HomeMy WebLinkAbout0589 Borrower and Lender rnvenant and agree as follows:
1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note, prepayment and latechargea as provided in the Note, and the principal of and interest on any Future Advances secured
by this Mortgage.
2. Fonda for Taxes and lneurance. Subject to applicable lava or to a written waiver by !.ender, Borruwershall pay to Lender on theday
monthly installments of principal and interest are pay:lble under the Note, until the Note is paid in full, :1 sum Therein "Funds") equal to one-
twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one,
twelfth of yearly premium installments for hazard insur:nce, plus one•twelRh of ye:lrly premium inst:llments for murtg:Ige insurance, if any,
;111 as reasonably estimated initially and from time to time by Lender on the basis of assessmentti and bills 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
iincluding !.ender if Lender is such an institution). !.ender shall apply the F ands to pay s:?id taxes, :ISSessments, insurance premiums and
ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said
assessments and bills, unless [.ender pays Borrower interest on the F ands and applicable law permits Lender to make such a charge. Borrower
and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid W Borrower, and unless
such agreement ie made or applicable law requires such interest to be p:lid, !.ender shall not be required to pay Burrower any interest or
earnings on the Funds. Lender shall give to Borrower, without charge, an annual :ICnlunting of the Funds showing credits and debits to the
Fonda and the purpose for which each debit to the Funds w•:IS made. The F ands are pledged :IS additional security for the sums secured by this
Mortgage.
If the amount of the Funds held by i.ender, together with the future monthly installments of Funds payable prior to the due dates of taxes,
assessments, insurance premiums and ground rents, shall exc
~cd the amount required to pay said taxes, assessments, insurance 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 inatallmenta of Funds. if the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance
oremiuma and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within :lodays
from the date notice is mailed by Lender to Burrower requesting payment thereof.
Upon payment in full of all sums secured by this 111ortg:rge, lender shall promptly refund to Borrower any funds held by [.ender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, bender shall apply, no later than immediately prior
to the sale of the Property or its acquisition by Lender, any Funds held by !.ender 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 Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender first in p:rvment of amounts payable to Lender 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 othercharges, fines and impositions attributable to the Properly which
may attain a priority over this Mortgage, and leasehold payments or ground n•nts, if any, in the manner provided under paragraphs hereof or,
if nut paid in such manner, by Burrower making p:+yment, when due, directly to the paye•t• there•r;f. Kormwershall promptly furnish to Lender
:Ill notices of amounts due under this paragraph,.and in the event Burrower shall make payment dire•e•th, Burrower shall prumpth• furnish to
I .ender receipts evidencing such payments. lir,rrower shall prumpth• dischargl• any lien which has priurih• over this 1ortgage;provided, that
B:.Rower shall nut Ix required to discharge an>• such lien su long as Iir,rn,+cer shall :Ir,TfM In K'rltllrg Ir, the payment of theubligation secured by
wch lien in a manner acceptable to !.ender, or shall in gr,r,e1 faith contest wch lien hy, or defend enforcement oCsuch lien in,legal pre,cefdings
K bleb operate to precept the enforcement of the lien or furfeitun• I,f the, I'rotx•rty ur any part thereof
3- Hazard Insurance. Borrower shall keep the impn,vements now existing or here after stetted un the Property insures against loss by
fire, hazards included within the term "extended cuver-.rge,"and such other hazards as I xnde•r may re~eluir• and in such amounts and for such
periods as Ixnder may require: provided, that Lender shall nut nr{uin• that the amount of such average excess! that amount of coverage
re•yuired to pay the sums secured M• this Mortgage. _
The insurance carrier providing the insur-.Ince shall he• cho.en b}' Borrower suhjed to approval by I.erder: pn,vide•d, that such approval
shall nut be unreasonabh• withheld. All pn•miwns on insur:ulce policies shall i,c• paid in the, manner pn,cide•r1 under paragrlph'~ hen•e,f ur, if
not paid in such manner, by lir,rru:+•er making p;n-Inrnt. +vhl•n dur•. ~1ir/•r•tly to thl• in~ur-.Im•f• t•:Irnl•r.
All insurance policies and renewals thereof .hall be in form acceptable to I.e•nder and shall include a standard mortgage clause in favorof
and in form acceptable h, Lender. !.ender shall have the right to hold the pl,hcies and renewals there•/~f, and Burrower shall promptly furnish to
%.ender all renewal notices and all receipts of paid premiums. In the, event of loss, Rurn,wershall give prompt notice W the insurance ~ar~ier
and (.ender. i.ender may make pnx,f of loss if nut made promptly by Burrower.
Unless Lender and Iiom,w•er otherwise agree in writing, insurance prrx•eeds shall tx• applied to restoration or repair of the Property
'r damaged, provided such restoration ur repair is e•e•unomicalh• feasibly and the security of this 1ortgage 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 prcx•eeds shall be applied
to the sums secured by this Mortgage, with theexce•ss. if anc. paid to Burrower. Ifthe Property is abandoned by Borrower,orif Burrower tailsto
z respond to I%ender within all days from the, date notice is mailed by Lender to lie,rn,wer that the insurance carver offea to settle a claim fee
a insurance benefits, !.ender is authorizevl to eolle•r•t and apph• the insurance prl,ce•e•ds at Lenders option either to restoration or repair of the
Property or the sums secured by this Mortgage.
unless Lender and Borrower otherwise agnr in writing, any such apphcatiun of prrx•erds to principal shall not extend or postpone the due
date of the monthly installments referred to in paragraphs 1 and'L henv,f ur change the amount of such installmentti. If under paragraph 18
hereof the Property is acquired by i.ender, all right, title and interest of Korrv,wer in and to am• insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale ur :u-ywsition shall pass to Lender to the extent of the sums secured by this
Mortgage immediately prior to such sale or acquisition.
t 6. Preservation and Maintenance of Property; Leaseholds; ('ondominums; Planned !Jolt Developments. Borrow•ershall keep
the Property in g«,d repair and shall nut commit waste ur permit impairment or deterioration of the Property and shall rnmply with the
a rovisions of an lease if this Mort ? e is on a leasehold. If this Mort • Ige is nn a unit in a condominium or a tanned unit develo ment,
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Burrower shall perform all of Borrower's obligations under the de~•larltion ur covrnant_c cre•atingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and constituent dc?cumenta. If a
condominium or planned unit development rider is executtd by lir,rruwer :Ind reY•urdeel together with this Mortgage, the rnvenants and
agre•ementsofsuch rider shall be incorporated into and shall amend ;Ind supple•mr•nt thee•ovenantsandagrcementsufthis ~lortgageasifthe
rider were a part hereof.
- Protection of Lender's Security. If Borrower fails to perform the avenants 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, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then [.ender at Lender's option upon
notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest,
including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender 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 Borrowei s and Lender a
- written agreement or applicable [aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and tender agree to other terms of payment, such amounts shall be payable upon
notice from [.ender 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 contrary to applicable law, in which
event such amounts shall bear interest at the highest rate perrr?iasible 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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