HomeMy WebLinkAbout1117 ` N 7
Borrower and Lender rnvenant and agree ae follows:
1. Payment of Principal and lntereet. 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. Funds for Taxes and lneurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to !.ender 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, 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 time by Lender 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 !.ender if Lender is such an institution). !.ender shall apply the Fonda to pay said taxes, asses.4+nents, insurance premiums and
ground rents. Lender may not charge for eo 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 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 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 Fonda was made. The Funds are pledged as additional security for the sums secured by this
Mortgage.
If the amount of the Fonda held by !.ender, together with the future monthly installments of F ands 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 ae they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of Funds. If the amount of the Fonda held by (.ender 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 sums secured by this Mortgage, lxnder shall promptly refund to Borrower any funds held by Lender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by bender, Lender shall apply, no later than immediately prior
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by this Mortgage. ~ r ~ - - Y r
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 (.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 principal on any Future Advances.
4. Charges; Liens. Borrower shall pay all taxes, assessments and othereharges, 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 nut paid in such manner, by Burrower making payment, when due, directly io the payee thereof. Bormw•crsha!! pro :aptly furnishlo !.ender
all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to _
Lender receipts evidencing such payments. Burrower shall promptly disc•harge• any lien which has priority over this Mortgage; provided, that
Borrower shall not be required to discharge am such lien su lung as ltc+mcwer sh:+ll agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to (xnder, or shat in g«cd faith contest such lien by, urdefend enforcement of such lien in, legal proceedings
which operate W prevent the enforcement of the lien or f .rfeitun• of the Prutx•rh• or any part thenref.
5. Hazard Insurance. Korrow•er shall keep the improvements now existing ur 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 [.ender may require; provided, that Lender shall nut require that the amount of such rnver•.+ge exceed that amount of coverage
required to pay the sums secured by this Mortgage.
The insurance carver providing the insurance shall Ix• e•hose•n by Borru«•+•r wtrjc•c•t to approval by Lender, provides!, that such approval
~ shali not be unreasccnably withheld. All premiums un insurance policies shall iK• paid in the manner provided under paragr:+ph'L hereof or, if
nut paid in such manner, by Fiorrow•er making p:iyme•nt, when due, din•c•th• (o the insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgageclausein favor of
and in form acceptable to Lender. Lender shall have the right d, 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, Burro~•er shall give prompt notice to the insurance carrier
and Lender- (.ender may make pr«~f of loss if not made promptly by Bornswer.
Unless Lender and Borrower otherwise agree in writing, insurance pr«•eeds shall tx• 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
restoration or repair is not econumic•ally 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 excess, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Korrower 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 callec•t and apply the insurance proceeds 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 pnxeeds to principal shall nut extend or postponethedue
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 I'roperiy prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this
yorgage immediately prior to such sale or acquisition.
~ 6. Preservation and Maintenanceof Property; Leaseholda;Condominuma; Planned 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 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 orcovenants cn•atingor governing the condominium or planned
unit development, the by-laws and regulations of the, condominium ur planned unit development, and constituent dxuments. If a
condominium or planned unit development rider is exe•c•uted by l;r+rniwer and recorded together with this Mortgage, the covenants and
:+greementgofsuchridershalllreinr•orporatedintuandsh:dlami•ndandsupplemcntthecuvenantsandagrcrmPntsufthisMortgageasifthe
_ rider were a part hereoL
ProteMion 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 bender's 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 such sums and take such action as ie necessary to protect Lender's interest,
including, but not limited to, disbursement of reasonable atteirney'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 shalt pay the premiums required to maintain
such insurance in effect until such time as the requirement for each insurance terminates in accordance with Borrower's and Lendei 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 Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Burrower 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.
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