HomeMy WebLinkAbout1766 Borrower and Lende~ rnvenant and agree as follows:
1. Paymeat of Priacipal aad Iaterea~ Borrower ahall promptly pay when due the principal ot and interest on the indebtedneea
evidenoed by the Nob, p~epayment ar?d tate churges as provided ia tha Note, and the principal of and intereat on any Ftiture Advances securod
by this Mortgage.
2. Fltnde for Tazes and Insurance. Subject to applicable law or to a written waiver by I.ender, t3orrower ehall pay to l.e~der on the day
monthly inetallmenta of principal and interest are payable under the Note. until the Note ie paid in [ull, a aum (herein "Funda") equal to one
twelfth of the yearly taxes and aseesamente which may attain priority over thie Mortgage, and ground rente on the Piroperty, if any, plua une~
twelRh of yearly premium inatallmeats for h~ard inaurance, plue onetwelfth otyearly premium inatallmenta for mortgage ineurance, if any,
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11 as reasonably eatimated initially and from time to time by I.ender on the baeis of eaeeaamenta and bills and reaeoneble estimate8 thereof.
The FLnds ahaA be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State egency
(including Lender if I.ender ia such an inatitution). Lender shall epply the fi~nda to pay eaid taxes, aeaessmente. inaurance premiums and
ground renta. [.ender may not charQe for so holding and applying ths ~nd~, analyzing said account, or verifying and rnmpiling said
asseesments and bilis. unleas [.ender paya Borrower interat on the ~nds and appGcable lew permite I.ender to make such a charge. Borrower
and Lender may agree in writing at the time of e:ecution of this Mortgage that interest on the Fl~nde ahall be paid to Bore~ower, and unlese
such agreement is made or appGceble lew requires such intereet to be paid, I.ender ahall not be required to pay Borrower any intereat or ,
earnings on~the Ftinds. I.ender shail give to Borrower, without charge. an annual acoounting of the Funda ahowing credits and debita to the
~nds and the purpoee for which each debit to Lhe Funde was made. The Funds are pledged ae additional eecurity for the eums aecured by thie '
Mortgage.
If the amount of the I~nds held by Lender. together with the future monthly inatallment8 of Funda payable prior to the due dates of taaes,
assesaments. inearance pre~niums and ground rente, ahall euc+zed the amount required to pay said taxea. aeaeasmenta, inaurance premiums
and ground renta as they fall due, such excesa ehall be, at Bonower
a option, either pmmpdy cepaid to 8orrower or credited to Borrower on
monthly inatallmente oi I~Lnds. If the amount of the Funda held by Lender shall not be sufficient to pay tazea, asseesmente, insurance
premiume and ground rents ae they fall due. Borrower shall pay b Lender any amount necessary to make uR,~deficiency within 30 daye
from the date aotice is mailed by Lender to Borrower tequeating payment thereof. '
Upon payment in tull of all auma secured by this Mortgage, Lender ehall promptly refund to Borrower a!?y ll~nde held by Lender. If under
paragraph 18 hereof the Property ia sold or the Property ie otherwiee acquired by Lender, Gender ahall apply. a~l~?~er than immediately prio:
to the eale of the Property or ite aoquieition by I.ender, any fl~nda held by l.ender at the time of application aa a credit against the euma eecured
by this Mortgage. '
3. Applieation of Payments. Unleea applicable law provides otherwise, all paymenta received by Lender under the Note and
paragrapha 1 and 2 hereof ahall be applied by Lender first in payment of amounte payable to I.ender by E3orrower 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 Advancea.
4. Cberges; Liens. Borrower ehall pay all ta:ee, asaeaamenta and other rhargee, fines and impositionauttributable to the Property which
may attain a priority over this Mortgage, and leasehold payments oi ground renta, if any, in the manner provided under parugraph 2 hereof or,
if not paid in auch manner, by Borrower making payment, when due. directly to the payee thereof. Borrower shall prompdy furniah to Lender
all notices of amounte due under this paragraph. and in the event Borrower shall make payment directly, Borrower shall promplly furnish to
I.ender receipta evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over thia Mortqage; provided, that
Borrower ehall not be required to discharge any such lien ao long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to l.ender, or shall in good faith conteat such lien by, ordefend enCorcementofsuch lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower ahall keep the improvements now exieting or hereafter erected on the Property insured againat losa by
fire. hazarda included within the term "e:tended coverage," ctnd auch other hazards as I.ender may require and in auch amounts and for auch "
periods aa Lender may require; provided, that Lender ahall not r~equire auch ooverage amount exceeding the minimum, as may be required by
state or federal regulatione governing activitiee of Lender, or that amount of coverage required to pay the euma secured by this Mortgage,
whichever ia the greater.
