HomeMy WebLinkAbout0460E3ormwer and Lende~ covenant and agree as followe:
1. Payment of Principal end intereat. Borrower ahali promptly pay whe~ due the pri~cipal of and interest on the indebtedneas
evidenced by the Note, prepayme~t and lale charges as provided in the Note, a~d the ptincipal otand interest on any Future Advances secund
by this Mortgage.
2. Flu~ds torTa~[es and l~surance. Subject to applicable I~w or to a writtrn waiver by I.e~der, I3orrower shnll pAy to l.ender on the day
monthly inataUmenta of principal a~d intereat are payable under the Note, until the Note ia paid in full, a sum lherein "Ftinda") equal to one
twellth o[the yeariy taxea and asseaements which muy attuin priority over this MortRage, and ground rents on the I'ruperty, if any, plua one~
twelAh of yearly premium installments for hazard insurance, plus onr~twelElh ofyearly premium installments for mortgage i~surunce, if any.
all as reaso~ably estimated initially and from time to time by I.ende~ on the basis o[ Aasessments iind bills and re:-sunable estimates thereot_
The ~Lnda aha11 be held in an inatitution the depoeits or accounts ot which are inaured or guArunteed by a Federai or State agency
(including l.ender if Lender ia such an inatitution). I.ender shall apply the F unda lo pay said tuxes, aasesxmenta, insurance premiums and
ground renta. I.ende~ may not charge for eo holding and applying the Funda, analyzing said s~ccount, or verifying and compiling said
~sseaements and bills, unless [.ender pays Borrower intereat on the Funds and applicable law permits I.ender to malce such a charge. Borrower
und Leade~ may agree in writing at the time of execution of thia Mortgage that interest on the Funds ehall be paid to Borrower, and unleas
such agreement ia mede or applicable law requirea such interest to be paid, I.ender shall not be required to pay Eiorrower any intereat or
earninga on the FLnda. I.ender ahall give to Borrower, without charge, an annual accounting of the F unds showing credita and debita to the
Funds and the purpoae for which each debit to the Funds was made. The F u~ds are pledged as additional security for the suma secured by this
Mortgage.
If the amount of the Funda held by l.ender, logether with the future monthly iostallments of Funds payable prior tothe duedates oftaxes,
asseasments, insurance premiums and ground rnnla, shall excred the amount requind to pay said taxes, assesxments, inaurance premiuma
and ground rents as they fall due, such excess shall be, af I;o~rower's option, either promptly repaid to E3orrower or credited to E3orrower on
monthly inatallmenta of Funds. If the amount of the Funds held by I.ender shall not be sufficient to pay taxes, assessmenla, insurance
pmmiiuns and ground rents as they fall due, E3orrower shall pay to I.ender any amount necessary to make up the drficiency within 30 days
from the date notice is mailed by Ixnder to f3orrower requesting payment thcreof.
Upon payment in ful) of all suma secured by this MortgaKe, I~ender shall promptly refund to I3orrower uny funds held by l.ender. If under
paragraph 18 hereof the Property ia sold or the Properly is otherwise acyuirecf by l.ender, I.ender sh~ll apply, no later lhan immediately prior
to the sale of the Property orits acquisition by l.ender, any Funds held by I.ender at the time of application as a crcYlit against thesums secured
by this Mortgage.
3. Application of Paymenta. Unless s~pplicable law provides otherwise, all payments received by Irender under the Note and
paragraphs 1 and 2 hereof shall be applied by l~ender first in payment of nmounts payable to I.ender by F3orrov-er under paragraph 2 hereof,
then to intereat payable on the Note, lhen to the principal of the Note, and then to interest and principal•on any Future Advances.
