HomeMy WebLinkAbout1510Borwwer and Lender oove~ant and a~ree aa folbw~:
1. Paymeat of Priacipal and Iatere~t. Borrower shall promptly pay when due the principal ot and i~tereat on !he indebtedness
evidenoed by the Note. p~epayment and late chu~a ea provided in the Note, s~d the principal of and intereat o~ a~y ~ture Advancee secured
bY thia Mort~a~e. .
2. ELnd~ [or Taue~ ~ad Iaiuranoe. Subject b applicable law or to a writtea waiver by I.ender. Borrower shall pay ta L.ende~ on the day
monthly installments of principal and interest ere payable under the Note. until the Note is paid in full, a aum (herein "[~nds") eqoal to one
twelfth of the yearly tax~ and a~sesamenb which may attain priority over this Mortgage. and grou~d rents on the Pmperty. if any, plw one
tweltth of yearly praaium installtnenfa [or hazard ir~surance, plus one~twelRh of yearly premium installments for mortgage insurance, if any.
all aa reawnably e~timated initially and from time to time by l.ender on the basia o[ aaseasments and billa and reasonable estimatea thereof.
The PLnds ~hall be held in an institution the deposits o~ accounts ot which are insured or gua~anteed by a Federal or State agency
(including Lender if Lender is such an institutio~). Lender ahall apply the Funds to pay esid taxes. asaesaments. insurance premiums and
ground rents. Lender may not charge for w holding and applying the Funds, eu~alyzing said aceou~t, or verifying end compilitig said
aasessmeats and bilb. unless Lender pay~ Botrower i~tereat on the FLnde and applicable law permits I.ender to make auch a charge. Borwwer
and Leadu may agrte in writing at the time of execution of thia Mortgage that iatereat on the PLnds shail be paid to Borrower, and unleas
euch agreement is made or applicable law requir~ such interest to be paid, [.ender shap not be required to pay Borrower any interest or
eamings on the I~Lnds. Lender shall give to Borrower, without charge, an annual accounting of the Fuads showing credita and debits to the
Funds and the purpose for which each dsbit to the E~nds waa made. The Funds an piedged as additionel aecurity for thesume secnred by thie
Mortgay~e.
If the amount of the fi~nds held by Lender, together with the future monthly inataliments of Funds payable prior to the due dates of ta:ea,
aeseaaments. insurance premiums a~d ground renta, ahall e:caed the amount required to pay said ta:es, asseasments, inaurance premiums
and ground rents as they fall due, such excess ahall be, at Boimwer'a option, either promptly repaid to Borrower or credited to Borrowa on
monthly instsliments of ~nds. It the amount of the Funde held by Lender ehall not be sufficient to pay taxes, asaessments, insurance
premiums and ground rents as they fell due, Borrower shall pay to Lender any amount neceasary to make up the deficiency within 30 days
from the date notioe ia mailed by Lender to Borrower requeating payment thereof. ~
Upon pey~nent in fuU otall sume secured by thia Mortgage, l.ender ahell pmmpUy refund to Borrower any [unds held by Lender. If under
paragraph 18 henof the Property is aold or the Property ie otherwise acqnired by Lender, Lender shall apply, no later than immediately prior
co the sale of the Ptoperty or its aoquieition by Lender, any Funda held by Lender at the time of application as a credit againet the aums eecured
by this Mortgage.
3. Applieatloa of Psyments. Unlesa applicable law providea otherwiae, all payments received by [.ender under the Note and
paragraphs 1 and 2 hereof shall be app6ed by Lender first in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof,
then to intereat payable on the Note. then to the principal of the Note, and then to intereat and principal on any Future Advanoes.
4. Charges; Liena. Borrower shall pay all taxea, assessments and other charges, fines and impositions attributable to the Property which
may attein a priority over this Mortgage, and leasehold payments 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. Borrowershall promptly fumish to Lender
all noticea of amounte due under this paraqraph, and in the event Borrower shall make payment directly, Borrower shall pmmptly furniah to
Ixnder receipta evidencing such payments. ~3orrower shall promptly discharge any lien which has priority over this Mortgage; provided, ihat
Borrower ahall not be required to discharge any such lien so long ax E3orrower shall agree in writing to the payment of theobligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedinga
w•hich operate to prevent the enforcement of lhe lien or forteiture of the Propert~ or any part thereof. •
5. Hezard lnaurance. Borrow~er shaU keep the improvements nuw existing or hereaRer erected on the Property inaured againat losa by
fire, hazarda included within the term "eztended coverage," and such other hazards as Lender may require and in auch amounts and for auch
periods as Lender may require; provided, that I,ender shall not require that the amount of such rnveraqe exceed that amount of coverege
required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chcuen by Rorrower subject to approval by I.ender; pmvided, that such approval
shaU not be unreasonably withheld. All premiums on insurance pulicies sh:ill be paid in the manner pmvided under paragraph Y herenf or, if
not paid in such manner, by E3orrower making payment, when due, directly to the insuranre carrier. .
