HomeMy WebLinkAbout0864 v
Borrower and I.ende~ covrnant and agree as followa:
1. Payment of Pelncipal and Interest. Born,wer shall promptly pay when due the principal of and intereat on the indebtcdne8s
e+^:a^"""~ ~`cs~e. #srt~sayment an~ latechargea as provisled in the Nute, and the principai of and intereat on any Future Advances secured
by this Mortgage. ,
2. Ftitnde tor Taxee and Ineurence. Subject to applicuble law or to a written waiver by I.ender, Eiormwer shall pay to I.ender on the day
monthly irtstallmenta of prineipai and interest are payable under the Note, until the Note ia paid in full, u sum (herein "Funda") equsl to une
twelfth of the yearly taxes and neaeuaments which may attain prioril~ over this Atortg~e, and Kround renta un the Property. if any, plua o~e
twelfth of yeatly premium inaiallmentx for hazard inaurancx, plua onetwelfth ofyearly premium inetallmenta fur murtguge ineurance, if any,
all ae reaeonably eatimated initially and trum time W time by l~ender on the basia u[ usaexamente and bil ls und ~e.3sonnble eatimutea thereof.
The FLnds ahall be held in an inetitution the deposits or accounta of which are inaured or guaranteed by a Federal or State a~ency
(including I.ender if l.ender ie such an inatitution). I.ender shall apply the H unda to pay said tazea, usaeasmenta, inaurance premiuma and
g~ound rente. Lender may not charge for eo holding and applying the Funda, analyzinR said account, or verifying and rnmpiling said
aseeesments and bille, unleae l.ender pays E3orrower intereat on the Funde and applicable law permite l.ender to make e~uch a charge. Borrower
and i.ender mny .~.~ring at tht Li~e uf p~~c~~~~n of this 4lazLgagc lhsL i:ti~rast an t!-.e Fun~'.-s e,ia~~ ix Nniu iu 3urtvwer, and uniess
such agreement is made or applicable law requirea euch inteceet to be paid, l.ender ehall not be required to pay Eiorrower any intereet or
eaminga on the F'unds. [.ender al~all give to f3orrower, without charge, an annual accounting of the Funda ahowing credifs and debita to the
Funde and the purpoae for which each debit to the Funda was made. The Funda are pledged as additional security for the suma eecared by this
Mortgage.
If the amount of the ~nda held by l.ender, toKether with the tuture monthly inslallments of F anda payablc prior to the duedates of taxes, •
aeeesamenta, insurance premiums and qround mnta, ahall excxd the aimount reqvired to pay esid taxea, uasessment8, inaurance premiums
and ground rnnte as they fall due, auch excess shall be, at Eiorrower'e option, either promptly repaid W Borrower o~ credited to F3orrower on
monthly inatallments of Funds. If the amount of the Funda held by l.ender ehail not be eufficient to pay taxea, aaeeasinents, inaurance
premiuma and ground renta as they fall due, Borrower ehnll pay to Lender any amount necesse~ry Ro make up tl~e deficiency within 3q day a
from the date notice ia mailed by l.ender to &,rrower reyuesting pnyment thercK;f.
Upon pnyment in fu11 of all suma secured by this Mortgage, I.ender ahall promptly refund to I3orrower any funds held by I.ender. If under
paragtaph 18 hereof the Property ie sold or the Property is otherwiae acquired by I.ender, Lender shall apply, no later than immrdiately prior
to the sale of the Property orite acquisition by I.e~der, nny F
unds held by I.ender zt the time of appliration as a credit ugainst the suma xecured
by thia Mortgage. ~
3. Applicadon of Payments. [lnleae applicable law provides otherw~se, ull paymenta received by I,ender under the Note arn~
paragraphe 1 and 2 hereof shall be applied by L.ender first in payment of nmuunts payable to Lender by Iiurrov?•er under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea.
4. Chargee; Liene. E3orrowetahall pay all taxes, assessmentt? and other ~•harKes, fineR and impusitions atlributable to the YropErrty~ w~hich
may attain a priority over this Mortgage, and leasehold paymenta orground rents, if any, in the manner provided under para~Kraph 2 hereofor,
if not paid in auch manner, by E3orrower making payment, when due, directly to the payc~e thereuf. F3orn~wer ah<ill prompth~ furnish w IA nder
all notices of amounts due under this patagraph, and in the event E3orrower shall make payment directly, Horn,wer shall promptly furnish to
l.ender receipta evidencing euch payments. t3orruwer ahall promptly discharge any lien which hax priority o~•Prthis NortgaKe; pm~~ided, that
, BorrowerehallnotberequiredtodischarReanyauchlienaolonQasBorrowerahalla¢reeinwritingtoth~n:~_ymPnt~~f~h..,~l.l~~~,r~.,..~~•1.~?;;.
such lien in a mann~ acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, lc~al proc~c~3inKs
which operate to prevent the enforcement of the lien or forleiture of the Property or any part thereof.
