HomeMy WebLinkAbout1127Borrower and I.ende~ covenant and agree as follows:
1. Peyme~t o[ Principal and lntereet. Borrowe~ ahnll promptly pay when due the principal of and intereat on the indebtedness
evide~ced by tfie Notr. prepayment artd late chargee aa provided in the Note, And the principal of eod intereat on any hlrture Advancea secured
by thie Mortgage.
2. ~nde for Taxee end Ineurar~re. Subject to applicuble lav- or to p writlen waiver by Ixnder, tiurruwe~ shnll pay to l.ender on the day
monthly inataltments of principul and intereat are payable under the Nute, until the Note is paid in [ull, a aum (herc•in "1~ unds") equul to one
twelRh of the yearly ttutes and asaessmente which muy attain priorily over thix Morlgt~ge, nnd ~ound ~rnts un the Mroperty, if any, piue one
twelfth of yea~ly premium inatallments [or huzard insurance, plus unt twelfth ~f yei~rly premium installmrnts ior mortguKe inxurunce, if uny,
iill us [easonably eatimated i~itially ~+~d from time to tirr~e by I.ender un the basis of xs.sessmeot~, and billv and rr:-sunable estima-trs thereof.
The ~nds ahall be held in an inatitution the depoeits or accuunte~ ot which ure insured o~ guaninte~.d by a Federa) or ~ts~te ugency
iincluding l.ender if l.ender is auch an inatitution). I.ender shall apply the F unde to pi+y said taxes, axseseaments, insurancc prrmiums and
Rround rente. l.ender may not charge fo~ so holding and applying the M unds, ~nalyzing said account, or verifying and compiling said
aeaesamente and billa, unleas I.ender paya Borrower interest on the Funds and applicable law permits l.ender to make such a charge. E3orruwer
and L.ender mey agree in writing at the time of execution of thia Mortgage thpt interrsl un the Funds shall be paid to liorn,wer, a~d unless
such agreement ia made or applicable law requirea such interest to be puid, l.ende~ shall not be reyuimd to pay Iiorrower any intereat or
earnings on the Funda. l.ender shall give to Borrower, without charge, an ~nnual accY,unting of the N unds showinK credits xnd debits to the
Funda and the purpose [or which each debit lo the h unda wus mude. The M unds are pledged ;is addilional securily for thr sums secund by lhis
Mortgage.
If the amount of the FLnds held by l.endcr, toKcthcr w~th the futum monthly installments of Funds payable prior to the due dxtes of taxee.
asaeasmenta, insurance premiums and qround rents, shnll rxc.•ed the :~muunt requircd to pay said taxes, a~u;essmenta, insurance premiums
~nd ground rents as they fall due, auch excess shall be, nt E3o~r<~wer's option, either promptly repaid to Borrower or credited to f3orrower on
monthly installmente of Funda. If the amount of the Munds held by I.ender shaU not t~e sufficient to pay t:ixes, assesxments, insurance
premiuma and g:ound renta as they Call due, fiorrower shall pay to I,endc•r any amount netiessary to make up the deficirnc~~ within 3(? daye
imm the date notice is mailed by l.ender to Bormwer reyueFting payment thereof.
Upon payment in full of all auma secured by this Mortgage, I.ender shall promptly refund to t3orruwer any fu~ds held by l.ender. lf unde~
paragraph IS hereotthe Property is sold or the Property is otherwi~e acyuired by l~ender, I.ender shall apply, no laterthan immediately prior
to the sale ef the Property orits acquisition by I.ender, nny F unds held by Irnder at the timr of application as a crrdit against thesums secured
by thie Mortgage.
3. Applieetion o! Paymenta. Unless applicable law provides otherwise, all paymenis received b} I.ender under the Note and
paragraphs 1 and 2 hereof ahall be applied by I.ender first in payment ~~f amoun4s puyable to Irnder by Borrowrr undrr p~ragraph 2 herec~f,
then to intereat payable on the Nole, then to the principal of the Note, and then to interest and principal on any Future Advancea.
