HomeMy WebLinkAbout1779Borrower end l.ender covenant and ag~ee ar tolbws:
1. Payment ot Principal and I~terest. E3orrowe~ shall promptly pey whe~ due the principal of and intereat on the indebtedoess
evidenced by the Note, prepayment and late cha~ges as provided in the Note, and the pri~cipal of and interest o~ any Fliture Advances secured
by this Mortgage.
2. ~nda for Tases and Ineurance. Subjecl to applicnble law or to a written waiver by I.ende~, Rurwwe~ shall poy to I.enderon the day
monthly installmenta of principal and intereat are payable under the ~lote, until the Note ia paid in full, a sum (herein "~unds"> equal to ont
twelfth of the yea~ly taxea and assesameata which may attain priority over thia Mortgage, and ground re~ts on the Property, itany, plua one
tweltth of yearly premium installments for hazard insura~ce, plus unetwelfth of yearly p~emium installments [o~ morlguge insurance, if any,
all as reasonably estimated initially a~d from time to tirr~e by I.ender o~ the bxais of assessments and billa nnd re:u;onuble estimales thereof.
The Flinds ahall be held in an institution the depoaita or accounts of which are ineured or guaranteed by a Federal or State agency
(including L.ender if I.ender ia euch a~ institution). l.ender shall apply the Funds to pay said taxea, asseaxmenta, inaurance premiuma and
ground rents. l.ender may not charge for so holding and applying the Funda, analyzing anid account, o~ veritying and compiling said
aseeasmenta and bille, unlese Gender paye Borrower intereat on lhe Funds and applicable Iaw permits I.ender to make such a charge. Borrower
and l.ender may agree in writing at the time ot execution of this Mortgage that interest on the Ftinda shall be paid to E3orrower, and unless
auch agreement is made or applicable law requirea euch intereat to be paid, l.ender shall ~ot be required to pay Eiorrowe~ any intereat or
earnings o~ the Fands. [.ender shall give to Borrower, without charge, an annual accounting of the Fu~ds showing credits and debits to the
Funda and the purpose for which each debit to ihe Funds was made. The F unds are pledged as additional security for the aume secured by this
Mortgage.
If the amount otthe Ftinda held by L.ender, together with the future monthly installments o! Funds payable prior lo the due dates of taxea.
asseasmente, insurance premiuma and ground rents, shall excaed the amount. requind to pay said taxes, assessmenta, insurance premiums
and ground rente as they fall due, auch exceas shall be, at E3orrower's oplion, either promptly repaid to I3orrower or credited to Borrower on
monthly inetaliments of Funda. If the amount of the F unda held by I.ender shall not be sufficient to pay taxes, assessments, inaurance
prnmiuma and ground rents ae they fall due. E3orrower shall pay to I.ender any amounl necessary to make up the deficiency within 30 days
from the date notice is mailed by (,ender to Borrower requesting payment thereof.
Upon payment in full of all aums secured by this Mortgage, [.ender shall prumptly retund to E3orrower any funds held by l.ender. Itunder
paragraph 18 hereof the Property is sold or the Property is othenvise acquired by t.ender, I.ender shnl! apply, no later than immediately prior
to the sale af the Pt^operty or its acquisition by Lender, any Funds held by I.ender at t6e lime of application as a credit against the sums secured
by this Mortgage.
3. Application of Payments. Unless applicable Inw pwvides otherwise, all payments received by I.ender under lhe Note and
paragraphs 1 and 2 hereof ehall be applied by l.ender first in payment of amonnts payable to l.ender by E3orrower under paragraph 2 hereof,
then to intereat payable on the Note, then to the principal of the Note, ~nd then to interest and principal on any Future Advancea.
4. Chargea; Liens. E3orrower shall pay all taxes, ~~ssessments and uthrr charKes, fines and impositions attributable to the Yroperly which
may attain a priority over this Mortgage, and le:tsehold paymcnts ~-r Kround ren~s, if any, in the manner provided under paragraph 2 hereofor,
if not paid in such manner, by I3orrower making payment, w~hen due, directly to the payer thereof. Barmwer shall promptly furnish to l.ender
all notices of amounts aue under this paraKraph, and in the event liorruwer shall make pa~•ment directls , liorn,w•er shall prompdy furnish to
l.ender receipts evidencing such pnyment~s. E3orrower sh:~ll promptl~ diccharKe :~ny lien which hus priority o~•er this MortK:~Ke; pmvided, that
Borrower shall not be required to discharKe any such lien so IunK :~s ti~~rrower shall :~Kree in writinK to the payment of thrc~bliKation secured by
such lien in a manner acceptable to Ixnder, or sh:~u ~~ K~Nxi raith nmtrst ::uch lien by, ur defend enfonrment of such lirn in, lc*al proceedings
which operate to prevent the enlorcement of the lien or furfeiture of the Propert}• ur aoy part thercr~f.
5. Hazard Insurance. Borrower xhall keep the impmvements now existing or hereaRer erected ~-n the Property insureci against loss by
fire, hazards included within the term "extended coveraKe; ' and such uther hazards as IxndFr may require and in such amounts and forsuch
periods as l.ender may require: pruvided, that Ixnder shall not require that the amount of such rnveraiKe excecrl that amuunt of coverage
required to pay the sums secured b~ this MortgaRr.
