HomeMy WebLinkAbout2366 ' 1 i
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 indebtedneaa
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. Ftinds for Taxes and Insurance. Subject to applicable law or to a written waiver by lender, Borrower shall pay to I.enderon 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 ofyearly prrmium installments for mortgage insurance, if any,
all as reasonably estimated initially and from time to tune by (.ender 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 lazes, assessments, 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 F
unds 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 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 Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes,
asseeamenta, insurance premiums and ground tents, shall exceed the amount required to pay said taxes, {+ageasments, insurance premiums
and ground rents as they fall due, such excess shall be, at Bo+TOwer s option, either promptly repaid to ~orHower or credited to Borrower on
monthly installments of Funds. If the amount of the Funds held by [,ender shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay to (.ender 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 (.ender. 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 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 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, :+.~srssmrnts and utherch:+rges, tines and impositions attributable to the Property which
m:+y attain a priority over this Mortgage, and leasehold payments or ground mots, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by Borrower m:+king payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender
all notices of amounts due under this paragraph, and in the event (tun ewer si+all make payment directly, Bormwer shall promptly furnish to
I xnder receipts evidencing such payments. Burrower shall prompth• 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;r,rrawer shall agree in writing to the payment of theubligation secured by
such lien in a manner acceptable to (.ender, or shall in gcxxl faith contest such lien by, ur defend enforcement of such lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of the Properh• ur any part themuf.
S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected c,n the Property insured against loss by
fire, hazards included within the term "extended coverage," and such other hazards as lxnder may require and in such amounts and forsuch
periods as Lender may require; provided, that Lender shall nut require that the amount of such rnver+ge exceed that amount of coverage
required to pay the sums securer( by this 1lurtg:+ge.
The insurance carrier providing the incur.+nce shall )x• chosen by Bom~wer subject to approval by I.emlrr, provided, that such approval
shall not be unre:+sonabh• withheld. All-prrmium, on insurance Ix~lirirs shall Ix• paid in the manner provided under paragraph 'l hereof or, if
If not paid in such manner, by Iorrower making payment, when due, dinK•th• to the insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable G, Lender and shall include a standard mortgage clause in favor of
'i and in form acceptable to (.ender. l.endershall have the right to hold the p~~liciesand renewals therec,f, and 13orruwershatl promptly furnish to
j i,ender all renewal notices and all receipts of p:+id premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier
' and (.ender. (.ender may make proof of loss if nut made prompth• by- Burrower.
Unless Lender and Borrower otherwise agree in writing, insurance pnx•w•ds shall be applied to restoration or repair of the Property
~ damaged, provided such resG?ratiun ur repair is ecunomir.+lh• feasible and the security of this Mortgage is not thereby impaired. If such
restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied
to the aumsaecured by this Mortgage, vrith the excess, if any, paid to Borrower. If the Property is abandoned by Burrower, or if Borrower fails to
respond to Lender within 30 days from the dale notice is mailed by Lender to ltorruwer that the insurance carrier offers to settle a claim for
insurance benefits, (.ender is authorized to collect and apply the insurance pr~xreds at bender's option either to restoration or 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 nut extend or postpone the due
date of the monthly installments referred to in paragraphs 1 and'1 hercx,f or change the amount of such installments. If under paragraph 18
hereof the Property is acquired by !.ender, 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 acgmsitiun shall pass to [.ender to the extent of the sums secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Ixaseholds; Condominums; Planned Unit Developments. Borrowerahall keep
the Property in good repair and shall not commit waste ur permit impairment or deterioration of the Property and shall comply with the
provisions of any lease i[ 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 covenants creatingor governing thecondominium 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 Burrower and recorded together with this Mortgage, the covenants and
:,grerments of such rider shall be incorporated into and shall amend and supplement the covenants and agreementsof this Mortgage as ifthe
rider were a part hereof.
Protection of Lender's Security. If Borrower tails to perform the covenants and agreements contained in this Mortgage, or if any
t action or proceeding is commenced which materially affects bender's interest in the Property, including, but not limited to, eminent domain, j
insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at bender'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, diaburaement 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 effeM until such time as the requirement fur such insurance terminates in accordance with Borrower's and Lender e
written agreement or applicable Law. Bormwer 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 Lender agree to other terms of payment, such amounts shall be payable upon }
notice from Lender to Bormwer requesting payment thereof, and shall bear interest from the date of diaburaement 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 permissible under applicable law. Nothing contained in this paragraph 7, shall
require bender to incur any expense or take any action hereunder.
E~x329 Pa~f2~364