HomeMy WebLinkAbout2189 I'NIFORat CO\'r.NA1VTS. Borrower :+t?ti L+•nder cos+•rr.urt and :+gree as folloN•s:
1. Payment of Principal and Interest. Bnrrowt•r shall promptly hay when dur the principal of and interest uu the
indebtedness evidenced by the Note. prepayment and lair charges as provided iu the \ute, and the prineip.+l of au+l iuter-
ea on any Future Advances secured by this Mortgage.
2. hltnds for Taxes and Insurance. Subjert to applicable law ur to a written wai\•er by Lender, Borrower shall pay
to Lender on the day monrhh• inuallmrnts of principal and interest are payable under the Note. until the \ote is paid in
full, a sum (herein "Funds") equal t+, one-t\yrlftl+ o[ the }earl} taxes and :+\srssnu•uts sshich may attain priority over this
\lortgage, and ground rents on the l'mperty, i[ any, plus one-twelfth of yrark premium inst:+llmt•nts for haz:ud insurance,
plus one-twelfth of yearly premium installment.-for mortgage insurance, if any. all ac mawuably estimated iuitialh and from
time to time by Lender on the basis o[ asscssrnents and bills and reas+nrable estimates thereof. }
The Funds shall be held in an institution the del,osits or accounts of N•hich are insured or guaranteed b\• a Federal or
state agency (including Lender i[ Lender is such an institution). Lender shall apply the Funds to lia}• said taxes, assessments, i
insurance premiums and ground rents. lender ma}• not charge fur so holding and apphing the Funds, analyzing said ac-
count, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and ap•
- plicable law pet•mits Lender to make suds a charge. Borrower and Lender ma}' agree in writing at the time of exeanion of
this \lortgage that interest on the Funds .hall be paid to RorroN•er, 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 [he Funds. Lender
shall gia•e to Borrower, without charge. an annual accounting of the Funds showing credits and debits t;~ the, Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured }
by this Mortgage.
If the amount o[ the Funds held h}• Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pa}• said
taxes, assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthh• installments of Funek. If the amount of the Funds held
by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground tents as then fall dur, Borrower
shall pay to Lender any amount necessary to make up the deticienc}• N•ithin 30 clays from the date notice is mailed b\• Lender
to Borrower requesting pa}•ment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held b}• Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured b\• this \lortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
\ote and paragraphs 1 and 2 hereof shall be applied he Lender tint in pa}•ment of amounts pa}'able to Lender b\• Borrower
under paragraph 2 hereof. then to interest payable ou the \ote, then to the principal of the Note, and then to interest and
principal on any Future Advances.
9. Charges; Liens. Borrower shall pay all taxes, assessmtnts and other charges, fines and impositions attributable to
the Property which rnav attain a priority over this \lortgage, and leasehold payments or ground rents, i[ au\•. in the man-
ner provided under paragraph 2 hereof or, if not paid in such manner, bs• Borrower making payment, N•hen due, directh• to
the pa}•ee thereof. Borrower shall prompth• furnish to Lender all notices of amounts clue under this paragraph, and in the
etcnt Borrower shall make payment directly, Borm\ter shall prompth• furnish to Lender receipts e\•iciencirrg such payments.
BormN•er shall promptly discharge any lien which has priority <?cer this \fortg-age: pmyided, that Borrower shall not be re-
quired to discharge any such lien so long as Borrower shall agree iu writing to the payment of the obligation secured by such
lien in a manner acceptable to Lender, or shall in gcx,d faith contest such lien bc, or defend enforcement of such lien in, le-
gal proceedings which operate to present the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Harard Insurance. Borrower shall keep the improvemt•rrts rrow existing or hereafter erected on the Property in-
sured against loss by [ire, hazards included within the term "extended coverage", and such other hazards as l.euder cony, re-
quire and in such amounts and for such periods as Lender ma}' require: provided, that Lender shall not require that the
amount of such coverage exceed that amount o[ coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen b}• BorroN•rr subject to appmcal by Lender: provided,
that such approval shall not be unreax,nabk N•ithheld. :Ul premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or. if not paid in such manner, b}• Borrower making pa}7ttent, when due. directly to
the insurance carrier.
~ all insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mort-
gage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals
~ thereof, and Borrower shall prompth• furnish to Lcuder all rcncN•al notices anti all receipts of paid premiums. In the event
of loss. Borrower shall give prompt notice to the insurance carrier anti I~nder_ Lender cony make proof of loss if not made
promptly b}• Borrower.
s Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair of
the Property damaged. provided such restoration or repair is economicalk feasible and the security of this Mortgage is not
thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be im-
paired, the insurance proceeds shall be applied to the sums secured by this ~fvrtgage. with the excess, if an}•, paid to Bor-
I roN•er. It the Property is abandoned by Borrower, or if Borrower fails to respond tv Lender N•ithin 30 dacs from the date
notice is mailed b\• Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits. Lender is
authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or
to the sums secured by this ~fvrtgage.
Lrnless Lender and Borrower othewise agree in writing, any such 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. It under paragraph 18 hereof the ('roper[}• is acquired by Lenefer, all right. title and interest n( Borrower in
and to any insurance policies and in and tv the proceeds thereof resulting from damage to the Property prior to the sale or
acquisition shall past to Lender to the extent of the sums secured b\• this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenance of Property: Leaseholds; Condominiums; Planned Unit De\•elol,ments. Borrower
shall keep the Property in good repair and shall not commit N•aste or permit impairment or deterioration of the Property
and shall comply N•ith the provisions of an\• 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 of Bormwer's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condo,
minium or planned unit development, and constituent documents. If a condominium nr planned writ development rider is
executed by BvrroN•er and recorded together N-ith this ~fortgagt•. the covenants and agreements of such rider shall be in-
corporated into and shall amend and supplement the cotenants and agreements of this Mortgage as if the rider N•ere a part
hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if am• action or proceeding is commenced which materially affects Lender's interest in the Property. including.
but not limited to, eminent domain, inu,kency. axle enforcement. or arrangements nr pn,teedings invoking a bankrupt
or decedent. then i.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums
y and take such action as is necessan• to protect Leader's interest. including. fart rant limited a,. disbursement of reasonable
attorney's fees and crate}, upon the Property to make repairs. If Lender required mortgage insurance as a condition of
making the Man secured b}• this \lortgage. R~rrower shall pay the premiums required to maintain such insurance in e6
# feet until such time as the requirement for such inwrance terminates in accorclauce with Borrower's and Lender's written
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