HomeMy WebLinkAbout2156Borrower and Lender rnvenant 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 principal of and interest on any Future Advances secured
by this Mortgage.
2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by !.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 therein "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-
twelfih otyearly premium installments for hazard insurance, plus onelwelfth ofyearly premium installments for mortgage insurance, if any,
all as reasonably estimated initially and from time to tune by Lender on the basis of assessments and bills 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
(including Lender if !.ender is such 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, 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 o[ this Mortgage that interest on the Fonda 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. 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 Fonda are pledged as additional security for the soma secured by this
Mortgage.
If the amount of the Flrnds held by Lender, together with the future monthly installments of F ands payable prior to the due dates of taxes,
assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums
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 Lender shall not be suftcient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay to Fender 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 sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by lxnder. If under
paragraph 18 hereof the Property is sold or the Property is 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 by Lender 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 Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Fender 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. Borrower shall pay all taxes, assessments and other ch:+rges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and le:+sehuld payments urgmund mots, if any, in the manner provided under paragraph 2 hereofor,
if not paid in such manner, by Borrower making payment, when due. directly to the payee there.-f. Borrowershall promptly furnish to [.ender
all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Born,wer shall promptly furnish to
i.ender receipts evidencing such•payments. &-nmwer shall promptly discharge any lien which has priority over this lortgage; provided, that
Borrower shall not be required to discharge anysuch lien so long :+s l;t,rtower shall agree in writi ng to the payment of the obligation secured by
such lien in a manner acceptable to Ixnder, orshall in good L•+ith n,nt+•st such lien by, ordefend enforcement ofsuch lien in, legal proceedings
which operate to prevent the enforcement of the lien or fi,rfeiture of the Pr+-Ixrh• or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by
fire, hazards included within the term "extended n,verage." :+nd such other h:+zards as Lender may require and in such amounts and forsuch
periods as Lender may require; provided. that Ixnder shall not 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 1-+• chosen by Burrower subj+rt to appro~:+l h~• Lender; provided, that such approval
shall not be unreasonably withheld. All premiums un insurance IN,lici+:. ,hall lx• paid in the manner provid+•rl under paragr.+ph'L her+v-f or, it
not paid in such manner, by liom,wer making paym+•nt, when due, directly tr, the imur.+nce carrier.
All insurance policies and renewals thereof shall be in fiirm accept:+hle G, Lender and shall include a standard mortg:+ge clause in favor of
and in form acceptable to Lender. [.ender shall have the right to hold the p+dicies and renewals thereof, and K+-m-wer shall promptly furnish to
+.ender all renewal notices and all receipts of paid premiums. In the event of loss, fi+,rrr,wer shall give prompt notice to the insurance carver
and Lender. Lender may make proof of loss if nut made promptly b~• Kurn,wer.
Unless Lender and Borrower otherwise agree in writing, insurance pnx-eeds shall be applied to restoration or repair of the Property
damaged, provided such restoration or repair +s economically feasible and the security of this Mortgage is not thereby impaired. If such
restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied
to the sums 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 offers 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
Property or the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing.:+ny such application of proceeds to principal shall not extend or postpone thedue
date of the monthly installments referred to in par:+graphs I and'! hereof or change the amount of such installments. If under paragraph IR
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
!hereof resulting from damage to Property prior to the sale or acgwsition shall pace to !.ender 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 I)evelopmenta. Borrowershall keep
the Property in good repair and shall not commit waste or permit 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 nn :+ unit in a condominium or a planned unit development,
Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned
unit development, the by-lava and regulations of the condominium or planned unit development, and constituent documents. If a
~~ondominium or planned unit development rider is executed by &,rrower and recorded together with this Mortgage, the rnvenants and
agreementsg of such rider shall be incorporated into and sh:+Il amend and supplement then,venants 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 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 proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower may make such appearances, disburse such soma 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 liy this Mortgage, Borrower shall pay the premiums required to maintain
such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and Lenders
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 persuant to this paragraph ?, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terra 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 rnntrary to applicable law, in which
event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragrapltzl, shall
require Lender to incur any expense or take any aMion hereunder.
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