HomeMy WebLinkAbout0614 Burrower and Lender covenant and agree as follows:
1. Payment of Principal anti 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 otand interest on any F afore Advances second
by this Mortgage.
2. Fonda forTaxe•s and Insurance. Subject to applicable law or to a written waiver by Ixnder, tic,rn,wershall pay to Ixndrron the day
muntl+ly installments of principal and interest are payable under the Note, until the Nute is paid in full, a sum Therein "Funds")equal to one-
twelfth ofthe yearly taxes and assessments which may art:+in priority over this Mc,rigage, and grc,und rents un the 1'ro{x riy, if any, plus o~~~
twelfth of yearly premium installments for hazard insurance, plus one twelfth of yearly premium installments fur mortgageinsur:+nct•, ifany,
aN as reasonably estimated initially and from time to time by Ixnder w+ the lu+sis of:+.+sessmcnts and i?ills 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
linduding Lender if Lender is such an institution). Lender shall apply the Funds to pay Bald taxes, assessments, insurance premiums and
ground rents. Lender may not charge for so holding and applying the Funds, :+nalyzing s:+id aEruunt, or verifying E+nd compiling said
assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Ixnder 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, bender 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 :+s additional security forthe sums secured by this
Mortgage.
If the amount of the Fonda held by !.ender, together with the future monthly inst:+Ilments of Funds payable prior to the due dates of taxes,
assessments, insurance premiums and ground rents, shall exceed the :+mount required to pay said tuxes, assessments, insun+nce premiums
and ground rents as they tall due, such excess shall be, at Bo+rower's option, either promptly rep:+id to Borruaa•er or credited to Borrower on
monthly installments of Fonda. If the amount of the Fw+ds held by Ixnder shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay to Lender any :+mount necessary to make up the deficiency within 30 days
from the dale notice is mailed by Ixnder 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 Fender. if under
paragraph 18 hereof the Properly is sold or the Property is othena•isr acquired by !.ender, Ixnder shall apply, no later the+n immediately prior
to the sale of the Property or its acquisition by Lender, any Funds held by Ixnder at the time of application us:+credit against the sums secured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all {,ayment.4 received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by (render first in payment of amounts payable to Ixnder by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the prinrip:+) of the Norte, and then to interest :+nd princ•ipal on any Future Advances.
4. Charges; Liens. Borrower shall pay all tax+•s, assessments and other chary;E•s, fines and im{rrrsitiuns attrihutable to the Property which
may attain n priority overthis Mortg:+ge, and leasehold paymentsor [;round rents, if am•• in thEmanner proeidE•d under paraKraph'l hereofor,
if not paid in such manner, by Borrower makin{; payment, when due, din•r•tly to the payc•c• ther+•crf. liornrwErshall pnnnpth• furnish to Ixnder
:+II notices of amounts due under this pargraph, and in the event Borrower shat! make payment dirc•c•tly. Bormwer shall promptly furnish to
1 xnder receipts evidencing such p:+yments. Itcrrruwer shill prompth• dise•h:+rg+• any lien which hE}{;~if+s jty pyre this J1ortKage; provided, that
R+rrrower shall not be r+quired todischarge am• such lien s.r ton{; as Itrrrrower sh:+ll ayin•c• in writing to tie paj•ment of theobli{t:dion securE•d by
such lien in a manner acceptahle to !xnder• :rr shall in {[recce! f;+ith : untE:a such Gen by, ordNfE•ndenfi+~~1•ment of such lien in, Irt;al prc,c+•Edings
.a•h:ch operate to prevent the enforc•E•ment of the lien nr furfe•iture ref the 1'ro{x•rh• or any part there+•f.
5. Hazard Insurance. Borrower shall keep the improrrments now existing ur hen.+fter creME•cl un the Property insured against loss by
fire, hazards included within the term "extE•ndEd +•c?verage,"and wch other hazards as I xnder may regain- and in such amount.S and for such
Ix•riuds as Ixnder may require; pnn•id+•cl, that Lender sh:dl not n•yuin• that th+• amount of such cove•r.+Ke excec•cl that amount of nn•erage
rE•c{aired to pay the sums seE•und by this Mortgage.
The insurance carrier pnrviding the insur:mr-e• shall }rr• chosen by Iturn~arer suhjw•t to :+ppnrval he Lender: prncidc•el. that such approval
::hall not be unreasemably aa•ithheld All pn•miwus on insur:uu~e p~~licie :..hall Iw• paid in the m:uu+er pn•a•ide•c1 under paragraph'_' henrrf or, if
nut paid in such manner, b)• tir,rrow•E•r making p:n~meut, when dw•, directly h. the insurance ~ arrir•r.
