HomeMy WebLinkAbout3006 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 late charges as provided in the Note, and the principal of and interest on any ['Clore Advances secured
by this Mortgage.
2. Fonda forTaxes salt insurance. SuhjM t~ applir•ahle law or to a written waiver by Lender, Borrowershall paw to I.enderon thedav
monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds"1 equal to one
twelfth of the yearly taxes and assessments which may attain priority over this Morigage, and ground rents on the Property, if any, plus one
'welfth of yearly premium installments for hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance, if any,
all as reasonably estimated initially and from time to tune by tender 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 Fonda to pay said taxes, assessments, insurance premiums and
ground rents. Lender may not charge for so holding and applying the Fonda, analyzing said account, or verifying and compiling said
assessments and bills, unless Lender pays Borrower interest on the Fonda and applicable law permits Lender to make such a charge. Borrower
and Lender may agree in writing at the time of execution of this Morigage that interest on the Fonda shall be paid to Borrower, and unless
each agreement is made or applicable law requires such interest to be paid, Lender 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
Fonda and the purpose for which each debit to the Funds was made. The Funds ace 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 sacred the amount required to pay said taxes, assessments, insurance premiums
and ground rents as they fall due, such excess shall be, at Bo+TOwer's option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of Funds. 1f the amount of the Fonda held by Lender shall not 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 30 days
from the date notice is mailed by (.ender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this 111ortgage, 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, Lender 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 L and 2 hereof shall be applied by Lender 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 other charges, fines and impositions 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 2 hereof or,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall 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
[.r-udrr receipts evidencing aucl? pa~-ments. liorr:~~-cr sha41 pr:,mp:ly di:~ hargz any lice :which h:,s pri :city aver this:4lartgage; provided, that
Borrower shall not be required to discharge any such lien so long as Itr,rrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to lxnder, or shall in grx?d faith contest such lien by, ordefend enforcement ofsuc•h lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part then•of.
Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by
Sre, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such
periods as (.ender may require; provided, that Lender shall not require that the amount of such rnverage exceed that amount of coverage
required to pay the sums secured by this Mortgage.
The insurance carrier providing the insuranc•c• shall Ix• c•h„sen by It„m,wer subject tr, approval by Ixnder; provided, that such approval
shall not be unreasonably withheld. All premiums .,n insuranrr tN,licic•s shall t,e paid in the manner provid+•cl under paragraph 'l hereof or, if
rat paid in such manner, by Borrower making payment, when due, din•cth• t., the insurance r.+mer.
All insurance policies and renewals thereof shall be in form acceptable W Lender and shall include a standard mortgageclause in favorof
and in form acceptable to [.ender. (.ender shall have the right p, hold the policies and renewals thereof, and Borrowershall promptly furnish to
i.ender all renewal notices and all receipts of paid premiums. In the evertbof loss, Borrower shall give prompt notice to the insurance carrier
and [.ender. [.ender may make proof of loss if not made promptly by Korn,w•er.
f Unless Lender and Borrower otherwise agree in waling, insurance prrx•eeds shall hc• applied to restoratiogor repair of the Property
damaged, provided such restoration or repair is economically feasibly and the security of this Morigage 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
to the sums secured by this Mortgage, with the exr•ess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to
respond to Lender within 30 days from the date notice is mailed by Lender G, Borrower that the insurance carver offers to settle a claim for
insurance benefits, Lender is authorized to colic•ct and apply the insurance pr,x•eeds at Lender's option either to restoration or repair of the
Property or the sums secured by this Mortgage.
Unless [.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue
date of the monthly installments referred U, in paragraphs t and'( hereof or change the amount of such installments. If under paragraph 18
hereof the Property is acquired by Lender, all right, title and interest of Korrower in and to any insurance policies and in and to the proceeds
I thereof resulting from damage to Property prior to the sale or acgwsition shall pass G, [.ender to the extent of the sums secured by this
6 Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Gondominums; i'lanned Unit Developments. Borrowershall 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 it this Mortgage is on a leasehold. !f this Mortgage is on a unit in a rondominium or a planned unit development,
Borrower shall perform all of Borrower's obligations under the declaration or covenants c•reatingor governing the condominium or planned
t 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 &,rrower and recorded together with this Mortgage, the rnvenanta and
agreements of such rider shall t,r• incorporated into and shall amend and supplement thec•uvenants and agrcementsof this 1ltortgageasifthe
rider were a part hereof.
7. ProteMion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any
t action or proceeding is commenced which materially affects I.ender'e 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 soma and take such action as is necessary to prottirt [.ender'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 each time as the requirement for such insurance terminates in accordance with Borrower's and Lender 8
written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
x paragraph 2 hereof.
Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Korrower secured by this Mortgage. LJnleas Borrower and [.ender agree to other teens 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 [.ender to incur any expense or take any action hereunder.
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