HomeMy WebLinkAbout0036Bo~ower end Lender cavenant and a~ee as follows:
1. Paymeat ot Prlacipal end lnteres~ Borrower shall promptly pay when due the principal oi and intereat on the indebeedneas
evidenced by the Note~ prepayment and late charges as provided in the Note, and the principa! uf und interest on any Ftiture Advances ~ccured
by thu Ma~age.
2. I~1tnd~ for T~utes and Inaurance. Subject to applicable law or to a written waiver by [.ender, BoROwe~ ahall pay to l.ender on the day
monthly installme~ts of principal and intereat are payable under the Note, until the Note ie paid in full, a aum (herein "Funda") equal to one~
twelRh of the yearly taues and asseasmeMe which may attain priority over this Moriga~te, and ground re~ts on the Property, if any, plus one-
twelRh of yearly premium instailments for hazard i~su~ance, plua onetwelfth u[yearly p~e~nium installmenta for mortgage inau~ance, if any~
aU ae reaeonably eatimated initially and from time to tirr~e by L.ender o~ the basis of assessments and billa and reusonable eetimates thereoL
The ~1nds shsll be held in an inatitution the deposite or accounta of which are insured or guaranteed by a Federal or State agency
(including Lend~ ii Lender is such an inatitutionl. Lender ahall apply the Funds to pay said ta:es, asseasments, insurance pmmiuma and
gwund rent~. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling eaid
asaessments and bitls, u~lees I.ender pays Borrower interest on the ~nda and applicable law permits Lende~ to make euch a charge. Borrower
end Leader may agree in writing at the time of execution of thia Murtgage that interest on the Funds shall be paid to Borrower, and unless
at~h sgreement is msdt or spglicsbla !sw requires such intrrest to be psid, l.cnder sh~!! no; br sr~uizrd to pay Barrutirer any intercat .~r
earnings on the flmds. l.ender shall give to Borrower, without charge, an annuai acceunting of the Funda ahowing credita and debits to the
Funds and the pu~poee for which each debit to the Funde vyaa made. The Funds are pledged as additionai security fo~ the aums secured by this
Mortgage.
If the amount of the Ftinda held by l.ender, together with the future monthly inatnllments of Funds payable prior to lhe due dates of taxes,
seeeasments, insurance premiuma and gmund mnts, shatl excred the nmount required to pay said ta:es, uRSeasmenta, insurance premiums
and ground renta as they fall due, such exceas shall be, at B~rrower's uption, either promptly repaid to Borrower or creditcd to Borrower on
monthly inetallments of P1~nds. If the amount of the Funde held by [.ender ahall not be aufficient to pay tsixee, asaessments, insurance
premiuma and ground rente as they fall due, Borrower shnll ys~y to I.ender any amount necessary to make up the deficiency within 30 days
from the date notice is mailed by Lender lo E;orrower requesti~g payment thereof.
Upon payment in fiill of all suma eecured by this Mortgage, Ixnder sl~all promptly refund to Horrower anp funds held by l.ender. lf under
paragraph 18 hetcwf the Property ia sold or the Property is otherwise acquired by l.ender, Lender ahall apply, no late~ than immediately prior
to the aale af the Property or i!e acquiaition by Lender, any Funds held by Ixnder at the time of application as a credit against the sums secured
by this Mortgage.
3. Applieation of Payments. Unlesa applicable law provides otherwise, al) payments received by Lender under the Note and
peragraphs 1 and 2 hereof ahaU be applied by Lender f rxt in payment of amounts payable to Lender by I3orrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, and then to internat and ~rincipal on any Future Advancea.
4. Charges; Liena. Borrower sha11 pay all taxes, assessments and other charges, fines and impositions attributable to the Property which
may attain a priority over this MortgaRe, and leasehold payments or ground mnts, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by Borrower making pa} ment, whrn due, directly to the payee thereof. Borrower sfiall promptly furnish to Lender
all notices of amounts due under this paragraph, and in the e~ ent Rorrower chall make payment directly, Borruwer shall promptly furnish to
(xnder receipte evidencing such payment,a. Rorrov-er shall promptly dicchargr any lien which has priority o~•er this hiortgage; provided, that
Borrower shall not be required to discharge any such lien so long :is E3c~nower shall aECree in w ritinQ to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in ~ood fsith contrst such lien by, ordefPnd enforcement of such lien in, legal proceedings
which operaie to prevent the enforcement uf lhe lien or forfeiture uf the Property or any part thereof.
5. H~uard Inaurance. Borrower shall keep tl~e improvements now existing or hereafter erected on the Property insured againat losa by
fire, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in such amountx and for auch
periods as Lender may require; provided, that Ixnder shall nut require that the amuunt uf such coverage exceed that arnount of coverage
required to pay the sums secured by this Miortgage.
