HomeMy WebLinkAbout0082t3urrower and I.e~de~ rnvenant and agree as [ollowa:
l. Payment of Pirinclpal and Intereet. Borrower ahall promptly pay when due the p~ncipal of and interest un the indebtednesa
evidenced by the Note, prepayment and latechargea as provided in the Note, and the principal of nnd inlereat un any Future Advances secund
by this Mortgage.
2. ~tnde for Taxes and lneurance. Subject to applicuble luw ur tu a written wuiver by l.ender, liuRUwer sht~ll pay to I~ender on the dt~y
inonihly installments of principal a~d i~terest are ps~yable unde~ the Note, until the Note is paid in full, u aum (he~ein "Funds"- equul to onN
twe1M of the yea~ly ttucea and assesamente which may attnin priority uve~ this MnAg:~ge, aind ~ound reots un the F'roperty, if uny, plue one
twelRh of yrarly pmmium inatallments for hazard insurance, plus unrtwelRh ~f yearly premium installmrntx fnr mortgage inaurunce, it any,
all as reasonably estimated initially and from time to tirue by I.ender on the tu~sis uf assesxmrnu; :~nd bills :-nd re:-son~ble estimates lhereof.
The Fltnda ahall be held in an institution the depoaits or accounts af which f+re insured or Kuarunterd t-y a Fede~al o~ State agency
lincluding Lender if I.ender is such an institutio~). l.ender shall apply the Funds to pi-y anid ts~xes, axsesaments, insurance pmm~ums and
Kround re~ts. Lender may not charge for eo holding and applying the f~'unds, analyzing ssiid Account, or verifyinR And compiling said
asaeaemente and bills, unleae I.ender pays Bor~ower intereat on the F unds:ind applicable law permits I.ende~ to make auch a charge. E3orrower
and Lender may agree in writing at the time of execution at this MortgaKe thAt internst on the Fl~nds shal) be paid lo t3orrr~wer, and unleas
such agrcement is made or applicable law requires auch interest to be paid, I.ender shall ~ot Ue required k- pay l3c~ROwer any intereat or
earninga on the F~nds. l.ender ahall give to Borrower, without charge, un ~onuul uccounting of the Funde showing crcdits and debita to the
Funde and lhe purpose for which each debit to the Funds was mude. The M unds are pledgcd as:idditional security for the aums xecured by thie
;1lortgage.
If the amount o[the ~nds held by l.ender, together with the futum monthly instnllments of h unds puynble prior to the duedateu of tnxea,
assessments, inaurance premiums and ground mntx, shall excreci the nmount required t~~ pay said taxes, assessments, insurance premiums
tind ground renta as they fall due, such excess shall be, at Ibrn~vrer s uption, either p~mpUy repaid to l3orrower ur credited W E3orirower on
monthly installments af Funds. If the amount o[ the Munda held by I.ender e~hall not be sufficient to pay ts~xes, assessments, insurance
premiuma and ground rents as they fal) due, ~rrower shall pay to l.ender any amuunt ncrexsary to mAke up thedeficiency within 30days
frum the date notice is mailed by l.ender to liorrawer requestinK pnyment thercY-f.
Upon payment in full of all auma secured by this MurtKt+ge, l.ender shall prumptly refund to Iiorrower any fund~ held by I.ender. If under
paragraph 18 hereof the Property is sold or the Pruperty is otherwi:ze acyuireci by I.ender, l.ender sht+ll apply, no later than immediately prior
tu the sale of the Properiy or itR acquisition by I.ender, any Funds held by I.ender at the timr of application as n credit against the ~ums secured
hy this Mortgage_
3. Application of Paymenta. Unless applic~ble Inw providcs utherwise, all payments received by l.ender under the NoUe and
p~~ragrapha 1 and 2 hereof shall be applied by l.ender firgt in p.lyment of amounls payable to I.endcr by Borrov-~er under paragraph 2 hereof,
then to intereat payable on lhe Note, then to the princip:-1 of the Note, ~nd then to interest and principal on any Future Advances.