5. Hazard Iaeurance. Borrower shall keep the improvements nuw existing or hereafter erected on the Property i nsured againat loas by
fire, hazarda included within the term "extended coverage; ' and euch other hazards aa Lender may requirr and in ~uch Amounta und fur euch
periods as I.ender may requirn; provided, that Lender ahall not require such coverage amount exceeding the minimum, as mAy t,e required by
state or federa) regulationa governing activities of Lender, or that amuunt of coverage required to pay the sums sec~red b~• this MortKaQe,
whichever is the grnater.
The inaurance carrier providing the insurance shall be chosen by Korrower subject tn approval by I.ender: pn,ridecl, that such :~ppr~~~~al
shall not be unrnasonably withheld. All premiuma on insurance policies shall be paid in the manner pn~~•ided ander paraKraph 'L herc~c~f or, if
not paid in such manner, by Borrower making payment, when due, directly to the insur<~nce carrier_
All inaurance policies and renewals thereof ahall be in form acceptable to Lender and ehall include a standard mortgaKe clauae in fnvor of
and in form acceptable to I.ender. I.ender ehall have the right W hold the policies and renewals thereef, and Borruwer shall promptly furnish to
i.ender all renewal notices and all receipta of paid prnmiuma. In the event of loss, Borrower ahall give prompt notim to the insurance carrier
and I.ender. Lender may make proof of loae if not made promptly by Borrower.
~
i Unleas Lendet and Borrower otherwise agree in writing, insurance proceeda ahall be applied to reatoration orTepair of the Property
~ damaged, provided auch reatoration or repair ie economically feasible and the eecurity of this Mortgage ia not thereby impaired. If such
reatoration or repair isnot economicslly feasible or if the security of thi8 Mortgagewould be impaired, the inaurance proceeds ahaU beappiied
to the sama eecured by thie Mortgage, with the exceas, if any, paid to Botrower. If the Property ie abandoned by F3orrower, or if Borrower faila to
~ reapond to Lender within 30 daya from the date notice ie maile~ by Lender to Borrower that the insurance carrier of~ers to aettle a claim for
; ineurance benefite, Lender ie authorized to collect and apply the inaurance proeeeda at Lender e opGon either to reatoration or repair of the
~ Property or the sums eecured by thie Mortgage.
~ Unleas L,ender and Borrower otherwiee agree in writing, any auch application of proceeds to principal shall not extend or postpone the due
~ date of the monthly inetallments referred to in paragraphs 1 and 2 hereof or change the amount of such inatallmenta. If under paragtaph 18
~ hereof the Propetty ia aoquired by Lender, all right, tiNe and intereat of Borrower in and to any inewance policiea and in and to the proceeda
~ thereof reaulteng from damage to Pcoperty prior to the eale or aoqnisition shall pasa to i,ender to the e:tent of the aume aecured by this
Mortqage immediately prior to auch sale or soquisition.
i 6. Preservation and Maintenence of Property; Leaseholda; Condominums; Planned Unit Developmenta. Borrower shall keep
~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and anall comply with the •
t provisions of any lease if this titortgage ia on a iFasehuid. If this Mortgage is on a unit in a condominium or a planned unit development,
~ :iorrower ehall perform aq ot E3errowei s obligations under the declaration or covenants creatingor governing the condominium or planned
t unit development, the by-lawe and regulationa of the condominium or planned unit development, and conatituent documents. If a
`s, condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta and
i agreements of such rider shall be incorporated intu and ehali amend and aupplement the covenants and agreements of this Mortgage as if the
- rider were a part hereof.
x 7. Protection ot Lender'e Securlty. lf Borrower fails to per[orm the oovenante and agreemente contained in this Mortgage, or if any
; action or proceeding is rnmmenced which materially affecte Lender'e intereet in the Property, induding, but not limited to, eminent domain,
; insolvency, oode enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon =
~ notice to Borrower may make such eppearancee, diebune auch sums and take euch action as is neceseary to prot,ect Lender i interest, '
; including, but not limited to, disbureement of reasonable attomey'e fees and entry upo~ the Property to ma1~e repeirs. If Lender required
mortgage ineurance aa a condition of making the loan aecured by thia Mortgage, Borrower ehall pay the premiums required to mainteit?
euch ineurance in effect until auch time as the requirement for such ineurance terminatee in aocordance with Borrower e and Lendei s
written agrcement or applicable Law. Borrower ehall pay the amount of all mortgage ineurance premiuma in the manner provided under
paragraph 2 hereof. •
Any amounta diebureed by I.ender perauant to thie paragraph 7, with intereet thereon, ahall bec~ome additional indebtednees of
; Borrower secured by thie Mortgage. Unleae Borrower and Lender agree to other terme of payment, auch amounte ehall be payable upon
= notice from Lender to Borrower tequeeting payment thereof. and ahall bear intereet from the date of diebureement at the rate payable trom ~
~ time to time on outetanding principal under the Note unleea payment of interest at auch rate would be aontraty to applicable 2aw~ in which
~ evenl euch amounte ehnll bear intereet at the hi heat rate :
8 permieaible under applicable law. Nothing rnntained in this paragraph 7, ahall :
~ require Lender to incur any expense or take any action hernunder. ~ ~
~ '
!
, ~
, _ ~ ~ J~~.. rA(,E Q~ -
f