HomeMy WebLinkAbout0213 Borrower and Lender covenant and agree as folbws:
1. Payment of Principal and Interest. Borrower shall promp/ly 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 Frtnds torTa:es and lasurance. 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"1 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 onetwelfth of yearly premium inst:rlltnerits for mortgage insurance, if any,
all as reasonably estimated initially and from time to time 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
tincluding Lender if (.ender is such an institution). Lender shall apply the Funds to pay said taxes, 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 (.ender pays Borrower interest on the Funds and applicable law permits I xnder to make such a charge. Borrower
and (.ender may agm in ~rriting 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 interea/ to be paid, (.ender 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 the auras secured by this
Aortgage_
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 cents, shall exceed the amount required to pay said taxes, assessments, insurance premiums
and ground rents as they fall due, such excess shall be, at Borrower s option, either promptly repaid to Borrower 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 Lender any amount. necessary to make up the deficiency within ;i0 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 (.ender, Lender shall apply, no later than immediately prior
to the sale of the Property or its acquisition by Ixnder, any Funds held by (.ender at the time otapplication 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.
a. Charges: Liens. Borrowershall pay all taxes,:+ssessmentsand othercharges, fines and imtwsitions attributable to the Property which
may attain a priority over this I1lortgage, and le:~sehold payments ur ground rents, if any, in the manner provided under paragraph 2 hereofor,
if not paid in such manner. by Borrower making payment. when due. directly to the payee thereof. f3<,rn?wer shall promptly furnish to Lender _
all notices of amounts due under this paragraph, and in the event It+?rn?wer shall make payment directly, Borrower shall promptly furnish to
Lender receipts evidencing such p:+yments.l3urrower shall promptly ~Iischarge any lien which has priority over this Mortgage: provided, that
l;.:rrower shall not be required todiccharge any such lien so lank :?,c li??rn?wer shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Ixnder, urshall in g+Nx1 faith +ti~nt+•st such lien by, ordefend enfun•+•ment ofsuch lien in, lekal proceedings t
which operate to prevent the enforcement of the lien ur forfeiture of the I'n?Ix•rty or any part then~?f.
5. Hazard Insurance. Borrower shall keep the impnn•ements now existing or hereafter erected on the Property insured against loss by
fire, hazards included within the term "extended n?verage; 'and such other h;+zards as I xnder may require and in such amounts and forsuch
periods as Ixnder may require: provided, that Ixnder shall nut r+ytuin• that the amount of such rnver.+ge exceed that amount of coverage
required to pay the sums secured by this MortKage.
The insuranm carrier providing the insurap+•+• shall I?+• chosen by Korrow+•r subj+•+•t u? approval by 1 xnder, provided, that such approval
shall not br unre:~ce?nabh withheld. All premiums un insur:nce tN~licie•s shall IK• paid in the m:uu+er provide•el under p:+ragraph 'L herer?f or, if
nut paid in such manner, M• li,?rruw-er making p:+yment. when due, dins•tl}• to the insur•.+nce carrier.
Al[ insurance policies and renewals thereof shall he in firm acceptable to Ixndermd shall include a standanl mortgage clause in favor of
and in form acceptable to Ixnder. Ixnder shall have the right to hold the tNdicies and renewals there•ed, and Borrower shall promptly furnish to
:.ender all renewal notices and all receipts of p;+id premiums. In the event of loss, Korrower shall give prompt notice to the insurance c:+rrier
~ and Lender. Lender may make proof of loss if not made promptly by f;.?m?wer.
~ Unless (.ender and Borrower otherwise agree in writing, incur:+n+r pr+?ce•eds shall he applied to restoration or repair of the Property
damaged, pro~•eded such restoration ur repair is cronumicalh• feasihle and the w•e•urity of this Mortgage is not thereby impaired. If such
restoration or repair is nut economically feasible ur if the security of this Mortgage would tx impaired, the incur.+nce proceeds shall he applied
to the sums secured by this 111ortgage, with the excess, if any, paid to Be?m?wer. if the Propt•rty is abandoned by Borrower, or if Borrower fails to
respond to Lender within a0 days from the date notice is mailed by Lender U? lie,rn?wer that the insurance carver offers to settle a claim for
F insurance benefits, Lender is authorized to colle•e•t and apply the insurance pn?e•e•eds at I,e•nder's option either U, restoration or repair of the
Property or the sums secured by this Mortgage. -
Unless Lender and Borrower otherv?-ise agree in writing, any such application of proceeds to prihcipal shall not extend or postpone thedue
( date of the monthly installments refer-ed to in paragraphs 1 and 'L here??f ur change the amount of such installments. If under paragraph 18
hereof the Property is acquired by Ixnder, all right, title and interest of liurn?wer in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale or acetwsition shall pass to (,ender to the extent of the sums secured by this
Mortgage immediately prior to such sale ur acquisition.
6. Preservation and Maintenance of Property; Leaseholds;Condominums; Planned Unit Developments.l3orrowershall keep
the Property in good repair and shall nut commit waste or permit imp:+irment ur deterioration of the Property and shall comply with the
provisions of any lease if this Mortgage is on a le:~sehold. If this Mortgage is un a unit in a condominium or a planned unit development,
Fiorruwer shall perform all of Borrower's obligations under the der•laration or euvenants cn :+tingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or planneel unit development, and constituent documents- If a
rondominium or planned unit development rider is executed by &?rrower and recorded together with this Mortgage, the covenants and
agreements of such nder shall be incurpur.+ted into and shall amend and supplement thecovenants and agrermentsof this Mortgageas ifthe
nder 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 I.ender'e 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, disburse such sums and take such action as is necessary to protect Lender's interest,
1 including, but not limited to, disbursement of reasonable attorney a fees and entry upon the Property to make repairs. If Lender required s
~ mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain
l such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lenders
.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 pereuant 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 Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable [rom
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 rnntained in this paragraph 7, shall
require (.ender to incur any expense or take any action hereunder. '
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