HomeMy WebLinkAbout1148 E3ormwer and Lender rnvenant and agree as follows:
1. Pwyment of Principal and Interes~ Borrower ehall prompUy pay when due the principal of and intereat on the indebtednees
evide~ced by the Note, prnpayment and late charges ae pmvided in the Note, and the principnl of and intereet on any Futunr Advnnces sec~red
by thie Mottgage.
2. Ftinda [or Ta~ces end insurance. 3ubjecl to applicable law or to a written waiver by l.ender, Eiorrower ehall pay to I.ender on the dAy
monthly installme~te ot principal and intereat are payable under the Note, until the Note is paid in full, a eum (herein "Funda"1 equal to one
twelfth o[the yearlx teu~es and aaeeaements which may attaic? priority over thie Mortgage, and ~ound mnta on the Propeirty, if any, plua one
tw e1Rh of yearlv premium inatallmente for hazard insurance, plua onetwelRh ofyearly premium installme~ta for mortgage insurance, if any,
all es reaeonably eatimated initially and from time to tirr~e by l.ender on the M?ais of assesame~ta nnd biUs and reaaunnble eatimatea thereof.
The fi~nds ahall be held in an inetitution the depoeite or accounts of which are insured or guaranteed by a Federe! or Stnte x~ency
(including I.ender if l.ender ia such an inetitution). I.ender shall apply the Funda to pay said txxee, asaeeamente, inaurance premiums and
ground rente. Len.der may not charge for so holding and applying the ~nda, analyzing said account, or verifying and compiling said
eseesamenta and bille, unlese Lender pays Borrower intereat on the ~nda and applicable law permita Lender to make euch a charge. Borrower
and I.endet may agree in writing at the time of execution o[ thie Mortgage that intereat on the Funde shall be paid to Borrower, and unleae
euch agreement ie made or epplicable law requirea such intereat to be paid, l.ender ehall not be required to pay Borrower a~y interest or
earnings on the FLnde. Lender ahall give to Borrower, without charge, an annual accounting of the Funda showing credits and debita to the
Funde and the purpoee tor which each debit to the Funda was made. The Fu~ds are pledged ae additional eecurity for the eume eecured by this
Mortgage.
If the amount of the ~nda held by I,ender, together with the future monthly inetaUmenta of Funda payable prior to the due datea of ta:ea,
aeaesements, inaurance premiums and ground rente. ahall exc~ed the amount required to pa~ said taxee, asseasmenta, ineurance premiuma
and ground rente ae they fel) due, auch exceee ahall be, at Borrower'a option, either promptly repaid to fiorrower or credited to Borrower on
monthly inetallmenLe of F~nds. If the amount of the Funde held by I.ender ahall not be eu~cient to pay taxea, aseeesmente, ineurance
prnmiwne and ground rents as they fap due, Borrower ehall pay to l.ender any amount neceasary to make up the deficiency within 30 days
from the date notice ia mailed by l.ender to E3orrower nquesting ppyment thereot.
Upon payment in full of all eume secured by tbie Mortgage, Lender shall promptly refund to E3o~rower any funda held by l.ender. If under
paragrap6 18 hereof the Property ie aold or the Property is otherwiee acquired by Lender, Lender ahall apply, no later than immcdiately prior
to the eale of the Property or if8 aequiaition by Lender, any Funda held by I.ender at the time of application ae a credit against the~ums eecured
h~ thie Mortgage.
3. Application of Paytnente. Unlesa applicable law pmvidea_otherwise, ali payments received by Lender under the Note and
paragraphs 1 and 2 hereot ahal) be applied by I.ender firat in payment of amounts payabte to I.ender by Iiorrower 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 Advuncee.
4. Charges; Liens. Borrower Rhnll pay all tnxea, assesaments :ind other charRes, fines and impusitions nttributable to the Property which
may attain a priority over this Mortgage, and leasehold paymenta or gmund renta, if any, in the manner pmvided under paragraph `L hereolor,
if not paid insuch manner, by Borrower making payment, when due, direcdy to the payee thereof. Borrower shnll promptiy furnieh to I.ender
:~ll notices of funounis due under thia paragraph, and in the event 13orrower shnll make payment directly, Rorwwer ahxil promptly furniah tn
l,ender receipts evidencing euch payments. Bortower ahall promptly dischargr any lien which has priority over thie Mortgage; pn?vided, thut
Rurrower shall not be required to diacharge Any such lien so IonQ.is I3orrower shall agree in wrilin~ tn the pnyment of the obligation aecured by
~uch lien in a mannet acceptuble to I.ender, or shal) in Rood faith rnntest such lien by, ordefeod enfurcement ~,f such lien in, legal prnceecf inga
w•hich operate to prevent the enforcement of the lien or forfeiture of the Property or nny pnrt thereof. ~
5. Hezard Ineurance. Borrower ehall keep the improvementa now exiating or hereafter erected on the Property insured saainst Ir~srz by
fire, hazards included within the term "extended coverpge," and auch other hazards as I.ender may require and in euch amounte and for such
periods as Lender may rnquire; provided, that I.ender ahall not require such coverage amount exceeding the minimum, ns may be reyuired by
~tate or federal regulationa governing activities oi I.ender, or that amount of coverage required to pay the eume aecured by this MortRage,
w•hichever is the qreater.
