HomeMy WebLinkAbout0029 Born~wer and Ixnder cu~en:.::i : e~ee ue foltuwa:
1. Payment ot Principal and lntereet. Borrower ehnll promptly ptiy when due the principal o[ and interrat un Ihe indebudnea~
evidenced by the Note, prepayme~t and latechnrges aa pruvidcd in the Note, and the principnl of and interest on uny F uture Advances ~ecured
by this Mortgage. .
t. F~nds ior'I'axra and lneu~ance. ~ubject tn npplicable luw or b a wriUen waiver by I.ender, t3oROwer shnll ptiy to Ixnder un the day
monthly instnllmenta of principal and intereat are payable under the I~ote, until the Note ia paid in full, u sum Iherein "F
unds") eyual to one
twelfth of the yearly taxes and tisxeasmenta which mny attxin priority ove~ this Mortgage, nnd ground rents on the 1'ruperty, if any, plus one
twelfth of yearly premium installments for hazard insurance, plusu~PtwelRh ofyeurly premium ~nattillments for mortgage inaurance, if any,
all as reasonably estimated inilially and from time to time by I.ender on the basis of assessmenle and billx and re.~sonable eatimutE~x ihereof.
The ~nds shall be held in an institution the depoaita or accounts of which are insured or ~aranteed by a Federal or Sta?e i~ency
(including l.ender if I.ender is auch an inetitution). I.ender ahall apply the Funde to pay said taxea, ase?eaAments, inaurance premiums and
ground mnts. l.ender may not charge for eo holding and applying the Funde, analyzing said account, or verifying and compiling said
aeseasments and bills, unlesa l.ender pays Borrower intereat on the Funda and upplicable law permita Lendez!o ~nake euch a charge. Borrower
and l.ender may agree in writing at the time of execution of thia htortgt~e that intemst on the Funds shaU be paid to E3orrower, and unleaa
such agreement ia made or applicable law requires such intereat to be paid, [.ender ahail not be required to pay Iiorrower any interest or
earninga on the F~nda. Lender ahall give to E3orrower, without charge, an annual accounting of the Funds showing credits and debita to the
Funde and the purpoae for which each debit to the Funds was mnde. The h'unds a?re pledged as additional security for the suma secured by this
Mortgage.
If the amount of the F~nds held by Lender, Wgether with the futurn monthly inataltments of I~ unds payable prior to the duedates of taxea,
asseasmenta, inaurance premiume and ground rents, shAll excrcd the amount required to pay said taxes, assessments, inaurance premiums
and ground rnnts as they fall due, such excesa ahall be, at Borrower s option, either promptly repaid to Borrower or creditrd to Borrower on
monthly installments of Funds. If the amount of the Funda held by I.ender ahall not be suffictent to pay taxes, pssessmenta, inaurance
premiums and ground rents ae they fall due, E3orrower shall puy to l.ender any amount necessary to make up the deficiency within 30 days
from the date notice ia mailed by I.ender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by thie Mortgage, Lender sht?11 promptly refund to E3orruwer any funds held by I.ender. If un~ler
paragraph 18 hereof the Property is aold or the Property is otherwise acquired by I.ender, lxnder shall apply, no later than immediately pr+or
to the sale of the Property or its acquiaition by l.ender, any N
unda held by Lender at the time of application as a credit against the sums secur~d ,
by this Mortgage.
3. Applieation ot Paymenta. Unless applicuble law pmvides otherwise, all payments received by Lender under the Note and
paragrapha 1 and 2 hereof shall be applied by Lender firxt in payment of amounts payable to I.ender by Borrow er under paragraph 2 hereuf,
then to intereat pa~able on tl:e Note, then to the principal of the Note, and then to interest and principa! on any Future Advances. ~
4. Charges: Liens. Borrowershall pay all ts~xes, aa4essments and othercharges, fines and impositions attributable W the Property which
may attain a priority over this Mortg~ge, and leaxehold payments or gruund rents, if t~ny, in the manner pro~ ided under paragraph 2 hereoCor,
if no! paid in such manner, by Borrower makinR payment, K hen due, directly to the payee thereof. Borrowershall promptly furnish to I.ender
all notices of amounts due under this paragraph, and in the event &~rrower shall make payment directl_r•, Bormwer shall promptly fumish to
l.ender receipts evidencing such payments. Borrower shall promptly discharge any lien w~hich hus priority over this Mortgage; pmvided, that
Borrower shall not berequired to discharge any such lien so long as E3orrower shall agree in writinK tu the pa~-ment oCtheobliKation secured by
such lien in a manner aceeptable to Lender, or shail in Rood faith c~~ntest such lien by, urdefrnd enforcrment of such lien in, legal procecdings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thermf.
