HomeMy WebLinkAbout04048ormwer and l.ertder covena~t and agree as follows:
1. P~ymeAt ot Pri~cIpal and Intereet. Borrowe~ ahall promptly pay when due the principal of and interest on the indebtedneas
evidenced by the Note, prepayment and late chargcs as provided in the Note, and the principal of and intereat on any Future Advances aecured
by thia Mortgage.
2. bltade torTeucea a~d Ineurance. Subject to appiicable law o~ to a written waive~ by I.ender, Borrowerahalf pay tolxnderon theday
monthly inetallments oiprincipa) and interrst are payable under the Note, until the Note is paid in tull, a sum (herein "F~nda") equai to one
:we1Rh otthe yearly taxee and assessments which may attain priority ove~ this Mortgage, and Mround renta o~ ihe Property, i[a~y, plus onc
twelfth of yearly p~emium i~stallmenls for hazard insurance, plus onetwelfth of yearly premium inatallmenta tor mortgage ioeu~ance, if any.
all as reaeonebly estimated inilially and firom timr to time by l.ende~ on the basis of asseasmenta and bills and reusonable estimates thereof.
The ~nda ehaU be held in an inatitution the deposita or am-u~ta ot which are insured or guaranteed by a Federal or Slate agency
lincluding [.ender if L.ender is such an inatitution). Lender shall apply the Funda to pay said taxea, aesesnments, insurance premiums and
ground rente. Lender may not charge for eo holding and applying the Fund6, analyzing said account, or verifying and compiling said
assesamente and bille, unleas Lender paya Borrower interest on the Funda and applicable law permita l.ender to make auch a charge. Borrower
and L.ender may agree in writing et the time of execution ot this Mortgage that interest on the Funds shall be paid b E3orrower, and unleaa
auch agreement ia made or applicable law requitea such intereat to be paid, I.e~der shall oot be required to pay Borrowe~ any intereat or
earnings on the Funda. Lender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credita and debita to the
Funde and the purpose for which each debit w the Funds was made. The Funds are pledged as additional security for the auma secured by thia
Mortgage.
If the amount of the Flinde held by l.ender, together with the future monthly installments of I~ unds payable prior to the due datea of taxea,
aeseasmenta, inaurance premiums and ground rents, shall excxd the amount required to pay said taxea, assesaments, insurance premiume
and ground rents as they tall due, auch excess shall be, at E3o~TOwe~ a option, either promptly repaid to Borrower or credited to Borrower on
monthly inatallme~ts of Fl~nda. If the amou~t of the Funds held by Lender ehall not be sufficient to pay taxes, asseasments, insurance
premiums and ground rents as they tall due, Borrower shall pay to l.ender any amount necessary to make up the deficiency within 30 days
from the date notice is mailed by L.ender to Borrower requesting payment thereof.
Upon payment in full of all sums aecured by this Mortgage, I.ender shall promptly refund to Rorrower any funds held by Lender_ lf under
paragraph 18 hereof the Property ia sold or the Ptoperty is otherwiae acquired by l.ender, I.ender shall apply, no later than immediately prior
W the sale af the Property or its acquisition by I.ender, any Funds held by I.ender at the time of application as a credit agninst the sums secured
by this Mortgage.
3. Applieatioo o! Paymente. Unless applicable law provides otherwise, all payments received by I.ender under the Note and
paragrapha 1 and 2 hereof shall be applied by Lender firxt in 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.
4. Chargea; Liene. Bormwershall pay all taxes; ussecsments and othercharges, fines and impositions attributable to the Property which
may attain a priorily over this Mortgage, ~nd leasehold paymenGs or Krvund rents, if any, in the manner provided under paraqraph 2 hereo[or,
if not paid in such manner, by E3orrower makinR payment, when due, directly to the payee thereof. i3urrower shall promptly furnish to [.ender
;~il notices of amounts due under this paragraph, and in the event 13urrower ~hall make p:tyment directly. Bormwer shall promptly turnish to
l.ender receipta evidencing such ~yments. RorroM~er shali promptly dischargr any lien which hxs priority over this Mortgage: pm~•ided, that
Borrower shall not be required todischarge any such lien so long as l3urruwer shall aKree in writinR to the payment of the obligation secured by
s~ch {ien in a manner acceptAble to l.ender, or shall in R«xi faith n~nt~st such lien by, ordefend enforcement of such lien in, l~al proceeciinge
w•hich operate to prevent•the enforcement of the lien or forfritum ~~f the Pruperty or any part thercr,f.
5. Hazard Ineurance. Borrower shall keep the improvements now rxis/inK or hereafler erected on the 1'roperly insured againsl loss by
fire, hazards included within the term "extended coveraKe," and surh other huzards as Ixnder may require and in such amounts and for such
periods as l.ender may require; provided. that l.ender shalt not reyuire that the amuunt of such rnverage exceed that amount of coverage
required to pa~ the sums secured by this AtortKaQe.
