HomeMy WebLinkAbout0899 Borrowar and Lender covenant and agree as folbwa:
1. Payaseat of Pedacipal and Intsreasr Borrower shall promptly pay when due the principal of and interest on the indebtednew
evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Pltture Advances secured
by this Mortgsge.
2. I~rnds for Tues and Guuranee. 3ubjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day
monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fhnda'h equal to one-
twelRh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground yenta on the Property, if any. plus ores
twelfth of yearly premium installments for hazard insurance, plus one•twelfth otyear(y premium installments for mortgage insurance, if any,
all as reasonably estimated initially and from tune to time by Lender on the basis of assessments and bill and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency
(including Lender if Lender is such as institution). Lender shall apply the Funds to pay said lases. assessmenb, insurance premiums and
ground rents. Lender may not charge for so holding and applying. the Fnnds, analyzing said account, or verifying and coanpiling said
assessments and bills. nnlea Lenderpaya Harrower interest on the Fonda and applicable law peraaita Lender to make such a charge. Borrower
and Lender may ogres in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower. and unless
such agreement is made or applicable law requires such interest to be paid. Lender shall not be required to pay $osrower any interest or
earnings on the Funds. Lender shall give to Horrower, without charge. an annual aoeounting of the Funds showing credits and debits to the
Funds and the purpose for which each debit to the Funds was made. The Fonda are pledged as additional security for the sums secured by this
Mortgage.
If the amount of We Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes,
assessments, insurance praninms and ground rents, shat! ezcred the amount required to pay said taxes, assessments, insurance premiums
and ground rents as Wey fall due, ouch excess shall be, at Borrower's option, either promptly repaid to Borrower or credited b Borrower on
monthly installments of Funds. If the amount of the Fonda held by Lender shall not be anfficient to pay taxes, assessments, inaunznce j
premiums and gronnd rrnts as they tall due, Borrower shall pay b Lender any amonnt necessary to make up the defiaency within 30 days
from We date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior j
to the sale of the Property or its acgnisition by bender, any Funds held by i.ender at the time of application as a credit against the awns secured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by Leader first in paymer+t of amounts payable to bender by Borrower 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 Advances.
4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which
may 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 snch manner, by Borrower making payment, when due, direMly to the payee thereof. Borrower shall promptly famish to Lender
all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shall not berequired to discharge any such lien so long as $orrower shall agree in writing to the payment of theobligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement ofs6ch 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 shall keep the improvements now existing or hereafter erected on the Property insured against lees by
fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such
periods as Lender may require; provided, that Lender shalt not require that the amount of such coverage exceed that amount of coverage
required to pay the sums secured by this Mortgage. ,
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by [.ender, provided, that such approval
shall not 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, when due, directly 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
lender all renewal notices and ail receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier
and Lender. Lender may make proof of loss if not made promptly by Borrower.
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damaged, provided such restoration or repair ie economically feasible and the security of this Mortgage is not thereby impaired. If such
restoration or repair is not ernnomically feasible or if the security of this Mortgage would be impaired, the inawance proceeds shall be applied
to the soma secured by this Mortgage, with the excess, if any, paid to Borrower. if the Property is abandoned by Borrower, or if Borrower fails to
respond to Lender 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 the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of pra~eeds to principal shall not extend or postpone the due
date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18
hereof the Property is acquired by Lender, ail right, title and interest of Borrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to-the sale or acquisition shall pass to Lender to the extent of the soma secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance otProperty; Leaseholds; Condominuma; Planned Unit Developments. Borrowershall keep
the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of the Property and shall comply with the
provisions of any lease if thin Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development,
Borrower shall per[orm all of Borrower's obligations under the declaration or covenants creatinRor governing the condominium or planned
unit development, the by-laws and regulations of the rnndominium or planned unit development, and rnnatituent documents. If 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. Protection of Lender's Security. If Borrower faits to perform the covenants and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, emineat domain,
insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lenders option.npon
notice to Borrower may make such appearances, disburse such sums and take such action as is neoesaary to prated Lender's interest,
including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repai». If Lender required
mortgage insurance as s condition of making the loan secured by this Mortgage, Borrower shall pay the premiums regnired b maintain
such insurance in effect until such time as the requirement for ouch insurance terminates in accordance with Borrower
s and Lendds
written agreement or applicable I.aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
My amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall ba:ome additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounb shall be payable upon
notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
time to time on outstanding principal under the Note unless payment of interest at such rate would be wntrary to applicable law, in which
event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall
require Lender b incur any expense or take any action hereunder.
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