HomeMy WebLinkAbout2758 Fton~+ower and Lender covenant and agree as follows:
1. 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 latecharges aaprovided in the Note, and the principal of and interest on any Future Advances secured
by this Mortgage.
2. Fonds for Taxee and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Ixnder 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,
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 of yearly premium installments for mortgt+geinsurance, if any,
:+Il as reasonably estimated initially and from time to tirr+e by Lender on the basis of assessments and bills and reasonable e,~timates thereof.
The Fltnds 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
around 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 b'unds and applicable law permits Lender to makesuch s charge. Borrower
:+nd 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 ie 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 Funds are pledged as additional security for 1l+esumssecured bythis
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,
assessments, insurance premiums and ground rents, shall excxd the amount required to pay said taxes, assessments, 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 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 :i0 days
from the date notice is mailed by Lender to Burrower requesting payment thereat •
Upon payment in full of all sums secured by this bfortgage, 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 acyuired by (.ender, 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 (,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 Note, and then to interest and principal on any Future Advances.
4. Charges; Liens. Bormwer shall pay all taxes, assessment..:+nd othercharges, fines and impositions attributable to the Property which
rosy 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 payment, when due, directh• to the payee thereof. Bormwer shall promptly furnish to Lender
all notices of amounts due under this p:+r.+graph, and in the event P.orrower shall make payment dire•cth, $orn,wer shall promptly furnish to
(.ender receipts evidencing such payments. I;<,rruwer shall promptly discharg+• any hen which has priority overthis Mortgage; provided, that
Borrower shall not be required to disch:+rge any sueh lien so long as 13orn,wer shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Ixnder, or shall in g+NK3 faith n,ntest such lien hy, urde•fend enfon•ement of such lien in, legal proceedings
~chich operate to prevent the enforcement of the lien or forfeiture of the Pn,lxrrty or any part then.d.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected un the Property insured against loss by
tin-, hazards included within the term "extended coverage," and such other hazards as (.ender may require and in such amounts and for such
periods as Lender may require; provided, that Lender shall not n•yuire that the amount of such cti,ver.+ge exceed that amount of coverage
rc•yuired to pay the sums secures by this Mortgage.
The incur.+nce carrier providing the insura?u•e shall }w• ehosen by Korrower suhj+•+•t to approval by I xnder: provided, that such approval
shall not be unreason;+hly withheld. All premium, on insurance pohciex .hall }w• paid in the m:uuu•r provid+til under par.+graph'L hereofor, if
not paid in such manner, by Iiorrok-er making payrnent. when due, dire•e•th• to the insur<mr+• carrier.
All insurance policies and renewals thereof shall tx• in form acceptable to Lender and shall include a standard mortgage clause in favor of
and in form acceptable to !.ender. Lender shall have the right to hold the policies and renewals thereof, and R+flrowershall promptly furnish to
render all renewal notices and all receipts of paid premiums. In the event of toss, Kormwer shall give prompt notice to the insurance carrier
and Lender- fender may make pr~K,f of loss if not made promptly by F3+,rrower.
Unless Ixnder and Borrower otherwise agree in writing, insurance pn,ceeds shall tx• applied to restoration or repair of the Property
damaged, provided such restoration or repair is economically feasible and the serurih• of this Mortgage is not thereby impaired. If such
restoration or repair +s not economically feasible or if the security of this Mortgage would tee impaired, the insur.+ncepr«•eeds shall beapplied
to the sums secured by thin 1?lortgage, with the ex, , :tic, if :+ny, paid to I~,rn,w•er. if the Property is abandoned by Ii+,rrower, or if Borrower fails to
re::pond to (.ender within a0 days from the date notice is mailed by I wander to l;<,rrower the+t the insurance carrier offers to settle a claim for
insurance benefits, Lender is authorized to colle•e•t and apply the insurance pn,e•ee•ds at bender's option either to restoration or repair of the
Property or the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agre•e• in wanting, any such application of pnx•eeds to principal shall not extend or postpone thedue
date of the monthly installmentsg referred to in par:+graphs 1 and 'L her+ti,f or change the amount of such installments. If under paragraph lA
hereof the Property is acquired by IA nder, all right, title and interest of Kormw•er in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sate ur acymsitiun shall pass to Ixnder to the extent of the sums secured by this
~L,rtgage immediately prior to such sale or acquisition.
6. Preservation and NaintenanceotProperty; l.e•aseholds;('ondominums; I'}anned Lnit Developments. Borrower shall keep
the Property in good repair and shall not commit watitr ur p+•rmit imp:+irment or detenor.+tion of the Property and shall comply with the
provisions of any lease if this Mortgage is on a leasehold If this Mortgage is un a unit in a condominium or a planned unit development,
Borrower shall perform all of Ftr,rruwer's obligations under the dee•I:+r.+tion .,r covenants err:+tin}; or govern+ng 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 ex+•e•uted by lir,rn,wer and recorded together with this Mortgage, the covenants and
.~gre•ements otsuch rider shall he in,~urpurat+Kt into and shall amend and :supplement thecovrnantsand agreementsof this;llortgageas ifthe
girder were a part hereof.
7. Protection of Lender'e Security. If Borrower fails to perform the covenants and agreemenU+ contained in this Mortgage, or if any
action nr proceeding is commenced which materially affects (.ender 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 [.ender 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
such 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 fender persuant to this paragraph with interest thereon, shall become additional indebtedness of
Horrower secured by this Mortgage- ITnleas Borrower and Lender agree u, other terms of payment, such amounts shall be payable upon
notice from (.ender to Bormwer 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 t,e contrary to applicable law, in which
event such amounts shat! bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall
require [xnder to incur any expense or take any action hereunder.
GI;flK
(:8 32`7 P~~E 2756