HomeMy WebLinkAbout1324Borrower and I.~~der covenant snd agree a~ lolbwc
1. P~ymeat of Prlnclpsl ~ed Intere~t. Bor~ower ehall promptly psy when due the principal oi and interest o~ the indebtedneea
evidenced by the Note. prepeyment and late chuges as provided in the P1ote, and the principal of and intereston any Ftiture Advancea securod
by this Mortgage.
2. Fl~nds foe Tases and Insu~ance. Subje~t b epplicable law or to a writlen waiver by I.ender, BoROwer ahall pay to I.e~deron thedey
moMhly inatallmenta ot principal and intereat are payable u~der the Note, until the Note ia paid 'en full, a aum Iherein "Flinds") equal W ons
twelfth otthe yearly taxe8 and asseaementa which may attain priority over this Mortguge, and ground renta on the Property, itaoy, plus ons
twelfth of yearly prrmium installmente for hasard inaurance, plus onetwelflh of yearly p~emium inatatlmenta [or mortgage inaurance, if any.
all as reaso~ably eetimeted initially and trom time to tia~e by Lender on the basis of a~asessmenta and bills and reasonable entimates the~eof.
71~e FLnds ahall be held in an institution the deposita or accounts ot which are inaured or guaranteed by a Federal or State agency
(including Lender ii I.ender ia such an institution). l.ender shall apply the Fut-da /o pay said taxes, asseasments, inaurance premiuma and
ground rente. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifyinR and compiling said
assessments and bills, unless Lender pays Borrower i~tereat on the F nnds and applicable law permita Lender to make auch a charge. Borrower
and Lender may agree in writing at the time of execution of this Mortga~te that interest on the Fl~nda shall be paid to Borrower, and unleas
such agreement ia made or applicable law requiree euch intereat to be paid, [.ender ahall not be required tn pay Borrower any interest or
earnings on the ~nds. Lendrr sha11 give to Borrower, without charge, an annual accounting of the Funde ahowing credita and debita to the
Funds and the purpoae [or which each debit to the Ftinds vyas made. The Funds are pledged as additional eecurity for the auma secured by this
Mortgage.
If the amount of the ~1nda held by I.ender, together witkthe future monthly inatallments uf Funds payable prior to the due datea of taxea.
assessmenta, insurance premiuma and ground renta, shall excaed the amount required to pay said ta:ea, asaeasments, insurance premiuma
and ground nnta aa lhey fall due, such excess shall be, at Borrower's option, either promptly rnpaid to Borrower or credited to Borrower on
monthly installmenta of Fl~nde. If the amount of the Funds held by [.ender shall not be sufficient to pay taxea, assessmenta, ineurance
premiums and ground rente as they fall due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 days
from the date notice is mailed by Lender to E3orrower reqursting payment thereof.
Upon payment in fi~ll of all aums aecured by this Mortgage, I.ender shall promptly refund to Borrower any funds held by L.ender. lf under
paragraph 18 h~eof the Property is aold or the Property is otherwise acquired by I.e~der, l.ender shall apply, no later than immediately prior
to the eale of the Nroperty or ite aoquisition by Lender, any Funds held by I.ender at the time of application as a credit againat the suma secured
by this Mortgage.
3. Application of Peymente. Unless applicable law provides otherwise, all paymenta received by Lender under the Note and
paragrephs 1 and 2 hereof ahall be applied by Leader firat in payment of amounts payable to I.ender by Eiorrower under paragreph 2 hereof,
then to interest payable on the Note, then to the principal ot the Note, and then to interest and principal on any Future Advanc~ea.
4. Chargea; Liens. Borrowershall pay all taxes, assessments and other charRes, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold pnyments or gmund rents, if any, in the manner provided under paragraph 2 hereof or.
if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender
all notices of amounts due under this paragraph, and in the event 13orrower shall make payment directly, Borrower shall promptly furniah to
[.ender receipts evidencing ~uch paymenL4. Rorrower shalt prumptl_r• disrhargr any lien which has priority o~ rr this Mortgage: provided, that
E3orrower shall not be required to discharge any such lien so IonQ as E3~~rrower shall agree in writin~ to the payment of the obligation secured by
such lien in a manner acceplabte to ixnder, or shall in good faith contest such lien by, ur defend en[urcement of such lien in, legal proceedings
which operate to prevent the enforcement uf the lien or forfeiture of the Properiy or any part thereof.
5_ Hazard [nsurance. Borrowrer shall keep the impro~•ements now existinR or bereaRei erected on the I'roperty insured against loea by
fire, hazarda included within the term "extended cover~Re," and such other hazards :~s I.ender may require and in such amounts and [orsuch
periods as Lender may require; provided, that l.endrr sh:-11 nut require that the amount ot such rnverage exceed that amount of coverage
required to pay the sums secured by this Mortgage.
