HomeMy WebLinkAbout2333 Burrower 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 F uture Advances secured
by this Mortgage.
2. ~ttds for Taxes and Insurance. Subject to applicable law or to a written waiver by lender, liorruwer shall pny to 1 Roder on the day
monthly installments of principal and interest are pay:+ble under the Nute, until the Nute is paid in full, a sum (herein "Funds") equal to one,
twelfth of the yearly taxes and assessments which may attain priority over ibis Mortgage, and ground rents on the Property, if any, plus one-
twelfth ofyearly premium installments for hazard insurance, plus onrtweltlh of yearly premium lost:+llments fur muttg:+qe insurance, if any,
:+II as reasonably estimated initially and from time to tine by !.ender un the bt?sis of assessments and bills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits ur accounts of which are insured or guaranteed by a Federal or State agency
!including !.ender if !.ender 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, aralyzinq said account, or verifying and compiling said
assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits !.ender to make such a charge. Borrower
and Lender may agree in writing at the time of execution of this Mortq:+qe 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 Funds. Lender shall give to Borrower, without charge, an annual accy,untinq 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 duedates of taxes,
assessments, insurance premiums and ground rents, shall exc
•ed the amount required to pay s:+id taxes, assessments, insurance premiums
:+nd ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Bormwer or credited to Borrower on
monthly installments of Fonda. If the amount of the Funds held by Lender shall nut be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay to (,ender any amount necessary to make up the deficiency within :10 days
from the date notice is mailed by Lender to Borrower nequesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shrill promptly refund to Burrower any funds held by Lender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by [xnder, Lender shat! apply, no lacer than immediately prior
iu the sale of the Property or its acquisition by Lender, any Funds !tell by I.c•ndcr at the time of app!icatio.^. as a credit alai..^.st the su.^.ts secured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by [.ender under the Note and
paragraphs 1 and 2 hereof shall be applied by !.ender first in payment 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 uthen•harges, fines and impositions attributable lu the Property which
may attain a priority over this Mortgage, and leasehold payments ur ground rent., if any, in the manner providtd under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, when due, diri•?•tly to the pay+•t• theriuf. Borrower shat! promptly furnish to lender
:ell notices of amounts due under this par:+gr.+ph• and in the event Burrower shall make payment direi•tly. Borrower shall promptly furnish to
lender receipts evidencing such payments. tlorruwer shall pn,mpth• disr•hargi• any lien which has priority uc+•r this Mortgage; provided, that
Burrower shall nut Its reyuirid to discharge any such lien so loot; a. Borrower shall agree in writing to th+• payment of theobligation secured by
xuch lien in a manner acceptable to Lender, or shall in grrrx) faith contest such lien by• urdefend enfun•ement of such lien in, legal proceedings
which operate to prevent the enforci•mr•nt of the lien ur forfeiture of the I'rup?•rty or any part ther+r,f.
S. Hazard Insurance. Burrower shall keep the improvements now existing or hereafter erected un the Property insured against loss by
fire, hazards included within the term "extended coverage," and such other hazards its I Roder may require and in such amounts and for such
t,r•riods :+s Ixnder may require; provided, that IRnder shall not n•yuire that the amount of such rnverage exceed that amount of coverage
r,•ctuired to pay the sums see•urid by this Mortgage.
The insurance carrier providing the insurance sh:+11 he chosen by Burrower subj+•r•t t., approval by Lender; provided, that such :?ppruval
.hall not be unreasonably withheld. All pn•miums un incur:utce puhcies shall i,r paid in the maoner prncidr•cl under paragraph's hercr,f ar, if
nut paid in such manner. by Itr,rn,wer making p:?yn+ent. when due, directly t., the insuranc+• carrier.
All insurance policies and renewals thereof shall tx in form acceptable to !.ender and shall include:[ standard mortgage clause in favor of
and in form acceptable to Lender. I Roder shall have the right to hold the policies and n•newals there•rd, and Borruvicer shall promptly furnish to
render all renewal notices and all ne•eipts of paid premiums. In the event of loss. Borrower shall give prompt notice Qi the insurance carrier
and l.ender_ [.ender may make pr.,r,f of loss if not made promptly by Kom,w•er.
j Unless Lender and Burrower uthervcise• agre•e• in writing, insurance pn,t•ee•ds shpill tx• applied to Testae.?tion or repair of the Property
~ dams ed, rovided such restoration ur re ?ir is er•onumically feasible and the serurih• of this Mortgage is not thereby impaired. If such
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restoration or repair is not economically feasible ur if the security of this Mortgagewould beimpaired, the insurance proceeds shall beapplied
a, the sums secured by this Mortgage, with the exc•ess• if any, paid to 1;„rn+wer. I f the Property is abandoned by Burrower, or if Iturruwer fails to
s respond to Lender within aft days from the date notice is mailed by Lender to llr,rn,w•er that the insurance carver offers to settle a claim for
i insurance benefits, Lender is authorized to colle•e•t and apply th+• insurance prrrr•r•eds at Lender's option Tither to restoration ur repair of the
~ Property or the sums secured by this Mortg:ge.
Unless Ixnder and Borrower otherwise agree in writing, any such application of proceeds to principal shall r_ot extend or postpone thedue
date of the monthly installments referred to in paragraphs 1 and L hereof or change the amount of such installments. If under paragraph I8
I hereof the Property is acquired by (.ender, all right, title and interest of Burraw•er in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Pmperty prior to the sale or acgwsitiun shall pass to bender to the extent of the sums secured by this
Mortgage immediately prior.tu such sale ur acquisition.
6. Preservation and Maintenanceof Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep
:he Property in gaud repair and shall nut commit waste or permit impairment or deterioration of the Property and shall comply with the
provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development,
Kurruwer shall perform al! of Borrower's obligations under the de•dar.+tiun or covenants cn•atin+;or govern+ng the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a
~ c•ondominium or planned unit development rider is exe•r•uted by Br,rrowcr and ree•orded together Kith this Mortgage, the cuvenantB and
afire+•ments of such rider shall I,r inc•nrp„ratEd into :+nri shall :+mr•nd ::red supplement the cuvc•nants and agrei•mrntsuf this ~lurtgageasitthe
c rider were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the 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, but not limited to, eminent domain,
insolvency, rnde enforcement, or arrangements or proceedings involving a bankrupt ur decedent, then Lender at I.ender'e option,upon
x notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect bender'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, Ilorrow•er shall pay the premiums required to maintain
such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lendei e
lc written agreement or applicable Law. Borrower shall pay the amount o(all mortgage insurance premiums in the manner provided under
3 paragraph 'l hereof.
Any amounts disbursed by !.ender 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 Nute unless payment of interest at such rate would be contrary to applicable law, in which
event such amounts shall bear interest al the highest rate permissible under applicable law. Nothing contained in this paragraph shall
require Lender to incur any expense or take any action hereunder.
~ 'x318 FlG~2327