HomeMy WebLinkAbout0866 tl~u~oRt?t Co~•E~ ~~ts. Borrowcr :end I.endc~ cuvcnant und a6rcr at follc?ws:
Psyu~rnt of Principat apd Inic~esf. Rorrower sh:~ll pr~~mptly pay e~hen du~: thc princip:,l uf ~nd inicr~st .~n tt~~
indcbtcdnrss cvidcnccd by thc Ko1e, prepayment an~1 latc charb~t ai pro~~i~lcd ~n the Note, and thc principal ot and intcrcu
on any Future ~dvances secu~zd by ihic Mottgage.
Z. Runds for Taxes and lnsuranca Subject to applic:~bi~ law or to a N•ritten waiver by LcnJrr. Burrowe~ shall pay
to Lr.ud~r on thc day movthly installmcnts of pri~cipal and ~ut~n~t :~rc payabic u~dcr tt~; Notc. until thc Note is paid ;i~ fuU,
a sum (hcrein "Funds") cq~~al to onc-iu•clfth of thc ycarly~ t•r~cs and asses~smcntx which may at~ain priority uvcr this
~lortgagc. and ground rents on thc Prapcrty. if any. plus onc-tHCI(~h of ycarly prcmium i~staUmcnts for haiard imw:~nce.
plus one-twclfth of ~•carly premii~m iRStallments tor mortgagc ins~~ra~cc, if any. all as rcasonably et~im:+ted initially anJ from
timc to time by Lender on thc basis of assessmcnts and bills and reasooablc estim~tcs thereof. '
The Funds shall bc held in ~n institiilion the deposits or accounts o( which are insured or guaranteed by a I~eJcral o~
state agency (including Lendcr it I_rnJrr is such an instituti.~n). l.cnder shal! apply the Funds ta pay said taxet~ assrssments,
insura~ce premiums and ground rents. l.ender may noi ch3rge to~ so holding and applying the Fu~Js. analy2ing said accuunt.
ur verily~ing and compiling said a~scssments anJ bilts. un[css t.~nJcr pa~~s Borrow~cr intcr~:st on thc Funds and applicablc !aw ~
permits t.ender to make such a charge. Borrower and LenJcr may agrec in writing at the time of czecutio~ uf this
Mortgage that i~te~est on the Funds shall be paid ro Sorrower~ and unless such agreeme~t is made or applicable law i
requires such intcrest to bc paid. Lender shall not be requircJ to pay~ Barrower any intcrest or earnings on the Funds, l.cndc~
shall give to Borrowe~, ~vithout ~ha~ge, an an~ual accounting of the i=unds showing credits and debits to the fiunds anJ the
purpose tor which each debit to the Funds was made. Tne Funds arc pledged as additional securit~~ for the sunts secured
by this Mortgage.
lf the amount of the Funds held by Lender. together ~~~ith the tuture mon~hly installmcnts oi Funds payabtc priar to
the due dates of taxcs. assessments, msurance premiums and groand rents. shaN excecd t?ic amount required to pay said taxes,
assessments, insurance premiums artd ground renis as they faU due, st~ch excess shall be. at Borrow4r's option, eithe~
promptly rcpaid to Borrower or credit~d to Borrower on monthly installmcnt's af Funds. If the amount of the Tunds
held by L.eacter shall not be sut5cient to pay taxes. assessments, insurance, premiums and ground rents as thcy [all due,
Bormwer shal! pay to Lender any amount necessary to make up the deficiency within 3~ days from the date notice is mailed
by Lende~ to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mor~gage, l_ender shall promptly rcfund to Borrower any Funds
held by Lcnder. If under paragraph 18 hereof the Propcrly is sold or the Propcrty is otherwisc acquired by Lendcr, I_ender '
s6a11 apply, no later than immediatcly prior to the sak af the Property or its acq_uisition by I~nder. any Funds held by
Lendec.at tt+e time of applicatio~ as a credi! against the sums secured by this Mortgage.
3. Appl~cstion of Paymenfs. Unleu applicable law provides otherwise, all payments recei~•ed by Lender under the
Note aad paragraphs 1 and 2 hereof shall be applied by I_cnder first in payment o[ amounts payable to Lender by Borrower
under paragraph 2 hereof, then to intcrest payable on thc Note, then to thc principat of the Notc, and then to interest and `
principai on any Future Advances.
4. C6uges; Llens. Dorrow•er shal! pay all taxes. assessm~nts and ather charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner ,
providcd under paragraph 2 hereof or, if not paid in such manner, by $orrowcr making payment, when due. directly to the '
payce thereof. Borrower shail prompt[y furnish to Lendcr atl notices of amounts due unde~ this paragraph. and ia the eve~t
Borruwer shal! make paymeM direcdy. Borrower sha!! prompqy furnish ~to I.ender receipts evid~ncing such paymcnts.
