HomeMy WebLinkAbout2649Borrower and Lender covenant and agree as folbws:
1. Payment ot Principal aad interea~ Borrower ahall prompdy pay when due the principal of and intereat on the indebtednesa
evidenoed by the Note, pnpayment and late chargea as pmvided in the Note, and the principal of and intereat un any ~Lture Advancee aecured
by chis Mortgage.
2. ~nda for Teucee and lnsurance. Subject to applicpble law or to a written waiver by l.enc~er, Borrower ahall pay to I.ende~ on the dey
monthly inatallments of principal a~d inteteat a~e payable under the Note, until the Note ia paid i~ full, a sum (herein "~nda") equal to one
twelfth of the yearly taxes and aasesamente which may attain priority over this Mortgage, and ground rentx on the Property, if any, plua one~
twelfth of yearly premium inatallmenta for hazard inaurance, plus onetwelfth ofyearly premium inataUmentslor mortgage insurance, if any,
all as ~eaeonably eatimated initially a~d from time to tirne by l.ende~ on the basis of sissessments and biUs and reasonable estimales thereof.
The ~nde ahall be held in an institution the depoaits or accounta o! which are inaured o~ guaranteed by a Federal or State agency
lincluding I.ender if Lender ia auch an inetitution). l.ender shail apply lhe Funda to pay said taxes, assesamente, insurance premiums and
Kround rents. Lender may not charge for so holding and applying the hunda, analyzing said account, or verifying and compiling said
asaeeements and bille. unleas Lender paya Borrnwer intereat on the Runds and applicable law permita t.ender to make auch a charge. Borrower
and I.ender may agree in writing at the time olexecution of this Mortgage that interest on the ~nds ahall be paid to Borrower, and unleas
auch agreement ia made or applicable law requirea auch intereat to be paid, l.ender shall not be required to pay E;orrower any intereat or
earnings on the ~nde. Lender ahaU give to Borrower, without charge, a~ annual accountinq of the Funda showinq credita and debits to the
Funda and the purpoee for which each debit to the Funds was made. The Funds are pledged as additional security for the auma secured by this
Mottgage.'
If ihe amount of the ~nda held by l.ender, together with the future monthly instaliments of F unds payable prior to the due dates of ta:es.
asaeesmenta, insurance premiums and gmund rents, shall excred the amount required to pay said taxes, assessments, inaurance prnmiums
and gtround renfs ae they tall doe, auch excess shall be, at Borrower s option, either promptly repaid to Borrower or credited b Eiorrower on
monthly inatallments of ~nda. If the amount ot lhe Funda held by I~ender shall not be sufficient to pay taxea, pssessmenta, insurance
premiuma and ground rente as they. fall due, ~iorrower shall pay Lo I.ender any amount necesss~ry to make up the deficiency v~~thin :~0 days
fmm the date notice ia mailed by Lender to &-rrower requesting payment thereof.
Upon payment in full of all sums eecured by this Morigage, l.ender shall promptly refund to I3orrower any funds held by l.ender. lf under
paragraph 18 hereotthe Property is sold or the Property is othervrise acquired by l.ender, I.ender shall apply, no later than immediately prior
to the sale of the Piroperty or its acquisition by Lender, any F unds held by I.ender at the lime of application as a credit against the sums secured
by thia Mortgage. -
3. Application of Payments. Unless applicable law provides otherwise, all payments received by I.ender under the Note and
paragraphe i and 2 hereof shall be applied by Lender first in payment of ~mounts payable to I.ender by E3orrower under paragraph 2 hereof,
then to intereat payable on the Note, then to the principal of the Note, and then to inte~est and principal on any Future Advances.
4. Chargea; Liene. Borrower shall pay all taxex, as_cessments and uther charges, fines and impositions altributable to the F'roperty which
may attain a priority over this Mortgage, and leasehold paymcnts or gmund mnls, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by [iorrower making payment, when due, directly to ihe payEr thercr~L Rorrov-ershall promptly furnish to lxnder
ali notices of amounts due under this paraRraph, ~nd in the e~ rnt Borrower shall make payment direcQy, Born-~.er shall prompdy furnish to
l.ender receipls evidencing such payments_ I;orrow•er shall prn~nptly discharK~• ~ny lien which has priority a~•er this AtortK.ige; provided, that
tiorrower shal) not be required to discharge any such lien su lonk as li~irrower shall aKree in writinK tu the payment of theobliKation secured by
such lien in a manner acceplable to [xndrr, or chall in ~;~d faith n~nt~~t suc•h lien by, ur defen~l e~nforcement of such lien in, lE~al proce~dings
which operate to prevent the enforcement uf the lien or furfeitum uf thr PmEx•rty or am~ part thenv~C.
