HomeMy WebLinkAbout2383Borrowet and Le~der coveneat and a~-~ee a~ [olbw~:
I. Paymeat ot Prie~cipal and l~tere~~ Bonowe~ shall pwmptly pay when due the pri~cipal ot and i~terest on lhe indebtednes~
evidenced by the Note. prepayment and late charges a~ provided in the Note, and the principal o[ and inte~t on any Flture Advances secund
by thu Mort~~e.
2. P1u~d~ for Tru[e~ and insuranoe. Subject to applicable law or to a written waiver by I.ender, Borrower shall pay to I.ende~ on the day
mo~thly inatallments of principal and intereat are payable unde~ the Note. until the Note is paid in [ull, a sum (herein "Funds") equa! to onp
twelfth of the yesrly taxes and a~ae~sme~ta which may attain priority ove~ this Mortgage, and ground ~enis o~ the Pmperty, if any, piw one~
twelfth of yearly premium inatallmenta for hazard insurance; plua onetwelfth ofyea~ly premium installments (or mortgage ioeurance, if any.
all as reaaonebly eetimated initially and from time to tiR~e by l.ender on the baais of aaseesmenta and hilla and reasonable eatimatea thereof.
The F1tnd~ shall be held in an inatitution the deposits or accounts of which are i~sured or guara~teed by a Federal or State agency
(includina Lender if l.ender u such an institution). I.ender shall apply the Funds to pay said taxes, assesamenta, i~surance premiuma and
ground n~ts. I.ender may not cher~e fw ~o holding and applyiog the Fl~nde, analyzing said account, or verifying and rnmpiling eaid
esses~men4 and bilb. unlas Lender pay~ Borrower interest on the Funds and applicable lew permits l.ender to make such a charge. Borrower.
and Lender may agree in writins at the time otesecution of this Mortgage that intereat on the I~'unde shall be peid to Borrower, and unlas
auch agreement is made or appGcable law requires auch interest to be paid, Lender shall not be requircd to pay Borrower any intereat or
earnings on the flind~. Lender ~hall give to Borrower, without charge, an annual accounting of the Funda showing credits and debits to the
F unds and the purpoee for which each debit to the Flinds waa rqade.'I1~e Funds are pledged as additional security [or the suma secured by thie
Mortgage.
if the amount of the ~nds held by Lender, together with the future monthly installments of Funds payable prior to the due dates o[taxes,
asaessmenta. insurance premiums and ground rents, ahall e:cred the amount required to pay eaid taxea, asseesments, insurance premiuma
and ground renta as they fall due. iuch exceas shall be, at Bo~rower's option. eilher prompdy npaid lo Borrower or credited to Borrow~ on
monthly installmenb of I~ltnds. If the amount of the Funds held by Lender ahatl not be eufficient tu pay taxes, asseeaments, insurance
premiume and ground rents es they tall due. Borrower abaU pey to Lender any amount neceseary to make up the de6ciency within 30 days
from the date notice is mailed by Lender to Borrower rrquesting paymeot thereof.
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrower any funda held by I.ender. I[under
peregraph 18 hereof the Property is sold or the Pmperty ie otherwise acquired by Lender, I.ender ahall apply, no later than immediately prior
to the sale of the Property or its aaquisition by Lender, any Funds held by I.ender at the time of application as a credit ~gainst the aums eecured
by thu Mortgage.
1 3. Application o[ Paymenb. Unless appliceble law providea otherwiee, ali paymenta received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by l.eoder firat in payment of amou~te payable to Lender by Borrower under paragraph 2 hereof,
then to intereat payabie on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advanoes.
4. Charges; Liene. Borrowershall pay all taxes, assesamenta and other charges, fineB and impositions attributable to the Property which
may attain a priority-over thia Mortgage, and leasehold payments orgmund rents, if any, in the manner provided under paragraph 2 hereofor,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereot &-rrower ahall promptly [urniah to Lender
all notices of amounte due under thia paragraph, and in the event Eiorrower shall make payment directly, F3orruwer ahall promptly furnieh to
l.ender receipts evidencing auch paymenta. E3orrower shall promptly discharge any lien which haa pri~rity over this Mortgage: provided, that
Borrower ahall not be required to diacharge any such lien so long as E3orruwer shall aqree in writinq to the payment o[theobligation secured by
such lien in a manner acceptable to [xnder, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings
which operate to prevent the enfurcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Inaurance. Borrower shall keep the improvements nuw existing or hereafter erected on the Property ineured against (osa by
fire, hazarda included within the term "eztended cuveraKe; ' and such other hazards as I.ender may require and in euch amounts and tor such
periods as Lender may require; provided, that l.ender shall not require that the amuunt ot such coverage exceed that amuunt of coverage
required to pay the auma secured by this Mortgage.
