HomeMy WebLinkAbout1771 Borrower end I.ender rnvenant ertd aQree a~ follows:
1. Peymeat ot ~'rincipel aad lnterest. Borrower shall promptly pay when due the principal o[ and inteteat on the indebtedneas
evidenced by the Note, prepayment and Iate charge8 as provided in the Note, and the principal ot and intereet on any Future Advances eecured
by this Mortga~e.
2. Ftitnds [orT~u[es and Insurance. Subjecl b applicable law or to a writte~ waiver by l.ender, E3or~owe~ ehall pay to l.endero~ theday
mo~thly instaUments of principal and intereat are payable under the Note, until the Note ie paid in [ull, a aum (he~ein "E~'unda") equal to one
twelfth of the yearly taxe8 and aseeasmente which may attain priority over this Mortgage, and gruund rents on the Property, if any, plua on~
twelfth of yearly premium instalimenta for hazard insurance, plus onetwelfth ofyearly pmmium i~stallments for mortgage ineurance, if any,
aU aa reasonably eatimated initially and from time to time by Lender on the basis of assessments and bills and reasonable eatimates thereof. '
'l~e F~nds shall be held in an institution the depoeita or accuunta of which are inaured or guaranteed by a Federal or State agency
(including Lender if Lender ia auch an inatitution). Gender shall apply the F unda to pay eaid tazes, asaesnments, insurance premiuma and
ground nnts. Lender may not charge for so holding and applying the Flends, analyzing said account, or verifying and rnmpiling said
aasesamenfa and biAa, unless I.ender pays Borrower intereet on the ~nds and applicable law permits Lender to make auch a cha~ge. Borrower
and Lender may agree in writing at the time of execution of thia Mortgage Ihet intereat on the Funda shap be paid to Borrower, and unleas
ench agreement ia made or applicable law requirea auch intereat to be paid, I.ender shall not be required to pay Iiorrower any intereat or
earuinga on the Funda. Lender ahall give to Borrower, wilhout_ charge, an annual accounting of the F unds showing credits and debits to the
Ftinda and the purpoee for which each debit to the Funda was made. The Funds are pledged as additionai security for the sume serured by this
Mortgage.
lf lhe amount oi the FLnde held by Lender. together with the future monthly installmenta of Funds payable prior to the due dates of taues.
essesemente, inaurance premiuma and ground rents, shall e:cxd the amount required to pay said taxes, assessmenta, ineurance premiuma
and grotu?d rents as they fall due. auch excesa shall be, at Borrower's option, either prompdy repaid to Borrower or credited b Borrower on
monthly installments of Ftinde. If the amount of the Funda held by [.ender ~haU not be aufficient to pay taxea, asseasmenta, inanrance
premiuma and giround renta ae they fall due, Borrower ahall pay to Lender any amount ~ecessary to make up the deficiency within 30 days
from the date notice ia mailed by I.ender to Bo~tower requesting payment thereof.
Upon payment in full of eU aume eecured by this Mortgage, I.ender shall promptly refund to E3orrower any funds held by Lender. If under
parsgraph 18 hereof the Property ia sold or the Property is otherwiae acquited by [.ender, I.ender shnll apply, no later than immediately prior
to the sale af the Property ot its aoquiaition by Lender, any Funda held by I.ender at the time of application as a credit against the aums secured
by this Mortgage.
3. Application of Paymente. Unless applicable law provides otherwise, alt payments received by I.ender under the Note and
paragrapha 1 and 2 hereof ahall be applied by Lender firxt in payment of amounfs payable to l.ender by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, and lhen to interest and principal on any Future Advancea.
4. Charges; Liena. Borrower shall pay all taxes, i~asessments and othercharges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thermf. R~?rmwer shall prompdy furnish to Lender
ail notices of amounts due under this paragraph, and in the event Borrower shall make payment directiy, [3ormMer shali promptly fumish to
Lender receipts evidencing such payments. RorroNer shall promptly disch~rge any lien which he+s priority over this Mortgage; provided, that
Borrower shall not be required to discharge any such lien so long as Rorrower shall ~gree in K nting to the payment of theoblig:~tion secured by
such lien in a manner acceptable to Lender, or shall in good faith cti~ntest such ~ien bp, ordefend enforcement of such lien in, legal prcx~eedings
which operate to prevent the enforcement of the lien or furfeiture of the Projieny or an~ part thereuf.
5. Hazard Insurance. Borrower shall keep the impmvemen~a now existinR or hereafter erected on the Property insured againat losa by
fire, hazards included within the term "exlended coverage," and such other hazards as Ixnder ma~ require and in such amounts and for auch
periods as [.ender may require; provided, that l.cnder shaill not require that the ~mount of such coverage exceed that amuunt of coverage
required to pay the sums secured by this MortRaKe.
