HomeMy WebLinkAbout0085 Borrower 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 late charges as provided in the Note, and the principal of and interest on any Fltture Advances secured
by this Mortgage.
2. Ititrtds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrowershall pay tol.enderon theday
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 Properly, if any, plus one
twelfth of yearly premium installments for hazard insurance, plus one•twelfth ofyearly premium installments for mortgage insurance, it 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 rents. Lender may not charge for eo 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 Fttnda. Lender shall give to Borrower, without charge, an annual accounting of the F unds showing credits and debits to the
Funds and the purpose for which each debit to the Funds was made. The F unds are pledged as additional security for the sums secured by this
Mortgage.
If the amount of the unds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes,
asaesamenta, 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 Bo+TOwer 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 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 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, bender 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 bender 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 Nute, :+nd 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 Kmund rents, if any, in the manner provided under paragraph'( hereofor,
if not paid in such manner, by Borrower making payment, when due, directly to the payEr thereof RorroN•er shall promptly furnish to Ixnder
.+Il notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly furnish to
I Winder receipts evidencing such payments. l;t+rn?wer shall prompth disch:+rge any lien which has prinrih• over this Mortgage; provided, that
Borrower shall not be required to discharge, any such lien su IonK as Burrower shall ak~re•+• in writinK to th+• payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in Koud f:+ith contest such lien by, urdefend enfi+n•ement of such lien in, legal proceedings
which operate jo prevent the enforcement of the lien of furfeitun• of the 1'n+lx•rty or any part thenti+f
5. Hazard Insurance. Borrower shall keep the improvements nuyr existinK ur here:dter erected on the Property insured against lossby
f re• hazards included within the term "extendtd coverage." and such other hazards as Lender may require and in such amounts and for such
periods as Lender may require; provided, that (.+•nder shall nut require that the amount of such rnverage exceed that amount of coverage
r+Ktuired to pay the sums secure•el by this Mortgage.
The insurance carrier pn+cidinK the insurance shall tx• chosen by Borrower suhje•+•t to approval by Lender, provided, that such approval
shall not be unreasonably withheld. All premiums un insur:u+ce policies shall ix• paid in the manner pn+vid+•+1 under par.+Kr.+ph hereof or, if
not paid in such manner, by {i++m:w•er makinK payment. ~+•h+•n du+•, dinti•th• to th+• inwran+r earrie•r.
All insurance policies and renewals thereof shall tm in form acceptable to bender and shall include a standard mortgage clausein favorof
and in form acceptable to 1.ender- I,endershall hace the right to hold the twlirics and renewals thercy+f, and Borruwershall promptly furnish to
:.ender all renewal notices and all receipts of paid premiums. In the event of lots, Burrower shall give prompt notice G+ the insurance carver
! and Lender. [.ender may make proof of loss if not made promptly by Burrower.
Unless (.ender and Borrower otherwis+~ :+Kre•e• in writinK, insurance prex-eeds shall tx• applied to restoration or repair of the Property
f damaged, provided such restoration ur repair is e•+•onomically feasible and the security of this Mortgage is not thereby impaired. If such
restoration or repair is not economically feasible ur if the se•e•urity of this 11ortKage would lx• impaired, the insurance proceeds shall be applied
to the sums secured by this Mortgage. with the excel, if any, paid to liorn+wer. 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 I.e•nder to Borrower that the insurance carver offers to settle a claim for
:nsurance benefits. Lender is authoriutil to colhrt and apply the incur.+ner pnK•e•cds at Lender's option either to restoration or repair of the
E'roperty or the sums secured by this MurtK:+K+'-
Unlessl.enderand Borrower otherwiseagnrinw•riling.anysuchapplicationofprex-cee?stoprincipalshallnotextendorpostponethedue
date of the monthly installments referred to in p:+r:+Kr.+pl:a 1 and'L hererrf or chanKe the amount of such installments. If under paragraph 18
hereof the Property is acquiretE by Lender, all right, title and interest of Burrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the s:+le or acgmsition shall pass to bender to the extent of the sums secured by this
\t~~rtgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned knit Developments. Borrowershall keep
the Property in good repair and shall not commit w•aMe ur permit impairment ur de•terioration of the Property and shall comply v?~th the
provisions of any lease if this Mortgage is on a leasehold. If this MurtKaK+• is on a unit in a cnndominium or a planned unit development,
Borrower shall perform all of Borrower's obliKatiuns under the de•c•laratiun or covenants cn•ati»Kor govern+ng the condominium ur planned
unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. If a
: ondominium or planned unit development rider is exee•uted by Fie+rn+wer and recorded Gq:ether with this Mortgage, the c»venants and
::Kreements of such rider shall t+e incurporded into and shall amend :uu) supplement the covenants and agreements of this Mortgage as ifthe
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 l,endei 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
notice to Borrower rosy make such appearances, disburse such sums and take-such action as is necessary to protect Lender's interest,
r. 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, Burrower 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'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 (.ender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Burrower secured by this hortgage_ 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 such amounts shall bearinterest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall 4
require Lender to incur any expense or take any action hereunder.
6~~,~ 32~ FM~E 85 •