Borrower shall promptly dixharge any lien which has priority ovcr tfiis Mortgage; provided, that Borcower shall not be
required to discharge any such lien so long as Borrower shall agree in w•riting to the payment of the obligation secured by
such lien in a nanner acceptable to Lender, or shail in good faith contest such lien by, or defend enforcemeni of such lien in,
legat proceedings which aperate to preveni the enforcement of the lien or forfeiture of the Property or any part thereof. _
5. Haiard Insurance. Borrower shaU kcep the improvements no~ existing c:r hereafter erected on the Property insured
against loss by fire, hazards included w~ithin the term "zxtended coverage", and such other hazards as Lender may reyuire
and in such amounts and for such periods as Lender may require; provided, that Lender shail not mquire that the amount of
such coverage exceed that amount of co~•erage required to pay- the sums sece~red by t}iis Mortgage.
The iasurance catrier providing the insurance shall be chosen by Borrower subject to appro~al by Lender, provided,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borrow•er making paymenf, w~hen due. directty to the
insurance carrier. ~
All insurance policiesand reneHals thereof shal! be in form acceptable to Lender and shall include a standard mortgage '
clause in favor of and in form acceptable to Lender. I.~ender shall ha~~e the right to hold the policies and renewals thereof, i
and Borrower shall promptly furnish to Lender all renewal notices and all reccipts of .paid premiums. In the event of loss, ±
Borrower shall gi~e prompt notice to the insurance carricr and t.ender. Lender may make proof of loss if not made promptly ~
by Borrowcr.
Unless Lender and Borruwer othencise agree in writi~g. insurance groceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of ihis Mortgage is
not Ihereby impaired. If such :estoration or repair is not economicatly feasible or if the security of this Mortgage ~;•uuld
be impaired, the insurance proceeds shal! be applied to the sums secured by this Morigage, with the excess. if any, paid
to Borrowcr. If the Propert~~ is abandoned hy Borrowcr, or if Borrou~er fails to respond to Lcnder w•ithin 30 days from the
date notice is mailed b~~ Lender to Borrow~cr that th~ insurance carrier ofIers to settle a claim for insurance benefits. i.ender '
~s authoriud to collect and apply the insurance proceeds ;,t 1_er.der's option either to restoration or repair of the Property
or to the sums srcured by this ~lorigage.
Unless l.ender and~Bormwer utherr~i~c agree in writing. an~ such application uf proceeds to principal shall not extend
or postpone the duc date of the monthly installments referred co in parasraphs 1 and 2 herrof ur change the am~un~ of
such installments. If under paragraph 18 hereof the Propert}~ is acyuired by I~ndcr, a1) right, titlc a~d intcrest of i3orr~wer
in and to an~ insurance policies and 'en and to ihe proceeds thereof resulting from damage to the P:.~periy prior to thc sale
or acyuisition ~hall pass to Lender to ihc e~tent of thc sums ,ecured by this ~fortgage immediateiy prior to auch ~ale or s~
acyuisition. _
6. Presenation and ~taintcnance of Propcrip; I.easch~?Ids; Condominiums; Planned Unit Uc~~clopmcnts. I3orro«•cr
shall keep th~ Pro~xrt} in goud repair snJ shati not commit •.~aste or permit +:npairment or dctcrioration of thc Propcrty
ard shall cempl~• uith ihe pro~•isions of :,n}' lease-if this 1t~~rtg,~be i, un a iraschold. If this ~1uit~age is on a unit in a
condominium or a planncd unit Jrcclopm~nt. Borru~~~cr ~h~lt pcrform all of Bc?rro«cr's cbligati~lr.s under thc drel:~ration
or covenants creating ur governing th~ condominium ~?r planr,ed unit devel~pznenl. the by-laKS and regtdations of the
condominiu~n or planncd unit dcvclopmcnt, and ronstitucnt d~cum~nts. 1( a c~?~zclomioium or planncJ unit dc~•clnrmcnt
ricfer is e~Ciuted b) BOtrtit~i! .,nd rr~orJ~d sc~bether aith ;his ~t~~rtgabc. thc rovenants and :i~reemcnts vf such rider
shall be incorporated into and shall amend and suppt~ment th~ co~enants ancl agreements uf this ~fortgage as if the rider ,
.+~cre a part hereof. ;
7. Protection of I.eE~ders Security. 1f i3.~rr~wer f.uk t~~ perf~~rm the rnvenants and agreements contained in this ~
Mor~gage, or if any action ur p:~•~~eding +s cumrarnce.i uhich matcrially a;Trcts I_endcr'.s in:erest in the Pm~rt~•, '
including, b~,t not limited to, eminent domain, insoh~enc~•, r~~dc ~n(oteement, or arrangements or proceedings invoh•ing a
banknipt or decedent, thcn I.ender at I_endcr'~ optiun, u~n nutice to Borro~r•er, may make such appearances, disbursc wch
sums :~nd tai:e such action as is necetsary to protect Lendcr'c ~merest, including, but not IimiteJ tu. disbursement ~
reasonahtc attome~~'s fees and entr~~ upon ttie Property to make rcpairs. If I.cnder reqi~ired m~rlgage incurancc a
condition of making the loan secureJ b~~ this ~tortgaer. f3~~rru~cr shall p:?y thc premiums requireJ to maint:~~n such
insurance in etiect :intil such tirne as nc~ reyuirement for ~u::h insurance terminatcs in accordance with Borro~~-cr', and
eoox ~fi8 PA6f 865