HomeMy WebLinkAbout0407t3orrower and l.ender covenant a~d agree ae folbws:
1. P~yment ot Principal and Iatere~~ Borrower ahall pmmptly pay when due the principal o[ and interest on the indebtedness
evidenced by the Note, prepayment and late charges aa provided in the Note, and the princij-al of and intereat on any Ftiture Advances eecured
by this Mortgage.
2. binda for T~ee and lasurance. Subject to applicable law or to a written waive~ by I.ender, E3oROwer ehall pay to l.ender un the day
monthly inatallments of principal and interest are payable uoder the Note, untii the Note is paid in full, a aum lherein "Funda") equal to one
twe1M otthe yearly taxea and asaesamente which may attain priority over this Moirtgage, and ground rents on the f'mperty, if any, plue one
twelfth of yearly premium installments [or hszard insurance, plus onrtwelflh ofyearly premium instalime~ts for mortgage insurance, if any,
~11 as reasooably estimated initially and firom time to time by I.ender un the basis of assessments ~nd bills aod reasunable extimates lhereof.
The Ftinda ehall be held in an inatitution the depoaite or accounta of which are insured or guaranlred by a Federal or State agency
lincluding l.ender if Lender ie such an institution). l.e~der ahall apply the Funds to pay said taxes, assesamenta, inaurance premiuma and
ground renta. I.ender may not charge for so holding and applying the Funde, analyzing said account, or verifying and compiling said
Hsaeasments and biUe, unleas Leader paya Borrower intereat on the F unda and applicable law pernnits l.ender to make auch a charge. E3orrower
and I.ender may agree in wriWng at the time of execution of lhis Mortgage that intereat on the F unds ahall be paid to Borrower, and unlees
sur.h agr~ment ia made z~_ sp~licable law requirea auch intereat to be paid, l.ender shall not be required to pay Borrower any intemat or
earninga on the ~nds. Lender shall give to Borrower, without charge, an annual accountinR of the F unde showing credita and debite to lhe
Funds and the purpoee for which each debit to the Funds was made. `I'he F unds are pledged as additianal security for theaurna secuted by this
;Nortgage.
If the amount of the Funde held by l.ender, to¢ether with the futum monthiy instaliments of F unds payable prior to the duedatesof taxea,
aasesaments, insurance premiuma and ground renta, shall exc ~ed the amount required w pay said taxes, assessmenta, insurance premiums
and ground rente ae they fall due, auch excess shall be, at Bo~TOwer's option, either promptly repaid to Burrower or credited to f3~rroweron
monthly installments of Funda. If the amount of the Funda held by I.ender shall not be suff-cient to pay taxex, psaexsmenla, insurance
premiuma and ground renta as they fall due, E3orrower shall pay to I.ender any amount necessary to make up the deficiency within 30 daya
from the date notice ia mailed by Lender to F3orrower reyuesting payment thereof.
- Upon payment in full of ali aums secured by this Morigage, l~endrr shall promptly refund to Burrower any funds held by l.ender. l[under
paragraph 18 hereof the Property ia sold or the Property is otherwiae acyuired by t.ender, t.ender shall apply, no later than immediately prior
t~~ the sale of the Property oritsacquisition by l.ender, any F unds held by I.ender at the time of application as a credit against the sums secured
by thie Mortgage. ~
3. Application of Paymente. Unleas applicxble law pmvides otherwise, all paymenLs received by I.ender under the hote and
paragraphs 1 and 2 hereof ahall be applied by I.ender first in payment o[amounts pa~yablc to l.ender by liorrov-er under paragraph 2 hereof,
then to intereat payable on the Note, lhen to the principal uf the Note, ~nd then to interest and principal on any Futurc Advances.
