HomeMy WebLinkAbout1320Borrower and I.ende~ coveoant and agree as [oUowa:
1. Payment ot Priacipsl wnd laterea~ Borrower ahall promptly pay when due the principal of and interest on the indebtednese
evidenced ~y the Note, prepayment and late charges as pmvided in the Note, and the principal of and interrat on any Future Advances aecured
by thia Mort~eae.
2. F1ndr fiir Ta~ces and lnaur~-nce. Subject b applicable lnw o~ to a writtrn waiver by Ixnder,l3oRUwer ahail pa~~ to t.enderon the day
monthly inatallments otprincipal and intereat are payable under the Note, until the Nute ia paid in full, a aum (herein "F'unda") equal W onr
twelRh of the yearly taxea and asaesamenta which may atlain priority over thia Moriguge, and ~und renta un the Property, if u~y, plua one
twelRh of yearly premium installmenta for hezard i~surance, plus onrtwelfth of yea~ly premium inatallmenta fo~ mortgage i~surance, if any,
ail as reasonably eatimateti initially a~d from time to time by I.ender on the basis of attisessments und bills and reasonablr extimutes thereof.
The Fu~ds shaU be held in an i~stitution the deposita or accounts of whirh are inaured or guaranteed by a Federal or State agency
~ including I.ender if I.ende~ ia such an inatitution). I.ender ahall apply the F unda to pay said lpxea, asaeaxmrnta, i~aurance p~emiuma and
Kround renLe. l.ender may not charge [or w holding and applying the Funda, analyzing said account, or verifyinq and compiling said
assesaments and bills, untess I.ender paye BorroweT interest.o~ the Funds s+nd applicable law perntita l.ender to make auch a churge. Borrower
and l.ender may agree in writing st the time ot execution o( Ihia Mortgage thut intereat on the Funds ahall be paid to f;orrower, and unlesa
such agreement ia made or applicable Iaw requirea auch interest to be paid, l.ender shall not be required to pay &,rrower any intereat or
exrnings on the fl~nds_ I.ender ahall give to Borrower, without charge, an annuat accuunting of the I~ unds ahowinq credits and debita to the
Funda and the purpost for which each debit to the Funda was madz. The Funds arepledged as additional security for the auma secured by this
tilortgage.
If the amount o[the Flinds held by I.ender, together with the fu:um monthly inatallmrnta of F unds payable prior to the duedatea oftaxee,
assessments, insurance ptemiums and Rrouad re~ts, shaN excred the amount reyuired w pay said taxes, assessmenta, insurance premiuma
and ground rer~ts as they fall due, auch excess shall be, af E3o~rower s option, either promptly repaid to Borrower or credited to E3orrowe~ on
monthly in8tallmenta of Funda. If the amount of the Funda held by l,ender shall not be sutficient to pay taxea, assesxments, insurance
premiuma and ground renta as they tall due,l3oROwe~ shall pay to t,ender any amount neceasary to make up the deficiency within 30 daye
from the date notice is mailed by I.ender to i3orroxer requesting payment fhereof.
Upon payment in full of all suma secured by this Mortgage, l.ender shall promptly refund to E3orrower any funds held by l.ender. if under
paragraph 18 hereof the Properly is sold or the Nroperly is otherwise acquired by I~ender, I.ender shali apply, no later thun immediatety prior
tc~ the sale of the Property or itsaequisition by I.ender, any Funds held by t.enderat the timeolapplication as a credit against thesums secured
by thie Mortgage_
3_ Application of Payments. U~less applicable law provides otherwise, all payments received by I.ender under the Note and
paragraphs 1 and 2 hereof shall be applied by t,ender firsl in payment of nmounts pay~bte to I.ender by BorroKer under paragtaph 2 hereof,
then to interest papabte on the Note, then to the princi~a! of the Note, and then to interest and principal on any Future Advances.
