HomeMy WebLinkAbout0241 torrower and (.ender 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.
2. Fttnde torTaxeeand Insurance. Subject to applicable law or to a written waiver by Lender, Hortower shall pay to Lc nderun the day
monthly installments of principal and interest are payable under the Note, until the Note is paid in full, n sum (herein "Funds") equal to one`
twelfth of the yearly taxes and assessments which ratty attain priority over this Mortgage, and ground rents ern the Property, if any, plus one
twelfth of yearly premium installments for hazard insurance, plus one-tweltth of yearly premium inst;+llments for mortgage insurance, if any,
all as reasonably estimated initially and from time to tirr+e by Lender on the basis of ussessment~ and bills and reason(+ble estimates thereof.
The Flrnds 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 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 (.ender to make.such a charge. Borrower
and Lender may ague 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, Lender shall not be required to pay Borrower any interest or
earnings on the hLnda. Lender shall give to Borrower, without rharge, art annual ac(•ounting of the F unds showing credits and debits to the
Funds and the purpose for which each debit to the Funds wits made. The Funds are pledged :+s additional security for thesums secured by this
Mortgage`
If the amount of the T•ltnds 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 excml the :+muunt required to pay said taxes, assessments, insurance premiums
and ground rents as they fall due, such excess shall be, at Botrower's option, either promptly repaid to Hortower or credited to Borrower on
monthly installments of Funds. If the amount of the Funds held by lender sh:+ll not Ire sufficient to pay ta:Ms, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pity W Lender any amount necessary to make up the deficiency within :10 days
from the date notice is mailed by Lender te? Borrower nequesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, 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, (,ender shall apply, no later than immediately prior
to the sale of the Property or its acquisition by bender, 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, aii payments received by bender under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to It>nder by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Nute, and then br interest and principal on any Future Advances.
4. Charges; Liens. Bormwer shall pap all taxes,:+ss(•ssmentsand uthercharges, fines:?nd imprsiti+,ns attributable to the Property which
rosy attaiga priority over this Mortgage, and leasehold payments or ground nulls, if any, in the manner pnn•ided under paragraph 2 hereofor,
if not paid in such manner, by Born+wer making payment, when du(•, dir(•(•th• to the paye`e` ther(rrf. Burnrwrrshall prumpth furnish to Lender
all notices of amounts due under this par:+graph, :utd in the (`vent Bumrw•e•r sh:?U make payment dinrtly, Bornr?cer shall prumpth• furnish to
t ,ender receipts evidencing such payments. Itcrrtuw-er shall prumpth• discharge am• lien which has priorih• over this illurtgage; pnrcid(d, that
}iornmer shall not be required todischarge any such lien su long;?. li+rrruwrr sh:?11 agn•(• in avriting to the payntent.+f theubligatiun se>curcd by
wrh lien in a manner acceptable to !.(•nder, or shall in g+~+e1 faith contest such lien hy, or defend e•nfon•enx•nt+rf sut•h lien in, legal pnrcecdings
whi(•h operate to prevent the` enfon•ement of the lien +.r forfeitun• .rf the 1'mpertc or any part ther(r,f.
i. Hazard Insurance. Borrower shall k(•e•p the impmrements now existing or hereafter er(•c•ted un the` 1'roperh• insured against loss by
fire, hazards included within the term "extend(d c•uver.+~;r," and such other hazards as I xnder map r(•yuir(• and in such amounts and for such
periexls as Ixnder may require: provided, that Lrndrr shall not r(•ctuin• that the amount of such cyn•erage• ex(•e•(d that amount of coverage
r.•c;aired to pay the sums se>(•ur(d b}• this ~lortgagr.
The insurance` c;?rrier providing the insurance shall Iw• +-hu.e•n by liurruwer suirje•e•t to appruc:d by Lender. prop ided. that wch approval
y1, 11 nnrs•aw.nahty a?itbheld All nn•ntiun?s nn insur:uu-e tH~hcirs sh:dl I+e• p:+id in the m:+tuu•r procidwl under par,+~;r,+ph he•n•+rfor, if ,
nut paid in such ma?uu•r, by Bortow(•r rnakint; p:+yrnrrt- wheel Blur- dirrctlc to th+• incur:+ne-(• rarrirr.
