HomeMy WebLinkAbout0551 l`~t! ~~k~t ('o~ Fh ~y rs. 11orn,wrr anJ 1 cndrr c~vzn.~nt and :~~rce a~ (ollows: ,
1. Pa~rnrnt of Prioclps~l and Inte~esf. ti~?rruNrr shall promp~ly p:,y when due IhC principal uf a~id intnrast o~ the
in.'.c'r:rd:~es. e~idrnc~J hy th~ Notv, prepaymrnt ~c~d I;ItC Ch:lfGC? a. provi~lyd in !he I`ote, :~nJ Ihe principal of a~d intt~est
on :in~• 1'.Ruce Advances ,ecured hy this blortgagC,
2. F'unilc [ur 7'uxes a~d Insuranca Subjr~t to appficable law ur to w•ritte~ waiver by I endtr. [3orrower sh~li pay
t.~ Lc c2.l~r ot: thr d:ry munthly in,tallmrnts ot principal .~nd int~rest ac~ p~yable under the N~~tc, until thc Note is p~id in full.
a sum lh~rcin "FunJs") cqual ti? unedwelfth the y.a~iy ta~c. ancl a~scsxments which may auain priurit) over this
\tort,,~_~, an.! ~rounJ rents an tht Property, if ~ny. plus one-hv~lfth of ~c~rly premium inctallments for hazard insurance.
ptu~ o:~~-,~~rlrth of ~•carly prcmium in~tallme~ts for mortgage insurancc, it :~ny, all a~ rca~onably ectimated initially and from
timc a~ time by Lcndcr on the l~asis af assessments anJ hills and rea~onablt estimates thereof.
7hr Funcl~ shall he he1.1 ia an institution th~ dep~~sits ar accuunts of which are insureJ or gua~unteed 6y a Federal or
~t1tr agency (including l.en~er if I.ender i~ such an institution). ( ender sh~ll apply th~ Funds to pay saiJ taxes. assessments.
insurance pr~miums and ground rrnts. Lender ma~ ~~oi ehatFe for ~o hotding and applying the T'unds, analyzing said account.
or ~•erif~i+~~ anJ compil~ng s~id asscssments and bills, uuless Lendcr pa~~s I3o~rower intzrest an the Funds and applicable Iaw
permit~ I.ende~ to make such a charge. Horrower aud I.ender may agree in writing at the time of execution of this
~lortga~t thst interest on the Funds shall he paid tu Borrowrr, and unless such agreement is made or applicable law
requires su:h intcrest to he p:+id, l.ender shalt not be rcyuired to pay liorrower rny interest ar carnint;s on the Funcis. Lcnder
shall gi~e ro Borrower. without charge, an annual acc~~unting of the Funds shuwing c~edits and debits to the f=unds and the
purp.~s~ fuz which each Jrbit to the Fu~ds was made. The Funds are pleciged as additional securiry for the sums secured
by thi~ ~tortg~ge.
If th- amount of the Funds held by Lendrr. toyether with the tuturc month{y installments uf Funds payable prior to
the due dates of taxes, assessments, insurance premiums snd bround rents, shall exceed the amount required to pay said taxes.
assessmen:s, insurance premiums and ground rents :+s they fall due, such excess shall be, at Borrower
s option. either
promptl~~ repaid to Bo~rower or crcdited to Borrower on monthly ir~ct~llments of Funds. If the amount of the Funds .
held b}• Lender shall not be suRicieat to pay taxes. assessments, insuranc~ pn.miums and ground rents as thcy fall due,
Borrawer shall pay to I_ender any amount necessar~ to make up the Jeficie~cy within 30 days Irom the date notice is mailed
by Leader to Borrower rcquesting payment thereof.
Upon payment in full of alt sums securcd by this Mortgage, l.ender shall promptly refund to Borrower any Funds
held by Lender, lf under paragraph 18 hereof the Property is sold or the Property is othenvise acquired by Lender. Lender
shall apply, no later than immediately prior to the sale of the Yroperty or its acquisition by Lender, any Funds held by
L.eader at the time of appiication as a credit against the sums secured by this hiortgage.
3. Applicatio~ ot Payments. Unlest applicable law provides othenvise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applieci by 1_ende~ first in payment uf amounts payable to Lender by Borrower
under p3ragraph 2 hercof. then to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances.
