HomeMy WebLinkAbout2001 Borrower and Lender covenant and agree as follows:
I. 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 intereston any Fltture Advances secured
by this Mortgage.
2. Funds forTa:es and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to I.enderon the day
monthly installments otprincipal 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, itany, plus one-
twelfth ofyearly premium installments for hazard insurance, plus one•twelfth of yearly premium installments for mortgage insurance, itany,
all as reasonably estimated initially and from time to titre by lender on the basis of assessments and bills and reasonable estimates thereof.
Tl+e 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 !.ender 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 Funds was made. T'he Funds are 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 oftaxea,
assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums
and ground yenta as they fall due, ouch excess shall be, at Bo+TOwei
s option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of Funds. If the amount of the Funds held by Lendet 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 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 bender. 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 bender, any Funds held by !.ender at the time of application as a credit against the sums secured
by this Mortgage.
3. Application of Payraenta. Unless applicable law provides otherwise, all payments received by !.ender under the Note and
paragraphs 1 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. Rorrowershall pay all taxes, assessments and other rharkes, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold payments or gn,untl rents, if any, in the manner provided under paragraph 2 heteofor,
if not paid in such manner, by Bon*ower making payment, when due, direrfly to the payee thereof Burmwershali promptly furnish to Lender
:?II notices otamounts due under this paragraph, and in the event Borrower shall make payment directly, Bormw•er shall promptly furnish to
Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
iorrower shall not be required to discharge any such lien so long :+s l;t,rrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Ixnder, or shall in gcKxl faith cunt?•st such lien by, ordefrnd enfimrmrnt of such lien in, legal proceedings
which operate to prevent the enforcement of the lien or fi,rfi•iturr .d th.• i'r:,pc•r[t• ++r any part lhert•~,f.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lossby
fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such
{x•riods as Ixnder may require; provided, that Ixnder shall not require that the amount of such rnver.+ge exceed that amount of coverage
n•quired to pay the sums se?-ured by this Mortgage.
The insurance carrier providing the insurance sh:?11 lx• chosen by lorrower subje?•t to approval by Ixnder, pn,vid+•?l, the+t such approval
shall not be unre:?a,nably withheld. eVl premiums on insurance {„dicirs .hall tx• paid in th?• m:+nner procid<rl under paragraph 'l hertr,f or, if
ni,t paid in such manner, by tiom,u•er max,ng paymeni, wiu•n our. ~~i~~t~~.:.. ~
All insurance policies and renewals thereof shall be in form acceptable to 1 xnder and shall include a standard mortgage clause in favor of
and in form acceptable to Lender. Ixndershall have the right to hold the policies and renewals thereof, and Borrower shall prompdy furnish to
sender all renewal notices and all receipts of paid premiums. in the Trent of loss, 1{urn,wer shall give prompt notice to the insurance carrier
and Lender. !.ender may make pr,x,f of loss it not made promptly by Borrower.
Unless !.ender and Borrower otherwise agree in writing, insurance proceeds shall Ix• applied to restoration or repair of the Property
damaged, provided such restoration or repair is economically feasible and the stY•urity of this Mortgage is not thereby impaired. If such
restoration or repair is not economically feasibk• or if the security of this Mortgage would beimpaired, theinsuranceproceedsshall beapplied
to the sums secured by this Mortgage. with the excess, if ar», paid to Borrower. if the Property is abandoned by Korrower, or if Borrower fails to
repond to Lender within 30 days from the date notice is mailed by Ixnder to Borrower that the insuranrn carver offers to settle a claim for
insurance benefits, bender is authorized to colle+•t and apply the insurance proceeds at Lender's option either to restoration or repair of the
l'roperiy or the sums secured by this 111ortKage.
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'! hereof or change the amount of such installments. If under paragraph i8
hereof the Property is acquired by Lender, all right, title and interest of Bc,rrr,wer in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale or acywsition shall pass to bender to the extent of the sums secured by this
Jortgage immediately prior to such sale or acquisition.
6. Preservation and MaintenunceotProperty; IRaaCI+OIdti;COndominums; Planned [!nit Developments. Borrowershall keep
the Property in good repair and shall not commit wa:.te 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 rnndominium or a planned unit development,
Borrower shall perform all of l;orn,wers obligations under the declaration or covenants rreatingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a
~~ondominium or planned unit development rider is executed by Borrower and re?•urded together with this Mortgage, the covenants and
:fgreementc of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgageasif the
rider were a part hereof.
Protection of Lender's Security. If Borrower fails to perforrr? the covenants and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affects lxnder'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 (.ender at Lender's option,upon
notice to Borrower may make each appearances, disburse such sums and take such action as is necessary to protect Lender a 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 [or such insurance terminates in accordance with Borrower's and Lender a
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 (.ender agree to other terms of payment, such amounts shall be payable upon
notice from [.ender 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 shall
require Lender to incur any expense or take any action hereunder.
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