HomeMy WebLinkAbout0618 Borrower and l.ender covenant and agree aa followr
1. Psymeat of Principal aad Ittteres~ Borrower sl~all promptly pay when due the principal of and interest on the indebtedneas ,
evidenced by the Note, ptepayment and latecharges as provided in the Note, and the principal of a~d interest on any E~ture Advances eecured 1
by this Mortgage. '
2 Ptitnd~ tor Tazes aad lasurance. Subject to applicable law or to a writtea waiver by [.ender, Borrower ehall pay to I.e~der on the day i
moathly installments of principal and inte~est are payable under the Note. until the Note ia paid in full, a sum (herein "~nds") equal to one ;
twelfth of the yearly taxee and aseeeaments which may attain priority over thie Moirtgage, and ground rents on the Properiy, if any, plua one~
twelRh of yearly premium installments for hezard inaurance. plua one~tweiRl~ ofyearly premium inatallmenta for mortgage insurance. if any,
aU es nasonably eetimated initiai~jr and trom time to time by l.ender on the basie of aese8sments and bills and reasonable eetimates thereof.
The Phada shall bs heW in aa institution the depoaits or acoounts of which are ineured or guaranteed by a Federel or State agency
(including Lender if Lend~ is such an inatitution). Lender shall apply the ~nde to pay said tases, aseesaments, insurance premiume and ;
ground rents. Lender may not charge for so holding and applying the ~Lnda, analyzipg aaid accoun~ or verifying and compiling eaid {
asseesmenta and bills. unl~se Lender paye Borrower interdst on the I~nds and applicable law permite l.ender to make such a charge. Bor~ower '
and Lender may agree in writing at the time of e:ecution of this Mortgage that interest on the Funds ahall be paid to Borrower. and unless
such a~reement ia made or applicable law requires such interest to be paid. I.ender ehall aot be required to pay Borrower any interest or
earniags oa the PLnds. Lend~ shaU give to Borrower. without charge, an annual acoounting of the ~nda showing credite and debits to the
Ftinda and the purpose for which each debit to the I~nds was made. The 1~'unds are pledged as additional eecurity for the aums eecured by this
Mortgage. '
If the amount of the fitnds held by Lender. together with the future monthly inetallmeate of Funds payable prior to the due dates of tanea, ~
sesessments, inaurance pnmiuma and grouad renta. ahall ex~ed the amount required to pay said ta:ea, asaesamente. insurance premiuma ~
and ground rente as they faU due. auch e:cess shall be, a! Borrower a option. either promptly repaid to Bor~ower or credited to Borrower on ;
monthly installmeata of Phnde. If the aaaouat of the ~nde held by Lender ahaU not be aufficient to pay ta:es, aseessmente, inaurance i
premiums and ground renta as they fall due, Borrower ehall pay to I.ender any amount neceseary W make up the deficiency within 30 days ;
from the date notioe is mailed by Lender to Borrower requeeting payment thereof.
Upon payment in fnll of aU snme eecund by thia Mortgage. L,ender ahaU pmmpdy refund to Borrower any funda held by Lender. If under
paragraph 18 hereof the-Property is aold or the Property is otherwiee acquired by I.ender, Lender shaU apply. no later than immediately prior
to the sale of the Propedy or ifa aoquiaition by I.ender, any ~nda held by Lender at the time of application ae a credit againat the aums secured
by thie Morfgage.
3. Applieadon of Paymenta. Unleae applicable law providea otherwiae, all paymente received by Lender under the Note and
paragraphe 1 and 2 hereof ehall be appGed by Lender fitat in payment of amounts payable to I.ender by Borrow~ under paragreph 2 hereof,
then to interest payable on We Note, thea to the principal of the Note, and then to intereat and principal on any Future Advancea
4. C6arges; I.iene. Borrower ahall pay all taxea, assesamenta and othercharges. fines and impoeitions attributable to the Property which j
may attain a priority over this Mortgage, and leasehold payments or ground renta, if any, in the manner provided under paragraph 2 hereof or.
if not paid in suckmanne~, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furniah to Lender
aU aoticea of amounta due under thia paragraph. and in the event Borrower ahall make payment directly, Borrower shall promptly furnieh to
Lender reoeipta evidencing such payments. Borrower ahall pmmptly diacharge any lien which haa priority over this Mortgage; provided, that
Borrower shall not be required to diacharge any such lien ao long as Borrower ahall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to L.ender, or ehall in good taith contest such lien by, or defend enforcementof such lien in, legal proceedinga
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof
5. Hazard Iasuranoe. Borrower ahall keep the improvemente now ezisting or hereafter erected on the Property inenred against losa by
fire, hazarda inclnded within the term "~tended rnverage," and auch other hazards ae Lender may require and in auch amounts and for such
periods as I.ender may reqaire; provided, that Leader shall not require such ooverage amount e:ceeding the minimum, as may be required by
state or federal regulationa governing activitiea of Lender, or that amount of rnverage required to pay the aums aecured by this Mortgage,
whichever is the greater.
