HomeMy WebLinkAbout0344Korrower and I.ender covena~t and agree ae tollows:
1. Payment ot Principal and Intereet. Borrower shall promptly pay when due the principa) of and inte~est un the indebtedness
evidenced by the Note, prepayment and latechargea ae provided in the Note, a~d the principal oi and inte~est on any Future Advancea secured
by this Mortgage.
2. fitnde fo~ Taxea and Ineurance. Subject to applicable luw or to a written wuiver by I.ender, &-rrower shadl p~y to I.ende~ on the day
monthly inatallments of principal and intereat are payable unde~ the Note, until the Note is paid in full, a sum (herein "Funds") equal /o one
twelfth of lhe yearly taxes and asseasme~ts vehich may attain priority over this Mo-igage, and ground rents on the F'ruperty, if any, plua one
twelfth of yearly premium instaUme~ts for hazard insurance, plusonetwelfth of yea~ly pmmium installments for mortguge insurance, if any,
all as reasonably eatimated initially and from time to ti~r.e by I.ender on lhe basis of assessments and bills and rrnsonuble eslimates thereof.
The ~nda ahall be held in aa inatitution the depoaita or accounts ot which are i~sured or ~tuarpnteed by a Federal or State agency
(including I.endeT if l.e~der is such an inatitution). I.ender ahall apply the Funds to pay said taxes, assesaments, insurance premiums and
Etround rente. l.ender may not charge for ao holding and applying the Funds, analyzing said account, or verifying and compiling said
asaesements and bills, unleea [.ender paye Bormwer interest on lhe Funds and applicable laN permita l.ender to make such a charge. Borrowe~
and l.ender may agne in writing at the time of execution o( this Mortgage that interest on the M unds shaU be paid to Borrower, and unleae
auch agreement is made or applicable law requirea auch interest to be paid, Lender ahall not be required to pay Borrower any interest or
earninge on the Fl~nde. L.ender shall give to Borrower, without charqe, an annual accounting of the Funds ahowing credita and debita W the
Funda and the purpoae for which each debit to the Funds was made. The F unds are pledged as additional aecurity for the suma secured by thie
Mortgage.
If the amount of the ~nds held by I.ender, together wilh the tuture monthly installments of F unds payable prior to the due dates of taxes,
asseasments, insurance premiuma and ground rents, shall excred the amount reyuired to pay said taxes, assessmenta, insurance premiu~ns
<~nd ground rents aa they faU due, such exceav ahall be, at Bo~rower's option, either promptly repaid to Borrower or credited to Bonower on
monthly installments of Funda. if the amount of the Funda held by I.ender ehall not be suf6cient to pay taxes, aseesamenta, insurance
premiuma and ground rente as they fall due, Borrower shall pay b I.ender any amount necessary to make up the deficiency within 30 days
from the date notice ia mailed by I.ende~ to E3orrower requesting payment thereof.
Upon payment in full of all sums aecu~ed by this Mortgage, l.ender shall promptly refund to Borrower any funds held by I.ender. lf under
paragraph 18 hereof the Yroperty is sold or the Properiy is otherwise acquired by I.ender, l.ender shall apply, no Iater than immediately prior
to the sale of the Property or ita sequisition by (.ender, any Funds held by I.ender at the time of application as a credit against the sums secured
by this Mortgage.
3. Application of Paymente. Unleas applicable law provides otherwise, all payments received by l.ender under. the Note and
paragrapha 1 and 2 hereof ahall be applied by I.ender first i~ payment of amounts payable to l.ender by E3orrower under paragraph 2 hereof,
then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances.
d. Chargea; Lieas. E3orrower shall pay all taxes, assessments and othercharges, fine~ :md impositions attributable to the Property which
m.iy attain a priority over this MortRaKe, and leasehold p~iyments nr gmund rents, if any. in the manner provided under paragraph'2 hereofor,
if not paid in such manner, by Borrow er makinQ payment, N hen due, direcdy to the paytr therc~,C 1;orrower shaU prumptly furnish to [.ender
:ill notices otamounts due under this par~Kraph, :~nd in the event t~rrower shall make payment directl~. Born-wer shalt promptly fumish to
t,~nder receipts evidencing such paymen~c. liorrower shall promptl> disch:~ry;~• any lien which h.~s priority over this MortKaKe; pruvided, that
fi~~rrawer shall not be required to discharKe any such lien so IonK as li~,rruw er shal! aKree in writin~ to the pa~ ment uf theobliKati~~n secured by
~uch lien in a manner acceptablr to I.ender, or shall in K~x~d faith n~nt~~t such li~~n b~•, urdrfend enfurn•ment ufsuch li~•n in, lr~;al pr~xeedings
w•hich operate to prevent the enforcemrnt uf the lien or fi-r[~;ilure uf the !'ro~•rty o~ :~m• p.+rt ther~~-f_
.5_. Hazard I nsurance. Borruwer shall kcep the impm~~ements nov- existinR or hereafter erected c~n the Yroperty insured against loss by
fire, hazards included within the term "extended co~•eraKe," and such other hazards as Ixnder may require and in such xmounts and forsuch
periods as Ixnder~nay requim; provided, th.~t I.end~•r shall nut reyuire lhat the amuunt of such co~eraRe exceed that amount of coverage
required to pa~ the sums secured try this MurtK.+Kr.