4. Charges; Liens. F~orrowershall pay all taxes,:~~sessmrnts ~nd uth~•ri•harK~s, f niw:ind im{H~sitiuns nttrihutahle to the F'roperty which
may attain a prior'sty over this MortgaKe, and leasehuld pa~•ments ur ~;r.~und rents, if any, in the mannrr pruvid~~c1 under p:~rigraph `L herc~f or,
tf not paid in such manner, by E;orrowrr m:~kinK payment, when due, directh• tu the pay~r there~,f. t;urruwer sh.ill promptly furnish to Ixnder
all notices of ~moun~c due under this paraKraph, and in the e~~ent tturruw•er sh:ill make p:~yment dircrtl~~. l3urmH•~•r shall prumptly furnish tu
I.ender receipts evidencinR such p.iymrn~s. liorruwe* shall prumF-tl~- di~charKr am• lien w•hich h:~s pnorit>• uv~~r this ~1ort~;aKe; providrd, that
finrrower shall not be reyuired t~~ discharge an~ such lirn su IunK :Lti I~Iff1~K'f~r.hall :i~r.~•~n w•ritinK tu th~• p.iyme•nt u(thi•ubliKatiun secured ~y
~~ch lien in ~ manner acceptable tu la•nder, ur sh:~ll in ~;~xx1 faith i~irnti•st ~u~•h lii~n by, ~~rdeG•nd rnfun•i~mi•nt of sui•h lirn in, I~•~;:~I procrrdings
w•hich operate to prevent the enfurcement uf lhe lien ur for[eitur~ nf th~ Pru{N•rly or any part there.~f.
~. Hazard Insurance. Itorroaer shull kcrp the ~mpruvements nuN ex~sunK or herr.~ttrr rreY-t~yi un the i'ruF~rrty insun~l:~Kains't iusts Uy
fire, hazards included v-ithin the tertn "extended c~n'eraKf•.° .~nd wch uthrr haz.~rds as I w•nder mav reyuirr and in such amuun~ti and for such
periods as Ixnder may requim; pru~•idrel, th:+t Ix~~di~r ~hall n~~t reyuire that th~~ amuunt uf su~•h eti~~•eraKe e+ccr~d that amnunt of cuverage
rcquired to pay the sums secured by this ~tortKaKe.
7'he insurance carrit•r pru~•idin~; thc~ insur:~n~•~~ shall Ir~• i•h~,.~•n b}• lt,~rrnwvr .ub~irt tn appn~c:~l hy L~•nd~•r. pr~~~~id~r1. that wch .~pproval
shall not be unreas~m:+bh• withh~~ld. All pn•mium~ on inwr.inr~• {H~ii~~~t•..hall iN• p:~~d in thr m:-nnrr pr~~~-id~~i un~1i•r p:vaKr.~ph'L henr~f nr, if
not paid in such manner, M• li~~rtuv-•cr makin~ {i:~>•~n~•nt, wh~•n du~•, d~n•~•tl~• t~~ th~• en~ur.~m-t• carricr
All insurance policies and renev-.ils thrreY-f ~hall be in furm acceptahle G~ 1.~•nd~•r:ind shail ~ncludr a.t:~n~iarci murtgaKeci.~use ~n f.ivorot
and in form acceptable to I.ender. I.ender shall ha~•e the riKht tu h~~ld thf~ ~Ndi~•ies and mm~w•al~ thrnti~f, and RorrowPr ch:+ll prumptl~ furnish tn
ixnder all renewal notices and all receipts of paid prrmium~. In th.• ~~~•ent uf lutis, Rurn~w•rr chal~ Ki~•e p~umpt nutice to the insurance c~+rrier
~ind [.ender. I.ender may make pnN~f of loss if not made prumptl~ b~• li~~rruw•er.
Unleas I.ender and fi~rruwer othervrisr aKrre in N'r1~lOY„ 1R5Uf.~nce pr~x•r.yis shall tk• :~ppl~~c) tu resturation or repair of the Property
damaged, provided such restoratiun ur repair is tyv~nnmica~ly Ce:i~ible .ind th~• .~~~urih• uf this :11ort~;.ige is not thereby impaired. If such
restoration or repair is not economicall~ feasihle ~~r if thr u~ urih~ of thi~ ti1~~rtK:-Kc• rcuuld Ix• impaired, the insuranre procecds shall be applied
to the aums secured by this MnrtKage, w~th thf• exc•~~ss, ~f an~, paid tu li~~rrower. If tht• {'ru~x•rty is abc~ndunt~cl by Korruw•er, ur if Eiorrow•er fails to
re~pond to [.ender within :i0 da> s frnm the• date nutic•~• is mail~v! by 1~ender tu It~~rruw•rr that thP insur:ince carrier offrrs to settle a claim for
insurance benefits, [.ender is .+uthoriz~d tu cnll~~~t :+nd apply ti-~.• insuran~•~~ pr~h•~rds at I.e•ndPr s;~pti~~n rithPr tu re~turation nr rrpair of the
E'roperty or the sums secured by this 11ortQaKr.
