HomeMy WebLinkAbout0593 borrower and Lender covenant and agree as follows:
I. Payment of Prltt.,lpat and Inters«t. I3::r.+:we. shall promptly pay when ds:c 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 F aloes Advances secured ~
by this Mortgage.
2. Fttnde for Taxes and Insurance. Subject to applicable law or to a written waiver by Ixrider, Burrower 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 "Funds") equal to one
twelfth of the yearly taxes and assessments which :nay attain priority Deer this Mortgage, and ground rents on the Property, if any, plus one`
twelfth of yearly premium installments for hazard insurance, plus one•twelfth of yearly premium installments for mortg:+qe insurance, if any,
all as reasonably estimated initially and from time to tiros by !.ender on the basis of assessments 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
!including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and
ground rents. bender may not charge for eo holding and applying the Funds, analyzing said account, or verifying and compiling said
assessments and bills, unless Lender 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 execution of Ihis Mortgage that interest on the Fonda shall be paid to Borrower, and unless
such agreement is made or applicable law requires surh interest to be paid, Lender shall not be required to pay Bonrower any interest or
earnings on the Fonda. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the
Funds and the purpose for which each debit to the Funds w:+s made. The Funds are pledged as additional security for the sums secured by this
Mortgage.
If the amount of the Fonda held by [.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
•ed the amount required to pay said taxes, assessments, insurance premiums
and ground rents as they fall due, such excess shall be, at BolTC?wer's option, either promptly repaid to Borrower or credited to Borrower on
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premiums and ground rents as they fall due, Borrower shall pay k? Lender any amount necessary to make up the deficiency within :30 days
from the date notice is mailed by lxnder k? Borrower requestink payment thereof.
Upon payment in full of all sums secured by this Mortgage, !.ender shall promptly refund to Bonower any funds held by Lender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise :+cyuired by bender, Lender shall apply , no later than immediately prior
to the sale of the Property or its acquisition 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 otherv?•ise, all payments received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amc?unts payable to Lender by Borruv+•er under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, :+nd then to interest and principal un any Future Advances.
•4. ChargesL Liens. Burrower shall pay all taxes, assessments and other charkes, fines and iml?r,sitions 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'! hereof or,
,f not paid in such manner, by Borrower makink payment, when due, directly to the payee thercti,f. Borrower shall promptly furnish to lxnder
all notices of amounts due under this p::rakraph, and in the event Burrower shall make payment directly, Borrower shall promptly furnish to
Lender receipts evidencing such pa>•ments. fir,rruwer shall pn,mpth• disrharke• any lien which has priority over this Mortkake;provided, that
Burrower shall nc?t be required to discharke any such lien so lank as lium,wershal akr.•e in w•ritink to the paynic•nt of theoblikation secured by
.uch lien in a manner acceptable to lxnder, or shat! ink«xl faith contest surh lien hy, urde•fend enforcement of surh lien in, Ic•kal pn?ceedings
which operate to prevent the enfurmment of the lien ur forfeiture of th+• Propert}- ur am part then•r,f. '
i. Hazard Insurance. Burrower .hall lcee•p the improvements now• e•xistink or here:+fter erected on the Property insured against loss by
fir+•, hazards included within the term "extended cover.+ke•," and wch other hazard. as Lender may require and in such amounts and for such
perir,ds as lxnder may require: prucided, that Lender shall not require that the amount of wch .tin•er.+ke exceed that amount of coverage
rc•yuired to pay the sums sc•c•ured by this Murtkake.
The insurance c:+mer pn,eidink the insur,mre shall l,r• chosen by Burn,wer subject to appn,v:+l h~- Lender; provided, that wch approval
shall nut be unreasrmably withhe•Id. All premiums un insun+nrr• poGrir•..h:+il Iw• paid in the manner pmvidw! under par-.+kr,+ph'L here•r,f or, if
rnd paid in such manner. by lir,m,~cer m:+kink payment, when due, direrth• to the +nsurance• carrier.
All insurance policies and renew:+ls thereof shall Ix• in form acceptable to 1.c•nder.+nd shall include a standard mortkake clause in favorof
~ and in form acceptable to bender. I xndershxll have the rikht to hold the pr,lic•ies and renewals therc•.,f, and Korrower shall promptly furnish to
+.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall kive prompt notice k, the insurance carrier
and lxnder- Lender may make pr«,f of loss if not made promptly by Borrower.
r Unless lxnder and Borrower otherwise akrec• in rvritink, insurance pr«•eeds shall tx• applied to restoration or repair of the Property
damaged, provided such restoration or repair is ec•unomicalh~ Ceasible and the security of this Murtkake is not thereby impaired. If such
restoration or repair is not economically feasible or if the security of this Mortkake would be impaired, the insurance proceeds shall be applied
E t<~ the sum:; secured by this Mortkake, with the excess, if :+ny, paid tr, BnrtuK•er. If the- Prop+•rty is abandoned by Bom,wer,or if Borrower failstu
's_ re,pond to lxnder withir. all days from the date notice is mailed by lw•nder to Borrower that the insurance carrier offers to settle a claim for
,nsurance benefit4, lxnder is authorizer) to colle•e•t and apph• the insur•,?nr•e pn,cec•ds at Lender's option either to restoration or repair of the
Property or the sums secured by this Mortkak+•.
Unless Lender and Burrower otherwise akre•e• in w•rihnk,:+ny such application of pnxeeds to principal shall not extend or postpone thedue
date of the monthly installmentsg referred to in par.+kr+phs 1 and 'L heresrf ur c•hanke the amount of such inst:+liments. If under paragraph 18
Hereof the Property is acquired by Lender, all rikht, title and inter+•st of Born,wer in and to any insurance policies and in and to the proceeds
thereof resulting from damage tr, Property prior to the sale or acywsitiun shall pass b, !.ender to the extent of the sums secured by this
lfurtgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; leaseholds: Condominums: Planned Unit Developments. Borrower shall keep
the Property in grwd repair and shall not commit wane nr permit impairment ur deterior.+tiun of the Property and shall comply with the
provisions of any lease if this Mortkake is un a leasehold. If this Murtkake is on a unit in a condominium or a planned unit development,
~ Korn,wer shall perform all of Borrower's ublikations under th+• de•r•larrtion ur ruvem+nts c•n•at incur kuvern+nk the condominium or planned
unit development, the by-laws and rekulations of thc• condominium r,r planned unit development, and constituent documents. If a
condominium or planned unit development rider is exc•r•uted by lir,rn,wer and re•r•ordcd G,kether with this Mortgake, the covenants and
:rkree•mentsofsuchridershallbeinrurpur.+tedintoandshallamend:u,dsupplementtherovenantsandakr+•e•menttiofthisMortkakeasifthe
rider were a part hereof.
7. Protection of Lender's Security. If Borrower fails k, perform the rnvenants and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affects bender's interest in the l'ruprrty, including, but not limited to, eminent domain,
~ insolvency, code enforcement, or arrangements or prrxeedings involving a bankrupt or decedent, then Lender at Ixnder's option,upon
r 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 ;tilortgage, Burrower shall pay the premiums required to maintain
x such insurance in effect until such time as the requirement fur such insurance terminates in accordance with Borrowei s and Lendei e
written agreement or applicable Law. Borrower shall pay the amount of all mortkage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by lxnder persuant k, this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Bonrower and !.ender agree k, 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 permissible under applicable law. Nothing contained in this paragraph 7, shall
require lxnder to incur any expense or take any action hereunder.
a ~~»x 3~.8 Pa~E 592