~3. Charges; Lie~. Borrower shal) pay ali taxes, assessments and other charges. fines and impositions attributable to
the Proptrty which may attain a priocity over this ~lortgage. and leasefiold payments or ground rents. if any. in the manner
proviJed under paragrapfi 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
payee th~reof. Borrower shall promptly furoish to I_ender all notices of amounts due under this paragraph, and in the event
Borrotiti•er shall make payment directly. Sorrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall prompdy discharge any lien which has priority ovcr this Mortgage; provided. that 8orrov?er shall not be
required to discharge any such lien so long as Borrower shall agree in a~riting to the paymeot of the obligation secured by
suc6 fien in a manner acceptable to Lender. or shall in good faith contest such lien by, or defend enforcement of such liea in,
legal proceedings which opuate to prevent the enforcement of the I~en or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrowes shall keep the improvements no~v existing or hereafter erected on the Property insured
against locs by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such perials as Lender may require; provided, that Lender shall not requi~e that the amount of
such cu~ ~rage exceed ihat amount of coverage required to pay the sums secured by this hfortgage.
The insurance carrier providing the insurance sha11 be cfiosen by Borrower subject to approval by Lender. provided.
that such approval shall not be unreasonably withheld. All premiums on 'snsurance policies sfiaii be paid in the manaer
provided under paragraph 2 hereof or, if not paid in such manner, by Horrower making payment, when due, dicectly to the
insursnce carrier.
All insurance policies a~d reaewals thereof sha{I be in form acceptabte to Lender and shall include a standard mortgage
clause m favor of and in form acccptable to Lender. Ixnder shall have the right to hald the policies and renewals thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
BorroK~er shall give prompi notice to the insurance carricr and L.ender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shal! be applied to restoration or repair of
the Propert~~ damaged. provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or rcpair is not economically feasible or if the security of this Mortgage would
be impsired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the ezcess, if any. paid
to Borr~wer. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
is authorized ta co{kct and apply the insurance proceeds at l.ender ~ option either to restoration or repair of the Property
or tu the sums ~ecurecl by this Mortgage. ~
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal sfial{ not extead
or F+ostpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount~of
such installments. If under paragraph f 8 hereof the Property is acyuired by Lender, all right, tide and interest of Borrower
in and to any insurance policies and in and to the proceeds tfiereof resuiting from damage to the Property prior tu the sale ~
or a~quisition shall pass to Lender to the ectent of the sums secured by this Jiortgage immediately prior to such aafe or
acquisition.
6. Presenalion and 1~Iaintenance of Property; Le~seholds; Condominiums; Planned Unit Developments. Borrower
shall keep thc Property in good repair and sfiall not commit waste or permit impairment or deterioration of the Property
and shall cumply with the provisions of any lease if this Mortgage is c?n a leasehold. If this J?fortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower
s obligations uader the declaration
or covenants creating or governing the condomi~ium or planned unit development, the by-laws and regulations of the
condominium or planned u~it development, and constituent da:uments. )f a condominium or pl~nned unit develapment
rider i1 rxecuted by I3orrower and recorded together with this bto~tgage, the covenants and agreements of such rider
shall be i~corporated into and shal! amend and supplement the covenants and agreements of this Mortgage as if the rider
uere a part hereof.
y. Protection of Lender's Security. If Uorr~w-er fails to perform the covenanfs and agreements contained in this
l~iortgage, or if any action or procexding is commenced which materially aftects 1._ender s interest in the Property.
including, but not limited to, eminent domain, insolvency, code enforcement, or arrange~t?ents ot proceedings invo{ving a
bankrupt or decedent, then Lender at I.endcr'a option, upon notice to E3orrower, may make such appe:~-ances, disburse such
sums and take such action as is necessary to protect Lender s interest, including, eut not limited to. disbursement of
rea;onahlt attomey's fees and entry upon the Propecty to make cepairs. If Lender required mortgage insurance as a
cond•.t:on of making the loan secured by this `tortgage, Borrower shall pay the premiums reguired to maintain sucfi
~:,~uranci in e~tct until such time as the teyuirement for ~.uch iniurance t:rminates in accordance with Borcowtrs :ind
6~~2VJ PACE 53s