HomeMy WebLinkAbout0498 I1NlFOAA1 Covtx~xTS. Borrower a~d Lender co~•rnant and aqree as follows:
I. Panneut of Principal and Intcrest. $orrower shall promptly pay when due the principal o( aod interest o~ the
indebtedness ~videnced by the I~ote. prePayment and late charqes as providcci in the Kotc, and the principal ot an~l inter-
est an any Future Advances secured by this ~tortgage.
2. fl~nds [or Taxes and Insurance. Subjcct to applicable law or to a written wai~•er by Lende~. Borrower shal! pay
to Le~der on the day monthly installments of principal and interest arc payable uuder the Note, uutil the rote is paid in
(ull, a sum (henin "Fundi') equal to one-twel[th af the yearly ~axes and asseuments which may attain p~iority o~•er this
\tortgage, and ground rents on the Property, if any, plus on~twelfth of yearly premium installmenu tor ha:ard insurance,
plus one-twd[th of yearly premium instaUments (or mortgage inaurance, if any, all as reawu•rbiy estimated initiaUy a~~d from
time to time by Lender on the basis o( assesunents and bills and reaso~iable estima?es therc~[.
The Funds shall be held in ~n institution the deposits or accounts o[ which are insured or guaranteed by a Federal or
state agency (intluding Lender i[ Lender is such an institution). Lender shall apply the Funds to pay said taxes, assesunenu,
iusurance premiums and ground rents. Lender may not charge for so halding and appl}~inq the Funds, a~~aly:ing said ac-
count, or verifying a~d compiling said assessments aud bilis, unless Lender pays Borrower interest on the Funds and ap-
plicable law ptrmits Lender to make such a charge, Borrower and Lender rriay agree in wrieing at the time of execution o[
this \io~tgage that interest on the Fw~ds shall be paid tb Borrawer, and unless such agreemen[ is made or applicable taw
requires such interest ~to be paid. Lender shall not be required to pay Borrower any interest or earninqs on the Funds. Lender
shall give to Borrowtr, without chargt, an annual accounting of the Funds shoMing creclits and debits to (he Fund~ and the
purpose (or which each debie to the Funds was made. The Funds are pledged as additional securitp (or ~he sums secured
b~• this Atortgage.
If the amount o[ the Funds t~eld by Lender, together with the tuture monthly installments of Funds payable ptior to
the due dates o[ taxes, assessmencs, insurance premiums and ground rents, shall exceed the amount requi~ecl to pay said
taxes, assesuneats, insurance premiums and ground rents as they fall due, such excess shall be, at BorroMer's option, either
promptly repaid to Borrower or credited to Borrower on monthl~• instaliments ot Fundc. If the amount ot [he Funds held
by Lender shall not be suffecient to par taxes, assessments, insurance pretniums and ground rents as they (all due. Borrower
shall pay to l.ender any amount necessary to make up the de[iciency within 30 da~~s (rom the date notice is mailed by Lender
to Borrower requesting payment thereof,
Upon payment in fuli of atl sums secured by this ;ltortgage, Le~der shall promptly refund to Borrower an~ Funds
held by Lender. If under paragraph 18 hereot the Property is sold or the Property is otherrvise acquireci by l.ender, Lender
shall apply, no later than immediaee!}• prior to the sale ot the Property or its acquisition b} Lender, any Funds held by
Lender at the time of application as a credit against the sums secured b}• this \tortgage.
3. Applintion of Pay~nents. Unless applicable law pro~•ides othenvise, atl pa~ments receiced by Lender under [he
I~ote and paragraPhs ! and 2 hereoi shal! be applied by Lender first in pa~zrtent of amounts pa}•able to Lender b}' Borrower
under paragraph 2 hereof, then to interest pa~•able on the Note, then to the principal of the :\ote, and then to interest and
principal on any Future Advances.
4. Charge~ Liena Borrower shall pay all taxes, assessments and ocher charqes, tines and impositions attributable to
the Property which may attain a priority o~•er this \fortgage, and leasehold payments or ground rents, it an~•, in the man-
ner pro~•ided under paragraph 2 hereof or, if not paid iri such manner, b~• Borrower makinR pa~~ment, when due, directi~~ to
the pa~•ee thereof. Borro~+er shall prompdy turnish to Lender all uotices o[ amounts due under this ParaRraph, and in the
e~~ent BorroMer sha11 make paytnent directly, Borrower shall promptl}' (urnish to Lender receipts ecidencinq such pavments.
Borrower shall promptly dixharge any lien which has priotity o~~er this itortgaRe: pro~•ided. that BorroKer shall ~ot be re-
quired to discharge any such lien so long as Borrower shall agree in writin~ to the pa}'ment o[ the obligation secured b~ such
lien in a manner acceptable to Lender, or shall in p~ooci (aith contest such lien by, or de[end entorcement o( such lien in, le-
Ral proceeclinRs which operate to pre~•ent the enforcement of the lien or forfeiture o( the Propert~ or any part thereof.
