis Mortgageasifthe rider were a part hereof. 7. Protectioa of Lender's 3ecurity. If Borrower faila to perform the rnvenants and agreemente rnntained in this Mortgage, or if any artion or proceeding is commenced which materially affecte Lendei e intereet in the Property, inciuding, but notlimited to, erniner?t domain, ineolvenry, oode enforcement, or arrangemente or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make euch appeasances, disburee euch seuns and tslce auch action as ia neseaeary to protect I,ender's interest. including, but not lunited b, dieburaement of reasonable attorney a teea and entry upon the Property to make repairs. If Lender required mortgage insurance as a rnndition of making the loa~ eecured by this Mortgage, Borrower ehall pay the premiums required to maintein auch insurance in effect until auch time as the requirement for euch ineurence terminates in accordance with Borrower'e and I.endei a ~ written agreement or applicable Law. 8orrower ahal! pay the amount of all mortgage ineurance premiuma in the manner provided under paragraph 2 hereof. Any amounte diebureed by Lender pereuant to this paragraph 7, with intereet thereon, ehall become additional indebtednea+~ of Borrower secured by this Mortgage. Unteae Bonower and Lender agree to other terma of payment, auch amounte sha11 be payable upon notice from I.ender to Borrower requesting payment thereof, and ahall bear intereet from the date of d'u+bureement at the rate payable from time to time on outatanding principal under the Note unless payment of intereat at auch rate would be rnr~~ ~~~le law, in which event such amoants shall bear intereet at the higheet rate permiseible under applicable lew. Nothing conEs~in ~n paragraph 7, shall require Lender to incur any expenae or tate any action hereunder. • ~ 8~~.~ t~ ~ - . . " ~~-~.~`"">~~r,~~~~~m~"'~~ ~r-