5. Hazard Insurance. Borrower ehall keep the improvementa now existing or hereafter erected on the Property insured against loss by
firn, hazards included within the term "extended coverage," and such other hazards as l.ender may require and in such amounta and for auch
periods as Lender may requ'ue; provided, that Lender ahall not require such coverage amount exceeding the minimu'm, as may be required by
state or federal regulations governing activitiea of Lender, or that amount of coverage required to pay the aums secured by this Mortgage,
whichever is the greater.
The insurance camer providinR the insurance shall be chos~•n by Rorrow•er subject to appr~~~~al by I.ender, pmvided, that such approval
shall not be unreasonabl~ withheld. AU premium~ on insurance policies shall be paid in the manner prueidecl under para~raph 2 hereof or, if
i not paid in such manner, by E3orrower making payment, ~+•hen due, directh• to the insurance carrier_
~ All insuranee policies and rnnewais thereof ahall be in form acceptnble to Lender and ahall include a standard mortgageclanse in favor of
i and in form acceptaoie co Lender. I.ender shall have the right to hold the policies and rnnewals thereof, and Boaov?er shall promptly fumish to
€ i.ender all renewal notices and all receipts of paid premiums. In the event of losa, Born~wer shail Kive prompt notice to the insurance carrier
~ and Lender. Lender may make proof of toss if reot made promptly by Borrower.
Unleas Lender and Borrower otherwise agree in writing, insurance proceeda ahall be applied to restoration or repair of the Property
damaged, provided such restoration or repair is economically feasible and the aecurity of this Mortgage is not thereby impaired. If such
~ rgstoration or repair is not economically feasible or if the aecurity of this Mortgage would beimpaired, the insurance proceeds shall be applied
~ to the sums aecured by this Mortgag~, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if E3orrower fails to
2 respond to I.ender within 30 daya fmm the date notice is mailed by Lender to Borrower that the insurance carrier offere to settle a claim for
insurance benefits, Lender is authorized to collect and apply the insurance proceeds at I.ender's option either to restoration or repair of the
~ Property or the sums secured by this Mortgage.
~ Unleas Lender and Borroveer otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due
3 date of the monthly inatallmenta referred to in paraqrapha 1 and 2 hereof or change the amount of such installments. If under paragraph 18
~ hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeds
~ thereof reaulting from damagE to Property prior to the 8ale or acquisition shall pass to I.ender to the extent of the aums secured by this
~ Mortgage immediately prior to auch sale or acquisition.
~ 6. Preservation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developmente. Borrowerehall keep
x the Property in gaod repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the
~ provisions 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,
~ Bonower ehall perform all of Bn.rower'a obligations under the declaration or covenants creatinRor goveming the condominium or planned
~ unit development, the by-laws and regulations of the condominium or planned unit development, and rnnatituent dceumenta. If a
condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the aovenants and
aqreements of such rider ahali be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the
,y, rider were a part hereof.
~ 7. Protection of Lender'e 3ecurity. If Borrower faile to perform the oovenante and agreemente contained in thie Mortgage, or if any
~ artion or proceeding ia commenced which materially affects Lender'a interest in the Property, including, but not limited to, eminent domain,
insolvency, code enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then Lender at Lendei a option.upon
notice to Borrower may make euch appearances, dieburee euch aume and take euch aMion as is neceasary to protect Lender's interest,
- including, but not limited to, dieburaement of reasonable attorney'e feee and entry upon the Property to meke repaire. If L.ender required
E~ mortgage inaurance se a condition of making the loan eecured by thia Mortgage, Borrower ahall pay the premiums required to maintain
- such ineurance in effect until euch time as the requirement for such inaurance terminatea in accordance with Borrower'e and Lender'e
% writfen agreement or appiicable Law. BorroweT ehall pay the _ amount of all mortgage ineurance premiuma in the manner provided under
paragraph 2 hereof.
- Any amounLs diebureed by Lender perauant to thie paragraph 7, with. intereat thereon, ahall become additional indebtedneas of
- Borrower eecured by this Mortgage. Unlese Borrower and Lender agree to other terms of payment, auch amounts ehall be payable upon
- notice from Lender to Borrower requeating payment thereof, and shall bear intereet from the date of disburaement at the rate payable from
time to time on outatanding principal under the Note unlesa payment of intereat at such rate would be contrary to applicable law, in which
event weh ginounte ehall bear iniereat at the highest rate permisaible under applicable law. Nothing contained in thie paragraph 7, ahall
require Lender to incur any expense or take any action hereunder.
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