Unless l.ender and F3orruwer otherwise aKr~~ in wntinK, am• such applicati~,r~ uf pnK•iti~cls tu principal shall not extrnd ur pustponethedue
dAte o! the monthly inst~~IlmenL~ referred to in par.+Kraphs I and'l herro! ur chanKe th~• amount uf such installmentn. If under paraKraph 1R
hereof the Property is acyuired by l.ender, all riKht, tidi• and inti•resl ~~f Fiurruw•rr in and t~~ :+ny insurani•e policies .~nd in and to the prv-ceeds
thereof resultinq fr~~m damaKe to Property prior tu the ti:+le or a~t~w~itiun shall pas. G~ I.rnder to the extent uf the sums serured b~ this
\~tortgage immediately prior to such :.ale or acyuisition.
6. Preeervation and Maintenancr otProperty: lA•aseholdy; (bndominums; Planned Unit I)evelopmente. Borrowershall keep
the Property in good repair and shall not cummil vc:~,tr ur ~•rmit ~mpairm~•nt or drteriorat-un uf the Pruperi> and shall comply w~lh the
provisiona of any leaxe if this MortgaKe is on a leasi~hold. If this l~lurtKaKe is un a unit in a nmdominium or a planned unit de~•elupment,
fsorrower ahaii perform all of i3orruwcr's ubiiKatiuns undt•r tfie dc~•iaraiiun urcuvi•nanis ~ rraiiu~;ur Kuvrrnu~K ihecundo~ninium ur piannrei
unit development, the by-law•s and re~ulations of the cundominium ur planneci unit development, and constituent documents. If a
crmduminium or planned unit devFlopmrnt rider is exE~c•utEd bp I~IIRUK'f~r and r~rnrded toKether with this Mortgage, the covenants and
agreemenL~ of such ridcr ~hall 1~r in~•urpor.rte•d intu and .hall :imt•nd and supFrlc~mi•nE lhe~i•u~•enants and akrE~menLs of this ~1urtKaKe as ifthe
rider were a part hereof.
7. Protection ot Lender'e Security. If E3orrower fails to perform the rnvenante and agreementa contained in thie MoRgagr, or itany
action or proceeding ie commenced which materially atfects l.ender's interest in the I'roperty, including, but not limited to, eminent domain,
ineolvency, code enforcement, or arrengemente or proceedinga involving a bankrupt or decedent, then l.ender at [.endei e option,upon
notice to Borrower may make auch appearancee, diaburee auch sume and take auch action ae ia necessary to protect Lendei s interest,
including, but not limited to, diebureement of reasonable atiorney's feea and entry upon the Property to make repaire. It Lender required
mortgage insurance se a condition of making the loan secured by thie Mortgage, E3orrower ahall pay the premiuma required to maintain
euch ineurance in effect until auch time as the requirement fur auch ineurance terminates in accordance with E3orrower's and I.ender'e
written agreement or applicable Law. Borrower ahall pay the amount of ~Il mortRage insurance premiums in the manner provided under
paragraph 2 hereot.
Any amoun[e dieburaed by I.ender pereuant to this paragraph 7, with int~•reat thereon, ahall bea~me additional indebtedneas of
Borrower eecured by thia Mortgage. Unleas I3orrower and I.ender agree 1,~ other terms ot payment, such amounte ahall be payable upon
notice from Lender to E3orrower requesting payment thereof, and ahall bear interest from the date of dieburaement at the rate payable from
time to time on outatanding principal under the Note unlesa payment of intereet at auch rate would be contrary to applicable law, in which
event euch amounta ahall bear intereat at the higheat rate permisaible under applicable law. Nothing contained in this paragraph 7, shall
require I.ender to incur any' expense or take any action hereunder.
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