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HomeMy WebLinkAbout0954 ~ _ . ~ . i ~ t ~ 1 ~ ~ Borrower and Lender oovenant and a~ree u folbwr 1. Paymeat o! Priacipal sad Iaten~t. Borrower shall pmmptly pay whe~ due the principal of and intenst on the indebtsdneas evidenoed by the Note. ptepsyment and late charges aa Qmvided in the Nots, and the principal of and intereat on any ~ture Advances secured by thia Mort~a~e. , 2. F~nds tor T~ea aed losuraace. Subject to epplicable law or to a written waiver by Lender. Borrowe~ ehall pay to Lender on the day monthly installtnenta of principat and interest are payable under the Note, until the Note ia paid in full, a sum (herein "Funda") equal to onp tweltth of tAe yearly tauee and assessmenta which may attain priority over this Mortgage, and ground renta on the Property. if any. plus one twelRh of yesrly premium installments fos hazard insurance, plua onetwelRh of yearly premium installmente for mortgage inaurance, if any, all aa reasonably estimated initially and trom time to time by [.ender on the basis of assessmenta and billa and reseonable estimates thereof. 11~e Ftinds shall be held in an inatitution the deposite or accounts ot which are inaured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). LendeT shall apply the Funda Eo pay said taxes. asseasments, insurance premiume apd groand nnts. Lender may not charge for so holding and applying the Funda, anelyzing 8aid account, or verifying and compiling said aee~asmenta and bills, unless Lender pays Borrowe~ intereat on the Funds and applicable law permita Lender to make such a charge. Borrower and l.a?d~ may agree in writing at the time of e:ecution of this Mortgage that i~terest on the ~nda shall be paid to Borrower, and unleas auch agreement is made or applicable law requires auch intereet to be paid, Lender shall not be required to pay Horrower any interest or eamings on the ~Lnda. I.ender shall give to Borrower, without charge, an annual accounting ottRe Funds showing credita and debits to the Funds and the purpose for which each debit to the ~nda was made. 7'he Funds are pledged as additional eecurity for the aume eecured by this Mortgege. If the amount of the flinds held by Lender, together with the future monthly inatallmente of Funds payable prior to the due datea of ta~us. seaeeaments. inaurance premiume and ground rente, shaU e:caed the amount required to pay said taxes, aasesamente, insurance pnmiums and ground renta as they fall due. such e:cesa shall be, at Borrower s option, either prompdy repaid to Borrower or credited to Borrower on monthly inaLallments of Flinda. If the amount ot the Funde held by Lender ahall not be sufficient to pey taxea, asseeamenta, ineurance premiume and g~ound rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 d~ys from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums aecured by this Mortgage, Lender ahall promptiy refund to Borrower any tunds held by Lender. If under paragraph 18 hereof the Property is sold or the P~opetty is otherwise acquired by Lender, l.ender shaU apply, no later than immediately prior ta the sale af the Property or ita acquisition by Lender, any Funds held by Lender at the time of application as a credit againat the sums secured by this Mortgage. 3. Application of Psyments. Unleas applicable law providea otherwise, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof shall be applied by Leader first in payment of amounis payable to L.ender by Borrower under paragraph 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. Charges; Liena. Borrower ahall pay all taxes, asseasments and other charges, fines and impositions attributable to the Property which may attain a priority overthie Mortgage, and leasehold payments orground rents, if any, in the manner provided under paragraph 2 hereofor. if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to L.ender ai! noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly lurniah to [,ender receipta evidencing such papments. Eiorrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so IonR as E3~rrower shall agree in writinR to the paymentof the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith cr~ntest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement ot lhe lien or forfeiture of the Property or any part thereof. - 5. Hatard Inaurance. Borrower ahall keep the impmvements now existing or hereafter erected on the Property insured againat loss by fire, hazarda included within the term "extended coveraRe," and such other hazards as Lender may require and in such amounts and forsuch periods as L.ender may require; provided, that Lender shall not reyuire that the amount of such rnverage exceed that amount of coverage ~ required to pay the sums secured by this MortRaKe. The insurance carrier providing the insurance sh:~ll 