HomeMy WebLinkAbout2644~• ,
l3orrower and l.ender covenant and agree as folbwa:
1. Payraent o[ Pri~clpal and Intereet. Borrower ahall promptly pay when due the principal ot and intereat un ihe indebtednesa
evidenced by the Note, prepayment and latechargre aa pmvided in the Note, und the principal of and intereat on any F~ture Advancessecund
by this Mortgage.
2. ~tnda for Taxee and laeurance. Subject to upplicnble (aw or li- a writlcn wniver by I.ender, Fi~rn-wer shall pny to I.ender on the duy
munthly inetallments otprincip~l and intereat are payuble under the Note, until the Nute is pnid in full, i- sum Iherein "F'unda") equul to one
twelfth of the yea~ly taxes and asseasments which mny utta~in p~iority uver this Mortgage, und Rruund rentr. on the f'ruperty, if uny, plua one
twelfth otyearly premium instullments fo~ hazard insurAnce, plus onetwelfth of yrariy pmmium installments fur mutigt~Ke insururtce, if t+ny,
all aa reusonably eatimated initially and from time tu time by l.ender on the t-~sis otassessments and bills and re:-sonable estimates thereof.
The ~Lnds sha11 be held in an inatitution the depueits or accounts of which are insured or gunranteed by a Federal or State ~+gency
Iinctuding l.ender if I.ender ia auch An inatitution). l.ender ahi-11 apply the F unds to pt~y said taxes, :~ssesxmenls, insurance premiums and
Rround rente. I.ende~ may not charge for eo holding and applying the Funda, analyzing said :~ccount, or verifying nnd n-mpiling said
asseasments a~d bi118, unlesa Lender paya Borrower interest on the F unds i~nd applicable law permits I.ender to make such a charge. I3orrower
and I.ender may agrce in writing at the time of execution of this MortgaKe thAt interest on the Funds shall be pAid to Korrowe~, and unleas
such agreement ia made or applicable law requirea such intereat to be puid, I.ender shull not be requimd lo ptiy E~rrower any intemat or
earnings on the Funda. I.ender shall give to E3orrower, without charge, an nnnonl ncn~unting uf the F unds showing credits and debits to the
Funda and the purpose for which each debit to the Funds was made. The N unds am pledged ns udditional security for theaums xecured by thie
Mortgage.
If the amount otthe Funds held by t.ender, together with the futum monthly installmrnts of F unds payable priur to theduedatea oftaxes,
asseasments, inaurance premiums and gmund rents, shul) excred the :~mount required to pay said taxex, :~ssexsmrnts, insurunce premiuma
and ground renta ae they fall due, such exceax shall be, at t)o~mwer's option, either promptly repaid to Korrower ur credited b E3orrower on
monthly installmenta of Funds. lf the amount of the hunds held bv I~ender shnll not be sufficient to pay t~xea. ~ssessments, insursince
premiums and ground rents as they fall due, Borruwer shnll pay to t.ender any amount nece.s~ary to make up the defcienry within 30 days
from the date notice is mailed bv I.ender to l3orrower myursting payment thereoL ~
Upon payment in full of all sums aecured by this hloriRage, l.ender shull promptly re[und to 13<~rrower nny funds held by l~ender. lf under
paragraph 18 hereof the Property is sold or the E'mperty is utherwise acyuired 1n~ I.ender, l~ender shnll apply, no later than immediately prior
to the sale ct the Property or its acquisition by I.e~der, any Funds held by I.ender:+t the timr uf applicatiun us a credit .igainst the xums secured
by this Mortgage_
3_ Application ot Paymenta. Unless applicable laK pruvides otherNise, all paymen~S received by I.ender under the Note and
paragraphs 1 and 2 hereof shall be applied by l.ender fint in paymenl of nmounts payable to I~ender by Borrower under paraqraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, :-nd then to intemst and principal on ~ny Future Advances.
