HomeMy WebLinkAbout0791 Bor~ower and l.e~der covenant and ag~ee as followa: -
I. Paymeat of Priacipal end Interest. Borrower shall promptly pay when due the principal ot and intereat o~ the indebtednees
evidenced by the Note, prepayment and late chargea as provided in the Note, and the princepal of and interest on any I~~ture Advuncea secured
by thie Mortgage.
2. I~ltnde for Tesea and lnaurance. Subject to applicable lew or to a written waiver by l.ender, Borrower ahall p~y to I.ender on the day
rnonthly installmenta of principal and interest are payable under the Note. until the Note ia paid in full, a sam lherein "Funda") equal to one
twelfth of the yearly tax~ and assesaments which may attain priority ove~ thie Mortge~e. and qround rents on the Property, if nny, plua une
twelflh of yearly premium installmenta for hasard inaurance, plua onetwelRh of yearly premium inatallmenta for mortg~ge inaurance, if any,
all ea reaeonably estimated initially and from time to time by I.ender on the basis of assessmenta and bills and reasonable extimates thereof.
The FLnds shall be held in an institution the depoaits or accounta of which are ineured or guaranteed by a Federal or State agency
(including Lender if l.ender is such an inatitution). I.ender ehall apply the Funds to pay eaid taxee, assexamente, iasurance premiuma and
ground renta. Lende: may not charge for eo holding and applying the FLnds, analyzing said account, or verifying and compiling said
aeseesmenLe and bille, unlesa Lender paye Borrower intereat on the ~nds and applicable law permits I.ender to make such a charge. Borrower
' and Lender may agree in writing at the time of execution of thia Mortgage lhat interest on the Flinds ahaU be paid to Borrower, and unlesa
such agreement is made or applicable law requires such intereat b be paid, I.ender ahall not be required to pay Borrower any inte~eat or
earnings on the ~nde. Lender shall give to Borrower, without charge, an annual acaounting of the Funde ehowing credite and debits ta the
~nds and the purpose for which each debit to the Funda was made. The Funds are pledged ae additional security for the sums secured by this
Mortgage.
If the amount of the Fl~nda held by Lender. together with the future monthly installments of Funda payable prior to the due datee of taxea,
assesamente, inaurance premiuma and ground renta, ehall ex~ed the amuunt required to pay said ta:ea. aesesamenta, inaurance premiuma
and ground rents as they fall due, auch exceea ahall be, at Borrowei a option, either promptly rnpaid to Borrower or credited to Borrower on :
monthly inatallmenta of fi~nde. If the amount of the Funda held by Lender ahall not be aufficient to pa~ taxes, assesamenta, insurance '
premiuma and ground rente aa they fall due, Borrower ahall pay to I.ender any amonnt neceaeary to make up the deficiency within 30 days 4
from the date notice is mailed by I.ender to Borrower requesting payment thereof. ~
Upon payment in full of all auma secured by thia Mortgage. Lender ahall promptly refund to t3orrower any funda heid by Lender. If under ;
paragraph 18 hereof the Property is aold or the Property is otherwiae acquired by Lender. I.Ender shall apply. no later than immediately prior '
to the sale of the Property or its acquiaition by I.ender, any Funda held by Lender at the time of application aa a credit againat the sums aecured _
by this Mortgage. ~
3. Application of Paymente. Unless applicable law providea othenviee, all payments received by Lender under the Note and
.se.s..12. i s..d ~?,p,~,t al.~.lt i,P q.,..t~.~i hy T P.+dpr firRt in .u.yment nf nmounts oavable to Lender by Borrower under oara¢raoh 2 hereof.
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then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances.
4. Charges; Liena. Borrowershall pay all taxes, as.vessments and othercharges, finex and impositions attributable to the Property which
may attain a priority ove~ this Mortgage, and leasehold payments or ground rente, if any. in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. ~iorrower shall promptly fumish to Ixnder
all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that }
E,.'^,:ra~eershm.~! :~:~requirediodir^.2:a-geanys~chlieneolor_gas~+rrowerRhallagrPeinwritingtothepaymentoftheobtigationaecuredby
such lien in a manner acceptable to Lender, or shall in good faith conteat such lien by, or defend enforcement of such lien in, legal proceedings
which operate W prevent the enforcement of the lien or iorfeiturn ot the Property or any part thereof. ;
. 5_ Hazard Ineurance. Borrower ehall keep the improvements now existing or hereafter erected on the Property inaured againat loss by
fire, hazarda included within the term "e:tended coverage," and xuch other hazards as Lender may require and in such amounta and for such
periods ae I.ender may require; provided, that Lender shall nat requirn such. coverage amount exceeding the minimum, as may be required by '
state or federal regulations governing activitiea of Lender, or that amount of rnverage required to pay the sums aecured by this Mortgage,
whichever is the greater. .