4. Charges; Liens. Rorro~+er shall pay all taxc~s, as.u :ti.cmrnts and othercharKes, fines and im{H~sitions attributable to the f'roperty which
may attain p priority uver.this MortKaKe, und le:~sehold payments or Kruund rents, if:m~•, in thr m.m ner provided under paragr.iph'L hereof or,
~C not paid in such manner, b~ Knrruvrer makinK payment, vehen dur, dirr~•th• to the payre thercrrf. Rornrwershall promptl~ furnish to Ixnder
;~II notices of amounts dur und~ t)•is para~Rrnph, and in the rvent Rurruw•er shali make paymi•nt directl~•, Korn~«•er shail prumptly fumish to
I.ender receipts evidencinK such pa~•ments. I~~rrower shall promptl~• di~char~~• am• lien Nhii•h has pri~~rity o~•erthis :11c-rtKaKe; provided, that
}~urruwer shall nat be reyuired [u disch:vKr am• such lien so lonK as Ii~~rr~~N•er shall aKree in writinK tu the p:~ymt~nt of th~•~,bliKation scrured by
such lien in a manner acceptablr to Ixnder, or shall in ~;~N~cf faith ~y~nt~~t sui•h lirn i~}•_ urdefend enfi~nrment ofsuch lii~n in, leq;al proceedinKs
~~hich operate to prevent lhe enfunrment ~~f thr lien or forG•itum of th~~ 1'ru~~rt~• ur ;~m• part thcre~~f.
5. Hazard Insurance. 13urrower sh.~ll ke~p thr impr~.vements nuw• existinK or hereafter erected on the Yroperty insured aKainst loss by
fire, hazards included within the term "extendc~l n-~~eraK~•,'~ :~nd .uch uther haaard~ as Ixndrr ma~ rrquire.ind in such amuunts and forsuch
Ex~riods as l.ender m:~y require; pru~•id~d, that IAnder ~hall not rri~uire th:~t the amuunt ~~f such cY-veraK~• excr~d that amuunt of coveraae
rryuired to pay the sums cecureci by this ;11urtK:~Ke.
The insurance carrier providinK the in~uran~r sh:lll IM CFI~~SYII II~''{~~R~~\Yl•r subji~•1 tu appru~:~l b~• Lend~•r, pr~~~•ida1. th:~t .urh :~ppro~•al
shall not be unre:~.s~~nabh• w~ithheld. ~VI prt•mium. un insur.~nr~~ {N~lici~~. ~h:~I11K~ p:~id in th~~ mann~~r prn~~idwl und~•r para~;raph Y hercr~f or, if
n~~t paid in such manner, M• fi~~rn~~c~•r m:ikinK pa~•m~•nt. w~hen du~•. dinti•tl~~ t~~ thr in.uranc~• c:~rri~•r.
All insurance policies and renew:ils thereof shall t-e in [urm acct~ptable to 1~•nder:ind shall include a standard murtKaKeclause in favorof
and in form acceptable to l.ender. l.endershall h:~~•e th~• riKht t~~ h~~ld tht• {~~li~•ies:ind mnew•:+I~ thercY~f, and Rurruv-er shall promptly furnish to
i.~~nder all renevval notices and all rcreipts of p:-id prt~miums. In tht~ c•~•rnt ~~f I~~ss, K~~rrower chall Ki~•e prumpt nntice tc, the insurance carrier
.ind I.ender. Lender may make pnK~f of Inss if not mad~• prompth• hc 1{nrrow•Nr.
