HomeMy WebLinkAbout0784l3orrowe~ and l.ender covenant and ngree as followa:
1. Payment of Principal and Intereet. Borrower ahall promptly pay when due the principal of and interest on the indebtedneae
evidenced by the Note, prepf-yment a~d latechargee as provided in the Note, and the principal of and intemat on aoy F uture Advancea secured
by thia Mortgage.
2. FLnde for Tsxee end Ineurance. Subject to applicable law or to a written waiver by l.ender, li~.rrower shall pay to I.ender on the day
monlhly installmenta.:f principal and interest are payablr under the Nute, until the Note is pxid in full, a sum (herein "h unds") eyuul to one
twelfth of ihe yearly taxes and assessmenla which may attnin priority over this Mortgnge, and ~round rents on the Property, itany, plua one~
twelRh of yearly premium installments for hazard insurAnce, plus un~!welhh of yearly premium installments for mortgage insurance, if uny,
all ua rcasonably eatimAted initially and from time to tiR~e by I.ender on the bnsis of .usses.~men-s and bilic and reasonable extimUtes ihereof.
~ 7'he Ftinda ahall be held io an iostitution the depositx o~ accounts of which are insured or guarpnt~eci by a Federal or State aKency
lincluding l.ender if I.ender ia such an inetitutionl. l.ender shull apply the Nunds to pay said taxes, assessments, insurancc pmrriiums anc!
ground renta. l.ender may not charge foT eo holding and applying the Munds, nnalyzing said account, or verifying and compiling aaid
asaesame~ts and bills, unleae I.ender paye &-rrower interest on the F unda nnd applicuble law permits I.ender to make such A charge. Eiorrower
and Lender may agree in writing at the tiate of execution of this Mortgage that interest on /he F unds shall be paid to Borrower, and unleas
such agreement is made or applicable law requirea such interest to be paid, I.ender ahall not be required to pay l3orruwer any iniereat or
earninga on the Funds. l.ender ahall give to Boru,wer, without charge, an annual accnuntinK otthe Nunds showinK credits and debits to the
Funda and the purpose [o~ which each debit to the Funds was made. The F undg arn pledKed as additional security for the sums secured by this
Morlgage.
If the amount of the Flinds held by I.ender, together with the future monthly installmentx of Funds payable prior to the due dates of taxes,
assessments, insurance premiuma and ground rents, shall exc ~ed the amount reyuired to pay s:~id taxes, assessments, insurance premiums
and ground rents as they fall due, auch exceas shall be, at t3o~rower's uption, either promptly repaid to Born~wer or credited to t3orrower on
monthly installments of Funds. If the amount of the Funds held by l.ender shaill not be suf6cient to pay taxea, asse~men~S, ineurance
premiums and ~round renta as the~ fall due, E3orrower shall pay tr, l.ender any amount necr~sary to make up the deficiency vvithin 30 days
from the date noticr is mailed by I.ender tu FiorroKer .~uestinK payment thereof.
Upon payment in full of all auma secured by this Mortgage, I.ender sh:ill promptly refund to F3orrower any funds held by l.ender. I[under
paragraph 18 hereof the Property is sold or the f'roperty is otherM ise acquired by I.ender, l.ender sh:~ll apply, no later than immedixtely prior
to the sale of the Property or ita acquisition by l.ender, any F unds held by l.ender at thr timc• of application us a credit against the sums secured
by this Mortgage.
3. Application of Paymenta. Unless applict~ble It~w provides utherwisr, all payments received by l.ender under the Note and
paragrapha I and 2 hereof ahall be applied by I.ender Grst in payment of amounts payable to I.ender by tiorn~wer under paragraph 2 hereof,
the~ to interest payable on the Note, then to the principal of the Note, :~nd then to interest and principal on any Future Advances.
4 Charges; Liens. Borm~sershal) pa>~ all taxes..issecsmtmts and uth~~rchar~;es, fincw and im~wsitiuns attributable tu the Property which
may attain a priority overthis MurtKaKe, :in.i IFasehuld payments or~round rrnts, if any, in the manner prurid~Yl under paraKraph l hereo(or.