4. Chargee: Liena. E3orrower shall pay nll taxrs, :~sst:c,mcnts and uthrr rharKrs, fin~~ and im{x-sitium at lributahle to the I'roperty which
may attain a priority over this MortKage, and le:~sehold p:~yments ur ~;mund rents, if an~, in the manner providi~cl under p.iragraph 2 hereofor,
if not paid in such manner, by Borroveer makinK payment, when due, direcdy tu thr p:~y~w thrre~~C Fiormwershall promptly furnish lo Ixnder
:+ll notices of amounGs due under this paraKr~ph.:~nd in the evrnt Korruwer shall make pa~•ment directl>, Rormwer sh:~ll prumptly furnish to
I xnder receipts evidencing such paymen~.. fi~~rrow•er sh,~ll prompth~ di~charK~• an}• lien which has prinrit} o~~~•r this MortK.~ge; provided, that
ftorruwer shall not be required to discharKe any ~uch li~~n su IunK :i. lt~~rrower tih:~Il:iKrrr in w ritin~; to tht• pat~:~irM of the obliK:~ti~~n secured by
.uch lirn in a manner accep4tble tu l.endrr, or tihall in K~NKi f:~ith ~•unt~•.t w~•h lie•n by, nrdefend enfnn•~•ment ~~f w~•h lien in.1eK:~l procc~rdinKs
w•hich operate to prevent the enfnrcement of the lirn ~~r f~~r[~•iturf~ i~f thi• Pruprrh• ~~r am~ part tht~nr~f.
5. Hazard Insurance. Borrow~r shall kc~•p the impn,v~•mrnt~ nuw exi+tinK or herraft~•r ercMed on th~ Pruprrty insured aQainst loss by
tire, hazards included withio the t~•rm "extendtKl cu~•~~raKe," .+nd sui•huther haz:uds ac Ixndrr may requirr .~nd in such amountx and for such
{x~riods as I.ender may requim; prorid~l, that I.~nder shall nut nti~wrr that the .~mount uf ~uc•h ctin~~•~aKe excc~d that amuunt of coverage
n~yuired to pay the sums securc~l b~ this ~1ortKaKr.
The insurance carrit•r pn ~~~idin~; th~~ imur.~ni•r shall tN• ~•h~~s~•n h~• li~~mnc~•r wty~r•t to apprn~•:~I tn• I.~~nd~•r, pn~~ idw1, th:~t such :~ppr~~v:~l
~hall not 6e unre:i~un:~bh withheld. All prc•miums ~~n in.ur;~ni•~~ p~~lic~~•..h:~ll F~• paid in th~• mann~•r pr+~~~id~~l undi•r p:ira~;r.iph 'L hen~~f ur, if
n~~t paid in such manner, bc Fi~~rn~vi•er m:+kin~; p:~>•m~•nt, w•ht•n du~•, dirw•tl~~ to tlir ~nsurani•~• ~•.+rri~•r-
All insurance policies and rrnewals thereuf sh.ill tK• in fnrm aireptablc• tu 1~~nd~r and shall include a standard mortKaKe clause in favor of
.tnd in form acceptable tn [.ender. [.end~rshall h:~~•e thi~ ritiht tu huld thr ~rrlirir~ and reneW':~Iti I~leny~f, and Korrow•er shall pmmpttS furnish to
i,ender all renewal notices and all receiptc ~~f paid prrmiums. In tht•t•vrnt uf lu.s. Rorr~~wer shall Kivr prompt notice u- theinsurance carrier
and l.ender. I.ender may make pnN~f ~~f loss if not madr prumptlc hy IA~rruwrr.
Unlesa [.ender and F~~rruw~er otherv-isr aKrer in writin~, invuram•~• pr«-ir•ds shall tx• applitY! to rrstoration or repair of thr F'ropertc
damaged, pmvided auch resu~ratiun ur repair is e~•um~mi~•all~• fea~ihle and the ~ti~unty of th~s blurtQaKp is not thrreby impaired. If such
rrstoration or repair is not economically feasibie ~~r if the security ~~f this blurtKaKe v-uuld F~ i:npairecl, lhe insurance proceeds shall beapplied
to the sums secured by this !11ortKage_ with thf• exc~•sc, if any, paid to l~~rrow•er. If lhe I'ro~x•rty is abanduned by_I3orrnvrer, or if Eiorrov-er fails to
respond to Lender within :i0 days from the date nnti~~~ i~ mailtd by I,rnd~r tu Kurr~~wer that thP insurance carrier offers to settle a claim for
insurance benefits. I.ender is authoriz~cl tu c~~llfrt .~nd :+ppl~ the insur.~nm pr~K•c~Y1s at I,ender's option either to restoratiun or repair uf the
F'roperiy or the sums secured by this MnrtK:~Kt~.
