HomeMy WebLinkAbout1137ttorrower and I.ender covenant and agree as follows:
1. Payme~t of Nrincipal a~d lntereet. I;orrowe~ ahull promptly pay when due the principal of aod i~terest un the indebted~eas
evidenced by the Note, pcepayment and lale charge8 aa provided in the Note, and the principal of nnd intereston any F uture Advunces secu~ed
by this Mortgage.
Z. Funds ior T~xes and Insurunce. Subjeci ii- upplicubir iuw ur tu n wiiiici~ w:iitiri ~i}' {.i Ti~ri, i3„rn~wc~ rF~,.ll puy t~. t.eri~'ri ui~ it~r ~av
monthly inatallmente ot principal a~d intereat are puyable under the Note, until the Notr is paid in full, a sum Ihr~ei~ "Funds") cqua) to one
twelRh of the yearly taxea a~d asaesementa which muy attnin priority ove~ this MortgaKe, and ~ound ~enls on the P~o~rty, if uny, plus one
tweiRh otyearly premium installmenta for hazard insuruncr, plus onPtwelfth ofyeurly prrmium instuliment~ fu~ morig.~ge insurance, ifa~y,
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dii tf6 (CJBUfidL1~ CbNifld-t'U ~LNidU,y a11~U iwU~ uuK' ~U ~~iut ai> :.a~~ua~ ~~~ au• .a •• .a .a.•••• •...su .• o us•.~ a~.~.+.,~~.w~• w auw •~t~~..s.
The Funda shall be held in an inatitution the depoaits ur nccounts of which nre insured or Ku:~ranterd by a Federal or~5tate aKency
~ including l.ender if Ixnder is such an institution). I.ender shall apply the Funds to pay suid taxes, u.ssessments, i~suraince premiums and
ground renta. l.ende~ may not charge for so holding and applying the Funds, analyzing said account, o~ ~•erifying nnd c•ompiling said
asaeeaments and bilie, unlesa l.ender paya E3orrower interest oo the Funds und ~pplicable law permits I.ender to make such a charge. Horruwer
and I.ender may agree in writing at the time otexecution of this MorlgaKe that interest on the Funds shall be paid to Borrower, and unleas
such agreement ia made or applicable law requirea such interrst fa be paid, l.ender shall not be required to pay Korrower any interest or
earnings on the Funda_ Lender shall give to Rorrower, without charge, an nnnual uexounting of the H unJs showing credits and debita to the
Funds and the purpoae for which each debit to the Funds wus madr. The Funds are plecfged :~s uddition~l security for the sumR xcrured by thie
;Wortgage.
If the amount of the Funds held by t.ender, together with the future monthly ins4+llmrnts of Funds pz~yuble prior to the due dates of taxee,
assesamente, insurance premiums and ground rents, shall exc ~cd the :~muunt reyuired to p:~y said tuxes, usses.,ments, insurance premiums
and ~ound renta as they [all due, such excess shall be, at Iiom~wer's option, either promplly rep:iid to Borrc-wer or credited tu liorrower on
monthly instaliments of Funds. If lhe amount of the Funds held by I.ender shall not 1-e sufficient to pay t:~xes, assessments, insurance
premiuma and ground rents as they lall due, Borrower shall pay to I~ender any am~~unt neti~essary to make up the deficiency w•ithin 30 days
from the date notice is mailed bv t.ender tu E;ormwer mquesting pa~•ment therrc~t.
Upon payment in full of all suma secured by this MortKage, I.ender shall prumptly mtund to liorr~,wer any funds held by l~ender. lf under
paragraph 18 hereotthe Yroperty is suld or the Pruperiy is otherK•ige acquired by I.endcr, I,endpr shnl~ apply, n~~ later Ih~in immediately prior
to the sale ef the Property or its acquisition by I~ender, any Funds heid by I.ender at the time of application as a crrdit againsi the sums secured
by thia Mortgage_
3_ Applieation of Paymenta. Unles.4 applicable law pruvides otherv~•ise, all puyments received by l.ender under the Note and
paragraphs 1 and 2 hereof shall be applied by I.ender fin.t in p:+ymcM of amuun4c payuble /o Irndcr by l3orruvrer under paragraph 2 hereof,
then to interest payable on the Note, then to ~he principal of the Nute, and then to interest and principul on ~ny Future Advances.