All inaurance policies and renewals thereof shall be in form acceptable to I.ender and shall include a standard mort~ageclauae in tavor of
and in form acceptable to L,ender. (.ender shall have the right to hold the policies and ~enewals thereof, and Borrower ahall promptly fumiah to
i.ender all renewal notices and all receipts of paid premiums. ln the event of loss, I3~rruwer shall give prompt notice to the insurance carrier
and Lender. Lender may make proof of loss i( not made promptly by Borrower. •
. Unleas Lender and Borrower otherwise agree in writing, insurance proceeds shall be t~pplied to restoration or repair of the Property
damaged, provided such restoration or repair is economically feasible and lhe security of this Mortgage ia not thereby impaired_ If such
reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied
to the aums aecured by this Mortgage, with the excess, if any, paid to Eiorrower. Itthe Property is abandoned by Borrower, or if Borrower faila to
reypond to L.ender within 30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier offers to aettle a claim for
insurance benefits, [.ender is authorized to collect and apply the insurance proceeds at l.ender'e option either to restoration or repair of the
Property or the sums aecured by this Mortgage.
Unleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or poetpone thedue
date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of auch inatallmente. If under paragraph 18
hereof the Property ia aoquired by I,eoder, all right, title and interest of Borrower in and to any ineurance policies and in and to the proceeda
thereof resulting from damage to Property prior to the sale or acqu~sition shall paas to Lender to the extent of the auma secured by this
Mortgage immediately prior to auch sale or ae~uiaition.
6. Preservation and Maintenence of Property; Leaseholds; Condominums; Planne~ Unit Developments. Borrower ahall keep
the Property in good repair and shall not commit waste or permit impairment or deterioration ot the Property and shall comply with the
provisione of any leaae it this Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development,
Borrower ahall perform all of E3orrower e obligations under the declarali~n or covenants creatinRor governing the condominium or planned
unit development, the by-lawa and regulations of the condominium or planned unit development, and constituent documente..If a
condominium or planned unit development rider ia e:ecuted by Borrower and recorded together with thia Mortgage. the wvenants and
agreements of such rider shall be incorporated into and shall amend and supplement the covenanta and agreementa of this Mortgage as if the
rider were a part hereof. ~ .
7. Protection of Leoder's 3ecurity. If Borrower tails to perform the aovenants and agreemente contained in this Mortgage, or if any
aMion or proceeding is rnmmenced which materially affecte Lender s interest in the Property, including, but not limited to, eminent domain.
insolvency, oode mforoanent, or arrangementa or proceedings involving a bankrupt or decedent, then Lender at Lender's option.npon
notice to Borrower may ma1~e such appearances, disburee such eums and take such action as is neceasary to pmtect Lendtr'~ inter~st,
including, but not limited.to, disbursement of reasonable ettorney'e fees snd entry upon the Property to meke repairs. If I.ender reqnired
mortgage insnrance ae a rnndition of making the loan secured by thia Mortgage, Borrower shall pay the premiums required to maintain
euch insurance in ef[ect until such time as the requirement for auch insurance terminates in accordance with Borrower's and Lendd~
written agreement or applicable Law. Borrower shall pay the amount ot all mortgage insurance premiums in the manna provided undet
paragraph 2 hereoL '
My amounte disbursed by Lender persuant to this paragraph 7, with interest thereon, shal) become additional indebtednes~ of
Borrower secured by this Mortgage. Unleas Borrower and Lender agree to other terms of payment, such amounts shall be payable upon
notice irom Lender to Borrower requesting payment thereot and shall bear interest from the date of disbursement at the rete payable irom
time Lo time on outstanding principal under the Note unlese payment of interest at such rate would be rnntrary to applicable law, in which
event such amounts shall bear intereat at the higheet rate permissible under applirable law_ Nothing rnn4ined in thiu paragraph 7, shall
require I.ender to incur any e:pense or take any action here~nder.
69~K•,47 PaGE~~7
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