Unless [.ender and F3orrower otherwise uKn~~ in writinK,:iny such :ipp6catinn of prrx•~ti•~~ti lu priReipai shall not extend nr postpune thedue
date of the m~nthly installments refrrrevi tu in par.iKraphs 1 und'L hertN~f ur ch:~nKr the amuunt of such installments. I! under paraKraph IS
hereof the Properiy is acquired by I.ender, all riKht, tide and inte•rest of Rnrmw•er m and tu any incurance p~licies and in and to the proceeds
thereof reaulting from damaqe to 1'roperty prior tn the sale ur acywsitiun shall pass tn I.ender to the extent of the suma secureti by this
titurtgage immediately prior to such sale or acquisition.
6. Preeervation and MaintenanccotProperty: l.a•a~ehuldx;Condominums: Planned Unit Developmente. F3orrowershall keep
the Property in good repair and sh:~ll not commit wastr or {x~rmit impairmi~nt ur drterior.~t+un ~f the Property and shall comply with the
pr~~visions of any lease if this MortKaKe is on a leasehold. (f this N1ortKaKt• is nn :~ unit in a n~ndominium or a planned unit development,
Korrower shall perform all of Borrower's ubliKaliuns under the declarati~rn nr c•o~•enants ~•n :~tinkor Ro~ern~nK the condominium or planned
unit development, the by-laws and reKulatiuns ui the cundominium or plannecl unit develnpment, and constituent documenta. If a
c~ondomir~ium ar planned unit develupment ridrr ,is excrutect by K(~RUN'er and recurded tugether w~th this Mortgage, the covenants and
:,~;reemen~4 of such rider shall iw incurporatcKi intu :ir.d shall amend :~nd supplem~•nt thc ~•u~~t•nants and agrc~c~ments ~rf this MoHKaKe as if the
nder were a parl hereof.
7. Protection of Lender's 3ecurity. If F3orrower fails to perturm the covenanta and aqreemente contained in thie Mortgage, or if any
action or procerding ie commenced which materiaUy a[fecte l.ender'a interest in the Property, including, but not limited to, eminent domain,
ineolvency, oode enforcement, or anangemente or prc-ceedinga involving a bankrupt or decedent, then Lender at l.ender'e option,upon
notice to Borrower may mate euch appearancee, diaburee euch aume and take such action ae is neceeaery to proteM L,ender'e interest,
including, but not limited to, diabureement of reasonable attorney's [eee and entry upon the Property to make repaire. [f Lender required
mortgage ineurance se a condition of making the loan secured by this MortgaRe, Rorrower ahall pay the premiume required to maintain
euch ineurance in effect until such time ae the requirement for such ineurance terminHtex in accordance with Borrower'a and Lender e
written agreement or applicable Law. Borro~ver ehall pay the amount of all mortgage inaurance premiuma in the manner provided under
paraqraph 2 hereof.
Any amounte diebursed by Lender perauant tu this paragraph 7, with intereat thereon, ehall t-ecome additional indebtedneae ot
Rorrower secured by this Mortgage. Unleae E3orrower and I.ender aRree to other terms of payment, aurh amounte shall be payable upon
notice from Lender to ~rrower requeatinq payment thereof, and ahall bear intereat from the date of diabureement at the rate payable from
time to time on outetanding principal under the Note unleea payment of intereet at auch rate would be contrary to applicable law, in which
event euch amounts ahall bear intereat at the highest rate pertnisaible under applicable law. Nothinq contained in thie paragraph 7, ahall
require I.ender to incur any expenee or take any action hernunder.
~ d~~~x 349 PdGE 40g
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