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Borrower sad Lender covenant and agree a. folbws:
1. Paytsteat of Principal and Iatetrest. Sacrower shall promptly pay when due the principal of and interest on the indebtednea
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.
Fonda for Tares and Iastitsanos. 3ubjed to applicable law or b a written waiver by Lender, Borrower shall pay to Leader on the day
monthly installments of principal sad interest are payable under the Note. until the Note is paid in full. a sum (herein "Fhnds'~ equal to ones
twelfth of the yearly to:a and assessments which may attain priority over this Mortgage. and ground rents on the Property.l[any. plus ores'
twelfth of yearly premium installmdtts for hasard insurance, plea one•twelRh of yearly premium installments for mortgage insurance, if arty.
all as seasonably estimated initially and [kom time to lime by Lender on the basis of asaesamenta and bills and reasonable estimates thereof.
The Fends shall be held in an inTtitution the deposits or accounts of which are insured or guaranteed by a Federal or State agency
(including Leader H Lender is such an institution). Lender shall apply the Funds to pay said taxes. assesamenta, insurance premiums and
ground rrnts. Lender ms~y not charge for so holding and applying the Funds. analyzing said account, or verifying and compiling said
awessment~ and biW, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower
and Leader ma,? agree in writing at the time of execution of this Mortgage that ir?terest 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 Fends. 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 for the sums secured by this
Mortgage.
If the amount of the Fends hdd by Lender. together with the future monthly installments of Funds payable prior to the due dates of tares.
sesesameats, insurance premiums and ground Hots, shall exceed the amount required to pay said taxes, asaesaments, insurance premiums
and ground rents as they fall due, such excess shall be, at Borrower
a option, either promptly repaid to Borrower or credited to Borroweron
monthly installments of Fonda. If the amount of the Fonda held by Lender shall not be sufficient b pay taxes. assessments, iaanrance
premiums and ground yenta as they fall doe, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days
from We date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in full of all creme secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. if under
paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior
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by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender ender We 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. 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 or ground rents, if any, in the manner provided under paragraph 2 hereof or.
if not paid in such manner, by Borrower making pay meet, when due, directly to the pay ee thereof. Borrowershall 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 be required 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 Lender, or shall in good faith contest such lien by, or defend enforcement 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 hereaRer erected on the Property insured against lose by
fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in arch amounts and for such
periods as Lender may require: provided, that Lender shall not require that the amount of such coverage exceed that amount of rnverage
required to pay the soma secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Ixnder, provided, that such approval
shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereotor, if
not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to [.ender and shall include a standard mortgage clause in favorof
and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrowershall promptly furnish to
i,ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier
~ and Lender. Lender may make proof of loss if not made promptly by Borrower.
~ Unless Lender and Borrower otherwise agree in writing, insurance praeeds 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 ~ repair is not economically feasible or it the security of this Mortgage would be impaired, the insurance proceeds shall be applied
to the soma 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 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 collect and apply the insurance proceeds at Lender's option either to restoration or repair of the
Property or the soma secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue
date of the monthly inatallmenta 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 Property prior to the sale or acquisition shall pass to Lender to the extent of the soma secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and kiaintenance of Property; Leaseholds; Condominums; 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 rnndominium or a planned unit development,
Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing thecondominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and rnnatituent documents. If a
rnndominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the eovenanta and
agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgage as ifthe
i 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
a 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
4 notice to Borrower may make such appearances, disburse ouch ewes and take such action as is necessary to ported 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 inanrance 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.
My amounts disbursed by Lender persuant 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 neon
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 sneh amounts shall bear interest at the highest rate permissible under applicable law. Nothing rnntained in this paragraph shall
require Lender to incur any expense or take any action hereunder.
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