HomeMy WebLinkAbout0040Borrower and Lender rnvenent and a~ree as lollowc
1. Paymeat o[ Principal aad Iatere~l. Borrower shall promptly pey when due the principal of end interest on the indebtedness
evide~ced by the Note, pnpayment eu~d late chuges as pmvided in the Note, and the pri~cipal of and i~terest on any FLture Advancee secur~d
by thi~ Mortgage.
2. Fltnde for Ta:ee aad Insurance. Subject to epplicable law or to a writte~ waiver dy Lender, Borrower ahall pay to l.ender on the day
monthly inetallments of ptincipal and intereat are payable u~de~ the Note, until the Note ia paid in full, e aum (hetei~ "F~nds") equal to one
twelfth ot the yearly tauee and asaesaments which may attain priority over this Mortgage, and ground rents o~ the Property, if any, plus one
twelRh of yearly premium inataltments for hesard inaurance, plus onetwelfth of yearly p~emium instaliments [or moirtgage insurance, if any,
all aa reasonably eatimated initially and trom time to tia-e by l.e~der on the basis of asaesaments and billa and reasonable eetimatea thereot.
The ~nds shall be held in an institution the deposits or accounta of which are ineured or guaranteed by a Federal or State agency
lincluding Le~der if Lender is such an in~titution). Lend~ shait apply the Funds to pay said taxes, assesaments, inaurance premiuma and
gmund rents. I.ender may not cherge for eo holding and applying the Ftinda, analyzing aaid aceount, or veri[ying and rnmpiling said
asseeamenta and bills. unlesa Lender pey~ Borrower inte~est on the Funds and applicable law permits Lender to make such a charge. Borrower
and Lender may egree in writing at the time of execution ot this Mortgage that intereat on the Funds ahall be paid to Borrower, and unlees
such ag~eement is made or applicable lew requiree such interest to be paid. Lender shall not be requi~ed to pay Borrower any interest or
earninge on the FLnds. Lender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credita and debita to the
Funds and the purpose for which each debit to the Funda was made. The Funda are pledged as add'etional eecurity for the suma eecured by thie
Mortgage.
If the amount oithe ~nda held by l.ender, together with the future monthly installmenta of Funds payable prior to the due d~tea of taxes,
asaeasmenta, inaurance premiuma and ground renta, ahail e:cred lhe amount required to pay esid taxes, assesamenta, inaurance premiuma
and ground rents as they fall due. such exceas ahall be, at Borrower's option, either pmmptly repaid to Borrower or credited to Borrower on
monthly instaUmenta of Funds. If the amount of the Funds held by Le--der ahall not be eufficient to pay ta:es, aseeasmenta, insurance
premiums and ground rents as they fal) due, Borrower ahall pay to Lender any amount neceasary to make up the deficiency within 30 dava
from the date notice iR mailed by I.ender to Borrower requesting payment thereoL
Upon payme~t in tull otall aume secured by this Mortgage, l.ender ahall promptly refund to Borrower any tunds held by l.ender. If under
paragraph 18 hereof the Property ia sold or the Property is otherwiae acquired by Lender, Lender ahall apply, no later than immediately prior
to the sale of the Property or ita acquiaitiori by [.ender, any FLnda held by l.ender at the time of application as a credit againat the aums secured
by thie Mortgage.
3. Application of Peyments. Unlesa applicable law providea otherwise, all payments received by l,ender under the Note and
paragrapha 1 and 2 hereof ahall be applied by l,ender 6rst in payment of amounts payable to Lender•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 pnncipal on any Future Advancea.
4. Charges; Liena. E3orrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which
may attain a priority over this Murigage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by f~orrower making payme~t, 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 Borr~,vrer shall make payment directly, Born~wer shall promptly turnish to
I.ender receipts evidrncing such payments. Rorrower shall pramptly discharge any lien which has priority over this MortgaRe; provided, that
iiurruwrr ~i~ai) nut I~r rryuired lo discharge any such lien so long as t~-rruwer shall agree in writing to the payment of the oblig~ition secured by
such lien in a manner accept~ible to Ixnder, or shall in Kex-d [aith rontest such lien by, ordetend enforcement of surh lien in, leKal proceedings
which operate ta prevent the enforcement of the lirn or Corfeiture of the Property or any part thereuf.
5. Hazard 1 nsurance. 13orro~ver shall keep the improvements nuw existing or hereafter erected on the Property insured against ioss by
fire, hazards included within the term "extended coverage," and such other hazards as l.ender may require and in auch amounts and forauch
periods as lxnder may reyuire; pro~•ided, that I.ender shall not require that the amount of such co~eragr exceed that amount of coverage
reyuired to pay the sums secured by this MortKage.
