HomeMy WebLinkAbout0600 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 ua pro~~ded in the Note, and the principal of and interest on any Future Advances secured
by this Mortgage.
2. Funds for Taxes and Insurance. Subject W applicable law or to a written waiver by Lender, Borrower shall p:?y to Ixnder on 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 may attain priority over this Mortgage,
and Kround rents on 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 tune by Ixnder on the basis of assessments and bills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts o[ 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, analyzing said account, or verifying and compiling said
assessments and bills, unless (.ender 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, (.ender 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 [.ender, together with the future monthly installments of Fonda 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 Bo~rower'e option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of ~nda. If the amount of the Fonda held by (.ender shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rents ae they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, (.ender 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 (.ender, (.ender shall apply, no later than immediately prior
to the sale of the Property or its acquisition by Lender, any Fonda 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, al! payments received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by (.ender 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 arincipal 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 paragraphs hereofor,
if not paid in such manner, by Borrower making pay men[, when due, directly to the payee thereof. Borrower shall promptly furnish to (.ender
all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly furnish to
(.ender receipts evidencing such payments. borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shall not berequired to discharge any such lien so long as borrower shall agree in writing to the p:ayment of theubligation secured by
such lien in a manner accept<•~ble to Lender, or shall in good faith contest such lien by, ordefend enfi,rcement of such lien in, legal proceedings
..:ich optraie to prceent the cnfarcmcnt of the lien or forfeiture of the Yropert}• nr sny part therw+f.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against 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 coverage amount exceeding the minimum, as may be required by
state or federal regulations governing acti~~tiea of Lender, or that amount of coverage required to pay the sums secured by this Mortgage,
whichever is the greater.
The insurance carrier providing the insurance shall be chosen by Korrower subject to approval by Lender-, pmvided, that such approval
shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner pmvided under paragraph 'l hereof ar, if
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All insurance policies and renewals thereof shall be in form acceptable to [.ender and shall include a standard mortgage clause in favor of
and in form acceptable to [.ender. Lender shall have the right to hold the policies and renewals thereof, and borrowerahall promptly furnish to
(.,ender all renewal notices and all receipts of paid premiums. In the event of loss, borrower shall give prompt notice to the insurance carrier
and (,ender. Lender may make proof of lose if not made promptly by Borrower.
Unless (.ender 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
i 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 btortgage, with the excess, if any, paid to Borrower. If the Property is a)Zandoned by Borrower, or if borrower fails to
respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for
insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the
i Property or the sums secured by this btortgage.
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 1 and 2 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 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 (.ender to the extent of the sums secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrower shall 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 Mortgage is on a leasehold. If this Mortgage is 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. tf 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 if the
rider were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perfonm the wvenanta and agreements contained in this Mortgage, or if any
aMion or proceeding is commenced which materially affects (.enders 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
iG 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 aerured by this Mortgage, Borrower 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 Lenders
written agreement or applicable Law. 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 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 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 ahaU
require Lender to incur any expense or take any action hereunder.
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