HomeMy WebLinkAbout2973 Borrower and Leader covenant and agra a. folbws:
1. Pa~raeat of Principal sad laterest. Borrower shall promptly pay when due the principal of and interest oa the indebtedness
evidenced by tM Nola, prepayment and fats charges as provided is the Note. sad the principeJ of and interest oa say Future Advances secured
by this Yortgaga.
S rl~ada for T~ces and Inaasanoe. $nbjed to applicable law or to a written waiver by Lender. Borrower shall pay !o Lender on the day
monthly installments of principal sad interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds'? equal b ores +
twelfth of the yearly lases and anessaoeata which may attain priority over this Mortgage, and ground rw?b on the Property. if any. pins acne-
twelfth of yearly premium ineRalhaeab for basard insurance, phis onatweltth of yearly premium installments for mortgage iasuranoe, if any.
all as reasonably estimated initially sad lkom time to time by Lender oa the basis of assessments and bilb and reasonable estimates thereof:
The Funds shall be held is an iaditntioa the deposits or seoouata of which are insured or guaranteed by a Federal or State agency
(inclndirrg Leader it Leader is anch an irutitutioa). Leader shall spply the Funds to pay said taxes, assessraeats, insurance premiums and
ground rents. Leader may rat diarge foe so holding and aPP1Yir?g We Funds. analysing said account. or verifying and compiling said
assaaneats sad bills, anises Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower
and Leader may age+ss is writing at tM time of execution of this Mortgage that interest on the Funds shall be paid to Borrower. sad ualaa
such agreemeal is made or applicable law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or
earnings on the firndt. I.sader shall give to Borrower. without charge. an annual accounting of the Ponds showing credits and debits to the
firads and the purpose for which each debit
to the Funds was made. The Funds are pledged as additional security for the sums secured by this
Morlga~ge.
If the amount of We Plrnds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of lases,
assessments. insurance premiums and ground rents. shall e:oaed the amount required to pay said lases, awesernents, insurance premiums
and ground rests as they fall due, such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on i
monthly installm~ts of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay lases. assessments, itunranoe
premiums sad ground rents s• they fall due. Borrower sball pay to Lender any amount necessary to make up the deficiency within 30 days ~
from the date notice is mailed by Lender to Borrower requesting Payment thereof.
Upon paymaat in fall of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If enderr
paragraph 18 hereof the Property is sold or the Properly is otherwise acquired by Lender, Lender shall apply, no later than immediately prior
to the sale of the Property err its acgnisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured
by this Mortgage. .
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Leader ender the Note and
paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower ender paragraph 2 hereof,
then to intered payable oa the Note, then to the principal of We Note. and then to interest and princip8~1 on any Future Advances.
4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges. fines and impositiorw attributable to thg ProResty 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 such manner. by Borrower making payment. when due, directly to the payee thereof Borrower shall protnptl~?~fnrnYsh 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 reaipta 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 enforcement of such lien in, legal proceedings
which operate to prev~t the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Iasuraru~e. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lass by
fire, hazards included within the term "extended coverage," and such other h azarda as Lender may require and 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 by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, 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 poUcies 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
i.ender all renewal notices and all receipts of paid premiums. in the event of loss, Borrower shall give prompt notice to the insurance carrier
and Leader. Lender may make proof of loss 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 anch restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such ~
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t 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 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
a option either to restoration or repair of We
Property or the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not estend or postpone the due
date of We monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18
hereof We Property is aegnired by Lender, all 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 sums secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Msdntenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowerahall keep
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. j
Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or p{anned unit development, and conatitnent documents. V a
condominium or planned unit development rider is executed by Borrower and rernrded together with this Mortgage, the covenants and
agreements of such rider shall be inrnrporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the
rider were a part hereof.
Protection of Lender's $ecurity. If Borrower fails 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, eminent domain.
insolvency, node enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon
notice b Borrower may make sneh appearances, disburse anch sums and take such action as is necessary to protect Lender's interest.
including, bat not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. U Leader required
mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain
such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lendes'a
written agreement err applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided Hader
paragraph 2 hereof.
Any amounts disbursed by Lender persuagt to this paragraph 7, with interest thereon, shag become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon
notice from Lends to Borrower requesting payment thereof, and shall bear interest from the date of dieburaaaent at the rate payable from
time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law. in which
event such amounts shall bear interest at the highest rate pennisaible under applicable law. Nothing contained in this paragraph 7, shall
require Lender to incur any expense or take any action hereunder.
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