The inaurance carrier providing the inaurance ahall be chosen by I3orrower subject to approval by l.ender, prr~vided, that such approval
shall not be unrnasonably withheld_ All premiuma on insurance policiea shaU be paid in the manner providecf under paragraph `L hereof or, if
not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier.
All insurance policiee and renewale thereof ehall be in form acceptable to l.ender and ahall include a standard mortgage clause in favor of
and in form acceptable to I.ender. I.ender ehali have the right to hold the policiea and renewals thereof, and Borrower shall promptiy furnieh to
i.ender all renewal notices and all receipte of paid pmmiuma. In the event of lose, Borrower shali give prompt notice to the ineurance carrier
' and Lender. Lender may malce proof of loae if not made promptly by Borrower.
' Unlesa Lender and Borrower otherwiae agree in wtiting, insurance procecde shall be appiied to reatoration or repair of the Property
I; damaged, provided auch rnatoration or repair ia economically feaeible and the eecurity of this Mortgage ie not thereby impaired. If auch
~ restoration or repair ia not economically feasible or i[the eecurity of this Mortgage would be impaired, the insurance proceeds ahall be applied
~ to the suma eecured by thia Mortgage, with the excees, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails Lo
reapond to Lender within 30 daya from the date notice ia mailed by I.ender to Borrower that the insurance carrier of~ers to aettle a claim for
j insurance benefita, Lender is authorized to collect and apply the insurance proceede at Lender'e option either to reatoration or repair of the
~ Property or the eume eecured by thie Mortgage.
Unleas Lender and Borrower otherwise agree in wtiting, any such application of proceeda to principal ahall not extend or poetpone the due
date of !he monthly instsllments referred to in paragrepha 1 and 2 hereof or change the amount of such inetallmenta. If under paragreph 18
hereof the Property ie aoquired by Lender. ail right, title and interest of Borrower in and to any ineurence policies and in and to the proc~eeds
thereof resulting from damage to Property prior to the sale or aaquieition ahall pass to Lender to the extent of the sums aecured by this
Mortgage immediately prior to such eale or acquisition.
6. Preservation and Maintenance of Property; Leaeeholde; Condominume; Planned Unit Developmente. Borrower ehall keep
~ the Ptoperty in good repair and shall not commit waste or permit impairment or deterioration of the Property and ehall comply with the
~ proviaione of any leaee if thie Mortgage ia on a leasehold. If thia Mortgage ie on a unit in a condominium or a planned unit development,
f3orrower ehall perform all of Borrower'e obligationa under the declaration or rnvenante creatingor governing the condominium or planned
unit development, the by-lawe end regulationa of the condominium or planned unit development, and rnnatituent documenta. It a
condominium or plenned unit development rider ia executed by Borrower and recorded together with thia Modgage, the oovenante and
agreements of such rider shall be incorporated into and shall atriend and eupplement thecovenants and agreements of this Mortgage as if the
rider were a part hereof_
~ 7. Protection of Lender'~ Security. If Borrower faile to perform the oovenants and agreemente oontained in this Mortgage, or if any
n action or proceeding ie oommenced which materially affecte Lender s interest in the Property, including, but not limited to; eminent domain,
insolvency, aode enforcement, or arrangements or pe+oceedinga involving e bankrupt or decedent, then L.ender et Lendei s option.upon
~ notice Lo Barrower may make such appearances, disburse such eums and taice auch action as ie neceesary to protect I.ender's interest,
~ inclnding, bnt not limited to, disbursement of reasonable attorney'e feee and entry upon the Propedy to make npairs. If Lender required
~ mortgage inaurance as e condition of making the loan eecured by this Mortgege, Borrower ehall pay the premiums required to maintain I
~ euch inaurance in effert until such time aa the requirement [or auch ineurance terminatee in accordance with Borrower'e and Lender s
r writien agreement or applicable L.aw. Borrower ahall pay the amount ot all mortgage ineurance premiume in the manner pmvided under
€ paragraph 2 hereof. ,
~ My amounte disburaed by Lender pereuant to thia paragraph 7, with interest thereon, ehall beoome additional indebtedneae of
p ~3orrower eecured by this Mortgage. Unlesa Borrower and Lender agree to other tem~s of payment, auch amounta shall be payable upon
~ notice from Lender to Borrower requeeting payment thereof, and ahaU bear interest from the date of diaburaement at the rate payable from
~ time to time on outstanding principal under the Note unleas peyment of inter~t at such rate would be oontrary to applicable law, in which
~ event such emounta shall bear interest at ihe higheat rate permiseible under applicable law. Nothing contained in this paragraph 7, ahall
~ require Lender to incur any ~penee or take any action hereunder_
~ 312 ~a~E 1764
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