HomeMy WebLinkAbout0026 Borrower and Lends: covenant sad agree as folbwn:
1. Payment of Principal and Interest. Borrower shall promPVY Pay when dos Ws principal of and interest on the indebtednew
evidenosd by tbs Nots, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured
by this Mortgage.
Z. Plinda for Ta=ea sad Inaurauos. 3ubjed to applicable law or b a written waiver by Lender. Borrowu shall pqy to Lender on the day
monthly instalhnents of principal and interest are payable under W s Note. until the Note is paid in full. a sum (herein "Funds")equal toone-
tweltW ofthe yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property, if any, plus ono-
twelRh of yearly premium installments for hazard insurance, plus ono-twelRh ofyearly premium installments for mortgage insurance, if any.
all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
Thy Funds shall be heW in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency
(including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and
ground rents. Lender may not charge for so holding and- applying the Funds, analysing said account, or verifying and compiling said
assessments and biW. unless Lender pays Borrower interest on the Funds and applicable law permib Lender to make such a charge. Borrower
sad Irander may agree in waiting at the time of ezecutioa of @iis Mortgage that interest on the Fhade shall be paid to Borrower, and unless
such agreement is made or applicable law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or
earnings on the Funds. Lender shall give to Borrower, without charge, an annual aooounting of the Funds showing credits end debits b We
Fonda and the purpose for which each debit to the Fonda was made. The Fonda are pledged as additional security for the soma secured by this
Mortgage.
If the amount of We Funds held by tender, together with the future monthly installments of Fonda payable prior to the due dates of taxes,
asressments, insurance premiums and ground yenta. shall ezeaed the amount required to pay said taxes, assessments, insurance premiums
and ground yenta as that' fall due. such excess shall be, at Borrower's option, either prompt)yy repaid to Borrower or credited to Borrower on
monthly installments of Funds. If the amount of We Funds held by Lender shall not be sufficient to pay fazes, assessments, insurance
premiums and ground rents as Way fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days
from We date notice is mailed by bender to Borrower requesting payment Wereof.
Upon payment in frill of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Tf under
paragraph 18 hereof the Property is sold or the Property is oWerw?iae acquired by Lander, Lender shall apply, no later Wan immediately prior
tv the sale of Wo Properly ~ its aequiaition by Lender, any Funds held by Lender at the time of application as a credit against the name secured
by Wis Mortgage.
3. Application of Payments. Unless applicable law provides oWerwiae, all payments received by Lender under We Note and
paragraphs 1 and 2 hereof shall be applied by Lender first is payment of amounts payable to Lender by Borrower under paragraph 2 hereof,
then to interest payable on We Note. Wen to We principal of the Note, and Wen to interest and principal on any Future Advances.
4. Charges;Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to We Property which
may attain a priority over Win Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in each manna:, by Borrower making payment, when due. directly to the payee Wereof. Borrower shall promptly furnish to Lender
all notices of amounts due under this paragraph, and in the event Borrowa~shall make payment directly, Borrower shall promptly furnish to
Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over W is Mortgage; provided, W at
Borrower shall not be required to discharge any ouch lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcementof such lien in, legal proceedings
which operate to prevent We enforcement of the lien or forfeiture of the Property or any part Wereof. '
5. Hazard Insurance. Borrower shall-keep We improvements now eziating or hereafter erected oa We Property insured against lose by _
fire; hazards included within the tenor "eztended coverage," and such other hazards as Tender may require and in such amounts and for such
periods as Lender may require; provided, Wat Lender shall not require such coverage amount ezceeding the minimum, a8 may be required by
state or federal regulations governing aciivitiea of Irerider, or that amount of coverage required to pay We soma secured by this Mortgage,
whichever is We greater. -
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval
shall not be unreasonably withheld. All premiums on insurance policies shall be paid in We manner provided under paragraph 2 hereof or, if
not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier.
All insurance policies and renewals Wereof shall be in form acceptable to Fender and shall include a standard mortgage clause in favor of
and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals Wereof, and Borrower shall promptly furnish to
j render all renewal notices and all receipts of paid premiums. In We event of loss, Borrower ahaA give prompt notice to We inaur~ance carrier
and Lender. Lender may make proof of loss if not made promptly by Borrower.
~ Unless Lander and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of We Property
damaged, provided such restoration or repair ie economically feasible and We security of this Mortgage is not Wereby impaired. If such
P restoration or repair is not economically feasible or if the security of Wis Mortgage would be impaired We insurance proceeds shall be applied
to the soma secured by thin Mortgage, with We excess, if any, paid to Borrower. If the Property is abandoned by Borrower. or if Borrower fails to
respond to Lander within 30 days from We date notice is mailed by Lander to Borrower Wat the insurance carrier offers to settle a claim for
insurance benefits, Lender ie authorized to collect and apply We insurance proceeds at Lender a option either to restoration or repair of the
Property or We sums secured by thin Mortgage.
Unless Lender and Borrower oWerwiae agree in writing, any such application of proceeds to principal shall not eztend or postpone the due
date of the monthly installments referred b is paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18
hereof We Property is aegnired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to We sale or acquisition shall peen to Lander to We eztent of the soma secured by thin
Mortgage immediately prior to such sale or aequisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominumr; Planned Unit I~velopments. Borrower shall keep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply wiW We
provisions of any lease if Win Mortgage is on a leasehold. If thin Mortgage is on a unit in a condominium or a planned unit development,
Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing We eondominium or planned
unit development. the by-laws and regulations of We condominium or planned unit development. and eonatitnent documents. If a
condominium or planned unit development rider is executed by Borrower and recorded togeWa wiW Win Mortgage, We covenants and
agreements of such rider shall be incorporated into and shall amend and supplement the oovenanta and agreements of Wis Mortgage as if the
rider were a part hereof
T. Protection of Lender's Security. If Borrower fails to perform We covenants and agreements contained in this Mortgage, or if any
action or proceeding is onmmeaeed which materially affects"Treaders interest in We Property. including. but not limited to, eminent domain,
insolvency, code enforcemeat~ or arrangements or proceedings involving a bankrupt or decedent, Wen Lender at Lender's option,upon
notice to Harrower may make such appearances, disburse such sums and take arch action as is necessary to protect Lender's interest,
including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Properly to make repairs. If Lender required
mortgage insurance as a condition of making We loan secured by Win Mortgage. Borrower shall pay We premiums required to maintain
such inanranoe in effect until sack time as We requirement for such insurance terminates in aeoordance wiW Borrowers and Leaders
written agreement or applicable Isw. Borrower shall pay We amount of all mortgage insurance premiums in We manner provided under
paragraph 2 hereof.
Any amounts disbarred by I.enda persuant to this paragraph wiW iaterert Wereon, shall become additional indebtedness of
Borrows: secured by thin Mortgage. Unless Borrower and Lerida agree to other tams of payment, such amounts shall be payable upon
notice from Ianda to Borrows requesting payment thereof, and shall bear interest from the date of disbursement at We rate payable from
time to time on ontataading principal under We Note unless payment of interest at such rate would be contrary to applicable law, in which
event such amounts shall bear interest at the highest rate permissible ands applicable law. Nothing wntained in this paragraph T, shall
require Lerida to incur any a:pease or take any action hereunder.
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