All insurance policies and re•new•als therECrf shall Ix• in form acceptable to 1.e•nd+•r and shall include a standard mortgageclause in faa•orof
I~! and in form acceptable to Ixnder. Ixnder shall has E the right to hold the- {N.licirs:+nd n•new•als therc•rrf, and Bumrwershall promptly furnish to
+xnder all renewal notice:: and all n•e•eipts of paid premiums. In the ea•eut of loss. Iturnrwer sh:+11 gia•e prompt notiEr to the insurance carrier
and Ixnder. Lender may make pn,c?f of loss if not made prompth• by Burrower.
Unless Ixnder and &rrn,wer utherw•isE :+gre+• in w•ritin;;, insur.+nc+• prrrcv+•ds sh:dl t,c• applied dr nsturatiun or repair of the Property
damaged, provided such restoration nr repair is c•e•unomicalh• fE•a~ible and the sc•E•urit)• of this Mortgage is not thereby impaired. If such
restoration or repair is not economically fEasihle• or'if thc• sc•E•urity of this ~turtgage aa•ould lrE• ia:pain•d, the insurancepruc•eEdsshal beapplied
~ to the sums secured by this Mortgage, with the excess, if any, paid to Iturnrw•er. if the- Property is ahandonecl by fic,rnrwer, or if Borrower fails to
respond to Ixnder within all days from the date notice i ensiled by 1 xnder to ItlrrrrrwE•i that the +nsur:+nce carrier offers to sE•ttle a claim for
insurance benefits, Ixndez is authorized to colh•c•t and apply thc• insur•.+nce pnrc-c•c•ds at Tinder's uptu,n Either to restoration or repair of the
i'roperty or the sums secured by this Mortgage-.
Unless [xnder and Borrower otherwise agrc•E in writing, any such application of pn,ccrds to pnncipal shall nut extend ur postpone thedue
date of the monthly installmentsg referrEd to in paragrphs 1 and Y hereof or ch=u+ge the amount of such installments. If under paragraph i8
hereof the Property is acquired by IxndE•r, :+II right, tilh and interest of Burnrwer in and to any incur.+nce prlicies and in and to the proceeds
thereof resulting from damage to Property prior to the s:+lE or acgwsitiun sh:+11 pats dr Ixnder to the Extent of the sums secured by this
tifortgage immediately prior to such sale or an{uisition.
6. Preservation and Maintenance of Property; Leaseholds; ('ondominums;l'lanned lTnit Developments. fiorrowershall keep
the I'roperiy in goe?d repair and shall not commit w:+ate or {,c•rmit impairment ur deteriur:+hun of the Property and shall comply with the
provisions of any lease if this Mortgage is un a leasehold. If this ~lorigage is un a unit in a condominium or a planned unit development.
Kurrower shall perform all of I3crrn,wer', ohlig:dions undE•r the dcc•laratiun or covenants c•n :+tingor goa•ernrng the condominium or planned
unit development, the by-laws and regulations of the condominium ur planned unit clea•elopment, and rnnstituent documents. If a
condominium or planned unit develupmE•nt rider is +•xc•r•uted by IiE,ROwrr and ne•urdEd together with this Mortgage. the covenants and
agrEr•ments of such rider shall ix• incurpurated into and shall anu•nd and supplernrnt thecoeenants and agreements of this Mortg:+ge as ifthe
rider were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the rnvenants and agreements contained in this Mortgage, or if any
a action or proceeding is commenced which materially affects Tinder's interest in the Property, including, but not limited to, eminent domain,
insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Ixnder at Tinder'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, but not limited to, disbursement of reasonable attorney's fens and entry upon the 1'roperiy to make repairs. If Lender required
mortgage insurance as a condition of making the loan secured by this Alortgage, 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 Ixnder's
written agreement or applicable law_ Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hermf.
Any amounts disbursed by Ixnder persuant tr, this paragraph with interest thereon, shall become additional indebtedness of
Borrower secured ~by this Mortgage. Unless Borrower and Ixnder agree tc, other terms of payment, such amounts shall be payable upon
notice from Ixnder to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
time to time nn outstanding principal under the Note unless payment cif 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. '
s~343 Pa~E 61~