4. Charges; Liena. E3orrow•er shall p:iy .+11 taxe,. as.~~~smentc and uthi•rch:~rKes, fin~~; and imEN-sitiuns uttributal-Ie to the 1'roperty which
may altain a priority o~ er this Mortg.iKr, und lrusehi-Id pa~•menls or Kmund rentv, if any, in Ihe mannrr pru~•id~d under paragraph'l hereofor,
if not paid in such mnnner, b~ Rurrow•er makinK pa}•ment, when dur, dircY•tly to the pay~r thi•n~~f. li~~rn~wer sh:~ll'prumptlt furnish to I.ender
:111 notices of amounts due under this p:~raKraph, :~nd in the e~~t~nt liorruwi•r shall ~n:ikc• paym~•nt dire~•tl}•. Itornn.•er ~h:ill prumptly furnish lo
Lt~nder nreipts evidencinR such paymi~nL~. fi~~rruwer shall prumptly dicch:~rk~• am• lien w•hich h:~s priurit~• ~~~•i~r this A1urt~;aKe; prcn ided, that
fiurrower shall not t-e requireJ to di.charke any w~•h lien.u!uny; :~. li~~rrow~~r ~h:-II akRtY• in K•ritin~; tu the {-:~~-mi•nt of theuhliy;ation secur~d b~
,uch lien in a manner acceptable to I.ender; ur shaU in K~NKi faith ~~unt~~st su~•h lii~n 1i~•, urd~•f~~nd en(un•i•m~•nt ~~f.uch lirn in, l~~;al pr~-ceeclings
w•hich operate to prrvent the en(urcement of the lien ur forf~•itun• uf th~• Pru~•rh• ur an~• part the•nr~f.
~. Nazard Insurance. liorrow•er shall kerp the impn-~•ements nm+ i~xistinK nr he•reafter enY•ted on the 1'ru~rl~• insured aRainst loss by
fire, hazards includecl within the term "ext~•nd~v1 covera~;e." and wch uth~~r hazurd~ as I.ender may mquire .~nd in such amounts and forsuch
Ex•riods as Ixnder ma~ reyuire; pn-vid~Yi, thut Ixnder shall nut rw~uire th;-t thc• amount of such ctin•er.iKr ex~•~~cd that :imount of a~vera~;e
reyuired to pa~ the sums s~~-urerl Fy thi~ MortKaK~~.
The insuranrn e:~rrii•r pru~•idiny; th~~ in.ur:~nr~~ ch:~ll 1~• ~•h~~se•n b~• li~~rrn~~~~•r subj~~i t t~~:~ppn~val by L~~nd~•r: pr~~~•idirl. that such appro~~al
shall not t-e unre:~win.-bl~ w•ithhe•Id. All pn•mium. un imur.~n~•~~ {H~li~•i~•~ .h:~ll IN• p:~i~1 in th~~ tnati~r~ pr~~~ ulwl un~lrr parnkraph'~ henr~for. if
nut paid in such manner. hy li~~rru~ver m:~k~n~: p:~~•m~•nL ~+hrn alu~•. d~rri•th~ t~~ thi• ~:~.uranri• ~•:~rrii•r.
All insurance policies and renrw~als therty~f .h:~l! tx• in fi~rm ai•cf•ptablt• b~ 1 ~•nder and ~h:~ll includ~~ a st:~ndard mortKaKeclause in favorof
and in form acceptable to I.ender.l.endershall have the• ri~;ht tn huld th~• p~~lic~es and n•n:•w•alv thi•re~~f, and liurru~-•ershall promptly furnish to
~,ender all renewal notices and all nK•ripts uf paid prrmiums. In thi~ ~~~•ent of lu,~, li~~rr~~w•~~r ~hall ~;i~~~~ prumpt nutice to the insurance camer
and I.ender_ I.ender may make pr~N~f of Ivcs if not madr prumptl~• by Rurr~wer.
Unless [.ender and F~rruwer othrrvris~• aKn~: in w•ritinK, intiur.ini~r pnN~~•~•d~ sh:~ll M• .ippli~yl to mstur:+tiun or rep:iir of the Property
damaged, providrd such re:cturation ur rt~pair iti cti~~momii•all~• feasiblt~ and the ,tti•urit~• nf this MortKaKe is not thereby imp.iired. If such
rrstoralion or rnpair is not econumically fe:~sildi~ ur if the s~rurit~ uf this ~1ort~;nK~~ w•uuld t~• irnpaired, the insurance prncecds shall be applied
to the sums secured by this :1lorttiage, v- ith tht• rxc~•s., if am•. p:~id t~~ ii~ ~rruvrer. I f th~• 1'n ~Ex~rt~ is abandunc~ by Rorrower, or i[ Ik~rrovrer fails to
re,pond to I.ender wilhin :3(I days frum thi~ Jate nnti~•~• is m:~il~d b~• I.~~nd~•r tu fiurr~~wt~r that the insur.~nce carrier of(erw tu srttle a claim for
insurance t-enefits. I.ender is authom~~f to ~•o11tY•t :~nd apph• thr insur:~n~•e pnK•~vti1~ at I~~nder'~ ~rption either to resturation or repair of the
I'roperty or the sums secured by thi~ ~1urtK:~Kt~.