-1. Charges; Liens. Rorrower shall pay ali taxcs, assetisments and uthrr ch.+r~c~, fines and imp~~sitic-n~ attributable u- the I'roperty which
may attain a priority over this MortK.~Ke, and le,-sehold paymrnts or ~;n~und rents, if an~•, in the manner pruvided under paragraph 2 hereofor,
~ f not paid in such manner, by Eiorrc~wer makinK p:~yment, when due. direc•dy to the paqre ihrrroL Rormxer tih~ll promptl~• furnish to I.ender
ail ~otices of amounts due under this paraKr.~ph, and in the erent It~aTuw•cr shall m:~ke p.~yment dirE~•tl~, Itorror.er shall prumpQy fumish to
! xnder receipts e~ idencing such pa>•menGc. Ik~rmwer shall prumpth• discharK~~ .~ny lien which h:+s priority uver this :11~,rtgaKe: provided, lhat
Fi~~rrower shall not berequired tudiseharKe any such lirn so IunK as ti~,rrower shalt aXre~~in writinK tu thepaymrnt uf thc•utrliKation secured by
wch lien in a manner accep4+ble to l.ender, or sh:dl in K~Mx~ f:~ith i•~~nte:+t wrh lie•n b~, nrd~•frnd ~•nG~n•~~m~~nt of su~•h lien in, legal proceedings
Khich operate to pre~ent the r~forcrment of the lien ur forfe•itur~• uf th~• Pn~prrty ~~r :~n}• part thrnr~f.
:i_ Hazard Inauran~e. F3orrower shall krrp thP improvements nuw• ~~xistinK or hrrr:+fter ercct~Kl on the Pruprrty in~;ured aKainst losa by
fire, hatards included within the term "rxtend~Ki cti~veraKe." and such uthrr h:~zards .~,~ I.ender may rrquirr.ind in such amounta and for such
prriods as [.ender may require; provide~d, that lxnd~•r sh:d! n~~t reyuire that the am~iunt of such n~~er:~Kr exceecl that amouM of coverage
rec~uired to pay the sums sc~~urrd b~• thi~ ~1ur1~;aKr.
The insurance carrier pr~n•idinR the• in~uranc,• .t~all tK~ i•h,,•.•n h~• li,~rr~~x•~•r suh~eti•t t~,:~ppn~~•:+1 b~• L~~nd~•r, pmvid~d. lhat such upproa•al
:hap not be unrr:~.xinably withha•Id. All pri•mium. un insur:~n~~~• p~~hrur .hal! iK• p:ud m th~~ mann~•r pruvidwl under par.~Kraph'L hermf or, if
rn,t paid in such m~nner, b~~ Ft~~rr~~wer m:~k~nK p:~~•m~•nt. ..h~•n du~•, d~nti•tl>• t~~ th~• imurance ram~•r
A11 insurance policies and renrvcals therrof sh,ill trr ~n fortn :~cc~•pt:ible• tn ixn~l~r.~nd sh~l) includra st<~nd.~rd mvrtg:iKeclausein favorof
and in form acceptable tn 1.ender. l.endersh:~l1 hati•t~ thr riy;ht to huld th~• jH~h~-i~•s.~nd n~nrwals thereuf, ~ind B~~rrnwPr shall promptly fumish tc-
i,rnder all tenewal nMices and all rrcripls u! pa~d prrmiums. In the ~•~•e~~t ~~f Inss, Etorn~N•er shall Kive prun-pt nutice u- the insurance carrier
and l.ender. I,ender ma~ make pnx~f uf luss if not made prompth• b~• {iurrow•Fr.
