HomeMy WebLinkAbout0394 t
_ ~
~ ~ _
- !
- t
Borrower and Lender covenant and agree as follows:
1. Payment of Prlncip~al sad Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness !
evidenced by the Note. prepayment and late charges as provided in the Note, sad the principal of and interest on any P1?ture Advances secured #
by thin Mostgage.
2 Farads for Taws and lruurance. Subject to applicable law or to a written waiver by I.ender, Borrower shall pa7? to I,rnder un the day
monthly installments of principal and interest era payable uncle the Note, until the Note is paid in full. a sum (herein "Funds") equal to one•
twelfth of the yearly fazes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, plea ores
twelfth of yearly premium installments for hazard insurance, pine one•tweltth of yearly premium inetalhnents for mortgage insurance. if any,
all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
The Fends 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 an institution). Lender shall apply the Funds to pay said fazes, aeseasmenta, insurance premiums and
ground rents. Lender may not charge for so holding and applying the Funds. analysing said aeoount,.or verifying and compiling said
assessments and bills. unless Lander pays Borrower interest on the Funds and applicable law permits Lender to make such a charge.Borrower
and Lender may agree in writing at the time of a:station of this Mortgage that interest on the Ptinde shall be paid to Borrower, and unless
such agreement is made or applicable law requires such interest to be paid, Lender ahaA not be required to pay Borrower any interest or
earnings on the Fends. Lender shall give to Borrower. without charge, an annual accounting of the Fends showing credits and debits to We
Fends and the purpose for which each debit to the Fnnda was made. The Funds are pledged as additional security for the sums secured by this
Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Fonda payable prior to the due dates of fazes,
assees~aents, insurance premiums and ground rents. shall ezaaed the amount required b pay said fazes. asseascients, insurance premiums
and ground rents as they fall due, such ezcess shall be. at Borrower's option. either promptly repaid b Borrows= or credited to Borrower on
monthly installments of Pltnds. If We amount of the Fends held by Lender shall not be sufficient to pay fazes, assessments, insunrrrce
premiums and ground rents as they fall due, Borrower shall 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 payment in fall of all soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Tf under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior
to the sale of the Property or its acquisition by [.ender, any Fide held by Lender at the time ofapp-lication as a credit against the soma secured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and f
paragraphs 1 and 2 hereof shall be applied by Lender firm in payment of amounts payable to Lender by Borrower under paragraph 2 hereof,
Wen• to interest payable oa We Note, then to the principal of the Note, and Wen to interest and principal on any Future Advances.
- 4. Charges;Liens. Borrower ahallpay all fazes, assessments and other charges, fines and impositions attributable to We 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 such manner, by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furnish to Lender
all notieee of amounts due under this paragraph. and in the event Borrower shall make payment directly, Borrower shall promptly famish to
Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over Wis Mortgage; provided, that
Borrower shall not be required b 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 Lender, or shall in good faiW rnntest such lien by, or defend enforcement of such lien in, legal proceedings -
which operate to prevent We enforcement of the lien or forfeiture of the Property or any part Wereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on We Property insared against lose by
tire, hazards included within the term "extended coverage,° and each other hazards as Lender may require and in such amounts and for such
periods as Lender may require; provided, Wat Lender shall not require such coverage amount ezceeding We minimum, as may be required by
state or federal regulations governing activities of Lender. or that amount of coverage required to pay We sums secured by this Mortgage,
whichever is We greater.
The insurance carrier providing the ineur~ance shall be chosen by Borrower subject to approval by Lender, provided, Wat 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 We insurance carrier. .
All insurance policies and renewals Wereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of
and in form acceptable to Lender. Lads shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to
i.enda all renewal notices and all receipts of paid prerninma. in We event of loss, Borrower shall give prompt notice to the insurance carrier
and Lender. Lends may make proof of loss if not made promptly by Borrower. #
Unless Lender and Borrower oWerwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property t
damaged, provided such restoration or repair is economically feasible and the aecnrity of this Mortgage is not Wereby impaired. If such j
restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, We insurance proceeds shall be applied {
to the soma secured by this Mortgage. wiW We excess, if any. paid to Borrows. If the Property is abandoned by Borrower, or if Borrows fails to
respond to Lender within 30 days from We date notice ie mailed by Lender to Borrower that the insurance carrier offers to eeWe a claim for
insurance benefits. Lender is authorized to rnllect and apply We 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 oWerwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due
date of We monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of each installments. If render paragraph 18
hereof the Property is aegnired by Lender, all right. title and interest of Borrower in and to any Insurance policies and in and to We proceeds
Wereof resulting from damage to Property. prior to We sale or acquisition shall pass to Lender to We eztent of the sums secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developments. Borrowashall keep
the Properly in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply wiW We
provisions of any. lease if this Mortgage is on a leasehold. If Wig Mortgage is on a unit in a Condominium or a planned unit development,
Borrower shall perform all of Borrower's obligations under We declaration or covenants creatingor governing the condominium or planned _
unit development, We by-laws and regulations of We condominium or planned unit development. and constituent docamenta If a
condominium or planned unit development rider is executed by Borrower and recorded together wiW Wig Mortgage, We Covenants end
agreements of each rider shall be inrnrporated into and shall amend and supplement the covenants and agreements ofthia Mortgage se if the
rider were a part hereof.
7. Protection of Lender's fiecarity. If Borrower fails to perform We 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. brat not limited to, eminent domain, {
insolvency. code a?foroement, or arrangements or proceedings involving a banksapt or decedent, then Lender at Lenda'e optionnpon
notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to prated Lender's interest,
including, bat not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make repairs. U Calder required
mortgage Insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain
each Insurance in effect until sack time as We requirement for each insurance terminates in accordance with Borrower's sad Lender's _ ~
written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manna provided under f
paragraph 2 hereof. ~
Any amounts disbursed by Lender persuant to this paragraph 7, wiW interest Wagon, sball became additional indebtedness of
Borrower secured by this Mortgage. Unless Borrows and Lender agree to other terms of payment, such amounts shall be payable upon
notice from Lmda to Borrows requesting payment Wereof, and shall bear interest from the date of disbursement at We rate payable from
time to time on outstanding principal ands We Note nnleas payment of intseat at such rate would be contrary to applicable law, in which
even; such amounts shall bear intawt at the highest rate permissible ands applicable law. Nothing contained in this paragraph 7, shall
rvgi3re Lards to incur any espense or take any action hereunder.
- e~K 317 P~~ 394