Unless I.ender and liorrower otherwise :iKrcY• ~n wntin~;, any surh .-pplic.itiun uf pnM~Y~ds to principal shall not extend or postpone thedue
date of the munthly installments referrrd tn in par:+kraph. 1 and'2 ht•rwd ur ~•han~;~• tht~:+mount of such installments. If under paragraph 18
hereof the Property is acquired bt I.ender, all riKht, tid~• and inlerest uf Rurrow•i~r ~n and to any insurance {~-licies and in and to the proceeds
thereof reaulting from damaKe tc~ Yroperty prior to the sale or acqu~sitiun shall pa~s to (,e•~der tu the extent of the sums secured by this
~lortgage immediately prior to xuch salr nr acyuiGitiun. ~
6. Preaervation and Maintennncrof Property; lxa~eholds; ('ondominums; Planned l'nit Developmente. F3orrowershall keep
the Property in ga~d repair and shall not cnmmit waste ur {h•rmit impairm~~nt ~~r d~•leriuratiun of the Propert} and shall cvimph• v~~th the
pruviKionR of any lease if this 11ortK:~Ke ix un a Ic~ast~hc~ld. If thiti ;~1urtKaKr i. on a wtiit in a n~nduminium or a planned unit development,
liurruwer shall per[orm all of ~rrower's ubliKatiom und~~r th~• (IfY'~aration or covenants ~~rr:~Un~; ur Ko~-ermnK the conduminium or planned
unit development, lhe by-laws and reKulations nf the condominium nr plann~~1 unit development, .ind constituent documents. If a
condominium or planned unit devclupmrnt rider is ~•xcY•;:ttti1 by Ik~rr~~w•~~r .+nd re~•ord~d to~;ethcr with this Murtgage, the covenants and
:~Kre~rmenLsofsuchrider~halllx incurpuratf~dintu:md.h:Jlamimdandsuppl~•~n~•ritthrc~n•enantsandaKreementsufthis;llortKakeasifthe
rider w•cre a part herc~~f.
7. Protection of l.ender'e Security. If Rorrower fails tn perfurtn the rnvenants and agreements rnntained in thie Mortgage, or if any
action or proceedinq ie commenced which materially affectx l.ender's intereat in the F'roperty, including, but not limited to, eminer.t domain,
ineolvency, oode enforcement, or arrangemente or proceedings involving a bankrupt or decedent, then I.ender at I.ender'e option,upon
notice to Borrower may make such appearancee, disburse auch sums and take auch action ae is necessary to prot~rt l.ender e interest,
including, but not limited to, dieburaement of reasonable attorney's fees and entry upon the F'roperty to make repaire. If [.ender required
mortgage ineurance as a condition of makinq the luan Aecured by this Mortgage. Rorrower shall pay the premiume required to maintain
euch ineurance in effect until euch time as the reyuirement for auch ineurance terminatea in accordance with Horrov-er'e and I.ender e
written agreement or applicable Iaw. Rorrower shall pay the amount of all mortKaKe insurance premiume in the manner provided under
paragraph 2 hereof.
Any amounta dieburaed by I.ender perauant to this paraqraph 7, with interext thereon, shall tx~-me additional indebtedneae of
Rorrower eecured by thie Alortgage. Unlesa Borrower and l.ender aKree to other terma of payment, such :-mounio ahall be payable upon
notice fmm I.ender to f3~rmwer requeeting payment thereof, and xhall bear interrst fn~m the date of diRbursement at the rate payable from
time to time on outa+tanding principa) under the i~lute unlexs payment of interest at such rnte would t-e rnntrary to applicable law, in which
event Buch amounts shatl bear interest at the highent rate permisaible under applic:ible law. Nothing contained in thie paragraph 7, ehall
require Ixnder to incur any expense or take any a~tion hereunder.
BD!1K.346 PacF2639