The insurance carrier pmvidinQ the insuranm shall t?e ch~en by Rorroveer subject to approval by I,ender; pn,videci, that snch approval
~hall not be umm~sonnbly withheld. All pmmiumx un insurance ~H~licic~: shall be paid in the manner pmvidcri under parEiKraph `l hermf nr, if
n~~t paid in surh mnnner, by Borrower m~kinR payment, w•hen due, directly t~? the insurance carricr.
All insutance policiea and rnnewals thereof ehall be in form acceptable to I.ender and ahall include a etandard mortgage clause in favor of
~nd in form acceptable to L,ender. l.ender shall have the right to hold the policies and renewals thereof, and E3orrower s1~a11 promptly furnish to
i.ender all rnneveal noticea and all receipts ot paid prnmiuma. In the event of lose, Fiorrower ahall give prompt notice to the inaurance carrier
~ and Lender. I.ender may make proof of loes if not made promplly by Borrower.
~ Unlesa I.ender and Aorrower otherwiae agree in writing, insurance proceeda shall be applied fo restoration or repair of the Pruperty
~ dnmaged, provided euch reatoration or repair is economicaUy feaeible and the securitv of this Mortgage is not thereby impaired. if such
f restoration or repair is not economically feasible or itthe security of thie Mortgage would be impaired, the ineuranrn proceeda shall be applied
to the sums secured by this Mortgage, with the exceas, if any, paid to Iiorrower. If the Property is nbandoned by Borrower, or if Rorrower faila to
~ respond to Lender within 30 daye from the date notice is mailed by I.ender to I3r?rn,wer that the inaurance carrier offers tr, settle a claim for
I inRnrance benefite, i.ender is'authorized to colDect und apply the insurance pnxeede at I.ender'R option either to reatnration or repair of the
~ Property or the auma secared by thie MortQage. ~
~ Unleas Lender and ~3orrower otherwiae agree in writing, any auch application of proceeds to principal shall not exte.nd or poatpone thedue
date of the monthly installmente referred to in paragrnphe 1 and 2 hereotor change the amount of aucb inatallmente. If under paragraph 18
hereof the Property ia acquired by I.ender, all riRht, title and intereet of Bormwer in and to nny ineurance pc~licies and in and tn the proceeda
thereof reaultinq from damage to Property prior to the sale ar acquieition ehal) puax tn I~ender to the extent of the auma secured by this
~ 'vlortqage immediately prior to auch sale or acquiaition.
6. Preeervation and MaintenanceotProperty; Leaecholde; ('ondominume; Planned Unit Developmenta. Borrowerahall keep
the Property in qood repair and ehaU not commit waete or permit impairment or deterioration of the Property and ehall comply with the
proviaione of any lease if this MortKage ie on n leasehold. If thie MortgaKe ia on a unit in a condominium or a planned unit development,
F3orruwer ahall perform al) of Rorrower'e obliRalione under the declars~tion orcovennnta creatinQor governing the condominium or planned
unit development, the by-laws and ~ulations o( the condominium or planned unit development, and c~natituent documente. If a
~•~~ndominium or planned unil developmenl rider ie executed by Horrower and recorded t~ether with thia Mortgage, the wvenante and
:~Kreementa of euch rider ahnll he incorporated into and ehntl nmend end supplement thernvenantu an~ agreementx of thia Mortgageas ifthe
rider were a part hereof.
- 7. Protection ot I.ender's 3ecarlty. If Borrower taile to pertorm the rnvenanta and agreemente contained in thie Mortgage, or if any
ection or proeeeding ie commenced which materiaUy affects t.ender'e intereet in the Property, including, but not limited to, eminent domain,
~ ineolvency, oode enforcement, or arrangemente or proceedinqe involving a bankn~pt or decedent, then Lender at I.ender's option,upon
notice to Borrower may make such appearancee, dieburse euch eume and take euch aMion as is neceseary to protect Leader's interest,
E including, but not limited to, diebursement of reaeonable attorney'e teee and entry upon the Property to make repaire. If I.ender required
~ mortgage ineurance ae a condition of makirys the loan secured by thie Mortgage, Borrower ehal) pay the premiume required to maintain
£ e~uch insurance in effect until euch time as the requirnment for auch ineurance terminatee in accordance with Borrowei a and Lende~a
~ written egreement or applicable Law. Aornower ahal) pay the amount of all mortgage ineurance premiuma in the manner provided under
paragreph 2 herec?f.
~ My amounta diabursed by Lender perauant to thie paragraph 7, with intereet thereon, ahall become additional indebtedneae of
F3orrower sec~~red by thia Mortgage. Unleee Borrower and I.ender agree to other terme of payment, euch amounta ehall be payable upon
~ notice from Lender to Borrower requeeting payment thereof, and ehall bear interest from the date ot diebureement at the rate payable from
time to time on outstanding principal under the Note unleee payment of interest at auch rate would be oontrary to applicable law, in which
~ event such amounta shall bear interest at the higheat rate permiaeible under applicabte law. Nothing contained in thie paragraph 7, ehall
require Lender to inrur any e:pense or take any action hereunder.
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