HomeMy WebLinkAbout1381t;orrowe~ and I.ender covenant artd agree as tollowa:
1. Payment of Principal and Intereat. Eiorwwer ehall promptly pay when due the principal of and intereat on the indebtedoeas
evidenced by the Note, prnpaymer-t and latecha~ges ae provided in the Note, and the principal of nnd inte~eat on a~y Future Advonces aecured
by this Martgage.
2. Funds for Taxee and lneurance. Subject to applicuble Inw or to a writtrn wniver by Iknder, li~~rrowcr Kht~ll p:-y to l.ende~ un the duy
monthly inatallmenta of principal and intereat am pnyable under the Nute, until the Notr is puid in full, a sum (herc•in "Funds"1 eyual to onP
twelRh of the yearly taxea and assessments which mny attain priority over this MortgaKe, ~nd ~uund rents on the 1'ruperiy, if nny, plus one
twelhh of yearly pmmium installments for hazt~~d insurance, plus onNtwelRh ofyrnrly prrmium instullmrnl,s (ur murtgage inxura~ce, if t~ny,
t+ll as reasonably estimated initially and from time to time by t.e~der on the bttsis of t~essment~K and bills und masuouhir twtimutes thereof.
The hlinde shall be held in an inatitution the depoaita or accounta of which am insured or gunranteed by a Federa) or State agency
(including l.ender if l.ender ie auch an institution). I.ender shall apply the N unda to p~y saiid laxea, asaesxme~ts, insurance premiums and
ground rents. Lender may not charge for so holding and applying the Funds, analyzinK said nccount, or verifying and compiling said
assessments and biUe, unlesa Lender paye Borrower intemst on the F unds und applicable law permits l.ender to make auch u charge. Borrower
and Lender may agrce in writing at the time of execution o[ this Mortgage that interest un the Runda shali be paid to }3orrower, and unless
such agreement ia made or applicable law requires auch intereat to be paid. I.ender shall not be required to pay Rorrov-•er any inlernst or
earnings on the ~nda. L.ender shall give to Borrower, without charge, an annual nccuunting of the Funda showing credita and debita to the
Funds and the purpose for which each debit to the F unde was made. The h unds are pleclged as additional scrurity for theaums secured by thia
Mortgege.
If the amount of the Funds held by I.e~der, together with the [utum monthly installments of i~ unds payuble prior to the duedates of taxee,
asaessmenta, insurance premiums and ground ren~4, shall ezcred the amounl required to pa~ said taxes, assessmenta, insuranee prnmiums
and ground rents as they fall due, such excess ahall be, at Ro~mwer's option, either promptly repaid to Borrower or credited to liorruwer on
monthly inslallmente of Funda. lf the amount o[ the Funds held by I.ender shall not be sufficient to pay taxes, asse~ment's, insurnnce
premiume and ground rents as they fall due, Borrower shnll pay to I.ender any amount necessary to make up the deftciency within :i0 days
from the date nolice is mailed by [.ender to E3orrower requesling payment therev-f.
Upon payment in full of all sums secured by this Mortgage, l.ender ahall promptly refund to E3orrower any tunds held by I.ender. tf under
paragraph 18 hereof the Property is sold or the Property is otherveise acquired b~ I.ender, l.ender shali apply, no later than immediately prior
to the sale af the Property or its acquisition by l.ender, any Funds held by I.enderat the timr of application as a credit againat the sums secund
by this Mortgage. ~
3. Application of Paymente. Unleas applicable law provides othervvise, all paymen~G received by l.ender under the Note and
paragraphe 1 and 2 hereof shall be applied by l.ender first in paymcnt of amounts payable to t.ender by Rorrower under paragraph 2 hereof,
then to intereat payable on the Note, then to the principal o[ ihe Note. :+nd then to intemst and principal on any F uture Advances.
J. Chargea: Liens. Borrowershall pa~ all taxes, asscc~ments and uthet rharKcw, fincK .+nd im}H-sitions attributable tu the Property which
may attain a priority overthis MortRaRe, and Ir:~sehold paymrnts ur ~round mnts, if:-ny, in themanner proeidcrl under paragraph'l hereofor.
if not paid in such manner, by 13orrower makinK payment, when due. dirertly tu the p:ryt~ ther~~C Kormwer shall promptly furnish to I.ender
all nolices of amounts due under this paraKraph, and in the e~ ent li~~rrua•rr sh:~ll make pa~•ment dirtti•tl~, Rorro~cr ~hall promptly fumish to
[,ender receipts evidencing such payments. liurroN•er ~hall prompd}• di~c•h:vK~• any li~~n which has priurity u~•er thiti ~1ortKaKe; provided, that
}iorrower shal) not berequired todischurge any such ii~~n su IonK.~s It~~rruv~f~rsh:dl aKree in writi~~K tu the pat•mrnt of tht•~rl-liKation srcured by
such lien in a manner acceptable to l.ender, or shall in K~NKI L•~ith ~•~~nt~•st su~•h lit~n M•, urd~~fend enfor.rmf•nt uf such lien in.1~~.~1 pr~~ceedings
w•hich operate to prevent the enforcement of the (ien ~~r forli~iture uf th~• Pru~N~rt~• ur an~ part thenti~f.