The insurance camier providinR the insurance shall be chusen by Rorrower subject to approval by I.ender provided, that such approva)
shall not be unreasonably withheld. All premiums un intiurance p~~licii~s ~hall t~e paid ~n the mannPr prnvided under paragr:~ph 2 hereof or, if
not paid in such manner, by Korrower mak~nk paymrnt, whrn due, dirrctly to the insurance carrier_
All insurance policiea and renewals thereof shall be in form acceptable to l.endrr s+nd shall include a standard mortgage clauee in favor of
and in form acceptable to [.ender. l.ender shall have the right li, hold the policies and renewals thereof, and E3~rrower ahall promptly furnish to
-xnder all renewal notices and all receipts of paid premiuma. In the event of loss, Eiorn~wer ahall give prompt notice to the inaurance carrier
and Lendet. Lender may make pr~wf of loas if not made promptly by f3orrower.
Unlesa Lender and Eiorrower othervvise agree in writing, insurance proceeds ahal! be applied to restoration or repair of the Property
damaged, provided auch restoration or cepair is ecunomically feasihle and the security ot this Morigage ia not thereby impaired. If auch
rratoration or ~epair is not en,nomically feasible or ~f the security of this Mortgage would be impaired, the inauram-e proceeda shall be applied
to the auma eecured by this Morlgage, w~th the excess, if any, paid to Rorrower. lf the Property is aba~doned by Borrower, or if Korrower faile to
reapond to Lender within :30 days from the dale notice is mailyd by I.ender to Horrowet that the inaurance carrier of[ers to aettle a claim for
inaurance benefifa, l.ender ia authorized to collert and apply the insurance pmceeds at lrnder a option either to restoration or repair of the
Yroperty or the sume eecured by lhis MortKaRe.
Unless Lender and F3orrower otherwise agree in v- nting, any such application of proceeds to principal ahall not extend or poetpone thedue
date of the monthly inatallments rrferred k~ in paraKraphs 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18
hereof the Property is aequired by I.ender, all right, title and intereat of Iiorrower in and to any insurance policiea and in and to the proceeds
thereof reaulting from damaqe to Property prior to the sale or acqmsition ahall pass to I.ender to the extent of the eums serured by thie
Mortgage immediately prior to auch sale or acquieition.
6. Preservation and MaintenanceotProperty; Leaeeholda; C:ondominums; Planned Unit Developmenta. $orrowerahall keep
che Property in good repair and shal) not commit waste or permit impairment or deterioration of Lhe Property and ahal) comply with lhe
proviaiona of any lesee it thie Mortgage is on a leasehold. If this Murlgage ia on a unit in a rnndominium or a planned unit development,
Etorrower ahall perform al) of E3orrower's obligaliona under the declarati~~n orcovenanta crealinKor govern~ng thecondominium or planned
unit development, the by-lawa and regulationa of the condominium or planned unit development, and constituent documents. If a
condominium or planned unit develupment rider ia executed by E3orruwer and recorded together with this Mortgage, the oovenants and
agreementa of auch rider shal! be incorporated into and shall amend and supplement the covenants and agreementa of thia Morigage as if the
nder were a part hereoL ~
7. Protection of Lender'~ 3ecurity. If Borrower fails to perform the covenants and agrcements rnntained in this Mortgage, or if any
action or prooeeding ia rnmmenced which materially eftects i.entlei s interest in the Property, including, but notlimited to, eminent domain,
ineolvency, oode enforcement, or arrangements or praceedinga involving a bankrupt or decedent, then Lender at Lenda'~ option.upon
notice to Borrower may malce such appearances, dieburee such sums and teke such aMion as u necaaary to protect I.endrr i intereat,
including, but not limited to. disbursement of ~easonable attorney's fees and entry upon the Property to meke repain. if Lender required
mortgage ineurance as a rnndition of making the loan secared by this Mortgage, Borrower shall pay the prcmiums required to maintain
euch insurance in eftect until such time as the requircment for such insurance terminates in accordance with Borrower's and Lender's
writLen agrtement or applicable Lew. Bomower shall pay the amount ot all mortgage insurance premiums in the manner provided under
paragraph 2 hereof. ~
My amounts disbursed by Lender pereuant to this paragraph ?, with interest thereon, shall become edditional indebtedne~s ot
F3orrower secured by this Mortgage. Unless Borrower and Lender agiree to other tem~s of peyment, such amounts shall be payable upon
notice from Lender b Borrower requesting payment thereof, and shell bear interest from the date ot dubur~ement at the rate payabk from
time to time on outatanding principel under the Note unleae payment of intereet at such rate would be mntrery W applicable law, in which
event such amounte shall bear interest et the highest rate permissible under applicable law. Nothing rnntained in this paregraph 7, shaU
rcquire Lender W incur any expense or take any action hereunder.
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