HomeMy WebLinkAbout2023 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 Future Advances secured
by this Mortgage.
2. Funds for Taxes and insurance. Subject to applicable !aw 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
tw•elfih of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, ifany, plus one,
tw•elRh of yearly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance, if any,
a 11 as reasonably estimated initially and from time to tune by Lender on the basis 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 Fonda to pay said taxes, assesamente, insurance premiums and
ground rents. Lender may not charge for so holding and applying the Fonda, 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, i.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 forthe sums secured by this
Rlorigage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to theduedates 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 6e, at BotTOwer's option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of Fonda. If the amount of the Fonda 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 3(1 days
from the date notice is mailed by (.ender to Borrower requesting payment thereof.
Upon payment in full of all Bums secured by this Mortgage, Lender 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 Lender, [.ender shall apply, no later than immediately prise
to the sale of the Property or its acquisition by Lender, any Funds held by I.enderat the timeof application as a credit against the sums secured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, aD 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 Lender by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Nate, and then to interest and principal on any Future Advances.
4. Charges; Liens. Rorrowershall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold pay ments or gn,und rents, if any, in the manner provided under paragraph 2 hereofor,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Kormwershall promptly furnish to Lender
:11I notices of amounts due under this paragraph, and in the even! Iorrower shall make payment directly, Borr/,wer shall promptly furnish to
I .ruder receipts evidencing such payments. llC,rrow•er shall promptly dist•harge any lien which hxs priority over this Mortgage; provided, that
itorrower shall not be required to discharge any sorb lien su lung as Rorn,wer shall aKrcr in writing to the payment of theobligation secured by
such lien in a manner acceptable to Lender, or shah in gad faith cont?•st such lien by, ordefend enfi,n•ement of such lien in, IeRal proceedings
wnlct? operate to prevent the enfolcement of the lien nr fnrfeitu!e• of the, l'rv~sM•rty .,r am part thereof.
i. Hazard Insurance. Rorrowrrsha~l keep the improvements now existing or hereafter erected on the Prnperiy insured against lo.4s by
fire, hazards included within the term "extruded coverage," and such other hazards as Lender may require and in such amounts and forsuch
perilds as [xnder may require; provided, that Lender shall not re•yuire that the amount of such rnverage excetd that amount of coverage
required to pay the sums secured by this Mortgage.
The insuranm carrier pnn•iding the insuranca• shall ha• chosen by Korrm?•er subject to approval by I.a•nder, proridlrl. that such approval
shall not be unreasi,nabty withheld. All premium. on insurance policies .hall t,a• paid in the manner providlrl under paragr-.+ph 'L here+,f or, if
tltil pals m SU(•f, manner, IIY IwiI+UN CI iii:ai~iii+ i:.:~;a:-7.c, :t. ,1.... ,?:....•i 1,• ...c„r~nov rarrler.
All insurance policies and renewals thereof shall be in form acceptable to l.?•nder and shall include a standard mortgageclause in favorof
:Ind in form acceptableto Lender. Lender shall have the right to hold the piiticies and renewals thenr,f, and Borruwershall promptly furnish to
:,ender all renewal notices and all receipts of paid premiums. In the event of loss. Korrower shall give prompt notice W the insurance carrier
<,nd Lender. (.ender may make pnx,f of loss if not made promptly by Borrower.
Unless (,ender and Harrower otherwise agrle in writing, insur.?nre pr«•eeds shall be applied to restoration or repair of the Property
damaged, provided such restoration or repair is I•c•onomically feasible :and the sec•urih• of this Mortgage is not thereby impaired. If such
restoration or repair is not economically feasible or if the security of this MortKage would bcimpaired, the insurance proceedsshall be applied
to the sums secured by this Mortgage, with the excess, if am•, paid to Iteirrower_ If the Praperty is abandoned by Rorrow•er, or if Harrower fails to
respond to (.ender within :1(1 days from the date notice is mailed by Lender to Korn,wer that the insurance carrier offers to settle a claim for
insurance benefits, [.ender is authorized to collcrt and apph• the insur.,nce 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 agrlr in writing. any such application of proceeds to principal shall notextend or postpone thedue
date of the monthly installments referred to in paragr•.?phs 1 and Y hereof or chanKe the amount of such installments. If under paragraph 1K
hereof the Property is acquired by Lender, all right, title and interest of Burrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale ur acymsition shall pass to l.t•nder to the'extent of the sums secured by this
titortgage immediately prior to such sale or acquisition.
6. Preservation and MaintenanceotProperty; t.ease•holds;('ondominums; Planned Unit Developmenta.I3arrowershall keep
the Property in good repair and shall not commit wa+te or permit impairment or deterioration of the Property and shall camph• with the
provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium of a planned unit development,
Borrower shall perform all of Iorrower'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. If a
ondominium or planned unit development rider is exar•uted by Fii,rn,wer and recorded together with this Mortgage, the covenants and
,kreemFnls of such rider shall l,e incorporlt?•d into and shall ama•nd and supplement thecocenants and agreementsof this Mortgage as ifthe
rider were a part hereof.
7. Protection of Lender's Security. If Korrower fails W perform the a,venants and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affects [gender'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 such appearances, diabul•ae 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 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's
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 perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Horruwer and (.ender 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 diaburaement at the rate payable from
time to time on outstanding principal under the Note unlea9 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. tiothing contained in this paragraph 7, shall
require Lender to incur any expense or take any action hereunder.
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