HomeMy WebLinkAbout1303 . _ c . -
UttlPOltld (7ovartst~rts. Borrower and Fender ooveaant a+nd agree as follows:
>ti. ~t ed hiicl~l and lalneef. Borrower shall promptly pay when due the principal Of and interest on the
irtdebtedritas avideaeed by the Note. prepayment and late charges ss provided in the Note, and the principal of and interest
as any Ftrt»re Advsutoa sectired by this Mortgage.
2. Ilrrtriii ter Taaoae tnM IMr~ree. Subject to itpplicabk few .x to a written waiver by Lendu, Borr+o~wer shall pay
to Leader oa tfie day itatonthly installments of priricipa! and interest ire payable under the Note, until the Note n paid in full,
a sum (herein "Ftrnde'q equal to one-twdith of the yearly' taxc•. and assessments which may attain priority over this
Mortgage. and ground read oa the Property. if any, plus one-twelfth of yearly premium irWaliments for htisard insurance.
piti: one-twelfth o[ yearly premium installments for mortgage insttraticc, it any, all as reasonably estimated initially and from
tithe !o time by Lender oa the basis of assessments and hills and rcasonabk estimates thereof.
7Ue Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Fetkal of
state agency (including Lander if Lender is such an imtitutionl. I.entkr shall apply the Funds to pay said taxes. assessments,
insurance premiutrts and ground rents. lender may not charge for us holding and applying the Funds. analyzing said account.
-or veritying_aud compiling said assessments and bills. unless lender pays Borrower interest on the Funds and applicable law
permits Leader to make such. a charge. Borrower and Lender may agree in writing at the time of execution of iha
Mortgage that iaterat on the Funds shall be paid to Borrowsr, and unless such ajreement is made or applicable law
requires such interest to be paid. Letider shall not be required to pay Borrower any interest or earnings on the Funds. lender
:lull give to Borrower, without charge, an annwl accounting of the Funds showing credits and debits to the .Funds and the
purpom for which each dtdrit to tQb Funds was made. The Funvz arc pledged as additional security for the sums sceured
by this Mortgage. .
If the amount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the dots data of farces, assessmwts, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
saatments, iruuraitoe premiums and ground rents as they fall due. such excess shall be. at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds
htdd by Lender shall not be wA'icieat to pay taxes, assessments. insurance premiums and ground rents ss they fall due.
Borrower :ball pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower regttestin8 payment thereof.
Upon payment is full of all rums sxured by this Mortgage, lender shall promptly refund to Borrower any Fund:
held by Lender. If under paragraph 18 hereof the Property is sold or the Property a otherwise acquired. by Lerxkr. Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Linder, any Funds Feld by
Lender at the time of application as a credit against the sums secured by this Mortgage. ,
3. A~iieatioa of 1's~yreatr. Unless applicable law provides otherwise, all payments received by Lender under the
Note acrd paragraphs 1 and 2 hereof shall be applied by Louder first in payment of amounts payable to Lender by Borrower
ttadt:r 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 Advaaoes.
CfBarges; Ijetss. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which racy attain a priority over this Mortgage, and leasehold payments or ground rents. if any. in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whin due. directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts dine under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to [.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall 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 acceptable to Lender. or shall in good faith contest such lien by, or defend enforrement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or. any part thetmf.
. S. Hazard lirsotraitee. torrower shall kcep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
aad in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured Eby this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall hat be unreasonably withheld. All premiums on. insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. wtren due, dinectty to the
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Leader all renewal notices and all receipts of paid premiums. In the event of Ions,
Borrower shaft give prompt notice to the insurance carrier and Lender. Lender may make proof of loos if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any. paid
tb Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to I-ender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to ttx sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all tight, title and interest of Borrower
in and to any Rssurance policies and in and to the proceeds thereof resulting from damage to -the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. 1'reservatioa and Maintenance of Property; Leaseholds; Condominiums; Pbnned Unit Developments. Borrower
shall kcep the Property in good repair and shall not commit Waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage .is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development. and constituent documents. tf a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Prolectioo of Leader's Securfry. If Barrawer fails t~• perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is cummrnce.l which materially affects Lender's interest in the Property;
including, but not 6mHed lo. eminent domain, imolvency. code enforcement. ur arrangements or proceedings invoh•ing a
bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower. mry make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including. but net limited to, disbursement of
•reasonable attorney i fees and entry ulx~n the Property to make repairs. tf Lender required mortgage insurance as a
condmnn of making the loan secured by this Mortgage, Burrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates m accordance with Borrowers and
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