5. Hazard Insurance. Borrower shall keep the impn~vemen~s now existing or hereafter erectecl on the 1'r~~perty insured against loss by
fire, hazards induded within the term "extended co~~eraKe," .~nd tiuch other hazards as Ixnder may require and in such amuuntsand forauch
periods as Lender may reyuire: provided, thnt I.ender shall not rec~uire that the .~mount of such cuveraKe exceed that amount of coverage
reyuired to pay the sum~ secured by this MortKaKr_
1'he.ipsuranrn carricr pru~•idinK thf• insurancr shall tx• ch~r~rn by l{nrruw•i~r suhj~Y•t tu appru~•al b~• 1 a•nder, pr~i~•id~a1, that such :~pproval
shal) not be unreasonabh w•ithheld. All premium~ un in~uranc~~ ~wlicic~ ~hall iK• p:~id in thr mann~r pru~•id~~1 undi~r paruKr.-ph l hermf or, if
not paid in such manner. b>• &-rruwer makinK p:~~ ment. K•h~•n du~~, dir~r tly to the• in.ur.~nce rarrier.
All insurance policies and renewals thereof shall t-e in form acceptablr tu I.ender and shall include a standarcl mortgage clause in fa~ orof
and in form acceptable to I.ender. l.endershall ha~•e the riKht G~ h~~ld the p~~lii•ies and renrv-als thereof, and R~-rr~~wer shall promptly furnish to
i.ender all renewal notices and all receipts of paid premiums. (n thr event of los.s, I;urn~wer shall Kive prompt notice to the insurance carrier
a~d Lender_ Lender may make pr~~f of loss ef not made promptly b}• liorruwer.
Unleas l.ender and E3orrower otherwi4e agree in writinK, insurance procrrds +hall be applied to restoration or repair of the E'roperty
damaged, provided such mstoration or mpair iti ~ronomically [easible and the serurity of this Mnrtgage is not thereby impaired. [f such
restoration or repair is not economically feasible ur if the cecurity of this MurtKaKe would be impaired, the insurance proceeds shall be applied
to the suma secured hy this MortKage, with the excess, if any, paid to F3~-rrow•er. lf the I'roperty is.~bandoned by Borrov-er, or if Borrower faila to
respond to [.ender wilhin 30 days from the date notice is mailPC! h~ I.ender to 13orrower that the insurance carrier offers to settle a claim for
insurance benefits. I.ender is authorized to collect and apply thr insurance pr~K•eeds at I.ender's option either to restoration or repair of the
Property or the sums sec}~red by this MortgaRe_
Unleas Lender and Eiorrower otherwise agree in v- ritinK.:+ny such appliration of pmceeds to principal shal) not extend or postpone thedue
date of the monthly installments referred u~ in paraKraph~ 1 and 'L hen~.-f or chanKe the amount of such installments. If under paragraph 18
hereof the Property is acquired by I.ender, all riKht, title and interest of E3~irmwer in and to any~ insurance policies and in and to the proceeds
thereot resultinq from damage to I'mperty prior to the ~u+le or acqmsition shall pas.g to I.ender to the extent of the sums secured by this
:~fortgage immediately prior W such sale or acquisiiion. ~
6. Preeervation and Maintenanceof Property; l.easeholds; Condominums: Planned Unit Developmenta. E3orrower shall keep
the Property in good repair and shall not commit vraste or permit impairment or deterioration of the I'roperty and shall comply with the
provisions of any lease i[ this Mortgage is on a leasehold. I[ this MurtKaKe is on a unit in a rnndominium or a planned unit development,
Borrower shall perform all of Rorrower's ubligations under the declaration ur co~•enantti creat~n~nr govern~nK the condominium or planned
unit development, the by-laws and reKulations of the condominium or planncd unit de~~elopn~ent, and constituent documenta. If a
condominium or planned unit development rider is execute~d by f3orruwer and recordecl tc-gether v~-ith this Mortgage, the covenants and
aKreements of such rider sha 11 tw incorpor~ted into and .hal l amend and supplement thr coven.i nts :~nd aKreements of this MortKaRe as if the
rider were a part hrreof.
7. Protection of Lender'e Security. If Borrower fails to perform the rnvenanta and agreemente contained in thie Mortgage, or if any
aMion or proceeding ia commenced which materially affecte I.ender e intereet in the Property, including, but not limited to, eminent domain,
ineolvency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at l.ender'a option,upon
notice to 13orrower may malce auch appearencee, diaburee euch aums and take auch action ae ie neceeeary to pmt~rt Lender's interest,
including, but not limited to, diebureement of reasonable attorney'e fees and entry upon the Property to make repaire. [f Lender required
mortgage ineurance aa a condition of malcing the loan aecured by this Mortgage, E3orrower ahall pay the premiume required to maintain
euch ineurance in effect until such time as the reqmrement for auch inaurance terminates in accordance with Borruwer's and Lender s
written agreement or applicable Law. Borrower shall pay the amounl of all mortgage ineurance premiuma in the manner provided under
paragraph 2 hereof.
Any amounte diebursed by Lender persuant to this paragraph 7, with intereat thereon, ahall become additional indebtedneea of
Borrower eecured by thie-Mortgage. Unleas Borrower and Lender agree to other terma of payment, such amounte ehall be payabte upon
notice from Gender to Borrower requeeting payment thereof, and shall bear intereat fmm the date of diebureement at the rate payable from
time to time on outatanding principal under the Note unless payment of intereat at s~ch rate would be contrary to applicable law, in which
event auch amounte ehall bear interest at the higheet rate permisaible under applicable law. Nothing contained in thie paragraph 7, shall
require Lender to incur any expenae or take any aMion hereunder.
R~~x 346 PACEzs44