HomeMy WebLinkAbout2292 Bormwer and Lender covenant and agree as folbvin:
1. Payment af Principal and Intere~t. Borrower ahall promptly pay when due the principal of and intereat on the indebted~ess
evidenoed by the Note. prepayment and late chargx as pmvided in the Note, and the principal of and intereet on any Fl?ture Advances aecured
by thi~ Mort~ey~e. _
2 PLnds for Taies and Iasurance. Subject b epplicable law or to a written waiver by Lender, Borrower ahaU pay to I.ender on the day
monthly instalimenta of principal and interest are payable unde~ the Note, until the Note is paid in fuU, a aum (hecein "Ftinda") equal to ont
twelPth of the yearly taxes and asaesameata which may attain priority over thie Mo:tgage, and ground ret?ta on the Property, if any, plus ont
tweltth of yearly premium installmente [or hazard insurence, plus onetwelRh of yearly premium inatallmenta tor mortgage inaurance, if any,
a11 es reasonably eatimated initially and 6om time W time by I.ender on the basis o! aeaesemente and bille and reasonable eatimatee thereof.
The i~nds shall be held in an inatitution the depoaits or aocounts of which are inaured ot guaranteed by a Federal or State agency
(includiag Lender if Lender ie such an institution). I.endet ahall apply the fi~nds to pay eaid tazea, assessments, ineurance premiuma and ~
ground nnts. I.ender may not charge for so holding and applying the ~nds. analyzing said account, or verifying and rnmpiling eaid '
easeasments and bills, tuiless Leader pays Borrower interest on the Flinds and applicable law pemnita I.ender b make auch a charge. Borrower -
and I.ender may agree in writing at the time of esecution of thia Mortgage tha! intereat oa the ~nds ehall be paid to Borrower. and unlese
euch agreement is made or applicable law requires wch intereet to be paid, Lender shall not be required to pay Borrower any intereet or ~
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earnings on the fi~nds. Lender ahali give b Borrower. without charge. an annual accounting of the Funds ahowing credita and debita to the
Funde and the purpoee for which each debit to the ~Lnda was made. The ~nde are pledged as additional aecurity for the aume secared by thia
Mortgage. 3
If the amount of the ~nds heid by LendeT, together with the future monthly installments of Funda payable prior to the due datee of ta:ea,
aaseeamenta, insurance pr~niuma and ground renta, shell racazed the amount required to pay said taxes, aesesamente, inaurance premiums
and ground renta ae they fall due. such e:cess ehall be, at Borrower s option, either prompdy repaid to Borrower or credited to Borrower on
monthly installmente of I~nds. If the amount of the Funds held by Lender ehall not be eufficient b psy taxes, sesessmenfs, inaurance
premiums and ground rente as they fall due, Borrower shell pay to Lender any amount necessary to make up the deficiency within 30 daya
from the date notice ie mailed by L.ender to Borrower requeeting payment thereof. ~
Upoa payment in full of aU sums eecured by thia Mortgage, I.ender shall prompdy refund to Borrower any funde held by L.ender. If under
paragraph 18 hereof the Property is aold or the Pmperty ia otherwise acquired by Lender. Lender ahaq apply, no later than immediately prior
to the eale of the Property or ite soquisition by Lender, any ~nds held by Lender at the time of application es a crediE againat the suma secured
by this Mortgage.
3. Application of Payments. Unless applicable law pmvides otherwise, all payments received by Lender under the Note and
paragraphe 1 and 2 hereof shaU be applied by Lender fieat in payment of amounta payable to I.ender by Borrower under paragraph 2 hereof,
then to interest payable on !he Note, then to the principal of the Note, and then to interest and principal on any Future Advancea.
4. Chargee; Liene. Botrower shall pay ali taxea, aea~resments and other charges, fines and impositions attributable to the Property which
may attain a priority ov~ this Mortgage, and leaeehold payments or ground renta, if any, in the manner provided under paragraph 2 hereof or, •
if not paid in such manner, by Borrower making pay~nent, when due, directly to the payee thereof. Borrower shali promptly furnish to I.ender
all notices of amounts due under thia paragraph, and in the event Borrower shaU make payment directly, Borrower shall promptly lurnish to
[.ender receipts evidencing auch paymenta. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower ehall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner aeceptable tb L.ender, or shall in good faith conteat such lien by, or defend enforcement of such lien in, legal proceedings
which opetate to prevent the enforcement of the lien or forfeiture of the Properly or any part thereof
5. Hazard Inaurance. Borrower ahall keep the improvementa now exiating or hereafter erected on the Property insured againat loss by
fire, hazarde included within the term "r~tended coverage," ettd euch other hazarde as Lender may require and in auch amounts and forsuch
periods as Lender may require; provided, that Lender shall not require euch wverage amount exceeding the minimum, as may be required by
atate or federal regulatione governing attivities of Lender. or that amount of coverage required to pay the sums aecured by this Mortgage,
whichever ie the greater.