~f not paid in such manner, by Borruw•er makinK papm~~nt, when du~•. dire~c•tly tu the p:-~•er thert~rC Rurmwer tihall prumpth• furnish tu I.ender
:ill notices of amoun~s due under this ~~ara~;r.~ph, and in the e~•ent Rurruw•er shall mak~• pa~•ment dinr•tl~•, Iiurn~N•er shall prumptly fumish to
Lende~ receipts e~•idencing such p.+~•menLti. li~~rt~~wer shull prumpth• di.charK~• .iny lien N•hi~•h has prinrih• a~•er thi.ll~irtK:~Ke: pruvidcd, that
I~orrow•rr shall not trP requirecl todisch.uKc• any sui•h lit•n ~u lun{; as ii~~rruw•er ~hall aRre~• in K•ritin~; t~~ the payment ~~f thrubliKation secure~d by
.uch lien in a manner acc~ptable to Lender, or chall in ~;~N-d fadh ~•unt~ :,t ~uch lie•n by, or d~d~~nd enfon•rm~•nt ~~f su~•h li~•n in, lr~;al pra•e~dinKs
~~•hich opc~rate to prerent the ~•nforcement nf th~• lirn ur f~~rfeiturr of thr 1'r~~E~•rh• or :~m~ part th~•n~~f.
S. Nazard Insurance. liorrow•er shall ktY•p th~• improvemrnt. now ~•xistinK ur hereafter erected on the Propert~ insured against loss by
fire, hazards included within the term "rxtrndec! cuver.iKe." and vuch uther haz:~rds as 1 xn~3er may requ~r~• and ~n such .imuun~t and tor such
peri~~ds as i.ender ma>• rf~c~uire; pro~•ide~l, that la~nd~~r .h.+ll nnt n•yuim th:it the amuunt uf sui•h n~veraK~` l•7CCfY'lI Lll:~t amuunt of ~•o~~eraKP
nquireci tu pay the sum~ scr•unrl by thi. ~1uriK~+K~'~
The insur.lflCP C:1RIPf Nf~~\'I~lin~; th~• in.uram-c• .h:~l1 IN• ~-h~~•~•n h>• K~~rn~~~v•r wh~~yt tn appr~~~~:~1 h~- 1 a•nd~~r. pr~~~~idktil. that such :~pproa•al
shall nut be unrea~~nably withh~~ld. A!I pn•miwn• ~~n ~n.ur.~m-~• p~~lu ~~•..h:~ll Iw• p:~~d in thr m:u~n~•~ F~~,,.~~~i~~~ u-,~i~•~ ~>:~ra~;r:~ph'_' hcrfr~f ur. if
not paid in such m.~nnrr, b~• li~~rn~w•i•r mak~n~ p:+>•m~•nt. ~h~•n dur. ~i~rw~tl~ t~~ thr ~n~ur.~m•i• rarn~•r
All insurance policies and r<•newals thereof tihatl tN• in furm acc~~~ptahlc• tu 1 a•nd~•~ and shal) includt•:~ standard mnrtK:iKe clause in favor of
and in form acceptable to i.rnuer. lxndrr sh:~il ha~•~ the• ri~;ht t~~ hold tht~ {N~lii•irs and renrw•.ilti th~~n•~~f,:+nd Ki~rrow•er sh:+ll promptly furnish b~
~.ender all renrv-al nc~t~ces e+nd all receipt~ uf p.iid pr<•m~um.. In thi• ~•~•e~~t ~~f In~.. H~~rruw•t~r shatl Ki~•i• pr~~mpt nutim tu the insurance carrier
and i.ender. I.ender may make pr~K~f of lu~s if nut mad~• pr~~mptlc bc Itnrr~~w•rr.
Unless l.ender and f~~rruw•er utherw•i~f• ati~rc~• in~.crit~nti. in~uran~•i• proceed~ sh:~ll F-~• :~ppliecl to rewtoration or repair of the Pruperty
damaged, provided such restnratinn nr rrpair is trun~~mi~•all~• fca~iFde and the seti•unty ~~f thi~ MortKa~;c is not thereby impaired. lf such
rrstoration or repair is not economically fr:~sibl~~ or if thc• ~~•urih~ uf this \1ortK:+y;t~w•~~uld tx•~rnpa~red.!heinsuranrepmcc~cdssha{l t-eapplied
tn the sums secured by this MortKaKe. N~th th~•~•x~•t•.ti. ~f :~n~~. p:~id t~~ Ii~~rruN•t•r. If thr I'ruEx•rt~• is al~andunecl by E3~rrower, orif Iiorrower fails to
re~pond to I.ender within :i0 day~ frum th~• datr noti~•~• i. m:~iltd by I.rndrr tu Fiurn~w~•r that tht~ in~urance carrier ~ffers to settle a claim for
~nsurance benefits. [Ander is authuri~t~l tu cull~~•t and apph• th~• in~ur.-nc•~ pnK•~•e•d~ at I.rndc•r's optiun either to r~~tnratiun or repair of the
F'roperty or the sums secured by this 11nrtK:~K~~.