The insurance carrier providing the insarance shal) be chusen by Korrow•er subject to approval by [.ender; provided, that such approval
ahall not be unreasonably withheld. All premiums on insurance {~~licies shall t-e paid in the manner provided under paragraph 2 hereof or, if
not paid in such manner, by I3orrower makinK pa~•ment, when due, directh~ to the insurance carrier.
All insurance policies and renewals Ehereof shali be in [orm acceptnble to l.ender and shall include a standard mortgageclause in favorof
and in form acceptable to l.ender. t.ender shall have the riKht to hold the policies and renewals thereo[, and Borrower ahall promptly fumieh to
i.ender all renewal noticea and nll receiptx of paid premiums. In the ever~t of loss, !iorruwer shall Kive prompt notice to the ineurance carrier
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Unless Lender and Borrower otherwise agree in writinK, insurancr procee~: shall be applied w restoration or repair of the Property
damaged, ptovided auch restoratiun or repai~ is ecunomicalty feAsible and thr~srcurity of thia Murtgage ia not thereby impaired. If auch
restoration or repair is not economically feasible or if the security of this Mortgage wuuld be impaired, the inaurance proceeds shaU beapplied
to the sums aecured by lhis 111ortgage, v~~th the exce:zs, if a~y, p:~id to Borrower. If the f'roperty is abandoned by E3orrower,or it Borrower faile to
respond to Lender within 30 days from the date nutice is ma~IFd by I.ender tv Borrower that the insurance carrier otfers to aettle a claim for
inaurance benefite, Lender is authorized to cullect and apply the ins~rance proceeds at I.ender'a option either to resbrat:on or repair of the
Property or the suma eecured by this MortgaRe.
Unleas I.ender and Borrower otherwise agree ~n w•ritinR, any s~ch application of pmceeds to principal ahall not extend or postponethedue
date of the monthly inatallments reierred k- in paragraphs 1 and 2 t~ereof ~r change the amount of such instaltments. If under paragraph 18
hereof the Property ia acquired by [.ender, all right, title and interest of Rorrower in and to any insurance policies and in and to the proceeds
thereof reeulting from damage to Property prior to the sale or acqu~sition shall pass to I.ender to the extent of the sums secured by this
Mortgage immediately prior to such sale or acquisition. • ~
6. Preservation and Maintenance otProperty; Leae~ehc,lds; Condominums: Planned Unit Developments. Borrowerahall keep
the Property in good rnpair and shall not commit waste ur ~rmit impairment or deterioration of the Property and shall comply with the
proviaiona of any lease if this Mortgage ie on a leasrhnld. If this Mortgage is on a unit in a condominium or e planned unit development,
E3orrower ahall perform all of Borrower's obliRations under the decl:~ratiun or covenants creat~n~or govern~ng the condomenium or planned
unit development, the by-lawa and regulations of the conduminium or planned unit development, and conatituent documenta. It a
condominium or planned unit developme~t rider is exrcutrd by &,rruwer and recorded together with this Mortgage, the oovenante and
aqreements otsuch rider shall be incor~wrated into and shall .~mend and supplement tne cuvenan~s and agreementsof this Morigageas ifthe
rider wem a part hereof.
7. Protection of Lender'e Security. if B~rrower faila to perform the covenanfs and agreements contained in thie Mortgage, or if any
action or proceeding is commenced which materially affects Lender's intereet in the Property, including, but not limited to, eminent domain,
insolvency, aode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at [.ender'~ option,upon
notice to Borrower mey make such appearances, di~burae euch aums and take auch action aa ie neceseary to protect Lender's intere~t,
including. but not 1~mited to, diebursement of reaaonable attorney's feee and entry upon the Property to make repairs. If Lender required
mortgege insurance as a rnndition of making the loan eecured by thie Mortgage. Borrower ehall pay the premiums required to maintain
such insnrance in effect until auch time ae the requirement for euch ineurance terminates in accordance with Borrower's and Lendef~
written agreement or applicable law. Borrower ahall pay the amount of all mortgage insurance premiuma in the manner provided unda
paragraph 2 hercof.
My emounts disbursed by I.ender persuant to thia paragraph 7, with intereat thereon, ahall become additional indebtednes~ of
Borrower secured by this Mortgage. Unleee Eiorrower and l.ender aqree to olher terma of payment, such amounts shall be payable upon
notice trom Lenda to Borrower requeating payment thereof, and ehaU bear interest from the date of dii+bursement at the rate payable from
time to time on outstanding principal under lhe Note unleae payment of interest at auch rate would be rnntr~vy to applicable law~ in which
event such amounte shall bear intereat at the higheat rate permiesible under applicable law. Nothing contained in this paragraph 7~ shall
require Lender Lo incnr any eupenee or take any ection hereunder.
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