The insurance carrier providing the inaurance shall be chosen by Borrower subjert to approval by Lender; pro~~ided, that such approval
~ shall not be unreasonably withhe{d. All pmmiwna on inaurance policies shail be paid in the manner provided under paragraph 'l hereof or, if
; not paid in such mar.~er, by Borrower making payment, when due, directly to the insurance camer.
; All ine~uance policiee'and renewals thereof shall be in form acceptable to Lender and shaA include a atandard mortgage clause in favor of
~ and in form acceptable to Lender. I.ender ahall have the right to hold the policies and renewala thereof, and Borrower ehall prom ptly furnish to
~ i,ender all renewal notices and all rec:eipts of paid premiuma In the event of lose, Borruwer shail qive prompt notice to the insurance carrier
~ and Lender. Lender may make proof of lose if not made promptly by Borrower.
~ Unleea Lender and Borrower otherwiee agtee in writing, inaurance proceeda shall be applied to reatoration or repair of the Property
damaged, provided auch restoration or repair ia economically feasible and the security of thie Mortgage is not thereby impaired. If such
reetoration or repair ie not ernnomically [easible or if the security of thie MortgBge would be impaired. the insurance proceeda shall be applied
~ to the aume secured by thia Mortgage, with the e:cesa, if any, paid W Borrower. If the Property ie abandoned by Bonower, or if Borrower fai la to
~ respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to settle a claim for
dd inaurance benefite, L.ender is suthorized to rnllect and apply the inaurance proceeda at Lendei s option either to reatoration or repair of the
~ Property or the suma eecured by this Mortgage.
Unlees Lender and Borrower otherwise agreein writing, any auch application of proceeds to principal shall not extend or postpone the due
~ date of the monthly inetallmenta referred to in paragraphs 1 and 2 hereof or change the amount of Auch inetallments. If under paragraph 18
hereof the Praperty ie aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds
~ thereof resulting from damage to Property prior to the aale or acquiaition shall paes to Lender to the extent of the s~uns aecured by this
Mortgage immediately prior to auch sale or aoqaisition.
6. Preaervation and Maiatenaace of Property; Leaeeholda; Condominume; Planned Unit Developmente. Borrower ahall keep
the Property in good repair and ahall not commil waste or pem~it impairment or deterioration of the Property and sha11 comply with the
provisione of any leaee if thie Mortgage ia on a leaeehold. If thie ltiortgage is on a unit in a condominium or a planned unit development,
Borrower ahall perform ali of Borrower'e obligatione under the declaration orcovenanta creatingor governing the condominium or,planned
~ unit development, the by-lawe and regulations of the condominium or planned anit development, and conetituent dceumenta. If a
condominium or planned unit development rider ie executed by Borrower and recorded together with thia Mortgage, the oovenants and
agreementa of such rider ahali be incorporated inb and ahail amend and aupplement the covenants and agreementes of this Mortgage as if the
' rider were a part hereof. .
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~ Protection of Lender'~ 3ecurity. If Borrower fails to pezform the oovenante and agreemente rnntained in this Mortgage, or if any
~ action or proceeding is rnmmenced which materially aftects I.ende~s interest in the Property, including, but not limited to, eminent domein,
~ ineolvency, oode enforcement, or arrangemente or ptoceedings involving e baniwpt or decedent, then L.ender at Lender's option,upon
~ notice to Borrower m~y make euch eppearanas, disbnrse such sums and take such action aa ie neceesary to protect Lender's interest,
; including, but not limited to, disbureement of reseonable attorney e fces and entry upon the Property to meke repairs_ If Lender required
~ mortgage insurance ae a condition of making the loan eecnred by this Mortgage, Borrower shall pay the premiume required to maintain
e euch inaurance in effect nntil such time ae the requirement for euch insurance terminatee in accordance with Bozrower's and Lender's
~ written agreement or applicable Laa. Borrower shall pay the amount of all mortgage ineurance premiume in the manner provided under
; paragreph 2 hereof.
~ My amounta disbureed by Lender pereuant to thie peragraph 7, with intereet thereon, ahall become additional indebtedness of
~ Aorrower secured by thie Mortgage. Unless Borrower end L,ender agree to other terms of payment, euch amounte ehal) be payable upon
~ notice from Lender to Borrower requeeting payment thereof, and shaU bear intereet from the date of disbureement at the rate payable from ~
~ time to time on outstanding principal under the Note unleee payment of intereet et auch rate would be oontrary to applicable law, in which
~ event such amounta shall bear intereat at the higheet rate permiasible under applicable law. Nothing contained in thie paragraph 7, shall
~ require Lender to incur any e~cpense or take any action hereunder.
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