Aft insurance policies and renewals thereof shall Ix• in form aceeptahl(• to I.e•nd(•r:?nd shall include a stand;+rd mortgage clause in faborof
and in form acceptable to i.(>nder_ I.ende•r shall h:+vc the right to hold the tndicies and n•newals thereof, and Rnrruw•er shall prumpth• furnish to
i.ender all renewal notices and all re•e•eipts of paid pn•miums. 1n the eve•nt+.f loss, Iinrruu•e•rshall give prompt notice to theinsurancecarrier
and (.ender. Lender map make preNrf of loss i f nut made prumpth• br Burtower.
Unless [.ender and Iterrtuwer uthe>rwise agre`e` in writing, insurance pox`e`s>ds shall Ix• applied to r(>sturatiun ar repair of the Property
damaged, provided such restoration or repsir is e•+•ononucalh- feasible` and the s+•e•urity of this ~lurtgage is nut thereby impaired. If such
restoration or repair is not ecunumically feasible` or if the ser•uritc of this Mortgage would Ix• impaired. the insurance proc(•edsshall beapplied
a. thesums secured by this Mortgage, with the excess, if am•. paid to Bornrwer. if the Pru{x•rty is abandon(d by Burrower, ur if Ilerrtower fails to
respond to Lender within ate days from the date notice is mailed by I.e•nder t.r Burrower that the insurance r.+mer offers to settle a claim for
insurance benefits, Lender is authorized ar collevt ;uu1 apph• the` insurance priK•erds :?t Le>nder's option either to restoration or repair of the
Property or the sums secured by this ~Iortgage•
Unless Lender and Harrower otherwise :?gre•e• in w•nting, any such application of prcx•e•e•ds to principal shall not extend or twstpone thedue
date of the monthly installments refert(d to in paragraph, 1 and he•n•of ur ch:utge• the amount of su(•h installments. If under paragraph 18
hereof the Property is acquired by l.(•nder, all right, title and interest o! Hurr+rwer in and pr ;?ny insurance palic•ies and in and to the proceeds
thereof resulting from damage to I'rope•rh• prior t(r the sale ur acywsiliun .hall pass to l.e•ndc•r to the extent of the sums secured by this
~.lortgage immediateh• prior to such sale or acquisition.
6. Preservation and Maintenance of Property: Le•asehulds; ('ondominums; Planned ('nit Developments, Iterrtuwershall keep
the Property in gcrexl repair and shall nut c•ummit waste or permit impairment or de•terior.+tion of the Property and shall cumph• with the
pru<-isions of any lease if this 1lurtgage is on a 1e:rsehald. !f this ~lurtgage is an a unit in a condominium or a planned unit development,
linrnrwer shall perform ail of Borrower's oblig:rtions under the dw•laratiun nr covenants creatingor gocerntng the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit de•velopmeM, and constituent documents. (f a
e ondominium or planned unit development rider is exe•c•ateY1 by tie:rtower and nrurded together with this etilortgage, the covenants and
re>e•menis of sue•h rider shall Ix• in~•orpurated into :utd shall amend a nd supplement the cuve•nants and agne•m(•nts of this ~lurtgage as if the
nder w-em a part her(•of.
7. Protection of Lender's Security. I[ Borrower fails to perform the rnvenants and agreements contained in this Mortgage, or itany
action or proceeding is commenced which materialh• affects Lender's interest in the Property, including, but nut limited to, eminent domain,
insolvency, rnde enforcement, or arrangements or pnrceedings involving a bankrupt or dec(dent, 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 reasonable attorney's fees and entry upern 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 such time as the requirement [or such insurance terminates in accordance with Hortower's and Lender's
written agreement or applicable law. Harrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hererof.
Any amounts disbursed by Lender persuant to this paragraph 7, with interest ther(y+n, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Harrower and Lender agree to other terms of payment, such amounts shall be payable upon
notice from Lender to Horrower 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 lx> contran' to applicable law, in which
ee•ent such amounts shall bear interest at the highest rate permissible under applicable law. Nathing contained in this paragraph 7, shall
require bender to incur any expense or take any action hereunder.
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