C'nless Lender and (iorrovrer otherv-ise aKrre in a~ritirtK, insur,~ncc• pr~N•e~e•d, .h:~l! M~ applird tu restorntion or repair of the I'roperty
damaqed, provided such restoratiun or rrpair i~ c~t•onumicall~ feasiblr and the st~•urity of this :11ortKaKe is not thereby impaired_ If such
rrstoration or rrpair is not economically frasiblP or if the sc~vnt~ uf this ~1urtKagN veuuld t~r i:npaired, the insurance proceedsshall beapplied
t~ ~ the sums secured I±y this A1uriKaKe, w~th the exc~•s., if an~ , p:iid to IiorruwNr. If thr 1'ro~x•rtr is abanduned by I3~rrouer, or if Borrov~er fails to
re;pond to I.ender wiihin :if- days frum the date nntir~• is m:+~l~d b~ I.ender u~ li~~rrowrr that the invurance carrier offers to settle a claim for
~nsurance benefits, l.ender is authori~c~l to cullr~•t .+nd apply thi• in,ur..nce• pr~K•e~e•dti at I.ender's option either to restoratiun or repair of the
Yroperty or the sums secured by this ~1orlK:~Kr-
Unieas [.ender and &,rruv-er other.~ i~e aKrc~ ~ n a~ritinK, an}• such :~p~-lica tion af prK•ee~1s to principal shall not extend or pustpone the due
date of thr monthly ~nstallments refrrred tu in paraKraphs 1:md'L hemof or chankr the amuunt of such installmentr,. If under paragraph 1R
hereof the Property is acquired by Ixndrr, all riKht, liil~• und ~ntereFt of liurrna•er in and tn any insurance policirs and in and to the proceeds
thereot resulting from damage k, Property prior to the sate ur a~~yui.i[i~m shall pa~.ti to I~c~nder to the extent of the sums secured by this
~t~,rtgage immediately prior to such sale or acquisition.
6. Preaervation and Maintenance ot1'ropert~; l.c•aK~•holds; ('ondominums: {'lanned tJnit Developmente. Rorrowershall keep
thP Properly in goad repair and shall nut cummit w.-~te ur ~•rm~t imp:iirmrnt ur d~teri~~r.~tion of the F'roperty and ahall comply with the
pru~•isions uf any lease if this AtoriKaKe is ~,n a ieasrhold. If this 11c;rtKaKr is un a unit in a cundominium or a planned unit development,
fiurirow•er shall perform all ~,f B~rrower's ~~btigatiuns under thr dr~•lar:+tiun ~~r cm•i~~ant~ ~~re:~tinR ur Kovern~ng lhe condominium or plnnned
unit development, the bylaws and reKulations of the cundominium ur plannErl unit de~velopment, and constituent documents. If a
~ undominium or planned unit de~•rlopment rider is excrutcYl by ti~~rruwer and rec•ordrd toKether K~th this 1~fortgage, the rnvenants and
.+Krremen~c of such rider shall ~ int•ur{wr.ited intu and .hal! ame•nd and supplemrnt the~•u~•rnants and aKreementsof this MortKaKe as if the
ndrr vrem a part hereoE
7. Protection of Lender'e 3ecurity. If Rorrower fails u- perform the cvvenante and agreementa sontained in this Mortgage. or if any
aMion or proceeding ia commenced which materially ef(ectn I.ender's intereet in the F'rvperty, including, but not limited ta, eminent domain,
~neolvency, oode enforcement, or arrangemente or•pmceedinge im•olvinq a bankrupt or decedent, then Lender at Lender'e option,upon
notice to Borrower may make euch appearancee, diaburee auch suma and take auch action ae ia necessary to protect Lender'e interest,
~ncluding, but not limited to, diabureement of reasonabte attorney's tees and entry upon the Propedy to make repaire. If l.eader required
mortgage ineurance se a condition of making the luan Recured by thes :1+lorigaKe, fkirrawer ahall pay the premiume required to maintain
such inaurance in effect until euch time as the requirement for auch ineurance terminatea in accordance with Borrower'a and [.endei e
w-ritten agreement or epplicable law. E3orrower ehall pay the amnunt of all murtKaKe inaurance premi~me in.the manner provided under
paragraph 2 hereof.
Any amounts diebursed by Lender persuent to this para~traph 7, with interest therec,n, ahall become additional indebtednese of
Borrower eecured by thie Mortgage. lJnleas E3orruwer and l.ender agree to other terms of payment, such amounte ahall be payable upon
notice from Lender to E3orr~ower requeating payrnent thereof, and ahall bear intereat fn-m the date of diebursement at the rate payable from
time to time on outetanding principai under the Note unless payment uf interePt at sucb rate would be contrary to applicable law, in which
event such amounts ahall bear intereat at the highest rate permiseible under applicable law. Nothing contained in thie paragraph 7, ehaU
require I.ender to incur any expense or take any action hereunder.
~.~'~347 P~GE131?
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