1?e c•hosen by Rurrower subject to approval by I.ender: provided, that such approval shal) not be unreasonably withheld. AU premiums ~~n insurance p~~licies shal) be paid in the manner provided under paragraph 2 hereof or, if _ not paid in such manner, by Borrower makinR payment, when due, dircrtly to the in~urance carrier. AU insurance policies and renewals thereof shall be in forrn acceptable to I.ender and shall include a standard mortgageclause in favor of ; and in form acceptable to L,ender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furniah to ; i.ender all renewal notices and all receipts of paid premiums. In the event of loss, I3orruwer shal) give prompt notice to the insurance carrier ` and Lender. Lender may make proof of loss if not made promptly by Borrower. j Unlesa L,ender and Borrower otherwise agree in vNriting, insurance proceeds shall be applied to restoration or repair of the Property ~ damaged, provided auch restoration or repair is economically ieasible and the security of this Mortgage ia not thereby impaired. If auch ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceede shall be applied to the auma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower. or if Borrower fails to ~ reapond to Lender within 80 days from the date notice is mailed by l.ender ta Borrower that the insurance carrier of'fers to aettle a claim for a insurance benefita, Lender is authorized to collect and apply the insurance proceeds at Lender s option either to reatoration or repair of the ~ Property or the aums secured by this Mortgage_ _ ~ Unlesa Lender and Bortower otherwise agree in writing, any such application of proceeda toprincipal ehall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of auch instalimente. If under paragreph 18 ~ hereof the Properiy ia acquired by Lender, all right, title and inlerest of Borrower in and to any insurance policies and in and to the proceeda ~ thereof reeulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the auma secured by this Mortgage immediately prior to such eale or acquisition. ~ 6. Preservation and Maintenance otProperty; Leaseholds; Condominuma; Planned Unit Developmente. Borrowerahall keep the Property in good repair and shall not com~nit waste or permit impairmer.t or deterioration of the Property and shall comply with the provisiona of any lease if this Mortgage ia on a leasehold. If thia Mongage is on a unit in a rnndominium or a planned unit development, ~ Borrower shall perform all of Borrower's obligations under the declaration or covenants creatinRor governing the condominium or planned unit development, the by-laws and reECulations of the condominium or pianned unit development, and constituent documente. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mottgage, the oovenants and agreements of such rider shall be incorporated into and ~hall amend and supplement the covenanta and agreements of this Mortgage as if the ~ rider were a part hereof ~ 7. Protection ot I.ender's 3ecurity. If Borrower faila to pertorm the covenente and agreemente contained in this Mortgage, or if any - action or proceeding is commenced which materially affecte Lender'e inter~et in the Property, including, but not limited to, eminent domain, ~ inaolvency, oode enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then Lender et I.ender'e option,upon notice to Borrower may make auch appearances, diaburee auch eums and take auch action as is neoeesary to protect Lender's intere~t, ; inclnding, but not limited to, diebureement of reasonable attorney's fees and entry upon the Property to make repairs. If I.endrr required mortgage insnrence as a rnndition of making the loan aecured by thie Mortgage, Borrower ehall pay the premiums required to maintain a euch ineurance in etfect until auch time as the requirement for auch ineurance terminates in accordance with Borrower's and Lendei s ~ w~ritten agreement or epplicable [.aw: Borrower shall pay the amount of all mortgage ineurance premiume in the manner provided under ~ paragraph 2 hereof. Any amounte diebureed by Lender persuant to this paragraph 7, with intereet thereon, ehall become additional indebtedneee of " E3orrower eecured by thie Mortgage. Unleas Borrower and Lender agree to other terme of payment, such amounte ehall be payable upon notice from Lender to Borrower requesting payment thereof, and ahall bear intereet from the date of d'u+bureement at the rate payable trom time to time on outetanding principal under the Note unlese payment of intereet at such rate would be contrary to applicable law, in which event such amounte ehall bear interest at the higheat rate permiaeible under applicable law. Nothing contained in thie paragraph 7, shall ~ require Lender to incur any expense or take any ection hereunder. , ~:MtA ~ - 800~~( ~h~ PAGE ~4 ~ ~ ~ - -