HomeMy WebLinkAbout0854 Borrower and Le~der cove~anL and a~ree as tolbwr
1. Payment of Principal ~nd Iatere~R Borrower shall promPtlY PeY when due the pdnripal oI and interest on the indebtednesa
evidenosd by the Note, pnpsyment and late cher~es a~ pmvided'?n the Note. and the principal of and intereat on any Ftitun Advances eecured
by thi~ MortgaQe. '
2. F'und~ for Taxeo and Inauraaoo. 3ubjcct to applicable law or b a written waiver by L.ender. Borrower ehall pay to l.ender on the day . F
monthly uutalimeata of principal and interest are pa~yable under the Note. until the Note is paid in full, a sum (herein "~nds") equal to one
tweltth of the year~jr tases and assesameats which may atlain priority over thia Martgage, ar~d ground renta on the Property, if any, plus ons
twelRh of yearly premium inatallmenta for hazard inaurance, plua onetwelRh of yearly premium installmente for mortgage inaurance, if any,
all as reasonably estimated initially and from time to tiwe by Lender on the basia of esseesments and billa and reaeonable estimat~ thereof.
'l~e I~nds shaU be held in an institutioa the depwit~ or acoounta of which are uuured or ~uaraateed by a Federal or State agency
(including Lender if I.ender ia such an institutio~). Gender shall apply the ~nds b pay said t~es, aeaeasmenb. insurance premiums and
ground renb. Iender may not charge for w holding and applying tbe Fuads. analyzing said account, or verifying and rnmpiling said
aaseaamenfe and biUs, unleas I.ender pays Bor~ower int~est oa the ~nda aad applicable law pemnita Lender to make such a charge. Borrower
and Lender may agree in writing at the time of e:ecutio~ oi this Mortgege that interest on the ~nds ahall be paid to Borrower, and unleas
euch agreement is made or applicable law requirea such intereet to be paid. Lender shall not be e~equired to pay Borrower any intereat or
earninge on the ~nds. Lender ahall give to Borrower. without charge, sn annual accounting of the ~nds ahowing credita and debite to the
Ftinds and the purpoae for which each debit to the Ptirnds wes made. The Funda are pledged aa additional eecurity for the aums secared by ihis
Mortgage.
If
the amount of the Flu?da held by Lender, together with the iuture monihly installmenta of ~nda payable prior to the due dates of t.a:ea,
aeaeeaments, insurance premiums and grouad rente. shall ezc+~ed the amount required to pay said taxea. aseeaementa, inaurance premiums
and ground rents as they faU due, such ezoess shall be. at Borrowsi
s option, either pmmptly repaid to Bor~ower or credited to Borrower on
monthly installments of Ftiads. V the amount of the Funds held by I.ender shall not be eufficient to pay t~ee, eaeeasmeate, insurance
premiume and gwund rents as they fal! due, Borrower shall pay to Lender any amourt neceeeary to make up the deficiency within 30 days
from the date notice is mailed by Lender to Bormwer requesting payment thereof.
Upon payment in fu11 of all aume eecured by this Mortgage, I.eader shaU prompdy refund to Borrower any lunde held by Lender. If under
paragraph 18 hereof the Property is eold or the Property is otherwiee acqiured by Lender, I.ender ahall apply, no later than immediaLely ptior
to the sale of the Property or ita aoquisition by Lender. any Funds held by Leader at the time of application as a credit againat the aums eecured
by this Mortgage. .
3. Application of Payments. Unlesa applicable law pravidea otherwiee. all- paymenta received by Lender under the Note and
paragraphs 1 and 2 hereof shail be applied by Lender first in payment of amounta payable to I.ender by Borrower under paragraph 2 hereof.
then b interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future AdvanePa. '
4. Charges; I.iens. Borrower shall pay all taues, asseeaments and other charges, fines and impositiona attributable to the Property which
may attain a priority over t}iis 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 paymen~ when due, direetly to the payee thereof. Borrower shall promptly fumieh to I.ender
all notices of amounta due under this paragraph, and in the event Borrower shall make payment dirertly, Borrower ahall promptly [urnish to E
Lender receipts e~-idencing adch paymenta_ Iiorrower shall promptly discharge any lien which has priority over thia Mortgage; provided. that i
Borrower shall not be required to disch arge any such lien ao long aa Borrower ahaU agree in writing to the payment of the obligation secured by 4
such lien in a manner acceptable bo Lender, or shall in good [aith eontest such lien by, or defend enfomment of auch lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insuraace. Borrower shall keep the improvements now e:isting or hereaEter erected on the Property inaured against lose by
fire, hazarda included within the terro "eztended rnverage.° and e~uch other h~zards as Lender may require and in such amounts and for such
periods as Lender may require; provided, that i.ender shall not require such ooverage amount e:ceeding the minunum, as may be required by
state or federal regulationa governing activities of Lender. or that atnount of rnverage required to pay the sume secured by ihis Mortgage.
whicheper ia the greater. "
The inaurance carrier providing the inaurance shall be chosen by Borrower subject-to approval by I.ender; provided, that such approval
shall not be unreasonably withheld. All premiums on inaurance policies shaU be paid in the manner provided under paraqraph 2 hereof or, if
notpaid in such manner, by Borrower making payment, when due, directly to the insurance carrier.