The insurance carrier providing the insurance ahall be chosen by Borrower subject to approval by Lender, provided, that auch approval
shall not be nnreasonably withheld. All premiums on insurance policies shall be paid in the manner pmvided under paraqraph 2 hereof or, if
not paid in such manner, by Borrower making payment, when due, directly to the inaurance carrier_
All ineurance poiicies and renewale thereof ahall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of
and in form aooeptable to Lender. Lender shall have the right to hold the policies and renewala thereof, and Borrower shall promptly furnish to ?
; i.ender all renewal notices and all rec~eipta of paid premiums. In the event of loes, Borrower ahall give prompt notice to the insurance carrier
~ and Lender. Lender may make proof of loes if not made promptly by Borrower.
j Unleas Lender and Borrower otherwiee agree in writing, inaurance proceeda shall be applied to restoration or repair of the Property
i damaged, provided auch reetoration or repair ia economically feasible and the eecurity of this Mortgage ia not thereby impaired. If such
~ restoration or repair ie not eoonomically feseible or if the eecurity of this Mortgage would be impaired the ineurance proceeds shall be applied
to the suma exnred by thia Mortgage, with the eacceae, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to
respond !o Lender within 30 daye from the date notice ia mailed by Lender to Borrower that the insurance carrier offere to settle a claun for
ineurance bene5ts, Lender ia authorized to coUect and apply the inaurance procceds at I.endei's option either to reatoration or repair of the
Property or the same eecured by this Mortgage.
~ Unless Lender and Borrower otherwiae agree in writing, any auch application of proceeds to principal ahall not pactend or postpone the due
date of the monthly installmenta referred to in paragrapha 1 and 2 hereof or change the amount of anch inatallmente. If under paragraph 18 ~
hereof the Prope:ty ie acqaired by Lender, all right, title and interest of Borrower in and to any inanrance policies and in and to the proceeds
thereof resulting ~om damage to Property prior to the aale or aoquiBition ahall pass to I.ender to the extent of the aume secured by this
Morlgage immedietely prior to such aale or aoqoiaition.
6. Preservation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developmente. Borrower ahall keep
the Property in good repair and shall not commit waete or permit impairment or deterioration of the Property and shall comply with the
provisiona of any lease if thie Mortgage ia on a leaeehold. If this Mortgage ie on a unit in a oondominium or a planned unit development,
Borrower shalf perform all of Borrower'e obiigationa under the decleration or oovenanta creatingor governing the condominium or planned
unit development, the by-laws and regulations of the oondominium or planned unit development, and conatituent dceumente. If a °
oondominium or pianned unit development rider ia e:ecuted by Borrower and recorded together with thia Mortgage, the oovenants and ~
~ agreemente of such ridez ahall be incorporated into and shall amend and eupplement the covenante and agreementa of this Mortgage as if the _
rider were a part hereof.
9. Protection of Lender's Secttrity. If Borrower fails to perform the ooveasnts aad agreements ooaiained in this Mortgage, or if any
action or prooeeding is oommenoed which materially affects Lende~s intereat in the Property. including, but not limited to, emineat domain.
insolvency~ oode enforcement, or errangem~ts or proceedin8e involving a banlm~pt or decedent, Wen I.ender at Lendds option,upon
~ notioe to Borrower may make snch appearanoee. disburse such aums and take such action as is neoasary to protect i.ender's intuest, ~
~ inclading, but not limited to, disbursement of reasonable attorney's fces and entry upon the Property to malce repairs. If Lender required
~ mortgage insurance ae a condition of making the loan eecured by this Mortgege. Borrower shall pay the premiams required b meintain
~ such iasnrance in effect until snch time ae the requirement for such insnrance terminatea in aocordance with Borrower's and Lende~s ~
~ writta~ agreemmt or appliceble I.aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
Pa~aPh 2 hereof. ~
Any amonnta disbursed by Lend~ perauant to thia paragraph 7, with intereet thereon, ahall beo~me additional indebtedness of
~ Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terme of payment, such emounte ehall be payeble upon
notice from Lend~ to Borrower requesting payment thereof, and shall bear interest from the date of disbureement at the rate payable firom '
~ time to time on ontstanding principal under the Note unless payment of interest at auch rate would be oontrary to applicable law. in ahich ~
~ event such amounte ahall bear intereat at the higheat rate permieaible under applicable law. Nothing rnntained in this paragraph 7, ahall
require I.~det to incur any e~cpenee or take any action hereunder.
~ s~o~ Ju ! .°aGE s~C7
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