The insurance carrier pru~•idiny, the insuram•t• .hall !x• ~~h~~srn h>• lt~~rn~w~~r suly~~•t to apprnval hy I.enu~•r, pro~•idcYl, that such :~pproval
.hail not be unreasonabl~ veithh~~id. All premiwn~ un intiuram•~• E~~li~•i~•..hall }u• p:~id ~n th~~ mam~~~r pm~•idiyi undc•r paraKraph'L here~nfur, if
m~t paid in such manner, b~ Fi~~rruwer m:+kiny; pa~•m~•nt, w~h~•n dw•, dirfY•tl~• t~~ thi• in~urance carrier.
All insurance policies and rnnewals thereof shall be in fi~rm acceptable t~i l~•nder and shall iadude a standard mortgaKe clause in favorof
.~ nd in form acceptable to I.ender. l xndPrshall have the riKht to hold thr ~~licies and renrwals there~-f, and Rorruwer shall promptly furnish to
~.ender all renewal notices and all receipts of paid premium~. In thr e~•ent of loss, l~~rrower shall Ki~•e prumpt notice to the insurance carrier
and Lender. Lender may inake proof of loss if not made pmmpth• by li~~rruv-•er.
Untess l:ender and E3orrower otherv-ise aKree in writinK, insuranm procc~eds shall Fx~ applied to restoration or repair of the Property
damaged, provided such restoration or repair is crunumicallt (e:isihlr and the u~curit~• of this MortgaKe is not thereby impaired. If such
resWration or mpair is not economically feasible ur if thP securit~ of this 11ortKage would t~e impaired, the insurance proceeds shall be applied
tu the aums secured by this Mortgage, w~th the excesc. if any, paid to 1~xrower. lf the Property is abandoned by RorroN er, or if Borrower faila to
rF,pond to Lender within 30 days from the date notic~• is mailF~d by I,ender tu liorrav-er that the insurance carrier ofters to settle a claim fur
insurance benefits, l.ender is authorized to coll~rt and appl~• the insur:ince proceeds at I.ender's option either to restoration or repair of the
!'roperty or the sums secured by this MortKaKe.
Unless Lender and f~rmwer otherwise aKree in w•ritinK, any such applicati~~n of pnx~e~s to principal shall not extend or postpone the due
date ofthe monthly installments referred u~ in paraKraphs I and'L hereof or change the amuunt of such installments. If under paragraph 18
hereof the Property is acquircd by 1.ender, all right, title and interest of BormM•er in and to any insurance policies and in and to the proceeds
thereof resulting from damage to I'roperty prior to the sale or acywsition ~hall pass U> l.ender to the extent of the sums secured b~~ this
~lortgage immediately prior to such sale or acquisilion. _
6. Preaervation and Maintenance of Property: l.easehold~; Condominums; Ylanned Unit Developmenta. E3orrowershall keep
the Property in good repair and shall not cbmmit Kaste or prrmit impairment or deterioratiun of the F'roperly and shall comply w~th the
pruvisions of any lease if this Mortrage is on ~ leuseh~ld. If this 111ortKaKe ic un :~ unit in a rnndominium or a planned unil development,
F{orrower shall perform all of E3orrower's ubliRations under the declaratiun or cuvrnan~s ~•reatin~;or Kovem~ng the condominium or planned
uni! development, the by-laws and reQulations of the rnndominium or planned unit develupment, and conatituent documents. I[ a
~~r,ndominium or planned unit development rider is excruted by &~rrower and recordEd tuKet~er with this Mortgage, the covenants and
,t~reements of such rider shall t-e incorporated intr~ and vh:-II :~mend :~nd supplement thf~ coeen.ints and aKreemenls of this MortKaKe as itthe
rider were a part hercwf_
7. Protection ot Lender'e Security. If Borrower faila to pertorm the covenante and agreementa contained in thie Mortgage, or if any
action or proceeding ie commenced which materially affecte I.ender a interest in the Property, including, but not limited to, eminent domain,
~neolvency, eode enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then I.ender at Lender'e option,upon
n~tice to Borrower may make euch appearances, diaburee euch suma and take auch action se is nec~eseary to protect Lender'a intereet,
including, but not limited to, diebureement of reaeonable attorney e fees and entry upon the Property to make repaire. If Lender required
mortgage ineurance ae a condition ot making the loan aecured by this Mortgage, Borrower ahall pav the premiume required to maintain
Huch ineurance in effect until such time as the requirement for such ineurance terminates in acrnrdance with Botrower e and [.ender s
w•ritten agreement or applicable Law. Borrower ahaU pay the amount of all murtqage inaurance premiums in the manner provided under
paragraph 2 hereof.
Any amounta dieburaed by Lender perauant to thia paragraph 7, with intereat thereon, ahall become additional indebtedneea of
Fiorrower eecured by thia Mortgage. Unleas f3orrower and [.ender agree to other terms of payment, auch amounte ehall be payable upon
notice from Lender to Borrower requeeting payment thereof, and ahall bear interest from the date of diaburaement at the rate payable from
time to time on outetanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which
event such amounta shal) bear intereat at the highest rate permissible under applicable law. Nothing contained in thie paragraph 7, ahall
require [.ender to incur any expenee or take any action hereunder.
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