HomeMy WebLinkAbout0026 E~orrower and t.ender covenunt and agree ua tuUuwe:
l. Payme~t of !'rincipal end Intereat. f~urwwer shxl) prvmptly pay when due the p~ncipal ~~f nnd iole~eet un the indebtrdnee~a
evidenced by the Note, pre{uiyment and late chargea xa provided in the Plote, and the pnnc~pal ot and~oterest on eny h'uture Advancea eecured
by thie Murtgage.
2. Hlu~de for Tsxes and lneurance. tiubjec< to applicuble li?w c~r to a written waive~ by l.ender, l3oRUwe~ ahall puy to I.ender on the day
monthly inatulimertta of principal und intereet are payuble unde~ the Note, until the Note is paid in full, a eum (he~ei~ "F
unda") eyual tu o~P
twelfih o[the yearly taxes and assesamenta which m~y ~+ttuin priority over this Movtgage, and ~und renix un the Yruperty, if any, plua one~
twelRh of yearly~premium instalimenta [or hazard insurance, plus onelwelfth uf yrHrly premium installmentx for murtKuge ineu~ance, if any,
all as reasonably estimated initially and from time to tiR~e by I.e~der on the basia of asseessments and billx i~nd re:?aunuble rstimatc~x thereof.
The l~lnnds shall be held in ar? inetitution the depoaits or accounte of which are inaured o~ guaranteed by a Federal or State agency
(including I.ender i[ [.endet is auch an institution). I.e~der ehall apply the h unds to pny said taxee, Aaseenmente, insurance premiums and
ground renta. Lender may not chnrge for eo holding and applying the Runde, analyzing said account, or verifying and cumpiling eaid
asaesementa and biUs, unless [.ender paye Borrower intereat on the Funda and applicable law permits l.ender to make euch a charge. E3urruwer
and l.ender may agree in writing at the time of execution of thia Alortgage that intere8t on the Funds shall be paid to E3orrower, and unleas
euch agrcement ia made or applicable law requires auch interest to be paid, Lender ehall not be required to pay E3orrower any intereat or
earnings on the Funde. I.ender ehall give to Borrower, without charge, an annual acrounting of the F unde ehowing credits and debits to the
Funda and the purpoae for which each debit to the Fundx wes made. Thr F
unds are pledged as additional security for the suma ecr;ured by thia
Mortgage.
if the amount of the FLnde held by Lender, together with the future monthly inatallments of Funda payable prior to the duedatea of taxee,
aeaeasmente, inaurance premiuma and ground rents, ahall e:cred the amount required to pay said t~xes, asseaements, inaurance premiuma
and ground rents ae they fall due, such excese shall be. at Bo~TOwer'e option, either promptly repaid to {3orrower or rredited to Borroweron
monthly inatallments of ~nds. If the amount of the Funda held by Lender ehall not be sufficient to pay taxea, asaeasmente, inaurance
premiume and ground rente as they fal! due, Borrower shall pay to Lender any amount necessary to make up lhe deficiency within 30 days
from the date notice is mailed by l.ender to Borrower requesting payment thereof.
Upon payment in full of all sums aecured by thie Mortgage, Lender ehaU promptly refund to Borrower any funds held by I.ender. Itunder
paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by [.e~der, I.ender ahall apply, no later thnn immediately prior
to the sale of the Property or ite acqaiaition by Lender, any F
unda held by Lender at the time of application as a credit againat the aums aecured
by this Mortgage_
3. Application of Paymente. Unleas applicable law provides otherwise, all paymenta received by Lender under ihe Note and
paragrapha 1 and 2 hereof ahall be applied by I.ender firat in payment of amounta payable to l.ender by E3orruwer under paragraph 2 hereof,
then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances.
_ 4. Charges; Liene. Borrower shall pay all taxes, assessmentx and other rharges, fines and impositiuns attributable ta the Pruperty vehich
may attain a priority over this MortKage, and leasehold payments or ground rentis, if nny, in the manner pruvided under paragraph `L hereof or,
if not paid in such manner, by Borrowermaking payment, when due, directly to the puyee thereof. Bormwersh~ll promptly furnish to l.ender
all notices of umounts due under this paragraph, and in the event E31~rruwer shall make payment directly, ~rrower shall prumptly furnish to
Lender receipts e~ idencing such payments. I~orrow•er shall promptly discharge any lien w•hich has priurity over this Mortgage; provided, that
E3orrower shall not be required W discharge any such lien so long as I3orrower shaU .~Rree in writing to the payment of the obligation secured by
such tien in a manner acceptable to I.ender, or shall in good faith a~ntest such lien by, or defend enforcemrnt otsuch lien in, legal prexe~ings
which operate to prevent the enforcement of the lien or fnrfeiture of the Properh• or any part thercof.