The insurance camer pru~•idinK the insuranc-e shall t-e chusen by Korruwer sub~ect to appru~•al hy I.rnder, pro~•idECi, that such appruval
shall not be unreusonably withheld. All premiumc un insurancr p~~licire shall be paid in thr manner provid~l under paraKraph 'l hermf or, if
not paid in such manner, by l3orrower makinK paymrnt, whrn due, directly to the insurance carrier.
All insurance policies and renewals therrof shall be in form accept~~:,;e to l.e~der and shall include e standard mortgage clause in favor of
and in form acceptable to I.ender. (.endershall have the right u~ hold the policiesand renewals thereof, and E3orrowershall promptly furnish to
-.e~der all renewal notices and all receipts of pa~d premiums. In the eveut of luss, Borruwer shall give prompt nolice to the insurance carrier
and i.ender. I.ender may make proof of loss i[ not made prompdy by Horrower.
Unlesa I.ender and f3orrower othervvise a~er in writing, insurance proceeds shall oe applied to reatoration or repair of the Property
damaged, provided such restoratiun or repair is eronumically feasible and the security of this Mortgage ie not thereby impairrd. If such
reatoration or repair is not economicall~ feasible or if the security of this Mortgage wuuld be impaired, the insurance proceeda shall be applied
to the sums secured by this A1nrtKage, w~th the excesc, if any, paid to f3~rrower. If the Property is abandoned by Eiorrower, or if Borrower faila to
respond to l.ender within :i(1 days from the date nutice is mailPd by I,ender to E3orrower that the i~surance camer offers to settle a claim !or
insurance benefits, I.ender ~s authorized tu collect and apply the insurance proceeds at Lender's option either to reatoration or repair of the
Property or the sums secured by this MortKage.
Unlesa Lender and E3orrower otherwise agree in wnting, any such application of proceeds to principal ahall not extend or pastpone thedue
date o[ the monthly inatallments referred to in paraQraphs 1 and 2 l~ereof or change the amount olsuch ~natallments. Itunder paragraph 18
hereof the Pmperty is acquired by l.ender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceeds
thereof reaulting from damage tc, Yroperty prior to the xale or acquisition shall pass to Lender to the extent of the eums aecured by this
Mortgage immediately prior to such sale or acquisition.
6. Preeervation and Maintenence otProperty: I.eaeeholde; Condominume; Planned Unit Developments. E3orrower ahall keep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the
pror•isiona of any lease if this Mortgage is on a leasehold. If this INortgage is on a unit in a condomin:um or a planned unit development,
tiorrower ahall perform all of Borrower'a obligations under the declaration or covenanta creatinKor governing the condominium or planned
unit development, the bylaws and reRulations of the condominium or planned unit development, and constituent documents. If a
condominium or planned unit development rider is eaec-uted by Borrov-er and recorded together with thie Mortgage, the covenanta and
aKrrements of such rider shall be incorporated ~nto and shall amend and supplemenl thecovenants and agreements of this Mortgage as if the
rider were a part hereof.
7. Protection of Lender'e 3ecarity. It Borrower faila to perform the rnvenante and agreemente contained in this Mortgage, or if any
action or proceeding is rnmmenced which materially atfecte Lender's interest in the Pmperty, including, but not limited to, eminent domain,
insolvency, oode enforcement, or arrangementa or proceedinga involving a bankrupt or decedent, then Lender at Lender's option,upon
~~uiire iu Burruwer may make euch appearances, diaburse such aums and take such action aa is necessary to protect Lender's interest,
including, but not limited to, diebursement of reaaonable attorney's feea and entry upon the Property to make repairs. If L,ender required
mortgage insurance ae e rnndition of making the loan eecured by this Mortgage, Bortower ahall pay the premiums rcquired to maintain
euch insurance in effect until auch time as the requirement for Buch insurance terminates in accordence with Borrower's and Lender s
written agreement or applicable L~w. Borrower ahall pey the amount of al) mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounte disbureed by Lender pereuant to this paragraph 7, with intereet thereon, ehall become additional indebtedness of
f3orrower eecured by this Mortgage. Unlesa Borrower and Lender agree to other terms of payment. such amounfa shall be payable upon
notice from Lender to Borrower requesting paymeot thereof, and shall bear interest from the date of disbursement at the rate payable from
time to time on outstanding principal under the Note unlese payment of interest at auch rate would be contrary lo applicable law~ in which
event such amounts ehall bear interest ~t the highest rate permiseible under applicable law. Nothing contained in this peragraph 7, ehall
require I.ender to incur any expense or take any action her+eunder. ' '
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