HomeMy WebLinkAbout0598 Borrower and Lender covenant 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 late charges as provided in the Note, and the principal of and interest on any Future Advances secured
by this Mortgage.
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monthly installments of principal and interest are payable under the Note, until the Note is paid in full, u sum Therein "Funds")equal to one
twelhh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the I'roperiy, if any, plus one-
twelfth ofyearly premium installments for hazard insurance, plusonetwelfth ofyearly premium installments fur mortgage insurance, if any,
all as reasonably estimated initially and from time to time 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 Ixnder is such an institution). Lender shall apply the Funds to pay said taxes, assessments, 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 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 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, Ixnder shall not be required to pay Borrower any interest or
earnings on the Funds. 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 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 Funds payable prior to the due dates of taxes,
assessments, insurance premiums and ground rents, shall exceed 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 installments of Funds. It the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to snake up the deficiency within 3(1 days
from the date notice is marled by Lender to Borrower requesting payment thereof.
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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 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 [.ender under the Note and
paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to (.ender 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 t<? the Property which
may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, ir? 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 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 overthis Mortgage; provided, that
Borrower shall not be required to discharge any such lien so long .+s l;.+rruwer shall agree in writing to the payment of theobligation secured by
such lien in a manner acceptable to Lender, or shalt in good faith contest such lien by, or defend enforcement of such lien in, legal prcx eedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or am• part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured ;?gainst loss 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 [.ender shall not require such roverage amount exceeding the minimum, as may be required by
state or federal regulations governing activities of (.ender, or that amount of coverage required to pay the sums secured by this Mortgage,
whichever is the greater.
The insurance carver providing the insurance shall be chosen by Borrower subject to approval by (.ender; pnrvidcd, that such approval
shall not be unreasonably withheld. All premiums on insuranrn policies shall lx paid in the manner pnn•ided under paragraph 'l hereof or, if
rat paid in such manner, by Borrower making payment, when due, directly to the insurance carrier.
i 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. Lendershall 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 insuranm carver
and Lender. Lender may make proof of loss if not made promptly by Borrower.
s Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
damaged, provided such restoration or repair is economically feasible and the security of this Mortgage 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 proceeds shall be applied
e to the sums secured by this Ntorigage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to
~ respond to bender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for
t 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 proceeds to principal shall not extend or postpone the due
_ date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph 18
hereof the Property is acquired by Gender, 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
1lorigage immediately prior to such sale or acquisition.
t 6. Preservation and Maintenanceof Property; Leaseholds; Condominuma; Planned Unit Developments. Bonowerahall 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 lVtortgage is on a leasehold. If this Mortgage ie on a unit in a condominium or a planned unit development,
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 planned unit development, and constituent 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 ifthe
rider were a part hereof_
7. Protection of Lender'8 Security. If Borrower fails to perform the wvenants 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 Lender at Lender's option,upon
a 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 maintatiri
such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender e
4 written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
s 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 Lender agree to other terms of payment, such amounts 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 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 Lender to incur any expense or take any action hereunder.
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