HomeMy WebLinkAbout0764Borrowe~ and Lender rnvenant a~d agree as follows:
1. Payment of Principal and Intere~t. Borrower ehall prompdy pay when due the principal ot and interest on /he indebted~ese
evidenced by the Note, prepayment and Iate charges as pmvided in the Note, and the principal of end intereat on any Future Advancea eecured
by this Mortgage.
2. Funde tor Tases and I~surance. Subject to applicable law or to a written waiver by I.ender, Borrowe~ ahall pay to I.ende~ on the day
monthly installments of principal and ir-terest are payable under the Note, until the Note is paid in full, a sum (herein "Fl~nda") equal to one
twelRh ot the yea~ly taxea and assesaments which may attain priority over thia Mortgage, and ground rents on the Property, if any, plua one-
twelRh of yearly premium i~atellmenta fos hazard inaurance, plus onetwelfth ofyearly premium inatallments [or mortguge insura~ce, if any,
all as reasonably eatimated initially and from time to tiR~e by l.ender on the basis of assessments and bills and reuaunable estimatea thereof.
The F~nda ahall be held in a~ institution the deposits or accounte of which ace insured or gnaranteed by a Federal or State agency
lincluding l.ender i[ [.ender ia such an inatitution). Lender shall apply the Funda to pay said taxea, assesamente, inaurance premiums and
ground renta. l,ender may not charge [or so holding and applying the Funda, analyzing said account, or verifying and compiling eaid
asaeaamente and bills, unleae Lender pays Borrower intereat on the Funds and applicable Iaw permits l.ender to make euch a charge. Borrower
and Lender may agree in writi~g at the time of execution of thie :Norigage that interest on the Funda ahall be paid to Borrower, and unleas
auch agreement ia made or applicable'law requirea auch intereat to be paid, I.ender ahall not be required to pay E3orrower any intereet or
earnings on the binds. Lender ahall give W Borrower, without charge, an annual accounting of the Funds at-owing credits and debita to the
Funda and the putpose for which each debit to the Funda was made. The F unda are pledged as additional security for the sums secured by this
Mortgage.
If the amount of the ~nds held by l,ender, together with the future monthly installmenta of Funda payable prior to the duedatee of taxea,
aseesaments, insurance premiuma and ground rents, ahall e:cred the amount required to pay eaid taxea, assessments, ineurance premiuma
and gruund rentr+ aA thpy tal! due, aach excess sha!! be, at Sunnsrei s opiion, either pmmptly mpaid to Banower ur crr~iitrd i,o Borrower on .
monthly inatallmente of Funde_ If the amount of the Funds held by Lender ahall not be eu[ficient W pay taxes, asae,fsmente, inaurance
pmmiums and ground re~te ae they tall due, Borrower shall pay to I.ender any amount necessary to make up the deficiency within 30 daye
from the datr notice ia mailed by I,ender to Borrower request~ng payme~t thereof.
Upon payment in fuU of all auma secured by this Mortgage, I.ender ahall promptly refund to Borrower any funds held by I.ender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I.ender, l.ender ahal) apply, no later lhan immediately prior
to the eale of the Property or its acquiaition by Lender, any Funda held by Lender at lhe time of application ae a credit against the aume secured
by thie Mortgage.
3. Applieation of Paymente. Unlesa applicable law provides otherwiee, all payments received by Lender under the Note and
paragraphe 1 and 2 hereof shaU be applied by l.ender firxt 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 interest and principal on any Future Advances.
A. Charges; Liena. E3orruwer shall pay all taxes, assessments and other charKes, fines and impositions attnbutabie to the Property which
may attain a priority uver this Mortgage, and leasehold payments ur Kround rents, if any, in the manner provided under paragraph'l hereof or,
:€:t~£ ~aid irt sue h:t:at:ner, hy P,:rrr:;zrer rr,ai::r~~ payi,~er,t, wi~rn ~ur, ~irrciiy iu thr payrr tnereot. ~3orrowershali promptly iurn~sh to l.ender
all ~otices of amount~~ due under this paragraph, and in the eveRt Rorrower shail make payment direcdy. Borrower shall prompdy fumish to
I.ender receipts e~~idencing such paymrnts. F3orrower shaU promptly discharKr ,~ny lirn which has priority over this MurtK:~Ke: provided, that
E3orrower shall not he reyuired to discharge any such lirn so long as &~rruwershall agree in writinR to the payment of theubligation secured by
such lien in a manner acceptahle to Ixnder, or shall in goud faith contrst such lien by, ordefend enforcement ofsuch lic•n in, lrgal pre~cecKiings
which operate to prevent the enfurcemrnt of the lirn or forfeiture uf the• Propert~• or any pan thereof.
5. Hazerd Insurance. Borrowcr shall keep the improvements nuw existing or hereafter erected on the Property insured against loas by
fire, hazards included within the term "extendcd co~'erage," and such other hazards as l.ender may require and in such amou~ts and forsuch
periuds as l.ender ma~• reyuire; prur-ided, that lxndrr shall not require that the amount of such coveraKe excetd that amount of coverage
reyuired to pay the sums sw•und by this MurtKage.
