HomeMy WebLinkAbout0451 Borrower and L.ender covenant apd aQree as folbws:
1. Payment of PriAClpal and Interes~. Borrower ahall promptly pay when due the principal of and inteteat on the indebtedness
evidenoed by the Note. prepayment and late charges ae provided in the Note, and the principal of and intereat on any Future Advancee secured
by this MortgBge.
2. Funds for Tases and Insuranoe. Subjcct to applicable law or to a written waiver by I.ender, Borrower ahall pay to l.ender on the day
moathly installments of principal aad intereet are peyable under the Note, unW the Note ia paid in full, a aum (herein "~nds") equsl to one
twelRh of the yearly taxes and aasessments which may attain priority over this Morigage. and ground rente on the Property. if any. plue one
twelRh of yearly premium installments for hazard inaurance, plue onetwelRh ofyearly premium inatallments for mortgage inaurance, if any,
aU as reaaonably estimated initially and from time to time by I.e~der o~ the basis of aseessmente and bills and reasonable eetimates thereof.
The F~nds shall be held in an institution the depoeits or aocounts of which are insured or guaranteed by a Federal or State agency
(includiag Lender if Lender is such aa institution). Lender shall apply the Ptinda to pay esid ta:ea, asaesamente, inaurance premiums and
gronnd rents. Leader ma~y aot rharge for so holding and applying the I~nde, analyzing said aocoun~ or verifying and compiling said
aesesaments and bills. unless Lender pays Bormwer interest on the Ftinds and applicable law permite Lender to make such a charge. Borrower
and I.ender may agree in vvriting at the time of e:ecutioa of this Mortgage that interest on the Phnde ahall be paid to Borrower. and unlesa
euch agreement is made or applicable law requires such interest to be paid, Lender ehaq not be required to pay Borrower any intereat or
earninge on the Plinds. Lender ahall give to Borrower. without charge, an annual aocounting of the F~nds ahowing credita and debita to the
Ftinds and We purpoae for which each debit to the ~nda waa made. The Funds an pledged as additional securit-,~ for the sua?e secured by this
Mortgage.
If the amouat of the Flinds held by Lender, together with the future monthly instaqments of Funde payable prior to the due datea of taxes,
aasessments. insuranoe premiums and grouttd renta. shall r~ceed the amount required to pay said ta:ea, aeeesaments. ineurance premiume
and ground rente aa they faA due, auch ~oess shall be, at Borrower's option. either prompdy repaid to Borrower or credited to Borrower on
monthly insfallments of Phnds. If the amount of the F~nda held by Lender ahaU not be eufficient to psy tazee, seeesamente, inaurance
premiume and ground rents ae they fall due, Borrower ehall pay to I.ender any amou~t neceasary to make up the deficiency within 30 daye
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon paytnent in full of all auma eecue~ed by this Mortgage, I.ender shall prompdy refund to Borrower any funda heid by l.ender. If under
paragraph 18 hereof the Property ia eold or the Property is otherwiee acquired by Lender. I.ender ahall apply. no later than immediately prior
to the eale of the Propedy or ite aoqaiaition by Lender, any Flu?da held by Lender at the time of application as a credit against the auma eecured
by thie Mortgage.
3. Applicadon of Paymente. Unless applicable law providea otherwise, all paymenta received by Lender under the Note and
paragraphs 1 and 2 hereof ahall be applied by I.ender firat in payment of amounte payable to Lender by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advanoes.
4. Chargee; Lieae. Borrower ahall pay all taxea, assessmenta and other charges, fines and impoaitions attributable to the Propetty which
may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the ma~ner provided under paragraph 2 hereof or.
if not paid in auch manner. by Borrower making payment, when due, directly to the payee thereof. Borrower ehall prompdy furnieh to Lender
all notices of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
Lender receipta evidencing such paymente. Borrower shall promptly diacharge any lien which has priority over this Mortgage; provided, that
Borrower ehall not be required to discharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by
such lien in a manner acceptabie to Lender, or ahall in good faith contest such lien by, or defend enforcement of auch lien in, legal proceedings
which operate to pcevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Ineuranoe. Borrower ahall keep the improvementa now ea~isting or hernafter erected on the Property inaured againat lose by
fire, hszarde included within the term "e~ctended coverage, ' and auch otherfiazarda ae Lender may require and in aueh amounte snd for such
periods aa Lender may require; provided, that Lender ahall not require auch rnverage amount exceeding the minimum, as may be required by
state or federal regulatione governing activitiee of Lender, or that amount of rnverage required to pay the eums secured by thia Mortgage,
whichever ia the greater.
