HomeMy WebLinkAbout1220 Borrower and Lender covenant and agra 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 interest on any Future Advances secured
by this Mortgaor
2. Funds [or Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to bender 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-
twelRh ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Properly, if any, plus one•
twelRh of yearly premium installments for hazard insurance, plus one•twelflh of yearly premium installments for mortgage insurance, if any,
all as reasonably estimated initially and from time to time 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 Funds to pay said taxes, assessments, insurance premiums and
ground ants. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said
aesesamente 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 F~rnds 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. The Fonda are pledged as additional security for the soma 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 of taxes,
assesamenia, insurance premiums and ground rents, shall excted the amount required to pay said taxes, assessments, insurance premiums
and ground rents as 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 Funds held by Lender shall hot be sufficient to pay taxes, asaesamenta, 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 [.ender to Borrower requesting payment thereof.
Upon payment in full of all sums 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, Lender shall apply, no later than immediately prior
to the sale of 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 Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by Leader 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 Advapcea.
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 orground rents, if any, in the manner provided under paragraph 2heteofor,
if not paid in such manner, by Borrower making payment, when d+se. directly to the payee thereof. Borrower shall promptly furnish to Lender
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. 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 payment of theobligation secured by
such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ordefend enforrnment 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 existing or hereafter erected on the Property insured against lose by
fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and forsuch
periods as Lender may require; provided, that Lender shall not require that the amount of such rnverage exceed that amount of coverage
required to pay the sums secured by this Mortgage.
The insurance carrier providing the insuranrn shall be chosen by Borrower subje~•t to approval by Lender; provided, that such approval
shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereofor, if
not paid in such manner, by Korrower makinK payment, when due, directly to the insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgageclause in favorof
and in form acceptable to [,ender. (.ender shall have the right w hold the policies and renewals thereof, and Borrower shall promptly furnish to
Ixnder all renewal notices and all receipts of paid premiums. In the event of I~ss, Borrower shall give prompt notice to the insurance carrier
and Lender. Lender may make proof of toss 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
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 Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to
respond to Lender within :10 days from the date notice is mailed by bender u~ 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
Property or the sums secured by this Mortgage.
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 I and `L hereof or change the amount of such installments. If under paragraph 18
hereof the Property is acquired by bender, 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 Lender to the extent of the sums secured by this
Mortgage immediatelyprior to such sale or acquisition.
6. Preservation and Maintenanceof Property; Leaseholds; 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 or covenants creatingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and rnnstituent documents. If a
condominium or planned unit development rider is executed by Korrower and recorded together with this Mortgage, the rnvenants and
agreements of such rider shall be incorporated into and shall amend and supplemen t 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 perform the covenants and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affects Lender's intereatin 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 se 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 a and [.ender s
written agreement or applicable I.aw. 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 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 each amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph T, shall
require Ixnder to incur any expense or take any aMion hereunder.
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