4. Chargea; Liens. lkvruwershall pay aU taxiw, as.cewsments:~nd uth~•rcharKcw. fimw and im{n-sitiun~ attributable to the Yroperty which
muy att~in a priority over this A1ortKaKe, and 1~ :~sehold pa>•ments ur timund rents, if an>•, in lhe manner providi~cl under paraKraph 2 hereof ar,
~f nut paid in such m:+nner, by l3urrower m:~kin~; pa~•ment, when due, dircr•tlt to the pcnvr thenr~f. Rurmw~•r shall prompth• furnish to I.rnder
,~II notices of amounL~ due underlhic parati~raph.:~nd in the e~~ent I~~rrnwer tihall make pa>•ment dimcth•, liorryrwc~r sh.~ll prumptly furnish to
I.~~nder receipts e~ idencinK such payments. I~~rru~ser shaU prompth• disi•harK.• am~ lien w•hi~•h has priority u~•rr thiti 11urt~;aKr, provided, lhat
fi~~rrower shal! not t-e required to dischar~;t•:u>>•.ui•h li~•n ~u IonK a~ Ii~~rruwt~r sha11:~~;nY• in v- riUn~ tu the p:~~•mi•nt ~~f th~•ubli~;ation scrurrd by
.u~~h lien in a manner acceptable tu Ixndi~r. ur shall in ~;~NK1 faith r~mtf•~t su~•h li~~n 1~~•, urdrfrnd im[ur~•.~m~•nt uf su~•h lii•n in. I~y,:~l pnK•c~iinKs
w t~ich operate to pre~•ent the t•nfurcement of th~~ lien or f~rrfritun• uf th~• 1'ru~k•rh~ ~~r am• p:irt th~•~~~,f.
~. Hazard Insurance. R~~rrowrr shall k~ti•p th~• impro~•c~mt•nt. now• existin~; ur h~•reafter erec-tcK1 on the 1'ruperty insurcrl.iKainst loss by
Fire, hazards included within the ti•nn "extendrd ru~•rr:iRe." :md .u~•h other hazards as IA•nder may myuin• :~nd in such amuunts:ind forsuch
Ex•riods as I.ender may rt~c~uir~; prm•ide~1, th:~t Ixnd~~r .hall n~d nK~uire that th~• am~~unt uf su~•h rn~•i~raKt~ ~~xc~tr~i that amuunt of c~-veraKe
r~~~uired t~~ pay the sums ~t~•urevl tn• thi, \1~~rtK:~Ki•.
The insurancr carri~•r pmcidin~: thc in.ur.~n~•~• shall IN• ~~h~~.~•n fn• R~~rr~~tirr.uhj~•~•t t~~ appn~v:d f~~• L~~nd~~~: pr•~~•id~yl. that .uch upprnval
;hall not 1-e unre:~wm:~hl~• w~ilhh~•Id. ~VI pmmicm~ ~~n ~n~ur.~m•~• ~w~lu-~~~ sl~:~II {N• paid in th~• rn:u~n~•r pr~~~~~d~~l andrr p.ua~;raph'd hen.~f nr. if
rn~t paid in such m:~nm~r, h~• 1{~~rn~w~~r m:~kin~; p:~ymrnt. ~vh~•n dw~. dir~~~~tl~ In th~• in~uran~•r r:vri~•r
All ins~ranrn pnlicies and mnevcals then~~f ~hall t~• in form ai•i•rpt:~bl~• t~~ 1 ~•nder and sh:~ll includ~• a ~candard murtKaKeclausein fa~~orof
.+r.d in form acceptableto I~nder. l.endt~rch:~ll ha~•~• th~• n~;ht b~ huld th~• p~~li~•i~•s and n~m•w•als thrn~~f. and linrr~~veer shall prumptly furnish to
~.~•nder all renewal notices and all receipt~ uf p:~id pre~niurn.. In th~• t•~-c~~rt uf I~.ss, f{~~rr~~wer sh:~ll Ki~•t• prnm~-t n~~tice to thr insurance carrier
.~nd I.ender. I.ender may make pr~x~f of locc if nnt m:+de promptl~• hy 1{~~rn~wer. _
Unless I.ender and &-rrow•er otherw•ise :~Krre in N~ritin~. insuran~~• pnK~r~~ds tih:~ll bc~ apphtY! to rrtitoration or repair of the F'ropert}•
riamaged, pro~~ded such resUir.~tiun ur repair is iK•nnomii•ally fra.ibk and thr si~•unt~• uf this 41ortKatie is not thereb~ impaired. If such
rc•storation or repair is not econ~~mic :-Ily frasible ~~r ~f the• sfr•urity uf this \turtkaKr w•~~uld tx• impaired, thr insurance pnx-eeds shall beapplied
a~ the sums secured by this blurtK:-Ke, with th~• rxrr.., i(:~ny, paid to fi~~rn~vc~r. If thi• !'rop~•rt~• is abandunecl by Knrniwer,or if Fi~-rrower fails to
r~~..pond to I.ender within :i0 days from thi~ datf• nuti~•e• ic m:~i1rY1 tr~ I,~•ndrr tu li~~rn~Ker ihat the intiurance camPr offer:z to ~•tde a claim for
insurance benefits, (.ender is :wthuriz~rl t~~ ~•~~Ilw•t and apph~ th~~ insuram•t' ~1fIN'tY'(Iti ;~t I.e•~drr's optiun either to re~toration or rcpair of the
I'roperty or the sums secured by thi~ 11urtKa~;i•_
lJnless l.ender and F3orrower otherw•isi• a~;re~~ in H riun~;..+ny sui•h appli~•atiun of pr~K•~~YI. to principal sh:ill not extend or postpone thedue
date of the monthly installmen~s referrecl tn in parnKra+phs 1:~nd 'G hercti~t ur ~•hanKe ti~r amuunt uf such installmen~s. If under paraRraph 1R
hereof the Property is acquired by 1,~ nder. :ill riKht, titl~ and inti•rest of Rnrn~w~•r in and to an~ insurance Fx-licies and in and t~i the proceeds
tht•reof resulting from damaKe tr~ I'ropertc prinr tn the zale or .~cywsiti~~n ~halt pass tn IA•nder tu the Pxtent uf the sums secured by this
~turtgage immediately pnor to such sal~• or arquisiliun.
