HomeMy WebLinkAbout0602 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 latecharges tts provided in the Note, and the principal of and tntereaton any h'uture Advances secured
by this Mortgage.
2. Ftirtde for Taxes and Insurance. Subject to applicable law or w a written waiver by Lender, Borrower 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 therein "Funds")equal to one
twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents nn the Property, if any, plus one
twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments 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 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. Lender may not charge for eo holding and applying the Funds, analyzing said account, or verifying and compiling said
assessments and bills, unless (.ender pays Borrower interest on the Funds and applicable law permits tender 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, [.ender shall not be required to pay Borrower any interest or
earnings on the Fonda. Lender shall give to Borrower, without charge, an annual am,unting 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 duedatxs 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. If the amount of the Funds held by (.ender shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, liornovrer shall pay to tender any amount necessary to make up thedetrctency wrthtn:sudays
from the date notice is mailed by Ixnder to Berrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Ixnder shall promptly refund to Borrower any funds held by Lender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender sh:+ll 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 [xnder under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to bender by Burrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Nute, anfl then to interest and principal f+n any Future Advances.
4. Charges; Liens. Borrower shall pay all taxes, assessmf•rts and other charges, fines and imposition attributable to the Property which
may attain a priority overthis Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2hereotor,
if not paid in such manner, by Borrower making payment, when due. dirff•tly to the payf•f• thf•rf•c+f. Burrower shall prompth furnish to [.ender
all notices of amounts due under this par•.+graph, and in thf• event Borrower shall makf• payment dirfc•th•, Burn,w•er shall promptly furnish to
l,f•nder receipts evidencing such payments. liffrn+wer shall prompth• disch:+rgf• any lien which has priority over this Mortgage; provided, that
Korruwer shall not be required to dise•harge any such lien su long as Borrower shall a?,~rfr in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in gofxl faith contea such lien hy. ur defend f•nG:rCemPnt of such lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeitun• of the Property or am• part thenYff.
5. Hazard Insurance. Borrower shall keep the improvements now existing or henaftf•r erfcted on the Property insured against loss by
fire, hazards included within the term "extende•d foveragf•," :+nd such other hazards :+s Lender may rf•yuin• and in such amounts and for such
periods as [.ender may require; provided, that Lf•nder sh:+Il nut n•yuire that thf• amount of such f•u~•eragf• rxrted that amount of coverage
required to pay the sums sfx•urf•fl by this Mortgagf•.
III The inurance carrier pnn-iding thf• insur:uu•e shall he f•hosen b~• Borro~~•er wbject to appro~:+1 b}- Lender; pru~•idf•cl, the+t such approval
I shall not be unre:+scmabh• withhe•Id.:\II premiums on imur.+n+•+• puli+~i+•s .h:+ll IN• p;+id ;n thf• m:+nn+•r pro~•idc.i under par:+{;raph here•+,f or• if
not paid in such manner, bt• Borrower making pa~•ment, a-h+•n due. din•eth to the insurance c:+rrier.
E All insurance policies and renewals thereof .hall In• in form acceptable b. I.f•nder and shall include a standard mortgage clause in favor of
and in form acceptable to bender. Lender shall have the right to hold the policies and n•newals lhen•of, and Borrn«-er shall prompth• furnish W
,.ender all renewal notices and all rf'(eipts of paid premiums. in the evf•nt of loss, 14orru~•er shall give prompt notice to the insurance carrier
and Lender- (.ender may make prfx+f of loss if not made promptly by Rorn,.a•er.
Unless (.ender and Born,wer othf•rv+•isf• agree in w•riting• insurancf• pnrf•eeds shall tx• applied to restoration or repair of the Property
! damaged, provided such restoration or repair is economicalh• feasible and the sf•f•urity of this Mortgage is not thereby impaired. If such
restoration or repair is not economif•ally feasible or if the sf•f•urih• of this Mortgage would ix• impaired, the insurance pr«•eedsshall be applied
to the sums secured by this Mortgage, with the excess. if :+m•, p:+id to It!,rrow•er. If the Property is abandoned by Borrower, or if Borrower fails to
respond to [.ender within at) days from the date notice is mailed by I,f•nder to Borrower that the inurance carver offers to settle a claim for
insurance benefits, Lender is authoriz+•fi to collf•f•t and apply thf~ insurancf• proceeds at Lf•nder's option either to restoration ur repair of the
Property or the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agrf•f• in w•riNng• any such application of pr+x•eeds to principal shall notextend or postpone thedue
date of the monthly installments referred to in par.+gr.+ph4 1 and 'd herf•++i or change the amount of such intallments. If under paragraph 18
hereof the Property is acquired by l.f•nder, all right, title and inten•sl of Burrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale ur acqursition shall pass to Lender to the extent of the sums secured by this
11c+rtgage immediately prior to such salf• or acquisition.
6. Preservation and MaintenanceotProperty; Leaseholds;t'ondominums; Plnnned Unit Uevelopments.I~crrowershallkeep
the Property in gfx+d repair and shall nut commit waste nr permit impairment or deterioration of the Property and shall comph• with the
provisions of any lease if this Mortgage is un a leasehold. If this 11urtKa{;f• is on a unit in a condominium or a planned unit development.
Borrower shall perform all of Borrower's obligations under the df•c•1:+r.+tion or covenants creaUngur guvernrng the condominium or planned
unit development, the by-laws and regulations of the condominium or plannf•d unit development, and constituent documents. if a
s condominium or planned unit development rider is exf•f-utf•d by l;„rrowf•r and recordf•d together with this ;1lortgage, the covenants and
:+greementsofsuchridershalll.e•inf-orpor:af•ctinto;fndshallanu•ndandsupplf•nu•ntthe•cocen;+ntsandagreemf•ntsofthisMortgageasifthe
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7. Protection of Lender's Security. If Borrower fails w perform the rnvenamts and agreements contained in this Mortgage, or if any
action or proceeding ie commenced which materially affects Lender a interest in the Property, including, but not limited to, eminent domain,
insolvency, rode 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 reaaunable attorney's fees and entry upon the Property to make repairs. If Lender required
~ mortgage insurance as a condition of making the luau secured by thin Mortgage, Borrower shall pay the premiums required to maintain
y such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's
n written agreement or applicable l.aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by Lender persuant to this paragraph 7, with interest therecm, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and i.ender 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 he rnntrary 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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B ~1K YaGE 60~.
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