HomeMy WebLinkAbout0890Borrower and Lender covenant and agree as follows:
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 priflcipal of and interest on any Future Advances secured
by this Mortgage.
2. Flutda forTaxesand Insurance. Subject to applicable law or to a written waiver by Ixnder, Borrower shall pay to Lender t-n the day
monthly installments of principal and interest are payable under the Note, until the Note is paid in full, ++ 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, if any, plus one-
twelfth ofyearly premium installments for hazard insurance, plus one•twelfth of yearly premium installments for mortgage insurance, if any,
:+II as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and ref+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). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and
ground rents. Lender may not charge for uo holding and applying the Funds, analyzing said account, or verifying and compiling said
assessments and bills, unless Lender pays Borrower interest un the F ands 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 I•ti+nda shall be paid to Borrower, and unless
such agreement is made or applicable law requires such interest to be paid, !.ender shall not be required to pay Borrower any interest or
earnings on the Funds. !.ender 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 as additional security fortheauma secured by this
Mortgage.
If the amount of the Funds held by Lender, together with the !afore monthly ins4tllments of Funds payable prior to the due dates of taxes,
assessments, insurance premiums and ground rents, shall sacred the amount required to pay said taxes, assessments, insurance premiums
and gmund rents as they fall due, such excess shall be, at Bo+mwer's option, either promptly repaid to Borrower 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 bender any amount netrssary to make up the deficiency within 30 days
from the date notice is mailed by Lender W Born,wer requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, bender shall apply, no later than immediately prior
to the sale of the Property orits acquisition by Fender, any Funds held by tender at the limeof application as a credit against thesums 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 t-f am„unta payable to Lender by Bom,wer under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, :+nd then to interest and principal on any F afore Advances.
4. Charges: Liens. Born,wershall pay all taxes, asstssments and other charges, lines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold payments or ground rents, if any in the manner pnn•id+d under par.+graph'L hereof or,
if nut paid in such manner, by Bt-rrow•er making payment, when due, dint•tly to the paytr thern,f. Rurn-wershall promptly furnish to Lender
all notices of amounts due under this paragraph, :+nd in the e~•ent Kom,wt•r shall make p:q•ment diret•tly, Borrower shall promptly furnish W
I ,t•nder receipts evidencing such payments. liurruwer shall pn-mpth• discharge any lien which has priority over this Mortgage; provided, that
Burrower shall nut t,e required to discharge any such Gen sn long as li„rrower shall agia• in writinK to the payment of theobligation secured by
each lien in a manner acct•ptable to Lt•nder, or shall in {;-rHi L+ith +timtt•st such lien ty ordefend enfurct•ment ufsuch lien in, IeKal protetdings
which operate to prevent the enforctment of the lien ur forfeituu• of the 1'n,{,t•rt~• ur any part thenr,f.
5. Hazard Insurance. Borrower shall keep the improvements now existing or here:+fter ereMed on the Property insured against loss by
fire, hazards included within the term "extended coeeraKe," and such other h:+zards as Iw•nder may rtv{uire and in such amounts and fur such
periods a.4 Lender may require; pnn•idtd, that Lt•nder shall not rt•t{airs that the amount o! such n-verage exct•td that amount of coverage
rec{aired to pay the sums second by this MurtgaKt•.
The insurance carrier pmvidinK the insur:mtr shall (w chosen by Borrower subje+•t to appro~:+l 1,}• Lender, pruvidtd, that such approval
sh:+ll not be unreawmably withheld. x111 premiums un insur:uu-e {N~licies shall Iw• paid in th,• manner procid+~l under par.+Kr.+ph 2 henr-f or, if
not paid in such manner, b~• li:,rn:w•er nwkinK p:n•ment. w~hrn due, din•cth• U, the inwr:u+ce carrier.
All insurance policies and n•newals thertti,f shall IK in form acceptable to ! ender and shall include a standanl mortgageclause in favorof
and inform acceplableto lender. Lendt•rshall hace the right to hold the {Ndicies and anew:+Is then~,f, and Korn,wer shall promptly furnish to
,.ender all renewal notices and all rt•t•eipts of paid premiums. In the t•vent of loss. Borrower shall Ki~•e prompt maim G, the insurance carrier
and Lender. Lender may make pr,N,f of loss if but made prompth b~• Rurn,w•er-
1lnless Lender and Burrower otherwise agree in writing, incur.+nce prtx•t•+ds shall M> applitd to restortion or repair of the Property
damaged, provided such resG-r.+tiun or repair is tvunumically feasible and the st•t•urity of this Mortgage is not thereby impaired. It such
restoration or repair is not economically feasible or if the strurih• of this Mortgage would trt• impaired, the insur:mceprt-ceedsshall beapplied
to the sums secured by this Mortgage, with the excess, if any, paid to l;<,rn,wer. if the 1'ro{x•rty is abandoned by Burrower, nr if Borrower fails to
respond to Ixnder within :K{ days from the date notice is m:+il+d by lender G, Itr,RUwtY that the insurance carrier offers to settle a claim for
insurance benefits, Lender is authurizt•t! to cu!!t•t•t and app!-• the insurance pr~x•et•ds at lender's option either to restoration or repair of the
Property or the sums secured by this Mortgage.
Unless Lender and Borrower otherwist• agn•e in writinK. any such application of prut•ttds to principal shall not extend or postpone thedue
date of the monthly installments5 referred to in para{;r:-phs 1 and :'. henv-f ur change the amount of cosh installmentsv. If under paragraph lA
hereof the Property is acquired by Lt•nder, all right, title and interest of Burrower in and b- any insuranm policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale or :u•qu-sitiun 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; Leaseholds: ('ondominums; Planned Unit Developments. Borrower shall keep
the Property in good repair and shall not commit waste or pt•nnit impairment or deterioration of the Properly and shall rnmply with the
provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is un a unit in a tondominium or a planned unit development,
Burrower shall perform all of Borrower's obligations under the det•laration or co~•enants cn•atinKor governing thecondominium or planned
unit development, the by-laws and regulations of the runduminium or planned unit development, and constituent documents. If a
condominium or planned unit development rider is exet•uted by Borrower and rttorded together with this Mortgage, the covenants and
aKret•ments of such rider shall I-r +ncor{N,rattd into and shall amend :rod supplement thecuee•nants and :+Knvments of 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 contained in this Mortgage, or if any
action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain,
insolvency, code enforcement, or arrangements or praeedings involving a bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower may make each appearances, disburse such sums and take such action ae is necessary to protect Lender's 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, Borrower shall pay the premiums required to maintain
such insurance in effeM until such time as the requirement [or such insurance terminates in accordance with Borrower a and Lender s
written agreement or applicable Law. Borrower shall pay the amount of al! mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by Lender persuant to this paragraph 7, with intrust thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Letkler 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 7, shall
require Lender to incur any expense or take any action hereunder.
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