HomeMy WebLinkAbout0735Borrower and Lender rnvenant and agree as follows:
1. Payment of Principal and lntereat. 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 I•'uture Advances secured
' by this Mortgage.
2. Rands for Taxes and Insurance. Subject to applicable law or to a written waiver by lxnder, Burrower 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 "F unda'")equal to one
twelfth of the yearly taxes and asaeasmrnta whicl+ may attain priority over this Mortgage, and ground yenta on the Property, if any, plus onr
twelfth of yearly premium installments for hazard insurance, plus one•twelfth of yearly premium installments for mortgage insurance, i[any,
all as reasonably estimated initially and from time to time by lender on the basis of usacssments and bills and re:sonable 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 (.ender if Lender is such an institution). (.ender shall apply the Funds to pay said taxes, assessments, insurance premiums and
ground rents. Lender may not charge for eo 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 (.ender to make such a charge. Borrower
and Lender may agree in writing at the time of execution of Chia 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 I~tnda. 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 F unda was made. The Funds are pledged as additional security for the sums secured by this
Mortgage.
If the amount otthe Fonda held by (.ender, together with the future monthly installments of Funds payable prior to the duedates of taxes,
assessments, insurance premiums and ground rents, shall excred the amour+t required to pay said taxes, assessments, insurance premiums
and ground rents as they fall due, such excess shall be, at Bo+•rower'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 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 de[iciency within 3U 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 BoROwer any funds held by (.ender. If under
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 (.ender, 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 law provides otherwise, all payments received by Fender under the Note and
paragraphs 1 and 2 hereof shall be applied by (.ender first in payment r-f amounts payable to (.ender by BoROwer 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. Borrower shall pay all taxes, assessments and other charges, fines and impr-sitions attributable tf- the Properly which
may attain a priority over this Mortgage, and le:+schold payments or gnwnd rents, i f any, in the manner provided under par+graph'l hereof or,
if not paid in such manner, by KoROwer making payment, w•hc•n due, dinc•tly to the pay ec• thcnr-f. Borrower shall promptly furnish to Lender
all notices of amounts due under this par:+graph, and in the event Borrower shall make payment din•c•tly. Borrower shall promptly furnish to
I xnder receipts evidencing such payments. l{r-ROwcr shall promptly discharge am• lien which has priority over this Mortgage; provided, that
Iturrower shall not be required to dise•harge any such lien su ton{; as ltr-RUwer shall agree in writing to the payment of thc•obligatiun secured by
such lien in a manner acceptable to (.ender, or shall in gr-r-t1 faith cuntc•st such lien h.•, urdefend enfon-e•ment of sue•ti lien in, ley;al pn-ceedings
which operate to prevent the enforcement uf.the lien or forfeiture of the I'rot-f•rty ur am• part therf•r-f.
5. Hazard Insurance. Itorruwer shall keep the improvements now existing nr hereafter crerted on the• Property insured against loss by
fire, hazards included within the term "extended nn•erage," and such other hazards as Iw•nder may require and in such amounts and forsuch
t-eriods as Lender may require; provided, that Lender shall nut re•ctuire that thc• amount of such rnverage f•xceecl that amount of coverage
required to pay the sums second by this Mortgage. •
The insurance carrier prv-viding the insuranr•f• shall t-r• chosen by Itorruwf•r wtryf•r•t to appnn ;+l he I.r•ndcr• provided, that such approval
shall not be unn•asr-nabh• e•ithhc•Id. All pn•miums un insurance t-rdicies shall iN• pair( in thr• manner providfd under paragrph L hen•r-ior, if
rent paid in such manner, by Itr-Rower making payment. when dur•, dinY-il~~ to the insurance r:+rrier.
All insurance prdicie•s and renewals thereof shall 1-e in form acc•eptahleG- Le•ndrrandshall inf•ludeastandard morigagedausein favorof
and in form acceptable to Lender. Lender shall have the right to hold the t-rdicies and n•new•als therc•r-f, and Borrower shall promptly furnish d-
:.ender all renewal notices and all receipts of paid premiums. In the event of loss. Borrower shall give prompt notice, te- the insurance c:+mer
and Fender. Lender may make pre-r-f of loss if nut made promptly by Rorn-wrr.
Unless Lender and &-rn-wer utherwisf• agree in writing, insurance pr«•r•e•ds shall Ix• applied to resbrr.+tion or repair of the Property
damaged, provided such restoration ur repair is i•r•unumically fi.+sible and the ururih• of this Mortgage is not thereby impaired. If such
restoration or repair is not erc-nomic•ally feasible ur if the security of this Mortgage, would t-e• impaired, the insurance pnxerds shall be applied
to thesums secured by this Mortgage, with the excess, if any, paid to lte-rn-w•er. if the 1'roperiv is abandoned by ItuROwer, or if BoROwer fails to
rr~pond to [.ender within 30 days from the date nutic•e is mailed by Lender to Burrower that the insurance carrier offers to settle a claim for
insurance benefits, (,ender is authorized to collr•r•t and apph• the insurance prrn•eeds at bender's option either to restoration or repair of the
Property or the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agrfr• in writing, any such application c-f prrK•ecds to principal shall not extend or postpone thedue
date of the monthly installments refe•Recl to in paragraphs 1 :+nd'L he•n•uf or change the amount ufsuch installmentsq- If under paragraph 18
hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale or argwsitian shall pass to Lender to the extent of the sums secured by this
:Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Le•aseholdx; ('ondominuma; Planned Unit Developments. Borruwerahal) keep
the Property in gc-od repair and shall not commit w:+ste ur pf•rmit impairment or deterioration of the Property and shall comply with the
provisions of any lease if this Mortgage is on a leasehold. If this Mortgage, is on a unit in a condominium or a planned unit development,
Burrower shall perform all of Itorrower's obligations undf•r the de•cl:+rction or covenants crc•atink or 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 exfruted by fir/Rawer :rod rfrurded G-gether with this Mortgage, the covenants and
:rgrecments of such rider shall t-f• incurt-rrrated iota and sh:dl amend and suptden+ent thc• c•uvenants and agree•mcnts of this Morigageas if the
rider were a part henr-f.
7. Protection of Lender's Security. If BoROwer fails to pertonn the rnvenants and agreements contained in this Mortgage, or if any
action ar proceeding is commenced which materially affects l.ender'e interest in the Property, including, but not limited to, eminent domain.
insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then (.ender 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 a interest,
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 a condition of making the loan secured by this Mortgage, BoRUwer shall pay the premiums required to maintain
such insurance in etfeM until such time as the requirement for such insurance terminates in accordance with Borrower's and (:.ender s
written agreement or applicable law. Borrower shall pay the amr-unt of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof. r
Any amounts disbursed by Lender perauant G- this paragraph 7, with interest thereon, shall became additional indebtedness of
Borrower secured by this Mortgage. Unless BoROwer and Lender agree to other terms of payment, such amounts shall be payable upon
notice from (.ender 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 c-f interest at such rate would be contrary to applicable law, in which
event such amounts shall bear interest at the highest rate permissible under applicatle law. Nothing contained in this paragraph 7, shall
require (.ender to incur any expense or take any action hereunder.
s~x344 P~~E ~~
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