The insuranrn carrier providing the insurance shall M• i•hus~~n by ltorrow~r subje~K to appro~•al by I.ender, pro~•ided, that such approval
shall not be unreasonably withheld. All premiums on insurance p~~licie~ shall be paid in the manr~er pruvide~f under paragr:~ph 2 hereof or, if
not paid in such manner, by Eiorrower making payment, when due, d~nY•tly to the insurance carrier.
All insurance policies and renewals thereotshall be in form ac•cept:ible to Lender and shall include a standard mortgage clause in tavorof
and in form acceptable to l.ender. Lender shall ha~ e the right tu hold the p~~licies and renewals thereof, and F3orrower shall prompdy furnish to
i,ender all renewal notices and all receipts of paid premiums. In the reent of latis, Borruwer shaU give prompt notice to the inaurance carrier
and Lender_ Lender may make proof of loss if not made prumpth bt• fiorroa•er.
Unlesa Lender and Aorrower otherwise agree•in writinK, in~urancr prucee~i: sh:+ll he applied to restoration oF repair of the Property
dameged, provided such reetoratiun ar repair is economically feAsible and the~src-urity of this litortgage is not lhereby impaired. If such
restoration or repair is not economically teasible or if the serurit~ of this MortKage would be i~paired, the insurance proceede ahall be applied
to the aums secured by this Mortgage, with the excess, if any, paid to F~~rrower. l f the E'roperty is abandoned by Aorrower, or if Eiorrower faila to
reypond to Lender within 30 daya from the date notice i~ mailrrf b~ I.ender d~ Borrower that the insurance carrier oPfera to settle a claim for
insuraace benefits, Lender is authorized to collect and apply the insurance pn-ceeds at I,ender's option eilher to reuu-ration or repair of the
Property or the sums secured by this MoriKage.
Unless I.ender and E3orrower otherwise aQree in writinK, any such applicatiun of proceeds to principal shall not extend or postpone thedue
date of the monthly installer.ents referred to in paragraphs 1 and Y!~ereof or chanKP the amount of Auch instal:menta. If under paragraph 18
hereof the Property is acquired by [.ender, all right, tide and interest of Bormwer in and to any insurance policies and in and to the proceeds
thereof reaulting from damage to Property prior to the sale or acqu~s~tion shall pass to l.ender to the exlent of the sums secu~ed by this
Mortgage immediately prior to such sale or acquisition.
6. Preaetvation and Maintenance otProperty: Leaseholds; ('ondominums; f'lanned Unit Developmente. Sorrowershall keep
the Property in good repair and shall not commit waste or perm~t imp:~irmrnt or deterioration of the Property and ahall comply with the
provisions of any lease if this l4lortgage ix on a leasehold. If th~s 11ortKaKe is ~-n a unit in a condominium or a planned unit development,
F3onower shall perform all of I3orrower's obliKatiuns under the declaration or co~•enants ~•reatinKor Rovern~ng the condominium or planned
unit development, the 5y-laws and regulations ot the conduminium or p{anned unit development, and conatituent documente. If a
condominium ot planned unit development rider is executed by Fiorrowrr and rec-urded t~ether w~th this MoRgage, lhe cuvenants and
aKreementsof such rider sh:~U }-e incc,r{wrated into and shall a~nend and supplement thecovenants:~nd agreementsufthis Mortgageasifthe
rider were a par! hereof.
7. Protection ot I.ender's Security. If Borrower fails to perforn- the covenante and a~eemente contained in this Mortgage, or if any
action or proceeding ie commenced which materialiy affecte [.ender'a intereet in the Property. including, but not limited to, eminent domain.
inwivency, oode enforcetnent, or arrangementa or proceedinga involving a bankrupt or decedent, then Lender at Lendei s option,upoa
notice to Borrower may make such eppearances, diaburee auch suma and take auch action aa ie neceasary to protect Lender's intere~t,
including, but not I~mited to, dieburnement of reseonable attorney's feee and entry upon the Property to me1~e repairs. If Lender required
mortgage insarance as a condition of making the loan aecured by this Mortgage, Borrower ehall pay the premiums required to maintein
euch insurance in effect until such time ae the requirement fur euch ineurance terminatee in accordance with Borrower's and Lmdtr ~
written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiume in the manner provided undei
paragraph 2 hereof.
Any amounte diebursed by I.ender perauant to this paragraph 7, with intereal thereon, ehall become additional indebRedneas oE
Horrower se~cured by thie Mortgage_ Unleea Borrower and [.ender aRrew to other terma of payment, auch amounte rhall be payable upon
notice from Lender to Borrower requeatinq payment thereof, and ehel! bear intereat from the date of diabureement at the rate payable from
time to time on outstanding principal under the Note nnless payment of intereet at auch rate would be contrary to applirable law, in which
evenl such amounts ehaU }~ear intereat at the higheat rate permixeible under applicable law. Nothing rnntained in,thiis peragraph 7, shall
require Lender to incur any expenee or take any action hereunder.
e~~ 347 PaGE 1321
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