HomeMy WebLinkAbout0320 Borrower and lender covenant and agree a. 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 Iatecha:gee as provided in the Note, and the principal of and interest on any Future Advances secured
by this Mortgage.
2 Fonds for Taxes and Insurrnce. Subject to applicable law or to a written waiver by I.ender, Borrower shall pay to Lender 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'") equal to one
twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one'
twelfth of yearly premium installments for haaard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any,
all as reasonably estimated initially and from time to time by Lender on the basis of asseisamenta and bills and reasonable eatiinatea 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 it Lender is ouch 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,unleas Lender paysBorrower 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 of the Funds showing credits and debits to the
Funds and the purpose for which each debit to the Fonda was made. The Funds 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,
assessments, insurance premiums and gr+E,und rents, Shall exceed the amount inquired to pay said Laxes, asseaeniruta, insurance premtums
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 shalt not be auf6cient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shalt pay
to Lender 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 soma secured by this Mortgage, !.ender 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, !.ender shall apply, no later than immediately prior
to the sale of the Fsoperty cells acquisition by Lender, any Funds held by !.ender at the time ofapplication 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,
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. Borrowershall pay all taxes, :is.Ressments and othercharges, fines and impositionsattributable totheProperty which
may attain a priority over this Mortgage, and le.•isehold payments orgrc?und rents, if any, in the manner provided under paragraph 2hereofor,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thermf. Borrowershall promptly furnish to Lender
all notices of amounts due under this paragraph, and in the event Borrower shalt make paymen/directly, Borrower shall promptly furnish to
!.ender receipts evidencing such paymentsc. lic,rrower shall promptly discharge am lien which has priority over this Mortgage; provided, that
Borrower shall not be required todischarge any such lien so long a.4 lionrow•er sh:cll agree in writing to the payment of theobligation secured by
such lien in a manner accepwble to lender, or shall in gc?cxt faith rnntest wch lien by, or defend enformment of such lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of th+• I'mpc•rty c?r any part theicr,f.
5. Hazard Insurance. Borro~rer 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 Lender may require and in such amounts and for such
periods as tender may require; provided, that tender shall nc?t require that the amount of such coverage exceed that amount of coverage
required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall Ix• rh?,sen by it?~rn?w•er sut?jcYi to appru~•al by I xnder: provided, that such approval
shall not be unreasonably withheld- All premiums on insurance tN?Gcicw shall t,e paid in the m:+nru•r pn?eidec! under psr:+gr.+ph'L hereof or, if
not paid in such manner, by Bom?wer making payment, K•hrn due, din', tly a. the insurance carrier.
A1! insurance policies and renewals thereof shall be in form acceptable to bender and shall include a standard mortgageclause in favorof
and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall prompt)y furnish to
~i i.ender all renewal notices and all receiptR of paid premiums- In the event of Ic~ss, Itorn?wer shall give prompt notice to the insurance carrier
j and Lender. Lender may make proof of loss if not made promptly by Borrower.
f Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repair of the Property
damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not therebysmpaired. If such
restoration or repair is not economically feasible c,r if the security of this Mortgage would be impaired, the insurance proceeds shall be applied
to the soma secured by this Mortgage, v?~th the excess, if any, paid to Borrower. If the Property is abandoned by Borrower. or if Borrower !wile to
j respond to Lender within a0 days from the date notirn is mails! by I~rnder to Borrower that the insurance carrier offers to settle a claim for
1 inaurance.benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the
Property or the sums secured by this Mortgage.
Unless Lender and P.orrower otherwise agree in writing, any such application of pniceeds to principal shall not extend or postpone the due
date of the monthly installments referred to in paragraphs l and 'l hereof or change the amount of such installments. If under paragraph 18
hereof the Property is acquired by [.ender, all right, title and interest c,f Born?wer 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
Mortgage immediately prior to such sate or acquisition.
6. Preservation and MaintenanceotProperty; Leaaeholda; (:ondominums; Planned Unit Developments. Borrowerahall keep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the
e provisions of any lease if this Mortgage is on a leasehold. if this Mortgage is on a unit in n condominium or a planned unit development,
Borrower shall perform all of Borrower's obligations under the declaration or rnvenants creatingor governing the condominium 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 Borrower and recorded together with this Mortgage, the rnvenanta and
agreements of such rider shall be incorporated into and shat! amend and supplement the covenants and agreementsof this Mortgage as if the
rider were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements rnntained in this Mortgage, or if any
action or proceeding is commenced which materially affects Lender a interest in the Property, including, but not limited to, eminent domain,
1 insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender st Lenders option,upon '
notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to pt+otect Lender's interest,
including, but not limited to, disbursement of reasonable attorney a 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
i such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower a and Lender s
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 Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Bonrower secured by this Mortgage. Unless Bon;ower and Lender 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 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 shall
require Lender to incur any expense or take any action hereunder.
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