The insurance ~•arrirr pro~•idinK the insuran~r shall 1-e chosen by R~rruw•er subjtxt to appro~~al b~~ Ixnder. pmviderl, that such appru~•al
shall nut be unrr,~w~nabh• w•ithhrld r111 premiums ~~n insuran~•r ~~lic~t~. sh.ill t~e p:~id in the mann~~r pruvidt~i under paraRraph Z hertr~f or, if
not paid in such manner, by li~~rruwer m.iktnK p:~ymrnt, whe•n dur. d~nti-ll~• to the imurance carrier.
All insurance policies and renewals thereof shall be in form acceptable G. I.ender and shaU include a standard mortgageclause in favorof
and in torm acceptable to Irndrr I.rndershall have the riKht k, hold thr polieies and renevrals therr~~f, and Borrower shall prumptly furnish to
t,ender all renewal nutices and all receipts of paid premiums. In the r~•ent of luss, Rorruwer shal) Ri~•e prompt n<,tice to the insurance carrier
and I.ender. l.ender may make pr~f of loss i! not made prompUy b}• Borrovrer.
Unless l.ender and 13orrower otherwise aKree in writinK. insurancr proceeds shall be applied to reatoration or repair of the Pr~,perty
damaged, pro~~ded such resu~ratiun or rep.+ir i~ econumically feasible and the srcurity of this Mortgage is not thereby impaired. If such
rrstoration or repair is not economicaily feasible nr if the serurity of th~s MurtKaRe would be impaired, the insurance proceecls shall beapplied
tu the sums scrured by this 11ortKaKe, w~th thr excess, if an~, paid to F3orrower. If the Property is abandoned by Borrov-er, nr if E3orrovver (ails to
re~pond to l.ender within :i~l days frum the datr noticr is mailrcl by I.ender to fiorroNer that the insurance camer offers to settle a claim for
insurance t-enefitx, I.ender is authorizrd tu c~~llrrt and apply the ~nsurance pr~erds at l.ender's option either to restoration or repair of the
Property or the sums scrurrd by this MorlKaKe.
Unless Lender ared Borrow•er other~ ise aKree in wntinK, any such applicatiun of proceeds to principal ahaU not extend or poatpone thedue
date of the monlhl_r• installmen~c re(erred to in paragraphs I and'L hereof ur change the amount of such inetallments. If under paragraph lA
hereof the Property is acquired by I.ender, all right, title and interest of &,rn~wer in and to any insuranrn policies and in and to the proceeds
thereof reaulting from damaKe tn Property prior to the sale or acyu~sition shall pass to [.ender to the extent of the sums secured bv this
Murtgage immed~ately priur to such sale or acqu~sition.
6. Preservation and NaintenanceotProperty; l.eesehuldr~;('ondominums; Planned Unit Developmenta. Horrowershall keep
the Property in K~x-d repair and shall noL commit w•aste or permit impairment or deterioratinn of the Property and shall cumply with the
provisions of any lease if this A1ortK:~ge is on a leasrhuld. If this MortKaKe is on a unit ~n a condominium or a planned unit development,
Rorrower shall perform all of F3orruwer's obliRatiuns under the declaration or co~enantx creat~nKor Rovern~ng the condominium or plnnned
unit development, the by-laws and reQulatiuns nf the condominium or planned unit development, and conetituent documents. If a
condominium or planned unit devrlopment rider is excruted by fi~rruwer and recorded together w~th this Mortqage, the rnvenanta and
.+Kreements of such rider shall be ~ncurp~~rated into and shall amend and supplement thecuvrnants and agrrements of this NurtKaQe as if the
rider were a part herec~f.
7. Protection ot Lender'e 3ecurity. If E3orrower faila to perform the covenante and agreements contained in this Mortgage, or if any
action or proceeding ie commenced which materially affecte I.ender'a interest in the Property, including, but not limited to, eminent domain,
ineolvency, rnde enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then Gender et Lender's option,upon
notice to Borrower may make such appearencee, diaburoe euch aume and take sucn action se ie neceseary to protect Lender's intereat,
including, but not limited to, disbursement of reasoneble attorney'e feee and entry upon the Property to make repairs. If Lendet required
mortgage ineurance ae a condition of making the loan aecured by this Mortgage, Borrower ehall pay the premiuma required to maintain
euch ineurance in. effect until euch time as the requirement for auch ineurance terminates in accordance witn Borrower e and Lender s
written agreement or applicable Law. Borrower shall pay the amount of all mortgage ineurance premiume in the manner provided under
paraqraph 2 hereof.
Any amounte dieburaed by Lender pereuant to thie paragraph 7, with interest thereon, ahall become additional indebtedness of
Rorrower eecured by thie Mortgage_ Unlese E3orrower and Lender agree to other terma of payment, such amounte shall be payable upon
notice from [.ender to Borrower requeeting peyment thereof, and ahall bear interest fmm the date of diabursement at lhe rate payable from
time to time on outstanding principal under the Note unleas payment of interest at such rate would be oqntrary to applicable law, in which a
event euch amounta ehal) bear intereet at the higheBt rate permiaeible under applicable law. Nothing confained in this paragraph 7, shall
require I.ender to incur any e:pense or take any ection hercunder.
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