HomeMy WebLinkAbout0865Bormwer snd Lender rnvenant and a~ree as followr.
1. Pa~meat of Prl~cipel and Intere~~ Bormwer shall pmmptly pay when due the pri~clpal of and intereat o~ the indebtedness
evidenoed by the Note, prepsymsnt and late cha~ges aa pmvided in the Note, and the principa! of and interest on any ~ture Advances ~ecured
by thu Mortsa~e.
2. Ftitndi ior Ts~e~ ~nd lnsurance. Subject b applicable iaw or b a written waiv~ by I.ender. Borrower ahall pay to I.ender o~ the dey
monthly instal4aertta of principal and i~tereat are payable under tl~e Note. until the Note is paid in full, a aum (herein "Runds") equal to ona
~ twelfth oithe yearly t~es and assessmenta which may attain prionty over this Mottgage, and ground renta on the Property, if any, plus one~
twelflh of yearly premium installments for hazard inaurance, plua unetwelflh o[yearly premium instaUments for moetgage inaurance. if any,
all as teasonably estimated initially and from time to ti~r~e by Lender on the basi,s oI aeaesaments and bills and reasonable estimates thereof.
The flnds shall be held in an institntion the depoaits or accounte of which are i~sured or guaranteed by a Federal or State agency
lincluding L;ender i! I.ender ia snch an inetitution). Lender shall apply the Funds to pay said taxes, aaaeasments, ineurance premiums and
ground renb. Lender may not cherge for ~o holding and applying the ~nde, analyzing eaid account, or veri[ying and compiling said
aeseasmeata and bilb, unl«s Lender pays Borrower interest on the Etinde and applicable law permits Lender to make auch a charge. Borrower
and Lender may agree in writinB at the time of execution of thia Mortgage that interest on the Funda ahall be paid to Borrower, and unlw
euch a~reement is made or applicable law requires such interest to be paid, Lender shsll not be required to pay Borrower any i~terest or
earnings on the F1nds. l.ender ahall give to Borrower, without charge, an annual accounting of the Fu~ds showing credits and debita to the
Funde and the purpo~e for which each debit to the ~nda vyas made. The Funda are pledged as additional security for the aums secured by thu
Mortgage.
If the amount of the FLnds heid by I.ender. together with the [uture monthly inatalimente of Funda payable prior to the due dates of ta:cs.
asaesaments, insarance pnmiuma and ground renta, shall exc2ed the amount required to pay said taxea, aaeeasmenta, insurance premiums
and ground nnts as they lall due. snch excess shali be, at Borrower e option, either promptly repaid to Borrower or eredited to Borrower on
monthly installments of ~nda. If the amount of the Funda held by Lender shall not be autficie~t to pay taxes, assesaments, inaurance
premi~ snd ground nnts as they tall due, Borrower ahall pay to Lender any amount necesaary to make up the deficiency within 30days
from the date aotice is mailed by Lender to Bormwer requeating payment thereof.
Upon payment in fuq of aU suma secured by thia Mortgage, Lender ahal) pmmptly refund to Borrower any funda held by Lender. I[nnder
paragraph 18 hereof the Property is sold or the property is otherwiee acquired by Lender, I.ender ahall apply, no later than imrnediately ptior
to the sak af the Propedy or its soquiaition by Lende~, any Funda held by Lender at the time of application as a credit againat lhe aums secured
by this Mostgsge.
3. Applieation of Payments. Uniess applicable law pmvidea othecwiee, all paymenta received by I.ender under the Note and
paragraphs l and 2 hereof shall be applied by l:ender firat in payment of amounta payable to Lender by Borrower under paragraph 2 hereof.
then to interest payable on the Note, then to the principal of the Note, and then to intereat and principai on any Future Ad~ancea.
~. Chartes; Liens. Borrower shall pay all taxea, asaessments and other rharges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furniah to Lendrr ~
all notices of amounte due under this paragraph, and in the event Borrower shali make payment directly, Borrower shall promptly furnish to
[.ender receipta evidencing auch paymenta. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shall not be required to discharge any auch lien so long as Borrower ahall agree in writing to the payment of the obligalion secured by
such lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedin(ts
which operate to prevent lhe enforcement of the lien or [orfeiture of the Property or any part thereof.
5. Hazard Iaeurance. Borrowrer shail keep the improvements now exiating or bereaRer erected on the Property ineured againat loes by
fire, hazarda included within the term "extended coverage," ~and such other hazards as Lender may require and in such amounts and for auch
periods as I.eader may rrquire; provided, that Lender shall not require thai the amount of such coverage exceed that amount of coverage
required to pay the aums secured by this Mortgage.
