HomeMy WebLinkAbout1514 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 o[ and interest on any Future Advances secured
by Chia Mortgage. '
2. Funds for Taxes and lneurance, Subject to applicable law or to a written waiver by lender, Borrowershall 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
Etwelfth 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,
all as reasonably estimated initially and from time to tin•.e by Lender on the basis of assessments and bills and reasenable 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, asaesamenta, 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 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 snd 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 Funds held by Lender, together with the future monthly installments of Funds payable prior to the duedatea oftaxes,
asaeasmenta. 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 be, at BorTOwer a 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 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 38days
from the date notice is mailed by Lender 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 Fonda held by Ixnderat the time of application as a credit against thesuma second
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 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 le.•+sehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, when due, direr tly to the payee thereof Borrower shalt promptly furnish to Lender
ail notices of amounts due under this paragraph, and in the event Borrower she!! make payment directly, Borrower shall promptly famish to
1 xnder receipts evidencing such payments. Borrower shat l 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 l;,mower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to [.ender, or shall in good faith contest such lien by. ordefend enforcement ofsuch lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of th+• Pmp+•rty or any part ther~rof.
5. Hazard Insurance. Burrower 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 Lender may require and in such amounts and forsueh
periods as Lender may require; provided, that (xnder shall not reyuire that the amount of such coverage exceed that amount of coverage
reyuircd to pay the sums secured by this Mortgage•
'The insurance carver providing the insurancec• sh:+Il hc• chose•n M• Borrower subject to approval by IA nder; provided, that such approval
shall not be unreasonably withheld. All premiums un incur-.+nre pr~licus xh:+l! tx paid in then+anner provid+d under paragr:+ph L hermf or, if
not paid in such manner, by 13orruwer making payment, when du+•, dircc•tly to the insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable W lenderand shall include a standard mortgageclausein favorof
and in form acceptable to Lender. l xnder shall h eve the right tc? hold the policies and renewals therec?f, and Borrower shall promptly furnish to
?xnder all renews! 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 proceeds shall be applied to restoration or repair of the Property
damaged, provided such restoration or repair is ec•c?nomicaliy feasible and the security of this Mortgage is not thereby impaired. If such
restoration or repair is not economically feasible ur 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 b Lender within all days from the date notice is mailed by (xnder tc? Borrower that the insurance carrier offers to settle a claim for
insurance benefits, [.ender is authorizeel to collect and apply the insurance proceeds at Lender's option either to restoration of 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 thedue
date of the monthly installments referred to in paragraphs I and 'l hereof or change the amount of such installments. If under paragraph Iti
hereof tj+e Property is acquired by (xnder, 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 antwsition shall pass to (xnder to the extent of the sums secured by this
iortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance otProperty; Leaseholds; Condominu+ns; Planned Unit Developments. Borrowershail 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 covettan(s c•natingor 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 development rider is executed by Borrower and recorded together with this Mortgage, the covenants and
agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgage self the
rider were a part hereof.
7. Protection of Lender's Security. it Borrower faits to perform the rnvenants 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, rnde enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower may make such appearances, diaburee 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
each insurance in effect until such time as the requirement for 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 Lender 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 permiesihie under applicable law. Nothing contained in this paragraph 7, shall
require (xnder to incur any expense or take any action hereunder.
~(,~x 327 P~~f 1513