HomeMy WebLinkAbout1070 Borrower and Lender rnvenant and agree as follows:
I. Payment of Principal sad 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 thin Mortgage.
2. >N~tttds forTa:es and Insurance. Subject to applicable law or to 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 (herein "Funds") equal to one
twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, ifany, plus one
twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any,
sll as reasonably estimated initially and from time to tine by (.ender on the basin 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 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 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 Bon-ewer, 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 FLnds. 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 Fonda held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes,
aeaeesmenta, insurance premiums and gmund rents, shall excxd 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 inatatlmenta of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments. insurance '
premiums and ground rents as 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 auma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under
paragraph I8 hereof the Property is sold or the Property is otherwise acquired by Ixnder, Lender shall apply, no later than immediately prior
to the sale cf the Property or its acquisition by Lender, 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 (,ender under the Note and
paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Fender 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 attainapriorityoverthisMortgage,andleaseholdpaymentsorKroundrents,ifany,inthemannerprovidedunderparagraph2hereofor,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender
:+ll 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 pay mentg. Borrower shall promptly discharge any lien which has priority overthislliortKage;provided, that
Borrower shall not be required todischarge any such lien sci IonK as Borrower shall agree in writinK to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in Kc?od faith contest such lien hy, or defend enfonrment of such lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existinK or hereaftererected on the Property insured against lossby
fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and forsuch
periods as [.ender may require; provided, that (.ender shall nut require that the amount of such coverage exceed that amount of coverage
required to pay the sums secured by this MortKaKe.
The insuranrn carver providinK the insurancec• shall be chosen by liurruwer subj+•+•t to approval by 1 xnder; provided, that such approval
shall not 6e unreasonabh• withheld. All premiums on insuranc+• p,licies shall t,e paid in the manner provided under par.+Kr,+ph'l hereof or, if
not paid in such manner, by lium,wer makinK p:?cment. when du+•• diec•+•tly d, the insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to t.enderand shall include a standard mortgage clause in favorof
and in form acceptable to Lender. (,ender shah have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to
i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Burn,wer shall give prompt notice to the insurance carrier
and Lender- Ixnder may make pn>;,f of loss if not made promptly by Burrower.
Unless Lender and Borrower other+a•ise agree in writinK, insurance proceeds shall be applied to restoration or repair of the Property
damaged, provided such restoration or repair is ecunumic•ally feasible and the security of this Mortgage is not thereby impaired. It such
restoration or repair is not economically feasibly 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 excess, if any , paid to E3crrrower. If the Property is abandoned by Borrower, or if Borrower fails to
respond to Lender within a0 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for
insurance benefits, (.ender is authorized to collect :+nd apply the incur:+nce proceeds :+t Fender's option either to restoration or repair of the
Property or the sums secured by this MortK:+Ke-
Unless Lender and Borrower otherwise agree in writinK, any such application of proceeds to principal shall not extend or postpone the due
date of the monthly installments referred W in paragraphs 1 and 'L hereof or change the amount of such installments. If under paragraph 18
hereof the Property is acquired by (.ender, all right, title and interest of Bcrrmvver in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale or acgwsition shall pass to Lender to the extent of the sums secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep
the Property in good repair and shall not commit waste ur permit imp:+irment or deterioration of the Property and shall comply with the
provisions of any lease if this MortKage 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 obligation under the declaration or covenants creatingor KoverninK the condominium or planned
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 Borrower and recorded together with this Mortgage, the rnvenants and
agreements ofsuch rider shall be incorporated into and shall amend and supplement theccn•enants and aKreementaofthis Mortgageasifthe
rider were a part hereof.
Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any
aMion or proceeding is commenced which materially affects [.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 Lender at Lender's option,upon
notice to Borrower may make such appearances, disburse ouch auma and take such action ae 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 secured 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 Lender e
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 bender 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 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 Lender to incur any expense or take any action hereunder.
C;:'.IX
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