HomeMy WebLinkAbout2068 Borrower and leader covenant and agree ss folbws:
1. Paytaeat of Principal and laterestt. Borrower shall promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note, prspsymmt and latecharges as provided in the Note, and the principal of and interest oh any Future Advances secured
by this Mortgage.
2. Rtiads for Taxes sad lasuraooe. Subject to applicable law or to a written waiver by (.ender, Borrower shall pay to Gender on the day
monthly installments d principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds")equal to one-
twdfih ofthe yearly taxes and assessments which may attain Priority over this Mortgage, and ground rents on the Property. if any, plus one-
twdith otyesvly premium instalL>seats for hazard insurance, plus one•twelfth of yearly 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.
The Ftinds shall be head is as iastittitiao the deposits or soeounts of which are insured or guaranteed by s Federal or State agency
(induding Lender if Leader is stick an institntioa). Ruder aball apply the Funds to pay said taxes, assessments, insurance premiums and
ground rbr?ts. Lender may not cb+?rge far so holding sad applying the Funds, analyzing said account, or verifying and rnmpiling said
assessments and biW, tinkss Leader pays Boreowe: interest on the Funds and applicable law permits Lender to make such a charge. Borrower
and Leader may agree in writing at the time de:ecution oI this Mortgage that interest on the Funds shall be paid to Borrower, and unless
such agreaaent is made or appbcable law regoins sack interest to bs paid, Lender shall not be required to pay Borrower any interest or
earnings on the Fonds. Lender shall give to Borrower, without Burge, an annual accounting of the Funds showing credits and debits to the
Faads sad the purpose for whidr seek debit w the Fonds was made. The Funds are pledged as additional security for the sums secured by this
Mortgage.
If the amount of the Fonda bdd by Lender, together with the furore monthly installments of Funds payable prior to the due dates of taxes,
asseaamenta, inanranoe premiums and ground rents, shall e:oaed the amount required to pay said taxes, assessments, insurance premiums
and ground rents as they fall doh stieh extew shall be. at Borrower
s option, either promptly repaid to Borrower or credited to Borrower on
monthly installments d Ftinds_ if the amotint of the Fonds held by Lender shall not be sufficient to pay taxes, aseesamenta, insurance
premiums and ground real as they tall dtie, Borrower shall pay b [.ender any amount necessary to make up the deficiency within 30 days
from the date notice is mailed by Lender to Borrower requesting Payment thereof.
Upon payment in fall Ball soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. V under
paragraph 18 hereof the Property is sold a the Property is otherwise acquired by Lender, Lender shall apply, ao later than immediately prior
to the sale d the Pr~opa~ty err its aogaisation by Lender, say Fonda held by Lender at the time of application as a credit against the soma secured
by this Mortgage. - _
3. Applieatba of Paysaents. Unless applicable law provides otherwise, all payments received by Lender under the Note and
paragraphs 1 and 2 tiered shall be applied by Lender first in payment otamounts payable to Lender by Borrower under paragraph 2 hereof,
then to interest payable oo the Note, then to the principal of the Note, sad then to interest sad principal on any Future Advances.
4. Charges; Lieras. Barrvwerahall pay all razes, assessments and otherchargea, fines and impositions attributable to the Property which
may attain a priority over Chia Mortgages and leasehold payments or ground rents, 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. Borrower shall promptly furnish to Lender
all notices of amounts doe under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
[.ender receipts evidencing sack payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shall not br required to disdharge any such lien so bog as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner aeceptabk to Leader, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings
which operate to prevent the enforcYment of the lien or forfeiture of the Property or any part thereof
5. Hazard Insaranoe. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loos 6y
fire, hazards indoded within the term "extended eoverage,° sad ouch other hazards as Lender may require and in such amounts and for such
periods as [.ender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by
state or federal regnlatioaa governing a~vifaes of Lender, or that amount of coverage required to pay the sums secured by this Mortgage,
whichever is the 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 the manner provided under paragraph 2 hereof or, if
not paid is sndf manner, by Borrower making payment, when due, directly to the insurance carrier.
All insurance politics and renewals thereof shall be is form acceptable to Lender and shall include a standard mortgage clause in favor of
and in form sooeptabk to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to
i.ender all renewal octanes sad all receipts d paid premiums. in the event of lose, Borrower shall give prompt notice to the insurance carrier
and Lender. Leader may make proof d bsa if not made promptly by Borrower.
Unless Lender a~ Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
damaged, provided sack restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such
restoration or repair is not economically feasible or if the aecority of this Mortgage would be impaired, the insurance proceeds shall be applied
to the sums secured by this 1lbrtgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to
respond to Lender within 30 days fiom the date ndice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for
inaunrnee benefits, Lender is sothorired to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the
Property or. the sums aecared by this Mortgage_
! Unless Lender and Borrower otherwise agree in writing, any ouch application of proceeds to principal shall not extend or postpone the due
date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18
hereof the Property is aogaired by Leader. all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds
thereof resulting fivm damage to Property prior to the sale or aequisitioa shall pees to Lender to the a:tent of the soma secured by this
Mortgage immediatdy prior to sock sale or sogoisition.
6. Preserva4on and Yainteaanee of Property; Leaaeholda; Condominums; Planned Unit Developments. Borrower shall keep
the property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the
provisions d any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development,
Borrower shall perform all d Borro+rer's obligations under the declaration or covenants creatingor governing the condominium or planned
unit development, the by-laws and regulations d the rnndominium or planned unit development, and eonatituent documents. If a
rnndomininm or planned snit devebpmeat rider is executed by Borrower and recorded together with this Mortgage, the covenants and
agreements of ouch rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the
~ rider were a part hereof
7. Protection of Leader's Searrity. U Harrower fails to perform the oovenanta and agreements contained in this Mortgage, or if any
_ action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain,
insolvency, code enforcement, err arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon
uE notice to Borrower may make stick appearances. disburse such sums and take such action as is aeoessary to prated Lender's interest,
including, bat not limited to, disbarsemeat d reasonable attorney's fees sad entry upon the Property to make repairs. If Lender required
mortgage insurance as a rnodition of making the ban secured by this'Mortgage, Borrower shall pay the premiums required to maintain
such insnrasoe in effect until stidr tame as the regairrmeat for such insurance terminates in aooordance with Borrower's and Lender's
~ written agreement or applicable Isw. Borrower shall pay the amount of ap mortgage insurance premiums in the manner provided under
Y paragraph 2 hereof.
Any amounts disbursed by Lender peraaant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage_ Unless Borrower and Lender agree to other terms of payment, ouch amounts shall be payable upon
notice from Lender to Borrower regoesting payment thereof, and shall bear interest from the date of diabunsement at the rate payable fi om
time to fame on outstanding prindpal ender the Note unless payment d interest at such rate would be contrary to applicable law, in which
event such amounts shall bear interest at the highest rate permissible ender applicable law. Nothing contained in this paragraph 7, shall
require Lwdrr to incur say expense or take any action hereunder.
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'1~'Rr ~tJ~ ~aGE 2066
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