HomeMy WebLinkAbout0224 Borrower and Lender cavenant and a~ree as follows:
1. Payment of Pr[nctpal and Interest. Borrower shall promptlY PaY when due the principsl of and intereat on the indeblednesa
evidenoed by the Note, prepeYment and late charges as provided in the Note, and the priacipal of and intereat on any I~ture Advances aecured
by this Mot!gage.
Z. F1~nds for Teucea snd laeuranoe. Subject to applicable law or to a written waiver by Ixnder, Eiorrower ahall pay to l.ender on the day
monthly installmenta of principal and interest are ~aYable under the Note, until the Note is paid in full, a aum (herein "FLnda") uqual to one-
twelfth of the yearly taxes and asseeemente which may attain priority over this ModgaBe. and ground renta on the Property, if any. plua one
tweltth of yearlY Premium inetallments for hazard ineurance. plus onetwelRh of yearly premium installmenta for mortgage ir?aurance, if any.
s11 as reasonably eatimated initially and from time to time by i.ender on the basis of aseeasments and billa and reasonable estimatea thereof.
'1lie F1~nds ahall be heW in an inatitution the depoeits or accounts oi which are insured or guaranteed by a Federal or State agency
(including Lender if Lend~ is euch an inetitubion). I.ender shall apply the Funds to pay said taxee, asaeasments, inaurance premiums and
ground nnte. Lender may not charge for so holding and applying the ~nds, analyzing said account~ or verifying and compiling said
aaeeesments and bills, unless Lender peys Boreower intereet on the Ftitnds and applicable law permita l.ender to make such a charge. Borrower
and Lender may agree in writing at.the time of execution of thia Mortgage that interest on the ~nde shall be paid to Borrower, and unleae
such agreement is made or applicable lew requires such intereat to be paid, I.endec shal! not be required to pay Borrower any interes! or
earnings on the fi~nds.for h~
h each debit
to the fl~nde was m de.~The Funds are pled8ed se additional eeceurity for the e~uma secured by t}i~s .
Flinds and the purpose
Mortgage.
If the atnount of the ~ada held by Lender, together with the future monthly installmente of Funds payable prior to the due dates of taxea,
asseeaments. ineurance premiums and ground rents. ahall e:~ed the amount required to PaY esid taxea, aaeesamente, insurance premiums
and ground renta sa they fall due. euch ezcess aha11 be, at Borrowei a option, either promptly repaid to Borrow~ or credited to Borrower on
monthly installmenta of ~nde. U the amount of the Funda held by Lender ahall not bc sufficient to pey ts.ucee, aeee.e++ments, inaurance
preminma and ground rents as they fall due, Borrower ahall pay ta I.ender any amount neceasary to ~nake up the deficiency within 30 days
from the date notice is mailed by Lender to Borrower requeating payment thereoL
Upon payment in fu11 of all sums eecured by thia Mortgage. Lender shall promptly refund to Borrower any funda held by I.ender. lf under
paregraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender ahall apply, no later than immediately prior
to the eale of the Property or ita acquisition by l.ender, any ~nds held by Lender at the time of application aa a credit against the suma secured
by this MortgaBe.
3. Application of Payments. Unlees applicable law providea otherwise, all paymenta received by Lender under the Note and
paragraphs 1 and 2 hereof ehall be applied by I.ender firat in payment of amounta paYsble to Lender by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, ~d then to interest and principal on any FLture Advancea.
4. Chargea; Liene. Borrower ahall pay all taxea, aseessmente and other chargea, fines and impositiona attributable to the Property which
may attain a priority over thia Mortgage, and leasehold payments or ground renta, if any, in the manner pmvided under paragraph 2 hereof or,
if not paid in euch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to lxnder
all notices of amounte due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly turnish to
I.ender receipts evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower ahall not be required to diacharge any such lien so long as Borrower shall agree in writing to the payment of the obligation aecured by
such lien in a mttnner acceptable to Lender. or shall in good faith contest auch lien by, or defend enforcement of such lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeitum of the Property or any part thereof.
5. Hazard Ineurance. Borrower ahall keep the unprovementa now eziating or hereafter erected on the Property insured againet losa by
Srn, hazarde included within the t~rm "e:tended coverage," and auch other hazards as Lender may require and in such amounta and for such
periods as Lender may requite: Pmvided. that Lender ahall not require such ooverage amount exceeding the minimum, ae may be required by
state or federal regulationa goveming activitiea of I.ender, or that amonnt of coverage required to pay the sums aecured by thie Mortgage,
whichever ie the greater.
