HomeMy WebLinkAbout1014Bormwer and Lender cove~ant and agree as follows:
1. Paymant ot Principal and Interest. Borrower shall pmmptly pay when due the principal oi and iMetest u~ the indebtedneas
evideaced by the Note, prepayment and late charges aa provided in the Note, and the pri~cipal of and interest on any ~ture Advar-ces secured
by this Mort~age.
2. Etitnds forTe~es aad Ineurance. Subject to applicnble law or to a written waiver by l.ender, E3~rrower ahal! pay to l.ender on the day
monthly irutallmenta of principal and intereat are payable under the Note, until the Note ie paid in fuU, a aum (herein "Fu~ds"1 equal to one
tw elfth of lhe yearly taxea and aaseasmenta which may attain priority over this Mortgage, and ground ~ents on the Propeirly, if any, plue one
twelfth of yearly premium installmenta [or h~ard insurance, plus onetwelRh of yearly premium inetallmenta for mortgaQe insurance, if uny,
all as reaeonably eatimated initially and trom time to tiR~e by l.ender on the basia o[ assesamenta und bills und reasc-nable estimatea thereot.
The F1nde ehall be held in an i~stitution the deposits or accounte of which are inaured or guaranteed by a Federal or State agency
Iincludi~g Lenda if l.ender ia such an inatitution)_ l.ender shall apply lhe Funds to pay said taxea, asaesame~ts, inaurance premiums and
ground tenta. I~ender may not c!-arge for so hoWing and applying the Funda, analyzing said account, or verifying and compiling said
asaeaementa and billa, unleae Lender pays Borrower intereat on the Funda and applicable law permita l.ender to make auch a charge. t3orrower
and Lender may agree in writing at the time of execution of thia Mortgage that interest on the E unda ehall be paid to Borrower, and unleas
such agreement ia made or applicable law requiree such interest to be paid, I.ender ahall not be required to pay Horrower any intereat or
earnings on the ~nds. Lender ehall give to Borrower, wilhout charge, a~ annual accounting of the h unda showing credita and debite to the
Funda and the purpose for which each debit to the Funda was made. The Funds are pledged as additiunai security tor the aums secured by thia
Mortgage.
If the amount of the F1~nda held by l.ender. together with the tuture monthly inatallmente of Funds payable prior to the due datea of taxes,
asaesementa, inanrance premiuma and ground rents, shall excxd the amount required W pay said taxee, assessmenta, insurance premiums
and ground rents ea they fall due, auch e:ceas ahall be, at Ao~rower's option, either promptly -epaid to Borrower or credited to Borrower on
monthly inatallments of Funds. If the amount of the Funde held by I.ender ahall not be sufficient to pay taxea, asseasmenta, insurance
premiums and ground rents as they fall due, Borrower ehall pay to l.ender any amount necessary to make up the deficie~cy within 30 days
from the date notice is mailed by I.ender to Iiorrower requesting payment thereof.
Upon payment in full of aU eums secured by this Mortqnge. I.ender shall promptly mfund to Borrvwer any [unds held by Lender. lf under
paragraph 18 hereof the Property is sold or the Property ia otherwise acquired bp l.ender, l.endcr shall apply, no later than immediately prior
to the eale af the Propetty or its acquisition by I.ender, nny Funds held by I.ender at the time of applic~tion as a credit againat the sums secured
hy this Mortgage.
3. Applieation of Paymenta. Unless applic~ble law provides otherwise, all payments received by l.ender under the Note and
paragrapha 1 and 2 hereof ahall be applied by l.ender firxt in payment of amounts payable to I.ender by Eiorrower 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 F ~tare Advancea_
4. Chargea; Liene. E3orrower shall pay all taxes, assc~.gmen~4 and utherchnrges, fines and impusitions attributable tu the Property which
may attain a priority over this Mortgage, and leasrhold paymenls or gruund ren~s, if any, in the manner provided under ps~raqraph 2 hereof or,
~f not paid in such manner, by Eiorrower making payment, when due, directly to the payee thrreof. Korn~Mershall prompUy fumish to Ixnder
~~U notices of amounts due under this paragraph, and in the event liorruwer shall make paymenl dircti-tlp, Kormwer shall promptly [umish to
I,ender receipts evidencing such payments. Rorruv-er sh.ill promptly discharg.• any lien which has priorily over this Mortgage; provided, that
Rorrower shall not be required to discharge any such lien su IonK as Fi~~rrower shall aKree in v- ritinK to the payment of throbligation secured by
such lien in a manner acceptable t~- I.ender, or shall in Kcx~d f:~ith n~nt.wt such lien b~, or defend enfi~rn•ment of sui•h lien in, Ic~al pruceedings
w•hich operate to prevent the en[orcement of the lirn or fur[eiture of tht• 1'ru{-erty or .~ny part then~-f.
S. Nazard Insurance. Borrow~er shall keep the impnrvrments nuw existinK ~,r hereaRer ereiKed un the Property insured againat loss by
fire, hazards included within the tenn "extended coveraKe; '.+nd such other h.~zards as I.ender may requirr and in such amounts and for such
periods as Lender may require; pm~•ided, that Ixnder shall not n~yuire that the aimuunt uf such cYn•eraKe exceed that amount of rnverage
required to pay the sums secured b~ thi~ MortKaKc•.
