HomeMy WebLinkAbout0399Bormwe~ and Lender rnvenent and ag~te as [olbws:
1. Poymettt of Principal and latere~~ Borruwer shall pwmptly pay when due the principal of and interest on the indebtednesa
evideneed by the Note. prepayment and late charges as provided in the Note, a~d the principal of and intereat on any Future Advances secured
by this Mort~age.
2. P1u~de for Tauea and Insurance. Subject to applicable law or to a written w aivef by Le~der, Borrower aha{I pay to I.ender on the day
monthly inetallments of principal and inte~eat an payable under the Note, until the Note is paid in full, a sum (herei~ "Funds"! equal to ont
twelRh of the yearly taxea and asaeaementa which may attain priority over thia Mortgage, a~d ground renta on the Pmperty, if any, plus o~t
twelfth af yearly p:cmium installmente for hazard insuranre, plus onetwelfth of yeariy premium installme~ta [or mortgage insurance, if any.
all as reseonebly eatimated initially and fi~om time to ti~rie by l.e~der on the basis o[ asseasme~ts and billa and reasonable estimates lhereof.
The Funds ahall be held in an institution the deposita or accounts of which are inaured or guaranteed by a Federal or State agency
(including Lender if Lender is euch an institution). l.ender shall apply the Funds to pay eaid taxen, asseaemente, insurance premiums a~d
ground rente. Lender may not charge for so holding and applying the Funda, analyzing said account, or verifying and compiling said
aesesements and bille. unlesa Lender pays Borrower intemet on the Funds and applicable lew permits Lende~ to make auch a cha~ge. Borrower
and Le~der may agree in writing at the time of execuGon of thin Mortgage that interest on the Funde ahall be paid to Borrower, and unless
such agreement is made or applicable lew requires auch intereet to be paid, Lender sha11 not be required to pay Borrower any intereet or
earninge on the Ftinds, Lender shall give to Borrower, without charge, an anaual accounting of the Funde showing credite and debits to the
Funds and the purpo~e for which each debit to the Funda was made. The M unda are pledged as additional aecurity [or the aums secured by thia
Mortgage.
If the amount of the ~nds held by l.ender, together with the future monthly inatallmenta of Funds payable prior to the due datea of taxea,
aseeasments, insurance premiuma and ground renta, ahall excred the amount required to pay said texea, assesaments, insurance premiuma
and ground mnts aa they fall due. auch exceea ahall be, at Bo~rower's option, either promptly repaid to Borrower or credited to Borrower on
mouthiy inatallments of ~nds: If the amount of the Funda held by l.ender ahali not be aufficient to pay taxea, asseasmenta, inaurance
ps~miums and ground re~ta ae they faU due, Borrower shall pay w[,ender any amount neceasary to make up tfie defiriency within 30 daye
from the date notice ia mailed by Lender to Borrower requesting payment thereof.
Upon payment in full of all autna secured by this Mortgage, Lender shall promptly refund to Borrower any [unds held by Lender_ If under
paragraph 18 hereof lhe Property is sold or the Properiy is otfierwise acquired by (xnder. Lender shal) apply, no later than immediately prior
to the sale of the Property or ita acquiaition by Lender, any F'unds held by l.ender at the time of application as a credit against the suma secured
by thie Mortgage_
3. Application of Paymet~te. Unless applicable law provides otherwise, all payments received by Lender under the Note and
paragtapha 1 and 2 hereof ahall be applied 6y Leader 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 Advancea.
4_ Chargea; Liena. E3orrower shall pay aU taxes, assessments and other rharges, fines and impositions aUributable to the Property which
may attain a priority over lhis Mortgage, and leasefio{d payments ~~r ground rents, if any. in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by l;~~rruwer making payment, when due, directly to the payee thermf. Borrower shal! promptly furnish to Lender
all notices of amounts due under this par:~Qraph, and in the event Rorrower shall make payment directly, Bormwer shall promptly furnish to
-,ender receipis evidencing such paymen~c. i3orruwer shall promptly dischargr .im• lien vvhich has priorityover this MortgaRe; provided,that
Korrowe~ shall not be required todischxrKe any such Gen so lonK as fiorrower sh:~{I ay~ree in writin.A to the payment o(theobligation secured by
such lien in a manner accepk-~bir to I.ender, or shail in good faith c~~ntrst such lien by, or defend enforcemrnt of such lien in, IeKst proceedings
which operate to prevent the enfurcement of the lien or forfeiture of the P~operty or any part therev~f.
5. Hazard Insurance. Korruw+er s!-a11 keep the improvements now• existinR or hereafter erected on the Property insured against losa by
fire, hazards included within the term "extended coveraKe; ' and such other hazards as [xnder may require and in such amounts and fnr euch
periods as t.ender may require; pro.•idc~d, that Ixndrr sh.~ll not rryuire that the :~mount of such coveraKe exceed that amount of coverage
requirvd to pay the sums securrd by this MnriKaKe. _
7'he insurance carrier providinK the insur:~nc-i• shall t~r ch~~~rn by fi~~rruwer subjcti•t to approval b> ! xndrr, pmeided, that such :~pproval
shall nbt be unreas~mably withh~ld. All prem~ums un msur:in~•e p~~licir..hall t~e p:+id in the m:innrr provided under paraKraph '2 hereolor, if
not paid in such manner, by Fk,rr~~w•er makuiK papmrnt, wh~•n dur, dirtY~tly to the in.urance carrier.