linless l.ender and F3onuwer otherwise akme in w•ritinK, any suc•h applii :~tiun uf pn~c~~~~el, to principal shall not extend or pnstpone thedue
date of the monthly installmen4s rrfert~•d to in para~;ruphs 1 and'L h~•rt•nf or chanKe the.~muunt ~,[such inst~-Ilments. If under paragraph IR
hereof lhe Yroperty ic acquirEd b}~ I.ender. all riKht, titlt~ and interrst uf I~urruw•~•r in and to am• insurance {x~licies and in and to the proceeds
iherrof resultinQ from damaKe to I'ruperty priur tu th~~ sale or a~•qwsitiun sh:ill pass t~~ I.ender tu the extent of the sums securc~l by this
11artKage immediateiy prior ta su~•h sale or acquis~tiun.
6. Preservation and 1laintenanceof 1'roperty; Iw•asehuld~: ('ondominums: Planned linit UevelopmPnta. Borrowershall keep
:he F'roperty in g«,d rrpair and shall not cummit w•a~ti• ur p~•rmit tmpairment ur d~•tenurahun of the PropeRy and shall comply v~~th the
prnvisions of any lease if thiy M11ortKa~;e is un a Iras~•hold. If this 11ortKaKi• i. un :~ unit in :~ iYmdnminium or a p~anned unit development,
ftorruwer shall pertorm all of 13~~rruNer's obliKa.:::ns undrr the dr~~larati~~n nr cu~~enant. ~•ri•aUn~;or Kn~•em~nK thecondominium or planned
unit development, the by-law•s .~nd rrKulatiuns of tht• ~•unduminium or planntYl unit de~~elopmrnt, and constituent documents. If a
~ nndominium or planned unit drvrlopmrnt nder is t-x~K•utf~d by F~~rma~~r and n~•nrdrel t~~~•ther with this MurtRaQe, the eovenanta and
:+Krerment~ of such rider shall ia~ inc•urpuratiYl ~nl~~ :~nd ~h:~ll amrnd and ~upplrm~•nt th~•cm•en:~nls and aKrtr•ments of th~s MurtKaKeas ifthe
nder w~ere a part hen~~f.
7. ProteMion ot Lender'e Security. If Borr~~w•er fails tr~ perform the covenantA and agreementa contained in this Mortgage, or if any
action or proceeding is commenced which materially atfecte I,ender'e intereat m the i'ruperty, including, but not limited to, eminent domain,
ineolvency, code enforcement, or arrangemente or proceedinQa involving a bankrupt or decedent, then I.ender at I.ender'e option,upon
notice to Rorrower may make auch appearancee, disburse eurh euma and take auch action ae is necessary to protect Lender'a intereat,
including, but not limited to, diebursement of reasonable attomey's feee and entry upon tFe Property to make repaira. If Lender required
mortgage insurance as a condition of making the luan aecured by this Mortgage, Borrower shall pay the premiuma required to maintain
euch inaurance in effect until auch time as the requirement for auch ineurance terminatea in accordance with Borrower'a and Lendei e
wntten agreement or applicable I.aw. Sorrower Ahall pay the amuunt o( all mortKaKe insurance premiuma in the manner provided under
paragraph 2 hereof.
Any amounte diaburaed by [.ender perauant u. thiR par<igraph 7, with intereat thQre~,n, shall become additional indebtednese of
Iiorrower secured by thie Mortgage. Unleas Korrower and I.ender agree to other terme of payment. such amounts ehall be payable upon
notice from I.ender to Borrowet requesting payment thereof, and ahall bear interest frum the date of disburaement at the rate payable from
time to time on outstanding principal under the Note unleas payment of intereat at such rate would be contrary to applicable law, in which
event auch amountta ahall bear interest at the higheat rate permisaible under applicable law. 1\othinq contained in thia paragraph 7, ehall
require I.ender to incur any expeni+e or take any action hereunder.
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