All inaurance poGcies and renewala thereof shall be in form acoeptable to Lender and ahall include a etandard mortgage clause in favor of
and in form aoceptable to Lender. I.ender ahall have the right to hoW the policiee and renewals thereof, and Borrower shall promptly furnish to
i.ender all renewel noticea and all receipts of paid premiuma. In the event of loes, Borrower ahall give prompt notice to the ineurance carrier
and Lender. Lender may make proof of loes if not made prompdy by Borrower.
i Unlees Lender and Borrower otherwiee agree in writing, insurance proceeds ahall be applied to restoration or repair of the Property
~ damaged, provided auch reatoration or repair ia economically feasible and the eecurity of this Mortgage is not therebjr impaired. If such
i restoration or repair is not economically feasible or if the security of thie Mortgage would be unpaired, the inaurance proceeds shall be applied
4 Eo the auma eecured by thia Mortgage, with the ezceas, if any, paid to Borrower. If the Property is abendoned by Borrower, or if Borrower faile to
' reapond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the inaurance carrier of~ers to aettle a claim for
~ ineurance beaefits, Lender is authorized to oollect and apply the insurance proceeda at Lender s option either to reatoration or repair ot the
Property or the auma eecured by thiB Mortgage. i
Unlees Lender and Borrower otherwiee agree in writing, any such application of proceeda to principal ahall not eactend or postpone the due ;
~ date of the monttily inatallments referred to in paragraphs 1 and 2 hereof or change the amount of auch installmente. If under paragraph 18
hereof the Property ie aoquired by Lender, all right, title and intereat of Borrower in and to.any inaurance policies and in and to the proceeda
thereof reaulting from damage to Property prior to the sale or acquiaitioa ahall paes to Lender to the e:tent of the euma eecured by thie ~
Mortgage immediately prior to such eale or aoq~isition. ~
6. Preservation and Mainteaance olProperty; Leaseholda; Condominume; Planned Unit Developmenta. Borrower shall keep
the Property in good repair and ahell not commit waste or permit impairment or deterioration of the Property and ahall comply with the
provisione of any leaee if thie Mortgege ia on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development,
Borrower shal) perform all of Botrower a obligationa under the declaration or covenanta creatingor governing the condominium or planned
unit development, the by-laws and regulationa ot the condominium or planned nnit development. and oonatituent docwnente. If a ~
condominiam or pianned unit development rider ia e~ecuted by Borrower and recorded together with thie Mortgage, the oovenanta and s
agreement8 of auch rider shall be incorporated into and shall amend and aupplement the rnvenante and agreemenfs of thia Mortgage as if the `
rider were a part hereof. `
7. Protectbn oi I.ender'~ Security. Ii Borrow~ fails b pertorm the oovenanta and agreementa oontained in thi. Mortgage, ar if any
action or prooeeding ie oommenced which materielly at'fects Lendec's int~ereat in the Property, including, bnt not limited to, eminent domain,
insolvency~ oode enfot~cemeat~ or arrangements or pmceeding~ involving a bankrupt or deoedent, thea I.ender at Lender's option,upon
~ notioe to Borenwer may make snch appearanoes. disbnree such suma and take anch action as is neoeesary to proted I.tndds interest,
- inclnding, bnt not limited to, disbureemmt of reasonable attorney's fees and entry upon the Propedy to make repairs. If I.ender required
PaY the premiums required to maintain
~ mortgage insarance as e oondition of making the loan eecured by this Mortgage, Botrower ehall
~ snch insaranoe in effect antii snch time as the requirement for snch insurancx terminates in aooordance with Borrower's and Lender's
~ written agreemeat or applicabk Law. Borrower ahall pajr the amount of all mortgage insuraaoe premiume in the manner provided under ;
paragraph 2 hereof. ;
~ Any amonnta diebursed by Lender persuant to this parsgraph 7. with intrreat thereoa, ehall beoome additional indebtednees of
~ Borrower secured by this Mortgege. Unleas Borrower and I.ender agree b other terma of payment, auch amounts shaU be payable upon
~ notice from Lende~ Lo Borrower requesting payment Wereof, end shall bear interad from the date of disbureement at the rate payable from
time to time on outstanding principel nnder the Note unlees payment of interest at auch rate would be oontrary to applicable law. in which
event anch amounts ehall bear in~t et the highest rate permissible und~ applicabk law. Nothing contau?ed in this paragraph 7, ahall
require Lender to incnr any apense or ta1~e any action haennder. .
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