fi. Preaervation and ;Naintenanccof Property; l.eatieholds:('ondominums; l'lanned l'nit Devclopments. F~~rrowershall keep
!ht~ F'roperty in Kcwd repair and shall not commit w•a~tt~ ur Ex•rmit impairmi•nt ur drterioratiun of the Pr~~perty and shall rnmply with the
pn~~•isions of any lease if this MortK:iKe is un a least•huld. If this 11urtKa~;c• i~ ~~n a unit in a c~~ndominium or a plannrd unit development.
ftnrrower shall perform all of F3~~rrow•er's ubliK.itiunti undrr th~~ di~~l.-ratiun or cu~•enant~ ~~n:~Un~;ur Ku~•ern~nK theconduminium ur planned
umt development, the by-I:~w~s and reKulatiuns of th~• cunduminium ur plannttil unit de~•elopm~•nt, :md cnnstituent documentx. [f a
~~~ndominium or plannecl unit de~elopment rider ic c•xervt<rl hy li~~rro~-•i•r :+nd rerurdcYl to~;ether w•ith this MortgaRe, the covenants and
~krt•ements of suc•h rider shall t~~ inc~~rpur:~ted int~~ and .h:~ll ami•nd ::nd .upple•m~•nt thi•c~n•enants:~nd aKnY menlsof this 111ortKaKe as ifthe
ri~ler were a part hercr-f. '
7. Protection of Lender'8 Security. If Rorrower fails to perform the rn~enants t+nd ~greementx contained in thie Mortgage, or if any
action or proceeding ie commenced which materially affects I.ender'a intereat in the E'rnperty, including, but not limitcd to, eminent domain,
~neolvency, code enforcement, or arrangemente or proceeclinKA involving a bankrupt or decedent, then l.ender at I.ender'e option,upon
notice to Borrower r~ay make euch appearances, diaburse auch suma and take auch action as ia necessary to protect Lender's interest,
~ncluding, but not limited to, diabureement of reasonable attorney's fees and entry upon the Property to make repaire. If Lender required
mortgage ineurance ae a condition of making the loan Aecured by this MortgaKe, &~rruwer ahall pay the premiuma required to maintain
yuch ineurance in effect until such time as the reyuirement for such inaurance terminates in accordance with Borrower'e and Lender'e
~-ritten aqreement or applicable [aw_ E3orrower ehall pay the amounl of all mortKaKe in~urance premiuma in lhe manner provided under
paraqraph 2 hereof.
Any amounts dieburaed by [.ender pereuant to this par:~Kraph 7, with interest thereon, ehall t-ecome additional indebtedneae of
ft~~rrower secured by this MortKage. lJnleas &~rtower and I.ender a~Cree to other terma ~,f payment, auch amounte ehall be payable upon
rn~tice from [.ender to E3orrower requeeting payment thereof, and ahall bear intereat fmm the date of diabureement at the rate payable irom
time to time on outetanding principa) under the IVote unlex.9 payment of intereat :it such rate would be contrary to applicable law, in which
E•vent auch amounts ahall bear interest at the highest rate permissible under ~pplicable law. Nothing cuntained in this paragraph 7, ehall
rPquire l.ender to incur any expense or take any action hereunder.
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