HomeMy WebLinkAbout1633 Borrower and (.ender covenant and agree as follows:
1. Paytstent 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 Future Advances secured
by this Maetgsge.
2 Ftitnds forTaxesand Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to I.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 aaseasmenta 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:llments for mortgage insurance, if 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 Fends shall be held in an institution the deposits or 8~counts of which are insured or guaranteed by a Federal or State agency
tiacluding Lender if Lender is such an institution. (.ender shall apply the Funds to pay said taxes, ussessmenta, 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
sueb agreement is made or applicable law requires such interest to be paid, !.ender shall not be required to pay Borrower any interest or
earnings on the Fends. 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 sums secured by this
lortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of F ands payable prior to the due dates of taxes,
aaaeasmrnta, 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 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 Lender shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay to bender 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, (.ender earl( 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 ask cf the Property or its acquisition by (.ender, any Funds held by Lender 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 (.ender 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,
rhea to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances.
d-Cbargea; Liens. Borrowershall pay all taxes, assessments and other charges, fines and imp++sitions attributable to the Property which
may attain a priority over this Mortgage, and Ie:+sehold payments or ground rents, if any, in the manner provided under paragraph `L hereofor,
if not paid in such manner, by Borrower making payment, when due, directly to the payer thereof. Korrowe•r shall promptly furnish to Lender
all notices of amounts due under this paragraph, and in the event Iorrower shall make payment directly W+rroRer shall promptly furnish W
Ixnder receipts evidencing such payments. Bom?wer shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shall not be required todischarge any such lien so long as li++rn+wer shall agree, in writing to the payment of theobligation secured by
such lien in a manner acceptable to Ixnder. or shat) in g«+d f:+ith +•onte•st such lien by, ur defend enfi?rce•ment of such lien in, legal proceedings
which operate to present the enformment of the lien or forfeitun• of the 1'ro{++•rty or :+m• part thenti+f.
i. Hazard Insurance. Borrower shall keep the improsements now existing or hereafter erected on the I'mperty insured against loss by
fire, hazards included within the term "extended cyn erage: 'and such other hazards as Lender may require and in ouch amounts and for such
periods as Lender may require: pn?sided, that Lender shall not nr{airs that the amount of such rnverage exceed that amount of coverage
required to pay the sums secured by this Mortgage.
The insurance carrier pnn•iding the insur.+nc+• shall Iw• chosen by Borrower subj+•~•t to appn+val by 1.+•nder; provided, that such approval
shall not be unreasonabh• withheld. All premium...n insurance {N~li+•i+•s shall t++• p;+id in the manner proyid+d under paragr,+ph 'l hercr+f or, if
not paid in such manner, by Ii++rrower making payment. when du+•, dinrth• to the insurance carrier.
All insurance policies and renewals thereof shall he in firm :crept:+ble G+ l.+•nder and shall include a standard mortgage clause in favor of
and in form acceptable to Lender. l.endershall have theright tc+hold the {arlicies and renewals thereof, and Borrower shall promp/ly furnish to
e.ender all renewal notices and all receipts of paid premiums. In the event of loss, It++rrow•er shall give prompt notice to the insurance carver
and [.ender- Lender may make proof of loss if not made promptly by liorn?wer.
l~'nkss Lender and Borrower othrrvrisr agree in writing, insur.+nc+• pr+x•+•eds sh:dl tx• applied to restoration or repair of the Property
~ damaged, prodded such restoration or repair is economically 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 I+e impaired. the insurance proceeds shall be applied
to thesuma secured by this Mortgage, with the excess, if any, paid to l;<?rrower. If the Property is abandoned by. Borrower, or if Borrower fails to
respond to [.ender within 30 days from the date notice is mailed by Lender G+ Itorn+wer that the insurance carrier offers to settle a claim for
insurance benefits. I~nder is authorized to collect and apply the insurance pr+x•e•+Yts at lender's option either to restoration or repair of the
Property or the sums second by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, am• such applic:+tion of pn+cetds to principal shall not extend or postpone thedue
date of the monthly installments referred to in par.+gr.+phs !and `L here++f or change the amount of such installments. If under paragraph l8
hereof the Property is acquired by bender, all right, title and interest of Ik?rrowrr in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this
lortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenanceuf Property; Lraseholds;Condominums; Planned Lnit Ueselopments.I3orrowerahallkeep
the Property in good repair and shall not commit waste or permit imp:+irment or deterior+tian of the Property and shall comply with the
prorisiona of any lease if this Mortgage is on a leagehotd. If this Mortgage is on a unit in a rnndominium or a planned unit development,
Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor goyernmg the condominium or planned
F 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 erec•utcd by liorn+wer and recorded together with this Mortgage, the covenants and
agreements of such rider shall be incorp+mded into and sha 11 amend and su pplemc•nt the, covens nts and agreements of this iortgage as if the
rider were a part hereof.
Protection of Lender's Security. It Borrower fails to perform the covenants and agreement$ 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,
+nsolrency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon
I notice to Borrower may make ouch appearances, disburse such sums and take such action as is necessary to protect Lender's interest,
f 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 s condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain
F such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and I.endere
written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof-
[ My amounts disbursed by Lender perauant to this paragraph with interest thereon, shall become additional indebtedness of
l Borrower secured by this Nbrtgage. Unless Borrower and Lender agree to other terra of payment, such amounts shall be payable upon
notice fran Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
dme to time on outstanding principa! 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 Lender to incur any expense or take any action hereunder.
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