Tfie inaurance carrier providing the insurance shall be chosen by Borrov~er subject to approval by l.ender; provided, that such approval
ahall not be unreasonably withheld. All premiums on insurance policies shall be ps~id in the manner provided under paragraph 2 hereof or, if
not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. _
All insurance poliriea and renewals thereof shall be in form acceptable to Lender and ahaU include a atandard mortgage ciauae in favor of
and in fortn acceptable to Lender. Lender ehall have lhe right to huld the policies and renewals thereof, and Boqower shall promptly [urnish to
i.ender all renewal noticee and all receipts of paid prnmiums. In the event of loss, P,orn-wer ahall give prompt notice to the insurance carrier
and Lender. Lender may mak.e proof of loss if not made promptiy by Borrower. •
Unleas Lender and Borrower otherwise agree in writing, insurance procee~ shall be applied to reatoration or repair of the Property
damaged, provided such restoration or repair is economically Celsible and the+security of thia Mortgage is not thereby impaired. If euch
reatoration orrepair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda ahalt be applied
to the sume aecured by this Morigage, with the excess, if any, paid to Bonower. lf the Property is abandoned by Borrower, or if Borrower faile to
reapond to I.ender within 30 days from the date notice is mailed by I.ender to E3orrower that the insurance carrier ofiere to aettle a claim for
insurance benefits, Lender ia authorized to coilect and apply the insurance proceeds at Lender s optiun either to reatoration ~r repair ot the
Property or the aums aecured by this Mortga~te.
Unleea Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or postpone thedue
date of the monthiy instaUments referred to in paragraphs 1 and 2 F~ereof or change thr amounl of such inatallmente. It under paragraph 18
hereof the Ptoperty ia acquired by Lender, all right, title and interest of E3orrower in and to any inaurance policies and in and to the proceede
thereof resulting from damage to Property prior to the sale or acqu~sition shall pass to I.ender to the extent of the aume eecured by this
Mortgage immediately prior to auch eale or acquiaition.
6. Preservation and Meintenance of Property: Leaseholds; Condominuma: Plenned Unit Developments. Borrower shali keep
the Property in good repair and ahall not commit waste or permil impairment or deterioration of the Property and shall comply with the
proviaiona of any lease if this Mortgage is on a leasehold_ If this Mort~age is on a unit in a rnndominium or a planned unit development,
Borrower shall perform all of Borrower's obligations undet the declaration or covenants creatinKor govern~ng the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and conetituent documenta. If s
condominium or planned unit development rider is executed by Aorrower and recorded together with this Mortgage, the oovenanta and
agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the
rider were a part herrof.
7. Prntection of Lender's 3ecurity. lf Borrower faila to perform the rnvenante and agreemente cantained in this Mortgage, or if eny
action or proceeding is commenced which materially eflecie I.ender'e intereat in the Property, including, but not limited to, eminent domain.
insolver-cy, oode enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upoa
notioe to Bormwer may make such eppearances, disburoe euch aume and teke auch action ae is necessary to protect Lendtr'~ interest.
inciuding, bnt not l~mited to, disburaement of reaeonable attorney'e fees and entry upon the Property to make repain. If Lender required
mortga~e in~urance as a condition of making the loan secured by this Mortgage, Borrower ahall pay the premiums required to maintein
such in~urance in effect until auch time se the requirement for auch ineurance terminatea in accordance with Borrower's and I.endd~
written agreement or epplicable L.aw. Botrower shall pay the amount of ali mortgage insurance premiums in the manner pmvided under
peragraph 2 hereot.
My amounts d'ubureed by Lender pereuant to thie paragraph 7, with intereet thereon, ehaU become additional indebtedness of
F3ormwer secured by this Mortgage_ Unleae Borrower and L.ender agree to other terms of payment, auch emounts shell be payable upon
notice from Lender to Borrower requesting peyment thereof, and shall bear interest from the date of diebursement at the rate payable firom
time to time on outetanding principal under the Note nnlees peyment of interest at auch rate woul~ be rnntrary to appiicable law. in ~-hich
event such amounts shall bear interest at the higheat rate permiaeible under applicable Iaw. NothinA rnntained in this paragraph 7. shall
requirt Lender W incur any expenae or teke any action hereundeT.
BOOKJ~~ PaGE ~2
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