HomeMy WebLinkAbout1011 IINtt~ortnr Covawarits, Borr+Ower and Leader covenant and agree u folbws:
1. laQsssM et hieiMl atM ItNeresf. Borrower shall promptly pay when due the principal of acid interest on the
iadebtedrtps evideuoed by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
oa soy Futtrre Advances securod by this Mortgage.
lts~is far Tacna W Irtsartat~e. Subject to applicat+k law .x to a written waiver by Lender. Borrower shall pay
to Leader on the day atottthly installments of principal and interest an: payable under the Note. until tM Note is paid in full,
a sem (herein "Fueids'7 equal to one-twelfth of the yearly text. and assessments which they attain priority over this
Mortgage. and ground.rcata oa the Property. if way, plus otie-twelfth of yearly premium installments for hazzrd insurance.
plus one-twelfth of yearly premium inuallments for mortgage insurance, if any. all as t+easonably estimated initially and from
time to tithe by Leader oa the basis of assescmcnta and hills and reasonable estimates thereof.
11re Runde :ball be Geld in an institution the deposits orrccounts of which arc inwred or guaranteed by a Federal of
state agency (inchtding Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessment:,
' iawraaoe premiums and ground rents. lender may not charge for :n holding and applying the Ftrnds. analyzing said account,
or verifying and compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and [.ender may agree in writing at the time of execution of this
Mortgage tbat interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requites 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~oor~h each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
Tt the amount o[ the Funds held by Lender. together with the future monthly installrnenta of Funds payable prior to
the due data of lases, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
ass~nents,- irt:urance premiums and ground rents as they fall due. such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrowed on monthly installments of Funds. if the amount of the Funds
held by I.eadarshall not be wf6cieat-to pay taxes, assessrnenta, insurance premiums and.groutid rents ss they tall due,
Bon+ower shall pay to Leader any amount necessary to make up the deficiency within 30 days [coin the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in fuU of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds
heW by Lender. If under paragraph 18 hereof the Property is sold or the Property rs 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 br
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Ap~eatiors o[ rgmeNs. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs l wad 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.tt interest and
principal on any Future Advances.
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1. (,'barges; Leas, Borrower strall pay all taxes. assessments and other charges. fines and imposit~oyi4~iittt~butable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rEnt~if apytii0,the manner
provided under paragraph 2 hereo[ or, if not paid in such manner, by Borrower making payment. when dtx. directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragrsph, and is the event
Borrower shall make payment directly. Borrower shall promptly (umish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shat! agree in writing to the payment of the obligation secured by .
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such iien in,
legal proceedings which operate to prevent the enforcement of the lien or [orfeituie of the Progeny or any part thereof.
S. Hszard losurauce. Borrower shall keep the improvements now exiuing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may regain-; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured ~y this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
flat such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage _
• clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
~ and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. in the event of loss.
Borrower shall give prompt notice to the insurance carrier and bender. Lender may make proof of loss if not made promptly
j by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance procceds shall be applied to restoration or repair of
the Properly damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is nut economically feasible or i[ the security of this Mortgage would
be impaired. the insurance proceeds shall be applied to the stuns secured by this Mortgage, with the excess, if any. paid
to Borrower. 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 Lender to Borrower that the insurance carrier often to settle a claim for insurance benefits, Lender
~ is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Properly
or to the sums secured by this Mortgage. ,f -
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Progeny is acquired by Lender. all right, title and interest of Borrower
in wad to any Assurance policies and in and to the proceeds thereof resulting from damage to the Properly prior to tlrc salt
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. '
6. lreserratloa wad Maiatenaace of Property; Leaseholds; Condominiums; Pbnaed Udt Devebpmenls. Borrower
t shall keep the Property in good repair and shall not commit y?•aste or permit impairment or deterioration of the Property
wad shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a snit in a
condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned. unit development, the by-laws and regulations of the
condominium or planned unit development. and constituent da;uments. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage. the covenants and agrcements of such rider
j shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a pan hereof.
l Prottrtlon of Lender's Security. If Borrower fads to per(urm the covenants and agreements contained in this
Mortgage, or if any action or proczeding :c asmmenced which materially affects Lender's interest in the Property,
including, but nut 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, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including. buC'not limited to, disbursement of
reasonable attorney's fees aAd entry upon the Property to make repairs. 1f Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required b maintain such
insurance in effect until such timt; as the requirement for wch insurance terminates in accordance with Borrower's and
. ~ BUOK c~i PACE~~
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