4. Charges; Liens. Borruv~ershail p:ry all taxcs, .~ssecsment~ and oth~•rrhartiec, fin~s.md im{x~sitiuns attributable tu the 1'roperty which
rnap attain A priority over this MortKaKe, and Icasehuld payment~ or ~round n•nts, if am~. in thr mannrr pro~•idcd under paragraph'L hereof or,
if not paid in such manner, by fiorrower making p:~~ m~•nt, when due, dircti•t!y t~~ th~• pay~~c~ then~~C R~~rn~w•~•r shall prumptly furnish to I.ender
:ill notices of amoun~c due under this par.~Kraph, :-nd in the event KorruHer shall makt• payment directh•, f3nrn~w•c•r shall prumptly fumish to
l.ender rrceipts evidencing such pA~'IRPIIIti. ~;(~RUNPr shall prumpth• di~charKt• any lien which has priurih• u~•~•r this ~1ortK.iKe; provided, that
f~orrower shail not bereyuired todisch.irKr am• ~uch li~•n su lun~; a.lt~~rru~cer sh:ill a~;rr~• in w•ritink tu th~• pa}•mrnt ~~f th~•nbliKatiun secured by
~uch lirn in ~ manner acceptahle to la•nder, ur.hall ~n ~~NM1 faith ~•unt.~.t su~•h lii•~ hy, ur drG•n~1 ~•nfurc~•nx•nt ~~f su~•h lii~n in, I~~~;a! priK•e~rlinKs
which uperate to prevent the enforcemc•m uf the lirn ~~r furf~~itun~ ~~f thr 1'n~~N•rtc ~ir an~~ parc th~•ri.~f.
5. Ha2ard Insurance. Borrow•er shall krrp the~ impru~~ements nuw i•xi~t~nK or here:ifter rrcrted on the ProE~rrty intiurtd aKainst luss by
fire, hazards included within the term "extendtd cu~•eraKe," and such uthi•r har.:~rd~ ;~~ I,~~ndrr ma~~ nv{u~n• and i~ti such amuun~ti ~nd forsuch
Ex•riixls as I.ender may myuire; pruvided, tha+t Ixndi~r shall nut rtryuire that thc• :+m~~unt u( sui•h an•~•raK~~ excred th.it :~muuM of cuverage
rryuimtl to pay the sums securcrl b~ this A1nrtKaKr.
The insurance camer pru~•idin~; tht• invuram•~• sh:~ll iw• ~•h~~~~•n h~• li~~m~w~•r.ub~~r•t u~:~ppruc:~l 1~~~ Ixn~1~~r. {.:+~cid~vl, thnt wi•h appnnal
shall not be unreaWmabh• N•ithh~•ld. All pmmiums ~~n inxuranrr EN~l~~•i~•~ .IIiSII IN• ~l:ud ~n th~• m;~nn~•r pr~~c~~1~~t un~lrr p:u:~~;raph Y hen.rf or, if
n+~t paid in such manner, b~• li~~rruwer makin~; p:~ym~•nt, w•hi•n ~1u~•. dir~•~•tlc t~~ th~• ~n~uran~•~• ~•arrie•r.
All insurance policies and renev-als thercY~f ~hall be in fi~rm an•~•ptable tu 1.~•nder:~nd shall include:i .tandard mortKaKeclause in fa~•or of
and in form acceptable to I.ender. I.endt•r.h:+ll hac~- the ri~;ht tn h~~If~ ~F1P ~N~IICIt•ti and n•neW:1IF tFlf~rt~~[, :+nd R~~rr~~w•ershall promptly turnish to
~.ender all renPwal notices and all ree•eipts nf p:~id premium~. In thr ~•~•t•ut ~~f I~~cs, liurruw•er shall Ki~•E~ prompt notice to the insurance ~:~mer
and l.ender. [.ender may make pr~~~f of locs i( nnt made promptln c~ liurruw•er.