The insurance carrier providinK the insuran~r shaU t~ chuc~•n hy liorrnwer suhjt~•t to appruval by 1 xnder, prurided. that such appruval
shall not be unre~wmably withheld_ All premium. on insuranct> ~~liri~_. ~hall iK paid in the mannc~r pru~•id.Yl under par:~Kr:~ph 'L hereof or, if
nut paid in such manner, b~ liorroa•er makinK ~r.~>•m~nt, when du~•, dinY•th- tu the insurance c:tYrier.
All insurance policies and renewals th~reof ~hall be in form accept:+Lle u~ l.ender and shall include a standard mortgage clause in favorof
a nd in form acceptable to l.ender. I.ender shall ha~ e the riKht to hold tht~ {wliries and renewals thereof, and Borrower shall promptly furniah to
i.ender all renewal notices and all receipts of paid premiums. In tht~ event of Inss, Rorn,wer shaU Ki~•e prompt nutice to the insurance camer
and Lender. Lender may make prcwf of loss if not made pramptly bc fi~-rruwer.
Unless I.ender and f3orrower otherwise agree in writing, insurance procreds shali be applied to resturation or repair of the Property
damaged, provided such restoration or repair is erunomically feasible and the security of this Mortgage is not there6y impaired. If such
restoration or rnpair is not economicallc feasible or if the sc~curity of this Mortg:ige would be impaired, the insurance proceeds shall be applied
to the aums secured by this Mortgage, w~th the exce~s, if any, paid to &~rrower. If the Property is abandoned by Eiorrower,or if Borrower fails to -
respond to Lender within :30 days from the date notice is mailPd by I.ender to &,rruwer that the insurance camer offers to setde a claim for
insurance benefits, I.ender is authorized to collect .ind apph~ the insurance~procerds at I.ender's optiou either to restaration or repair of the
Property or the sums secured by this MortKaKe.
Unleas Lender and Borruwer otherwise agree in writinK, any such application of pmceeds to prinripal ahall not extend or postpone the due
date of the monthly installments referred to in paragraphs 1 and 'L l~errof or change the amount of auch installmenta. If under paragraph 18
hereof the Property is acquired by [.ender, a11 riqht, tide and interest of BurmNer in and to any insurance policies and in and to the pro~eeds
thereof reaulting from damage to Property prior to the sale or acqwsition shall pass t~- l.ender to the extent of the aums secured by this
Mortgage immediately prior to such sale or acquisition. ..
6. Preaervation and MaintenanceotProperty; I.caseholds;Condominums; Planned Unit D~Iopmente.I3orrowershall keep
ihe Properly in good mpair and shall not commit waste or permit impairment or drterioration of the f'~bperty and shal) mmply with the
provisions of any lease if this 1ltortgage is on a leasehold. If this MortgaKe is un a unit in a cundominium or a plannerl unit de~elopment,
Rnrrower shall perform all of i3orrov~er's obligatiuns under the declaratiun or covenants creatinKor ~;o~•em~nQ thecondominium or planned
unit development, the by-laws and requlations of the cundominium or planned unit development, and constituent documents. If a
rondominium or planned unit development rider is excruted by F3orruwer and rerorJed tugether with this Mortgage, the covenanta and
aRreements of such rider shal l be incorporated i~ ~tu and sh.~) I:~mend .ind supplement the covenunts :~nd aKreements o[this Morigage as if the
rider were a part hereof.
7. Protection of Lender'e 3ecarity. if Borrower fails to perform the covenants and agreemente contained in thie Mortgage, or if any
action or proceeding is commenced which materially nffecte I.ender e intemet in the Property, including, but not limited to, eminent domain.
ineolvency, oode enforcement, or arrangemente or proceedings involving a bankrupt or decedent, then Lender at Lender'e option,upon
notice to Borrower may make such appearancee, disburee auch aums and take auch action ae is neceesary to protect Lender'e inttreat,
including, but not limited to, diabureement of reasonable attorney'e feee and entry upon the Property to make repaire. If Lender required
mortgage inaurance as a condition of making the loan eecured by this Mortgage, E3orrower ahal) pay the premiuma required to maintain
such ineurance in effect until auch time ae the requimment for auch insurance terminates in accordance with Borrower'a and Lendeia
written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiuma in the manner provided under
paragraph 2 hereof.
Any amounte diebursed by Lender perauant to this paragraph ?, with intereat thereon, ahall becomr additional indebtednese of
f3onower eecured by this Mortgage. Unleas Borrower and [,ender agree to other terma of payment, such amounte shall be payable upon
notice from Lender to Borrower requesting payment thereof, and ehall bear intereat fmm the date of diabureement at the rate payable from
t~me W time un outstanding principal under the Note unleas payment ot interest at auch rate would be contrary to applicab2e law, in which
event euch amounte ahall bear intereal at the higheat rate permiasible under applicable law_ Nothing contained in thie paragraph 7, ahall
require [.ender to incur any expenee or take any action hereunder.
a~~K 347 PaGE 4~
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