HomeMy WebLinkAbout1643 Borrower and Lender covenant and agree as folbws:
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 Future Advances secured
by this Mortgage.
2. Ftiutds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day
monthly installments otprincipal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one
velfth of the yearly taxes and asaeasmenta which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one-
twelfth ofyearly premium installments for hazard insurance, plus one•twelfth of yearly premium installments [or mortgage insurance, if any,
all as reasonably estimated initially and from time to tithe 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). (.ender shall apply the Funds to pay said taxes, assessments, insurance premiums and
ground rents. (.ender may not charge [or so holding and applying the Funds, analyzing said account, or verifying and compiling said
asaesamenta 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 Funds. Lender shall give to Borrower, without charge, an annual accounting ottee F unds 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 forthe 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,
assessments, 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 Korrower 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 (.ender any amount necessary to make up the deficiency within 30 days
from the date notice is mailed by (..ender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, (.ender shall promptly refund to Borrower any funds held by bender. (fonder
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by (.ender, (.ender shall apply, no later than immediately prior
to the sale of the Property or its acquisition by Lender, any Funds held by (.ender at the time of application as a credit against the sums secured
by this Mortgage.
3. Application of Payments. Unless applicable l:+w 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 (.ender 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.
•t. Charges; Liens. Borrower shall pay all taxes, :~sses_~:ments and other charges, fines and im{x?sitiuns attributable w the Property which
may attain a priority over this Mortgage, and leasehold pay ments or ground rents, if any, in the manner provided under p:uagrapfi 2 hereotor,
if not paid in such manner, by Borrower making payment, when d+Ze, directly to the payee thereof Burrower shall promptly furnish to Lender
:+Il notices of amounts due under this paragraph, and in the event t3om,wer shall make payment directly,l3urmwer shall promptly furnish to
(.ender t•eceipts evidencing such paymentsS. Burrower shall promptly discharge any lien which has priority over this Aiurtgage: provided, that
Burrower shall not be required to discharge any such lien su lung as 13?:rn,wer shall agree in writing to the payment of thrubligation secured by
such lien in a manner acceptable to Ixnder, or shall in g?N?d f:+ith contest such lien by, ordefend enfon•e•ment ufsuch lien in.legal proceedings
which operate to prevent the enforcement of the lien or furfi•iture of th+• Pro{x•rty or any part there+?f.
5. Hazard Insurance. Burrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by
fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and ip such amounts and forsuch
periods as Ixnder may require; provided, that Ixnder shall not re•yuire that the amount of such aver.+ge exceed that amount of cerverage
required to pay the sums secured by this MortKaKe'~
The insurance carver providing the insurancee• shall Iw• chosen I?}• Borrower subj+rt to appru~•al by 1 w•mler• provided, that such approval
shall not be unre.•+sc?nably withheld. All premiu?ns un insurance {N,licie: shall h+• paid in the m:mner pmeid+•+1 under paragraph 'L herentur, if
niit paid in such manner, by &?rruwer making p:+yment, when due, direy-th• u? the inwr.+nce• carrier.
All insurance policies and renewals thereof shall be in form :uceptahle fA? I A•nder and shall include a standard mortgageclause in favor of
and in forrn acceptable to Ixnder. Lendershall have the right to hold the {«,licies and renewals thereof, and Borrower shall promptly tumish to
i.ender all renewal notices and all remipts of paid premiums- In the e~eut of loss, Burrower shall give prompt notice to the insurance carrier
and Ixnder. Lender may make pr+af of loss if not made promptly by Kurrower.
(Unless Ixnder and Borrower otherwise agree in writing, insurance proceeds shall he• applied to restoration or repair of the Property
damaged, provided such restoration ur repair is et•unumically feasible and the security of this Mortgage is nut thereby impaired. If such
restoration or repair is not economically feasible or if the security of this Mortgage w•uuld be impaired, the insurance proceeds she!! be applied
to the sums secured by this Mortgage, with the exc+ss, if any, paid to t;,?rrower. if the Property is abandoned by Borrower, or if Born~wer fails to
respond to Lender within :;n days from the date nonce is mailed by I Rnder to Burrower that the insurance carrier offers to settle a claim for
insurance benefits, Ixnder is authorized to collect and apply the insurance pr?K•c•eds at bender's option either to restoration ur repair of the
Property or the sums secured by this Mortgage.
lTnlesa Lender and Forrower otherwise agree in writing, any such application of prrK•reds to principal shall not extend or postponeihe due
date of the monthly installments referred W in paragraphs I and l here?dor change the amount of such installments. If under paragraph 18
hereof the Property is acquired by Ixnder, all right, title and interest of 13ormwer in and U? any insurancepolicies and in and to the proceeds
thereof resulting from damage d? Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this
liurtgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; ('ondominums; Planned Unit Developments. Bonowershall 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 if this Mortgage is un a teasehuld. If this Mortgage is on a unit in a anduminium or a planned unit development,
Burrower shall perform all of Borrower's obligations under the derlar.+tion or covenants rn•atingur guvern+ng the condominium or planned
unit development, the by-laws and regulations of thc• condominium ur 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 oovenanta and
.+greement.4 of such rider shall },e incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgageasif the
nder were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the avenants and agreements contained in this Mortgage, or if any
action or proceeding ie commenced which materially affects Ixnder'e interest in the Property, including, but not limited to, eminent domain,
i insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Ixnder's option,upon
notice to Borrower may make such appearances, disburse such sums and take such action ae is necessary to protRCt Lender's interest,
1 including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repaire. If Lender required
mortgage insurance as a condition of making the loan secured by this Mortgage, Burrower 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 a and Lenders
written agreement or applicable [aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
[ paragraph 2 hereof.
Any amounts disbursed by Ixnder perauant to this paragraph 7, with interest therer?n, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Ixnder 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 dale of disbursement at the rate payable froth
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 Ixnder to incur any expense or take any action hereunder.
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