Unless I.ender and ~-rrower otherw~ise aKree in w•ritin~, insur:~ncr pnK•recls sh:ill he :~pplied to rrstnr~tion or repair of the Properi~•
damaged, pro~~ded such restoration nr mpair ic ec•onomicalh• fe:~~ible and the sirurit>• of this MoriKaQe is not themb~ impaircd. If such
rrstoration or repair is not ernnomicallp feasihle or if the ururity uf thi~ MortKaKe w•ould }-e impaimd, thr insur.ince proceeds shall beapplied
t~~ the aums secured by lhis MortKage, w-ith thr exc•i•~s, if an~ . p.~id tu f3~~rrower. t[the Pruperty is abandoned by F~rroveer, or if E3orrower fails to
re;pond to [,ender within :ill days frum the date notim ic mailyd b~ I A•nder tu lt~~rruwer that the insurunce carrier of'lers to settle a claim for
~nsurance benefits. I.ender is authorize~i to n~llc~ct :~nd apply the insur.~ncE• pr~~c~~ti1s at I,c•nder's option either to restoration or repair of the
Property or the sums secured by this ~tortKaKe. ~
Unless Ixnder and I3~~rruwer othervvise aKme in w•ntinK, an~ such applir.ition of prncee~ls lu principal shal) not exlend or postpone thedue
date of the monthly installments referred to in par.~Kraphs 1 and'l herrnf ur change the amout-t of such insli~llments_ If under paraqraph lA
hereof the Property is acquired by I.ender, all right, tide and interest uf fi~~rr~,~er in and u~ any insurance policies and in and to the proceeds
thereof reaulting from damage tu Property prior to thr v+le or acqwsitiun sh.~ll pass to t.ender to the extent of the sums secured by this
~lortgage immediately prior to such sale or an{uisitinn.
6. Preaervation and Maintenance of Property; l.easeholds; ('ondominums; F'lanned Unit Developmenta. I3orrov-ersh:ill keep
the Yroperty in Kood repair and shall not commit w•aste ur E~m~it impairmrM or deterioration of the Properiy and shaU complr n~th the
pruvisions of any lease if this MortgaKe is on a le.-.sehold. I( this MortKa~;e i~ nn a unit in a n~ndominium or a planned anit development,
li,~rrower shall pertorm all of F3orrower's ubliKatiuns undrr the derl:~r.itiun or nr~•enanL. ~-n•ahn~or Ko~•ern~ng the condominium or planned
unit development, the by-laws and reRulationa of the conduminium ur plann~~c! unit de~~elopment, and rnnstituent dorumenGs. If a
~~~ndominium or planned unit de~•elupment rider is exe~e~Wec1 b~ fiorrowrr and rrcnrdcd tc~ether with this Mortgage, the rnvenanta and
:~kreemrnts of tiuch rider shall tx~ ~ncorpurateci inGr and ~hall :~mi•nd :~nd supplem~nt therovrnants and aKrermenlsofthis 1~1ortKaKeasifthe
nder were a part hercY,f.
7. Protection of Lender'e Security. If E3orrower fails to perform the rnvenants and aqreemente contained in thie Mortgage, or if any
action or proceeding ie commenced which materially affecte [.ender's intereat in the F'ropeKy, including, but not limited to, eminent domain,
ineolvency, code enforcement, or arrangementa or proceedings involving a bankrupt or decedent, then L.ender at l.ender'e option,npon
notice to Borrower may make euch appearances, dieburee euch suma and take auch action aa is necessary to protect Lender's interest,
~ncluding, but not limited to, diabureement of reasonable attarney's fees and entry upon the Property to make repaire_ If Lender required
mortgage inaurance as a condition of making the loan secured b~ this lltortgage. Rorrower shall pay the premiuma required to maintain
Ruch ineurance in effect until euch time as the reyuirement for auch ineurance terminates in accordance wi:h E3orrowei e and Lender r
w•ritten agreement or applicable Law. Borrower ahall pay the amuunt of all morigaRe inearance premiuma in the manner provided under
paragraph 2 hereot.
Any amounts diaburaed by I.ender pereuant to this paragraph 7, with intereat thereon, ahall become additional indebtednese of
Rorrower aecured by thie Mortgage. Unless f3orrower and I.ender agree u~ other termA of payment, auch amounta ahal) be payable upon
notice from Lender to Rorrower requeating payment thereof, and ahall bear interest from the date of disburaement at the rate payable from
time to time un outatanding principal under the Note unleas payment of interest at such rate would be contrary to applicable law, in which
event auch amounts ahall bear intereat at the higheat rate permissible under applicable law. I`othing contained in this paragraph 7, ahall
require I.ender to incur any eapense or take any aclion hereunder.
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