The insurance carrier pruviding the insurance ~hall 1~ chusen br }i~~rruw•t~r subjert tu appr~n~al b~~ t xnd~~r, providcd, that such approval
shall not be unreasonably withheld. All prcmiums un insur:~n~•r ~dirie. ~hall 1?r paid in the m.~nnPr pru~•idrel under paraKr.iph'2 hereof or, if
not paid in such manner, b}~ 13orruwer makinK p:~~•rnrnt, whc•n due, direY•th• to the insurance carrif•r.
All insurance policies and renewals thereuf shall be in forn? acceptable to Ixnder and shalt include a stfindard mortgageclause in favorof
and in form acceptable to l.ender_ I.ender shaU have the right to hold the p~dicies and renewals thereof, and Borrower shall prompdy furnish to
I~ i.ender all renewal noticea and all receipts of paid premiums. In the rveut of loss, Burn~wer shail Kive prompt notice to the insurance carrier
i and Lender. Lender may make proof of loss if not made promptly by Borrower.
E Unless Lender and Borrower otherwise agree in writing, insurancr proceeds shall br a~ppliecl to restoration or repair of the Property
~ damaged, provided such restoration o~ rnpair is economicaliy feasible and the scrurity of this Morigage is not thereby impaired. If such
~ reatoration or repair is not economically feasible or if the security of this Morig:~qe would be impaired, the insurance proceeds shall be applied
, to the aums secured by this Mortgage, with the excess, if :~ny, paid to Eiorrower. I f the Property is ubandoned by E~rrower, or if E3orrower fails to
~ rexpond to Lender within 30 days from the date notice is mailed by I.ender to Rorrower that the insurance carrier offers to aettle a claim for
~ ineurance benefits, l.ender is authorized to collect and apply the insurance pruceeds at I.ender's option either to restoration or repair of the
~ Property or the sums aecured by this ~iortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of pmceeds to principal shall not extend or postpone thedue
date of the monthly inatallments referred to in paraRraphs 1 and 'l hereuf or change the amount of such instaUments. If under paragraph 18
hereof the Property is acquired by I.ender, all right, titie and interest of Borrower in and t~~ ~ny insurance policies and in and to the proceeds
thereof reaulting from damage to Property prior to the s:~le or acqwsition shall pass tn I,ender to the extent of the sums secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preaervation and Maintenance of Property; l.easeholds; Condominums: Ylenned Unit Developments. Borrowerahall keep
the Property in good repair and shall not commit waste ~~r pern?it impairment or deterioration uf the Property and shal) comply with the
proviaiona of any lease i[ this Mortgage is on a leasehold. If this :~tortKaKe is on a unit in a condominium or a planned unit development,
Fiorrower ehall perform all ot Borrower's obligntions under the declaratinn or covenants cre.itinKor govern~ng the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a
condominium or planned unit develupment rider is executed by F3orrower and recorded together with this Mortgage, the covenants and
~ aKreementa of such rider shall be incorpurated intu and shall amend and supplement the cuvenants and agreementsof this htortgage as ifthe
~ rider wern a part hereof.
= 7. Protection of Lender'e 3ecurity. If Borrower faila to perform the covenante and agreements contained in thia Mortgage, or if any
~ action or proceeding ie commenced which materially affecta Ixnder'a intereat in the Property, including, but not limited to, eminent domain.
~ ineolvency, oode enforcement, or arrengemente or proceedings involving a bankrupt or decedent, then Lender at Lender'e option,upon
~ notice to Borrower may make euch appea~ancee, diaburee euch sums and take auch action ae ie neceesary to protect Lender'a interest,
including, but not limited to, dieburaement of reaeonable attorney's feee and entry upon the Property to make repaire. If L, nder required
~ mortgage inaurance se a condition of making the loan aecured by this Mortgage, Borrower ehall pay the premiuma required to maintain
such ineurance in effeM until euch time ae the requirement for euch ineurance terminates in accordance with Burrower'e and Lender'e
~ written agreement or applicable Lew. Borrower shall pay the amount of all mortgage inaurance premiuma in the manner provided under
paragraph 2 heTeof.
~ Any emounte diabnraed by I.ender persuant to thia paragraph 7. with intereat thereon, ahall become additional indebtedneee of
~ F3orrower aecured by thie Mortgage. Unleas E3orrower and I.ender agree to other terma of payment, euch amounte ehall be payable upon
notice from Lender to Borrower requeeting payment thereof, and ahal) bear intereet from the date of diabursement at the rate payable from
time to time on outetanding principal under the Note unless payment of intereet at such rate would be contrary to applicable law, in which ,
event such amounte shaU bear intereet at the higheat rate pertniasible under applicable law. Nothing contained in thia paragraph 7, ahall ~
require Lender to incur any expenae or take any action hereunder.
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