5. Hazard Insurance. 13orn~wer sh.ill keep thc• improvement~ now existinK or hereafter erected un the Pruperiy insured aKainst loss by
fire, ha-tards included within the term "rxtendcd co~•eraKe," and such ~,thrr hazardti Hs lander may require and in such.imounLti and forsuch
periods as l.ender may require; pmvided, that Ixndrr shall not r~~uire that the amuuM uf such n~veraKe excerel lhat .imuunt of coverage
rcr~uired to pay the sums secured by thi~ Murt~.~Ke. ~
The insurance carrier providin~ the insuran~•~• ~h:~ll IN~ ~•h~~s~~n h~• liurn~w~~•r .ubj~Y•t tu appru~•al M}• la•nd~~r, prncid~d, that .uch approval
shall not be unreasonabl~ withheld. All pn•miums ~~n imur.~m•~• p~~lu•u:..h:dl iK• p:~id in thr m:m~~•r pr~~~•~d~ti~ und~•r p:~r:~Kraph Y hrnr~for. if
nut paid in such manner, M fiorrv~w~er m:~kin~; p:+~'m~•nt. ~chi~n du~•, dinn•tl}• tn th~• ~n~ur.~n~•e• c:~rri~•r.
All insurance policies and renewals therc~f .haill tx~ in fi~rm acceptabl~• tn I knder and shall include a standard mortKageclau.se in favorof
and in form acceptable to I~ender_ l.endershall ha~•e the ri~;ht tu huld th~•.{wlirit•s.~nd rern•wals th~rt~c~f. and Rorr~~veershaU promptly furnish to
~.e~der all renewa! notices and all rrceipts nf paid premiums. In th~• ~•~•rut of loss. Rurruwer shall Ki~•e prompt nntice t~~ the insurancr carrier
and I.endet_ Lender may make prcx-f of loss if not m.~dr pmmptly bS Rorruwcr.
Unlesa Lender and E~rruwer otherwise aKrrc• in w•ritinK, insurnnrn pr«•i~d. tiL:~ll M~ applit~! to restoration or repair of the I'roperty
damaged, provided such restc-ration or mpair i~ cti•unumic.illy fea~ible and the scrurit~• uf this 11ortK.iKe is not thrreby impaired. If such
rrstoration or repair is not emnomically fea~ible ~~r if the uti•urit~• uf thi~ A1ortKa~;e wnuld t-r impaired, the~insurance pr~xecdsshall beapplied
to the sums secured by this Mortg.iKe, N7~I1 ~I1P P%CPSS, if any, paid to f~~rruw•er. If the 1'ropert~ is abandoned by 13orrower, or if Borrower fails to
reapond to [.ender within 30 days from the datc nuticr i~ mail~ by I.ender G~ fiorruw•rr that the insur:ince carrier ofters to seEde a claim for
insurance benefits, I.ender is authorized t~i coll~~~t and apph• thr insurunce pr~K•eecls at I,ender's optiun either to restoration or repair of the
Yn,perty or the sums secured by this A1ortKaKe.
Unlea:+ l.ender and E3orrower otherwisr :iKree in vcntink, any such applicatiun of pn-c-ecds to principal shall nut extrnd or postpone the due
date of the monthly installment~K referr~~ to in paraKraphs I and'l hrnN~tnr chanK~• the amuunt of such installments. If unde~ paragraph 18
hereof the Property is acquired by I,ender, all riKht, tide and interest of liurn,wer.in and tu any insurance policies .ind in and to the proceeds
thereof resulting from damaRe to Property prior tn the sale or acyu~sitiun shall pa~~ to I.Pnder to the extent of !he sums secured by this
11oRgage immediately prior to such sale or acquisition.
6. Preaervation and Maintenanceof Property; l.easehotds;('ondominums; Planned l~'nit Developments.I3orrowershall keep
the Property in Rood repair and shall not commit ~a~tt• ur permit impairment or deteriuration of the Yruprrty and shall comply w-ith the
pmvisions of any lease if this Hiortgage is un a leaseh~~ld. If this A1ortKa~;e is nn a unit in a cundominium or a planned unit development,
t3orrower shall pertorm all of.I3orruwer's obliK:itiuns under thr decdaratinn ~~rc~n•enants ~•n•atin~;or KuvermnK the condominium or planned
unit develapment, the by-laws and reKulations of the cundominium or planned unit developmrnt, and rnnstiluent documenls. If a
condominium or planned unit de~•elupmrnt rider is executed b~• Fforruw•er and recordcd toKether with this blortgage, the rnvenanta and
:iKreemen~Y of such rider shaU }~e incurporated int~~ aind shall .+mFnd cmd wpplrment the• co~~en:~nts and aKrcrmenLs uf this ~1ortKaKe e~s ifthe
rider were a part hereof.
7. Protection of Lender'e Security. I( F3orrower faila to pertorm the covenanta and agreementa contained in thie Mortgage, or if any
action or proceeding ie commenced which materially affecte I.ender'a intereet in the Property, including, but not limited to, eminent domain,
ineolvency, oode enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then l.ender at I.endei e option,upon
notice to Borrower may make euch appearances, diaburee auch aume and take such actinn ae ie neceseary to protect I.ender'a intereet,
including, but not iimited to, diebureement of reaeorable attorney's fees and entry upon the Properly to make repaire. It Lender required
mortgage insurance as a condition of making the loan secured by this Mort{~age, Borrower shall pay the premiume required to maintain
euch ineurance in effect until auch time ae the requirement [or such inaurance terminates in accordance with Borrower e end Lender e
written agreement or applicable Law. Borrower ehall pay the amount of all mortKaKe insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounfs dieburaed by I.ender persuant to this paragraph ?, with intrrest thereon, shall become additional indebtedneae of
Borrower eecured by this Mortgaqe. Unleas Borrower and I.ender :+gree to other terma of payment, such amounte ahall be pay~ble upon
notice from Lender to Borrower requeating payment the~eof, and ahall bear interest from the date of diRburaement at the rate payable from
time to time on outstanding principal under the Note unless payment of intereet at such rate would be contrary to applicable law, in which
event auch amounta ehall bear intereat at the higheat rate permisaible under applicable law. Nuthing cuntained in thie paragraph ?, ehall
require I.ender to incur pny expenae or take any action hereunder.
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