The insurance carrier providing the inaurance ahall be chosen by Borrower subject to approval by Ixnder, provided, that such approval
shall not be unreasonably withheld. All premiuma on insurance policies shall be paid in the manner provided under paragrnph 2 hereof or, if
' not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier.
i All ineutance policiee and renewala thereof shall be in form acceptable to L.ender and ahall include a atandard mortgage clause in favor of
I and in fortn acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to
i,ender all renewal notices and all receipts of paid premiums. In the event of lose, Borrower shalt give pmmpt notice to the insurance carrier
~ and Lender. Lender may make proof of loes if not made prompdY bY Borrower.
Unleas Lender and Borrower otherwise agree in writing, inaurance proceeda shall be applied to restoration or repaiz of the Property
damaged, provided auch reatoration or repair ia economically feasible and the eecurity of this Mortgage is not thereby'impaired. lf such
reatoration or repair ie not eoonomically feasible or if the eecarity of this Mortgege would be impaired, the insurance proceede ahall be applied I
to the sume eecured bY this Mortgage, with the eacess. if anY. Peid to Bon'°`n'er• if the Property is abandoned by Borrower, or if Borrower fails to
reapond to Lender within 30 days from the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to settle a claim for ~I
insurance benefite, Lender ie suthorized to collect and aPP~Y ~?e insurance proceede at Lender e option either to reatoration or repair of the ,
Property or the suma eecured by t1?is Mortgage. -
Unlese Lender and Borrower otherwise agrce in writing, any auch application of pra.~eeda to principal shall not extend or postpone the due
date of the monthly inetallmenta referred to in paraBraphs 1 and 2 hereof or change the amount of such instalimenta. If under paragraph 18
hereof the Property ie acquired bY I.ender. all right, title and intereet of Borrower in and to any insurance policiea and in and to the proceeds
thereof resulting from dama8e to Property prior to the eale or acquisition ahall pasa to Lender to the eztent of the auma eecured by this
Mortgage immediately prior to such eale or aoqnisition.
6. Preaervation and Maintenance of Property; I.easeholds; Condominume; Plaaned Unit Developmenta. Borrower ahall keep
the Property in good repa'v and shall not commit waete or permit impairment or deterioration of the Property and ahall comply with the
provisions of any lease if this Mcrtgage is on a leaaehold. If this Mortgage ia on a unit in a condominium or a planned unit developmpnt,
Borrower shall perfor[n all of Borrower's obligationa under the decleration or covenanta creatingor governing the rnndominium or planned
nnit development, the by-laws and regulations of the condominium or planned unit development, and oonetituent documente. If a
condominium oT planned unit development rider ia e:ecuted by Borrower and recorded toBether with this Mortgage, the aovenants and
agreements of auch rider shall be incorporated into and ahall amend and supplement thecovenanta and agreementa of this Mort{;age as if the
rider were a part hereof.
7. Protection ot I.ender's Security. If Borrower faile to perform the oovenante and agreemente oontained in thia Mortgage, or if any
~w action or proceedinB ie commenced which materiallY sffecte I.ender e inter~t in the Property. including, but not limited to, eminent domein,
ineolvency. aode enforcemenR. or arrangemente ot proc~edin8s involving a bankrupt or decedent. then Lender at Lender'e option,upon
notice to Borrower may make such appearancea. diab~rse such sume and talce such ection as ie neoessary to Pmtect Lender's intezest,
including, b~t not limited to, diebnreement of reasonable attorney'e feee and entry upon the Property to make repairs. If Lender required
mortgage insurance ea a condition of making the loan secured by thie Mortgage, Borrower shall pay the premiums req~ired to maintain
euch insurance in effect until such time as the requirement for auch inaurance terminatee in accordance with Borrower's and Lender's
written agreement or spplicable I.aw. Borrower ehall pay the amount of all mortgage ineurance premiuma in the manner provided under
PareBrePh 2 hereoL .
My amounte diabursed by Lender perauant to this paragraph 7, with intereet thereon, ehall become additional indebtednese of
Borrower eecured by thia Mortgage. Unlees Borrower and Lender agree to other terme of payment, such amounte shall be payable upon
notice from Lender to Borrower requeating payment thereof, and ehall bear interest fro~n the date of disbursement at the rate payable from
time to time on outetanding principal under the Note unlees payment of interest at such rate would be rnntrary to apPlicable law, in which
event such amounts ahall bear interest at the highest rate permiaeible under applicable law. Nothing contained in thia paragraph 7, shall
require Lender to incur any eupenee or take any action hereunder. -
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