The insurance carrier providing the insurance shall be chosen by Borrower subject lo approval by I.ender, prvvided, that such appro~•ul ~
ahall not be unreasonabiy withheld_ All premiums on insurance policies shall be paid in the m~nner provided under paragraph 'L hereof or, if .
not paid in such manner, by E3orrower making payment, when due, directl} to the insurance carrier: _
All inaurance policiea and renewala thereof shall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of
and in form acceptable to Lender. [.ender shall have the right to hold the policiea and renewals thereof, and Borrower ahall prompily fumish to
i.ender all renewal notices and all reoeipta of paid premiums. In the event of losa, Borrower shall give prompt notice to the insurance carrier
and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unleas Lender $nd Borrower otherwiee agree in writing, insurance proceeds shall be applied to reatoration or tepait of the Property
damaged, provided such restoration or repair is economicaUy feasible and the security of this Mortgage ia not thereby impaired. If such
reatoration or repair ie not economically feasible or if the aecurity of this Mortgage would be impaired, the inaurance proceeds shall be applied
to the auma secured by this Mortgage, with the e~cess, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faila to
reapond to Lender within 30 daya from the date notice ia mailed by L,ender to Borrower that the insurance carrier offera to settle a claim for _
ineurance benefite, Lender is authorized to collect and apply the inaurance proceeds at Lender s option either to restoration or repair of the
Property or the auma secured by this Mortgage.
_'nless L.ender and Borrower otherwise agree in writing, any auch application of proc~eeda to principal shall not e:tend or poatpone the due
date of the monthly installmenta referred to in paragraphs 1 and 2 hereof or change the amount of such inatailmente. If under paragraph 18
hereof the Property is acquired by Lender, all right, titte and interest of Borrower in and to any insurance policies and in and to the proceeda
thereof reaulting from damage to Property prior to the sale or acquisition ehall pasa to Lender to the extent of the sums secured by this
Mortgage immediately prior to such sale or soquisition.
6: Pre$erveRinn Rnd Maintenance of Prouertp; LeaBeholds; Condominuma: Planned Unit Developments. Borrower ahall keep
the Property in good repair and ahall not commit waste or permit impaitment or deterioration of the Property and ahall comply with the
pmvisiona of any leaae if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development,
Borrower ahall perform all of Borrower's obligationa under the declaration or rnvenants creatingor governing the condominium or planned
unit development, the by-laws and regulationa of the condominium or planned unit development, and oonahtuent eocumenta. If a
rnndominium or planned unit development rider ia ezecuted by Borrower and recorded together with this Mortgage, the oovenants and
agreements of such rider shall be incorporated into and shall amend and supplemenE thecovenanta and agreements of thia Mortgage as if the
rider were a part hereof
7. Protection of Lender'e Security. If Borrower faile to perform the oovenanta and agreemeats contained in thie Mortgage, or if any
action or proceeding ie commenced which materielly affecte Lender e intereet in the Property, including, but not limited to, eminent domain,
ineolvency, aode enforcement, or arrangemente or pmoeedings involving a bankrnpt or decedent, then Lender at Lender'a option,npon
notice to Borrower may make euch appearances, diaburee euch auma end take euch action as is neceeeary to prot~ect Lender'a interest,
inclnding, bat not limited to, diebureement of reaaonable attorney'e fees and entry upon the Property to make repairs. If Lender required
mortgage insurance as a oondition of ineking the loan eecured by thia Mortgage. Borrower ehall pay the premiums reqaired to maintein
snch ineurance in effect until euch time as the requirement for such inaurance tercninates in accordance with Borrower's and Lender'e
written agreement or applicable Law. Borrower ahail pey the amount of all mortgege insurence premiume in the menner provided urider
paregraph 2 hereof.
My amo:u~ta diebureed by Lender pereuant to thia paragraph with intereat thereon, ahall become additional indeMednees of
Borrower eecured by thia Mortgage. Unleae Boaower and Lender agree to other terma of payment, euch amounte ehall be payable upon
notice from Lender to Borrov~er requeeting payment thereof, and ehall bear interest from the date of diabursement at the rate payabie from
time to time on outstanding principal under the Note unlees payment of intereat at such rate would be oontrary to applicable law, in which
event such amounta shall bear intereet at the highest rate permiaeibie under applicable law. Nothing contained in thie paragraph 7, ahall
require Lender to incnr any e:penee or take any action hereunder.
~ g~`~ " 791
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