7'he insurance camer pru~~idinK lhe insuran~•e .hall IN• i•hu.rn b~• Kurruv-•er sut-jr~~t tu appr~~v:~l hy Iw•nder; pmvidt~i, that such .ipproval
shall not be unreasonably withheld. All pn•~niums un in.uran~•~• ~r~li~•i~~..hall IN• paid in the m:innt~r pru~•id~l undrr paraKraph'l hertv~f or, if
nut paid in such manner, by F3orruw•er makinK p:wmi•M, wh~•n due, dire~•ti)• tn the inwrance~ cartie~r.
All insurance policies and renewals thereof shall t~e in form accrptablr U~ I.rnderand shall include a standard mortgageclause in favorof
and in form acceptable to l.ender. I.endrr shall ha~•e the riKht to hold thN M~licie~ and renrwals there~~f, and li~~rrovrer shal) prompUy furnish k~
i.ender all renewal notices and all rEreipGR uf paid prrmiums. In the eveut of loss. Korn~wer shall Ki~•e prompt notice Lo the insurance carrie~
and l.ender. l.ender may make pr~f of loss if nut made prumptly by Rorrower.
Unlesa Lender and 13orrower otherwise agree in writinK, insurance pn-cerds shall be applied to restoration or repair of the Property
damaged, provided such restoration or repair is crunomically feasible and the ac~:urity of this MurtgaKe is not thereby impaired. If such
restoration or repair is not economically feasible ur if the security of this MortKaKe would I-e impaired, the insurance procecds shall be applied
tu the sums secured by this Mortgage, with the cxcess, if :my, paid to li~~rtower. lf the ('roperty is abandaned by Rorrower, orif Borrower faila to
respond to Lender within 30 days from the d:~te notice is mailyd by I.endFr tu Korruv-•rr that the insurance carrier offers lo settle :t claim for
inaurance benef ts, l.ender is auth~,rized to cullcrt .ind :~pplV lhe insuranm proceeds at I.ender's option either to restoration or repair ot the
Property or the sums secured by th~a M•ortKaKe_
Unlesa l.ender and ~3orrower otherwise agree in writinK, any such applicatiun of prcx•eede tu principal ahall not extend or poetpone thedue
date of the monthly inatallments referred to in par:iKraphti 1 and'L hrre.dor chanKe the amount of such installmenta. l[under paragraph 18
hereof the Property is acquired by I.ender, all right, title and interest of Burn,N•er in and to any insurance policies and in and to the proceeda
thereof reeulting from damage to Property priur to the sale or acqu~sition shall ps~ws tr~ I~ender to the extent of the suma secured by this
`tortqage immediately prior to such sale or acyuisitiun.
6. Preaervalion and Maintenance of Property: lxarceholds; ('nndominums: Planned Unit Developmente. E3orrowerahall keep
the Property in Kood repair and shall not commit vca~tr or permit irnpairmrnt or deterioration of t~e Property and ahall mmply with the
provieions of any lease if this MortKage is on a leasrhnld. If this MortKaKe is un a unit in a cundominium or a planned unit development,
Eiorrower shall perform all of I3orrower's ~~bligations under the declaratiun or ccn•enants crr:iUnKor go~ern~n~t the condominium or planned
unit development, the bylaws and reKulations of the condominium ~~r planned unit development, and conatituent documents. I! a
condominium or planned unit devrlopmrnt rider is executed by &~rr~,wer and recorded toKether with this Morlgage, the oovenante and
:+Kreemen~g of such rider shall be invorp~~rated into and .hall amrnd and vupplrment thecovrnants and:~greements of this Mortgageas itthe
rider were a part hereof.
7. Protection ot Lender's 3ecurity. If $ormwer faila to perform the rnvenante and aqreements rnntained in this Mortgage, or if any
actiui~ or proceeding ie commenced which materiaUy affecte [.ender'e intereat in the Hroperty, including, but not limited to, eminent domain,
ineolvency, oode enforcement, or arrangementn or proceedinqa involving a bankrupt or decedent, then I.ender at Lender's option,upon
-~atice to Borrower may make such appearances, dieburee euch rsums and take such action aa ie neceaeary to protect Lender's interest,
including, but not limited to, diebureement of reasonable attorney e fees and entry upon the Property to make repaira. If Lender required
mortgage ineurance as a condition of making the loan aecured by thia Mortgage, Horrower ahall pay the premiuma required to maintain
euch inaurance in effeM until euch time se the requirement for euch inaurance terminatee in accordance with $orrower e and Lender s
written agreement or applicable Law. Borrower ehall pay the amount of all morlgage insurance premiume in the manner provided under
paragreph 2 hereof.
Any emountx diebursed by Lender perauant to this paragraph 7, with intereet thereun, ehall bzcome additional indebtedneBe of
Borrower secured by this Mortgage. Unleae Eiorrower and I.ender aqree to other terme of payment, such amounte shull be payable upon
notice from I.ender to I3orrower requeating payment thereof, and ehalt bear intereet from the date of diebureement at the rate payable from
time to time on outetanding principal under the Note unleae payment of intereet at auch rate would be rnntrary to applicable law, in which
event auch amounts shall bear intereat at the highe~st rate permiseible under applicable law. Nothing contained in this paragraph 7, shall
require I.ender to incur any ezpense or teke eny aclion hereunder. .
8(~1K3~5 Pacr1~2