5. Hazard Insurance. Borrower ahall keep the impmvementa now exiating or hereafter erected on the Property insured against loss by
fire, hazarda included within the term "extended coverage," and such other hazards as l.ender may require and in auch amounts and for such
periods as Lender may require; provided, that I.ender shall not require such coverage amount exceeding the minimum, as may be required by
etate or federal regulations governing activities of I.ender, or that amount of coverage required to pay the suma secured by this Mortgage,
~ whichever is the greater.
The insuranm carrier providing the insurs~nrn shall t?e chosen by Horruwer subject G~ appruval b~• I.ender, pn~~•idtd, that such appr~~va)
shall not be unreasonably withheld. All premiums on insurance ~ilicies shall be p.~id in the manner pn,~•idecl under par.?Kraph 'L herer~f or, if
not paid in such manner, by Borrower making payment, when due, directly tc, the insurance carrie~_
All insurance policies and renewais thereof shall be in form acceptable to Lender and shall include a standard mortgage clauae in favor of
and in form acceptable to I.ender. Lendershall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furnish to
i.ender all rnnewal noticea and all receipts of paid premiums. In the event of losa, I3orruwer ahali gi~•e prompt notice to the insurance carrier
and l.ender. Lenderynay make proof of losa if not made pmmptly by E3orrower.
Unlesd Lender and Borrower otherwise agree in writing, insurance proceeda shall be applied to reatoration or rnpair of the Property
damaged, provided such restoration or repair is economically feasible and the aecurity of thie Mortgage is not thereby impaired. If auch
restoration or repair is not economically feaeible or if the security of this Mortgage would be impaired, the inaurance proceeds ahall be applied
to the auma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if E3orrower faila to
~ reapond to I.ender within 30 daya from the date notice ia mailed by Lender to E3orrower that the inaurance carrier of~ers to settle a claim for
ineurance benefits, Lender is authorized to collect and appiy the insurance praceeda at I.ender's oplion eitherto restoration or repair of the
Property or the suma secured by thie Mortgage.
Untess Lender and Borrower otherwise agree in writing, any such application of pra~eeds to principal shall not extend or postpone the due
date of the monthly instaliments rnferred to in paragraphs 1 and 2 hereof or change the amount of such inatallmenta_ If under paragraph 18
herenf the Property ia aequired by Lender, all right, title and intereat ot Borrower in and to aay inaurance policiea and in and to the proceeds
thereof reaulting from damage to Property prior to the sale or acquisition ahall pass to Lender to the extent of the sams aecured by this
Mortgage immediately prior to auch sale or aoqe?iaition.
6_ Preaervation and Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmente. Borrower ahall keep
the Property in good repair and shaU not commit waste or permit impairment or deterioration of the Property and shall comply with the
proviaione of any leaBe if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a pianned unit development,
Borrower ahall perform all of Borrower'a obligationa under the declaration or covenanta creatingor governing the condominium or planned
unit development, the bylawa and regulationa of the condominium or planned unit development, and conetituent documente. If a
condominium or planned unit development rider ia executed by Borrower and recorded together with thia Morlgage, the oovenants and
agreements of such rider shall be incorpi~rated into and shall amend and supplement the covenanta and agreements of this Mortgaqe as if the
rider were a part hereof. ~
7. Protection of Lender'e Security. If Borrower fails to perform the oovenante and agreemente contained in this Mortgage, or if eny
action or prooeeding ia commenced which materially affects L.endei e intereet in the Property, including, but not liraited to, eminent domain,
ineolvency, oode enforcement, or arrangements or proceedinga involving a bankrupt or decedent, then L,ender at I.ender'e option,upon "
notice to Borrower may make euch appearancee, disburee auch aums and take such action ae ie neceeeary to protect Lender's intereat,
including, but not limited to, diabureement of reasonable attorney e feee and entry upon the Property to make repaire. If Lender required
mortgage insurance ae a condition of making the loan eecured by this Mortgage, Borrower shall pay the premiume reqnired to maintain
such ineurance in effect until auch time aa the requirement for such inaurance terminatee in accordance with Borrower's and Lender'e
written. agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiums in the manner provided under
peragraph 2 hereof. I
My amounte dieburaed by Lender pereuant to thia paragraph 7, with intereat thereon, ahall bec.~ome additional indebtedneea of
Borrower eecured by thie Mortgage_ Unleas Borrower and Lender agree to other terme of payment, auch amounte shall be payable upon I
notice from I.ender to Borrower requeeting payment thereof, and ehall beat intereet ftom the date of dieburaement at the rate payable from ~
time to time on outstanding principal under the Note unleae payment of intereat at auch rate would be contrary to applicable law, in which
event such amounte ahall bear intereat at the higheet tate pecmieeible under applicable law. Nothing contained in thie paragraph ahall
require L.ender to incur any eapense or teke any action hereunder.
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