5. Hazard Insurance. Bonor.er shall keep the improvemcncs now existing or hereafter erected on the Property in-
sured against loss by fire, hazards ireduded within the term "extended co~•erage", and such other t~azards as Lender may re-
yuire and in such amounts and fot such periods as I.ender may teQuire: provided, that Lender shall not require that the
amount o[ such co~etage exceed thae amount of coverage requirecl to pap the sums secured b}' this Vorty,aqe.
The iusurance carrier proeiding the insurance shall be chosen b} BorroMer subject to appro~•al b~• Lender: Provided,
tl~at such appro~•al shall not be unreasonabic withi?eld_ AU prrmiums on insurance policies shall be paid en the manner
prorided under patagraph 2 hereof or. it not paid in such manner, by Borrower makinR payTnent. Mhen clue, directly to
ehe insurance carrier.
All insurance policies and renewals thereoF shall be in form acceptable to Lender and shaU include a stanciard mort-
qage clause in fa~•or of and in (orm acceptable to Lender. Lender shall hare the right to hold the policies and renersals
thereof. and Borrower shall promptly furnish to L.ender all reneNal notices and all receipts o( paid premiums. In the e~•ent
of loss. Borrower shall gice prompt notice to the insurance carrier and I.ender. Lender ma} make proo( of loss i[ not made
promptly b~ Borrower.
Unless Lender and Borroher other~.ise aqree in h•riting, insurance proceeds shall be applied to restoration or repair of
the Property damaged, pro~•ideci such restoration or repair is economicall~~ feasible and the secarit}• of this ~tortgaqe. is not
thereby impaired_ If such restoration or repair is not economically (easible or i( the securit~ ot this ~(or~qage would be im-
paired. the insurance proceeds shall be applied to the sums secured bti• this itortgage, Mith the excess, if an}•, paid to $or-
row~er. Ii ehe Pmperty is abancloned~by Borrorer, or it BorroMer (ails to respond to Lender rcithin 30 da~•s [rom the date
notise is mailed b}• Lender to Borrower that the insurante carrier ofters to setde a daim tor insurance benefits, Lender is
authorized to collect and apply the insurance proteeds at I.ender's option either to restoration or repair ot the Property or
to the sums secured by this ~tortgaqe.
Unless Lender and Bortower otherwise agree in writing, any such application of proceeds eo princi~al shall not extend
or postpone the due date ot the monthly installments re[erred a~ in paraRraphs 1 and 2 hereot or chanqe the amount of such
installments. It under paragraph 18 hereof the Property is acquired by Lender, all riqht, ticle and interest of Borrower in
and to am• insurance policies and in and to the proceeds thereof resultinR from damaRe to the Propert?~ prior to the sale or
acyuisition shat) pasc to Lender to the extent of the sums secured by this ~tort~aRe immediatel~~ Prior to such sale or
acquisition.
6. Preservation and Maintenance of Propertp; Leaseholds: Condominiums; Planned Unit De~clopments. Borrower
s6all keep the Property in qoal repair and shall not tommit waste or permit impairment or deterioration of the Property
and shall compty with the pro~•isions of any lease i( this ~forq{age is on a IeasehoZd. If this ~(ortRaqe is on a unit in a
condominium or a planned unit de~elopment, Borrower shall perform all of Borror?cr's obligations ander the declaracion
or co~•enants creatinq or governinR the condominium or planned unit de~~elopment, the by-laws and re~ulations ot the condo-
minium or planned unit de~•eloPment, and constituent documents. If a condominium or planned unit de~•etopment rider is
executed by BorroMer and tecorded t~{ether hith this ~tortgage, the co~•eoants and agreements of such rider shall be in-
corporated into and shall amend and suppleme~~t the co~•enants and aRreements of this \tortgaRe as iJ the rider Mere a part .
hereof.
7. Protection of Lender's Seaitity, If Borrower fa~ls to Perform the coeenants and agreementc contained in this
Atortgage, or if an~~ action or proceeding is commenced which materially affects Lender's interest in the I'roPert~~, including,
but not limited to, eminent domain, inso~~•ency, code en(orcement, or arrangemer~ts or proceedings inti•oh•inR a bankrupt
or decedent, then Lender at Lendei s option, upon notite to Borrower, may make such appearances. disburse such sums
and ~ake such action as is necessary to protect Lender's interes~, indudinq, but not limiteci to, disbursement of teasonable
attotney's tees and entry upon the Propert~ to make repain. If I.ender required mortRaqe insurance as a condition of
making the loan secured by this ~fortgaRe. BorroMer shall pa}~ the premiums required to maintain such insurance in ef-
fete until such time as the requirement for such insutance terminates in accordance with Borrower's and I.ender's wriuen
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