All insurance policies and renewals thereof shall be in form acceptable tn I.ender and shaU include a standard mortgage clause in favorof
and in form acceptable to I.ender. I.endershall have theright to hold the p~dicies and rrnewals thereof, and Rorrowershall promptly furnish to
i.ender all renewal n~rtices and all receipts of paid pmmiums. (n the eveut of luss, F~~rn.wer shall give prompt notice to the insurance carriet
and l.ender. I.ender may make proof ~~f loss if not made promptly by Borrower. ~
t~nless [.ender and &~rruwer otherwise agrre in wnting, insurance prc-ceeds shall be applied to restoration or repair of the Property
damaged, pro.~ded such reswratiun or repair is econumically feasible :~nd the security of this Mortgage is,not thereby impaired. If auch
rrstoration or repair is not economically teasible ~~r if the security of this Mortgage would beimpaired, the insurance prceeeds shall beapplied
to the sums secured hy this MortK:~Ke, v~rith the rxc~~s~, if any, paid to Bonower. lf the Properly ia abandoned by Aorrower, or if 13orrower faila to
respc:nd to I.ender within :N- days from the date notice ~s mailyd by l.ender d, E3orrower that the insurance carrier offe~s to settle a claim for
insurance benefitx. I.ender is authurizrd to collrct and apply the insurance pr~cerds at I.ender's option either to restoration or repair of the
Pwperty or the sums secured by this MortKa(te.
Unlesa l.ender and f~rrower otherwisr aKree in wnting, any such application of proceeds to principal shall notextend or poatpone thedue
date of the monthly installmentR referred to in paraKraphs 1 and 2 hereof or change the amuunt of such installments. If under paragraph 18
hereof the Property is acquired by I.ender, all right. tide and interest of f3orrower in and to any ensurance policies and in and to the proceeds
thereof reaulting from damage to F'roperty prior to the sale or acqmsition shafl pas.4 to I.ender to the extent of the auma secured by thia
MoRqaqe immediately pnor to such sale or acquisition.
6. Preaervation end Maintenanceof Property: l.eaaeholds; Condominums; Plenned Unit Developmente. I3orrowerahall keep
the Property in gw~d repair and shali not commit waste or permit impairment or deterioration of the Property and shall comply with the
provisions of any lease if this btortgage :s on a teasehold. I[ this Mortgage is on a unit in a condominium or a planned unit deveiopment,
E3orrower ahall perform all of I3orrower's obliRations under the declaration or co~~enantx creatinKor governmg the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documenta. If a
conduminium or planned unit development rider is executcd by Fk-rrower and recorded tugether with this Mortgaqe, the eovenants and
:~Kreemen~cofsuch rider shall be incnrp~xated into and shall simPnd and supplement theco~enantsand a}~reementsofihis Mortgageasifthe
nder were a p-3rt hereof.
7. Protection of Lender's 3ecurity. If Borrower faila to perform the covenante and agreemente contained in this Mortgage, or if any
actior. or proceeding ie commenced which material{y af(ecte [xndei a intereat in the Piroperty, including, but not limited to, eminent domein.
inaolvency, crode en[orcement, or arrangemente or proceedinge involving a bankrupt or decedent, then i.ender at [.ender's option,npon
notite to Borrower may make euch appearancee, diaburoe euch aume and take euch action ae is neceasary to protect Lender's intereat,
incloding, but not limited to, dieburaement of reasonable attomey'e fees and entry upon the Property to make repeirs. If Lender required
murtgage inaurance as a condition of making the loan eecured by this Murtgage, Borrower ahall pay the premiums required to maintain
euch inaurance in effect until ench time as the requirement for auch ineurence terminatea in accordance with Borrower's and Lendet a
written agreement or applicable Law. Borrower ehaU pay the amount of all mortgage inaurance premiuma in the manner provided under
paregraph 2 hereoi.
Any amounte diebursed by Lender pereuant to thie paragraph 7, with inte~eat thereon, ahall become additional indebtedness of
f3orrower secured by thie Mortgage. Unleee Borrower and Lender agree to other terma ot payment, auch amounts shall be payeble upon
notice from Lender to Bornower requeeting payment thereof, and ahall bear interest from the date of diebursement at the rate payable [rom
tin~e to time on outatanding priocipal under the Note unleas payment of interest at anch rate would be contrary to applicable law, in which
event euch.amounte ehall bear intereet at.the highest rate permiaeible under applicable law. Nothing contained in this paragraph ?, ahall
require [.ender to incur any expense or take any action hereunder.
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