The insuranm carrier providinK the insuranm shall tx• chusen b~• 1{orruvicer wbjM-t t~~ appru~•al b~• f w•nder, pm.•ide~cl, that surh approval
shall not be unrP:i.conably withheld. All premiums un in.uran~-i• {N~licies shall IH• p.~id in tht• m:~nn~•r pru~•id~vl under p:~r.~Kraph 'l herer~f or, if
not paid in such manner, b~ fiurrower makinK p:+yment, wht•n du~•, din•~•tly t~~ thi• in~urance carrirr.
AU insurance policies and renewals thereof shall t-e in furm acceptable• tu ( A nder and shall include a standard mortRage clause in favor of
and in form acceptable to I.ender_ l.ender sh:+ll ha~•e the riKht to hold the Ewlicieti and renev-als thereot, and Rorruwer shaU pr~~mpdy furnish to
i.e~der all renewal notices and aU receipts of paid premiums. In the eveut of luss, fiorn~aer shall Ki~•e prumpt notice to the insurance carrier
and [.ender. [.ender may make pra~f of los.c if not made promptl~ by Rorruwer.
Unless Lender.and Eiorrower otherwisr aKree in ~+ritiny;, insur:~nce pmc-rcK1s sh.~ll F-e appli~ to restoration or repair of the Property
damaged, provided such restoration or repair is ec~Mumically feasible and the serurity ~f this A1ortKaKe is not thereby impaired. If such
restoration or repair is not economically feasihlr or if the ururity of this MortK:~Ke w•uuld t-e impaired, the insurance proceeds shall be applied
to the sums secured by this Morlgage, wlth the excfws, if ~ny, paid to }3orroNer. tf the !'roperty is.~bandoned by Rorrower, or if Eiorrower fails to
reapond to Lender within :f0 days fmm the date nofie•e is mailyd by I.rnder to I~~rruw~er that the insurance carrier offers to settle a claim for
inaurance benefits, I.ender is authorizc~l to colleet .~nd apply the insuranct~ pnK~eecls at I,ender's optiun either to resloration or repair of the
Property or the sums secured by this MoriK~Ke.
Unless Lender and E3ocrower otherwise aKme in writinK..+ny such application of pmceeds to principal shall not extend or postpone thedue
date of the monthly installments referred tn in paraKraphs 1~nd `L hrreof ur change the amuunt of such installment~c. If under paragraph 18
hereof the Property is acquired by l.ender, all right, title and interest of Rorroveer in and to any insurance policies and in and to the proceeds
thereof reaulting from damage to Pmperty prior to the ~ile or acqu~siti~,n shal) pass to I.ender to the extent of the sums secured by this
N(ortgage immediately prior to such sale or acquisition.
6_ Preeervation and Maintenance of Property; I.easeholds; Condominums: l'lanned Unit Developmenta. E3orrowerahall keep
the Property in good repair and shall not cummit waste or permit imp:~irment or drterioration of the Properly and shall comply with the
provisions of any leaxe if thia Mortgage is on a leasehuld. !f this MortKaKe is nn a unit in a condominium or a planned unit development,
Borrower ahall perform all of Rornrwer's o6liKations under the decl~raliun or co~enants ~•r~•atin~;<~r govern~nK the condominium c~r planned
unit development, the by-laws and reKulations of the condominium or planned unit development, and constituent documents. If a
condominium or planned unit development rider is exeruted by liorrower and recorded tc~ether with this Mortgnge, the rnvenants and
aQreements of such rider shall be incorporated into :~nd shall amend :~nd ~up~-lement thecnvenan~5 and aKreementr,of this Mortgagexs ifthe
rider were a part hereoL
7: Protection ot Lender'e Security. If E3orrower faile to perform the rnvenante and agreementa contained in this Mortgage, or if any
aMion or proceeding ie commenced which materially affecte I.ender'e interest in the Property, including, but not limited to, eminent domain,
insolvency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender'e option,upon
notice to Borrower may make such appearances, diaburec auch aume and take auch action ae ie neceaaary to protect Lender's intereet,
including, but not limited to, diabureement of reasonable attorney's [eee and entry upon the Property to make repaire. If Lender required
mortgage ineurance as a condition of making the loan secured by this Mortgage, Borrower ahall pay the premiume required to maintain
euch insurance in effect until euch time ae the requirement for auch inaurance terminatee in accordance with $orrower's and Lender's
written agreement or applicable I.aw_ Rorrower ahall pay the amount of all morlgage inaurance premiuma in the manner provided under
paragreph 2 hereof.
Any amounte diebursed by L.ender pereuant to thia paraqraph 7, with intereat thereon, shall become additional indebtedneae of
Borrower eecured by thie Mortgage. UnlesB I3orrower and [.ender agrre to other terma of payment, auch amounte ehall be payable upon
notice from Lender to Borrower requesting paymeni thereof, and ahall bear interest from the dale of diebureement at the rate payable trom
time to time on outetandinq principal under lhe Note unlese payment of intereBt at auch rafe would be contrary to applicable law, in which
event euch amounts ahall bear intereat at the highest rate permissible under applicable law. Nothing contained in thia paragraph 7, ehall
require [.ender to incur any eapenae or take any aMion hereunder.
, ~ . BrlnK 346 ~aGE i 775 . .
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