The inaurance carrier providing the inaurance shall be chosen by Borrower subject to approval by Lender, pmvided, that such approval
shall not be unreasonably withheld. A11 premiums on insurance policies shall be paid in the 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 inaurance policiee and renewale thereof ehall be in form acceptable to Lender and ehall include a etandard mortgage clause in favor of
and in form aoceptable to Lender. Leader shall have the right to hold the policiee and renewals thereof, and Borrower ah all promptly furnish to
j i.ender all renewal notices and all receipte of paid premiume. In the event of loae, Borrower ahall give prompt notice to the insurance carrier
~ and Lender. I:ender may mate proof of lo~s if not made pmmpdy by Borrower.
Ualess Lender and Borrower otherwiee agrce in writing, insurance proceeda shall be applied to reetoration or repair of the Property
damaged. provided euch restoration or repair ia economically feasible and the security of thie Mortgage ia not thereby impaired. If auch
~ reatoration ar repair ia not economically feasible or if the aecurity of thie Mortgage would be impaired, the ineurance proceeda ehall be applied
to the suma secured by thia Mortgage, with the excess, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to
~ respond to I.ender within 30 days from the date notice ia mailed by Lender to Borrower that the ineurance carrier of~ers to eettle a claim for
~ inaurance benefits, Lender ie suthorized to collect and apply the ineurance prooeeds at Lender a option either to reatoration or repair of the
Property or the aums eecured by this Mortgage.
Unleea Lender and Borrower otherwise agree in writing. any such application of proceedaio principal ahall not e:tend or poetpone the due
~ date of the monthly inataUmenfa'referred to in paragrapha l and 2 hereof or change the amount of euch inataliments. If under paragraph 18
hereof the Pe~operty ie acqaired by Lender. all right, title and interest of Borrower in and to any ineurance policiea and in and to the proceede
thereof reanlting from damage to Property prior to the sale or aoquiaition ehaU peae to Lender to the extent of the aume aecured by this
~ Mortgage immediately prior to euch sale or soquieition.
6. Preeervation and Maintenance of Pmperty; Leaseholda; Condominume; Planned Unit Developmenta. Borrower ahall keep
~ the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and ehall rnmply with the
3 proviaions of any lease if this Mortgage ie on a lesesehold. If thie Mortgage ia on a unit in a oondominium or a planned unit development,
~ Borrower ahaU perform all of Borrower's obligationa under the declaration or covenante creatingor governing the rnndominium or planned '
~ unit development, the by-lawe and regulations of the condominium or planned unit development, and oonetituent documents. If a
= condominium or plann~d unit development rider ie e:ecuted by Borrower and recorded together with thie Mortgage, the oovenants and
~ agreements of auch rider ahall be incorporated into and shall amend and supplement the covenante and agreements of thia Mortgage as if the
- rider were a part hereof •
~ 7. Protection of Lender's Security. If Borrower fails to pertorm the aovenante and agreements contained in this Mortgege, or if any
; action or prooeeding is oommeaoed which mat~ezially affects Lender's interest in the Property, including, but not limited to, eminent domain,
~ insolvency, oode eaforcemtnt, or arrangements or pmoeedings involving a banlmipt or deoedent, then I.ender at Lender's option,npon
~ notioe to Bormwer may make such appearances, diaburse such anma end ta1~e such action as is netessary to protect Leader
s int~t,
~ induding, but not limited to, diebursement of reasonable attoraey's feee and eatry upon the Pmperty to make npairs. If Lende: required
mortgage insnrance as a condition of making the loan eecnred by this Mortgage, Borrower shall pay the premiums requieed b maintain
~ auch insurancs in effect nntil snch time se the requirement for such ineurance terminates in sa~rdance with Borrower's and I.~dds
written agreement or app6cable Lew. Borrower shall pay the amount of all mortgege ineurance premiums in the manner provided unda
~ paragsaPh 2 hereof.
~ Any amounts disbnrse~ by L,ender pereuant to this paragraph 7, with in~t thereon, ehall beoome additional indebtedness of
a Botrower secnred by lhia Mortgage. Unleas Borrower and I.ender agree to other terme of peyment, such amonnte ehall be payable upon
~ notioe from Leader to Borrower requesting payment thereof, and ehall bear interest from the date of disbursement at the rate payable trom
time to time on outstanding principal under the Note anless payment of interest at such rate would be aontrary to applicable law, in which
~ event snch amounts ahall bear interest at the highest rate permissible under applicable law. Nothing oontained in this paragraph T, shell
~ reqnire Leader to incur any e:penee or take any action herennder.
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~ - R~ ~11-~ 450