HomeMy WebLinkAbout2146 Borrower and Lender covenant and agree as follows:
1. Paymedt of Principal add lntet'est. 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. Prtrtds for Tries and Insurance. Subject to applicable law or to a written waiver by Lender, l3oRUwershallpay to !.ender onthe day
monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fonda") 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 ofyearly premium installments for mortgage insurance, if any,
alt as reasonably estimated initially and from time to tithe 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, assesamente, 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 each a charge. BoROwer
and Lender may agrce 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. bender 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 Lender, together with the future monthlyinstallmenta of Funds payable prior tothe duedates oftaxes,
assessments, insurance premiums and ground rents, shall excrEd the amount required to pay said taxes, assessments, insurance premiums
and ground rents as they fall due, such excess shall be, of Borrower a option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of Funds. 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 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in full of all soma 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 orita acquisition by (.ender, any Funds held by Ixnderat the time ofapplication as a credit against theauma secured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by bender under the Note and
paragraphs 1 and 2 hereof shall be applied by bender first in payment of amounts payable to [.ender by Borrower under paragraph Z 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. Borrowershall pay all taxes, :+ssessments and othercharges, fines and im{x,sitions attributable to the Property which
may attain a priority over this Mortgage, and le:+sehuld payments+,r ground rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, K•hen due, directly to the payee thereE,f. Borrrwer shall promptly furnish to Lender
all notices of amounts due under this par+graph, and in the event }iorn,wer shall make payment directly, Korrower shall promptly furnish to
bender receipts evidencing such payments. liorn,wer shall promptly discharge any lien which has priority over thi+Murtgage; provided, Thai
Borrower shall not be required to discharge any such lien so long l;<,ROwer shall agrE•E• in writing to the payment of the obligation secured by
such lien in a manner acceptable to Ixnder, or sh:+ll in gr,od faith n,nt+•st such lien by, ordrfend enfurE-E•mentofsuchlien in,legal proceedings
K•hich operate to prevent the enforcement of the lien or forfeitun• of the Pnr{x•rty or any part therer,f.
Hazard Insurance. Borrower shall keep the improvements noN- existing or hereafter erected on the Property insured against loss by
fire, hazards included within the term "extendEd cover-.+ge," and such other hazards as Ixnder may require and in such amounts and for such
pE•riods as [.ender may reyuire; prvn•idE•d, that Ixnder shall not r+•yuire that the amount of such cin•er.,ge exceed that amount of coverage
required to pay the sums sE•E•urEd by this Mortgage.
The insurance carrier pro~•iding the insurance shall I,E• chosen by 1{oRnK'rr suhje+•t to approval by t.+•nder, provided, that such approval
shall not be unreasonably withheld. All premium..rn insurance {>rdirie :.shall tr+• paid in the manner provided under paragraph L her+r,f or, if
not paid in such manner. by li.,rnrN'er making payment. ~chen du+•. din•+-tl}- ter the insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of
and in form acceptable to Lender. Ixndershall havethe right to hold the policies:+nd renewalsthereof, and Borrowershall promptlyfurnish to
r xnder all renewal notices and all receipts of paid premiums- In the event of loss, Borrower shall give prompt notice W the insurance carrier
and Lender. Lender may make prcx,f of loss if nut made promptly by Borrower.
Unless Lender and Br,ROwer otherwise agree in writing, insurance pn,c•E•Eds shall be applied to restoration or repair ottee Property
damaged, provided such restoration or repair is eE•onomic:+lly feasible and the security of this Mortgage is not thereby impaired. It such
restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, theinsurance procecdsshall beapplied
to the sums secured by this Mortgage, with the excess. if :;ny, pard to BE,Rr,wPr. If the Property Ia abandoned by BO1TOwer, or if Borrower fails to
respond to (.ender within ap 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 authoricEd to colleE•t and apply the incur.+nce pr«-E•eds at Ixnder's option either to restoration ur repair of the
Property or the soma secured by this Morig:+ge.
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 refeRed to in paragraphs t and'( hereof or change the amount of such installmentsg. I(under paragraph lA
hereof the Property is acquired by Fender, all right, title and interest of li„rrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage W Property prior to the sale or acquisition shall pass to Under to the extent of the sums secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; ('ondominums; Planned Unit Developments. HoROwershall keep
the Property in good repair and shall not commit watite or permit impainnE•nt ur detrrioratiun of the Property and shall comply with the
provisions of any lease i[lhis 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 13oROwer's obligations under the dE•c-laration or covenants cn :+tingor governing 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 deti•elopment rider is rx+•E•uted by Iir,ROwer and rE•corded together with this i`Iorigage, the covenants and
agreements of such rider shall tx• incorporated into and shall :+mend and supplement thE• covenants and agn•E•ments of this Mortgage as ifthe
rider were a part hereof.
7. Protection of Lender's Security. If BoROwer fails to perform the covenants and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affects Lender'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 bender at Lender's option,upon
notice to Borrower may make such appearances, disburse such soma 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 ae the requirement for such insurance terminates in accordance with Borrower's and Lendei
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 bender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of
KoROwer secured by this Mortgage. Unless BoROwer and Lender 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 pennisaihle 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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