Unless Lender and 1{urrower uthem•isr aKrt~• ~n w•nt~nK, insur.~nc~• priK•rrd. sh:+ll Ik• appl~rd tu rrsturation or repair of thr 1'roperty
damaged, provided such restoratiun or rrp.iir is ~~•unumii•ally fi;~~iblr :+nd the sirunt~• of this ~tortKaKe is n~~t thereby impaired. If such
restoration or repair is not econumir.iliy f~•asihli~ ~~r if the sfrurity uf this ~1ortKa~;e w•uuld F-e impuired, theinsurance preMeeds shall t-eapplied
uf the sums secured by this 111urtKaKe, v-ith thc• ~•xcrss, if any, paid a~ Fi~~rrow•er. lf th~ !'ruprrty is abandnneti hc Rorrowrr,ur if Fiorrow~er faila to
respond to I.ender within 30 da~•s from thr d:itF nuti~•~~ i~ mailFd by I,~~nde~r tu IA~rruwrr that the insurance camer ntfers to settle a claim for
:nsurance benefits, I.ender is au:hurized to ~•ulltti•t and apph• thr in~uranc~• prvK-rt•d..it I.cmder's uptiun either to restoratiun ur repair of the
Properiy or the sums secured by this :11urt~.+Ke.
Unleas I.ender and Eiorruwer utherwist• :iKnr ~n wntinK, any wch applicatiun uf pr.x•~ti•ds tu principal tihall nnt extend or p~stpone thedue
date of lhe monthly installmen~s rcderreri to in paraKraphx 1 and '~ hrre~~f ~~r chanKc~ thc~ amuur,t ~~f such installmrn~s. If under paraKraph 1R
hereof the Property is acquimcl by (.ender, afl riKht, tiU~~ and intc•rest uf I~orruwer ~n and tn ::ny insurance pnlicit•s and in and to lhe proceeds
thereof resultinR from damage to !'roperty prior to the ~ale or acqwsitiun sh:~ll pass tn I.~nder to the extent of the sums secured bv this
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6_ Preaervation and Maintenancrof Property: l.ra~eholds; ('ondominums: t'lanned t%nit Develo~ments. Korrowershall keep
the Pruperty in R«,d repair and shall nut cummit w:~~tc• ur permit imparrme~nt ~~r dett•riorati~~n uf the Pruprrt~ and shaU cumpl> with the
pru~•isions of any lease if this ?11nrt~;aKe is on a leasi~huld. If this 11urtK:iKc• i~ un a unit in a cnndominium or a planned unit de~•elopment,
Fiurrower shall perform :~11 of Rorrower's obliKation. under th~• declar.~tiun or ~•uc~~nanls ~•rratin~ur Ko~~ermnK thecondominium or planned
unit development, the by-lavcx and reKulatiuns ~~f th~ cundomin~um ur planntd unit develnpmrnt, and constituent documents. If a
con3uminium or plaaned unit de~•elopment rid~~r is exe~vted b~~ }i~rrrow~•r .ind rerordrd toKethrr with this btortgage, the covenants and
uKreemen44 of ~uch rider shall fk~ incurp~~r.rtecf int~~:~nd shall amrnd and supplrment the~~ocrnants and c~~;reemrn~sof this ~tortgaKeas if the
rider werr a part herc~~f.
7. Protection ot Lender'e Security. (f Borrov-er fails tn perforrn the rnvenanti+ and agreementa containwi in thie Mortgage, or if any
aMion or proceeding is commenced which materially affecte+ I.ender'e interest in the F'roperty, including, but not limited to, eminent domain,
inaolvency, oode enforcement, or arrangemente or proce~edinQs involvinR a bankrupt or decedent, then I.ender at I.ender'e option,upon
notice to Borrower may make euch appearancee, diaburse auch auma and take auch action as is neceesary to protect I.ender'e intereet,
including, but not limited to, diebureement of reasonable attorney's feee and entry upon the Proaerty to make repaire. [f Lender required
mortgage ineurance ae a cor~dition of making the loan secured by this Mortgage, Borrower yhall pay the premiume required to maintain
euch ineurance in effect until euch time as the requirement for such inxurance terminatea in accordance with Borrower'e and (.endei e
written agreement or applicable law. Bormwer shall pay the amount ~{ a11 mortKaKe insurance premiuma in the manner provided under
paragraph 2 hereof.
Any amounte dieburaed by I.ender pereuant to this paragraph ?, with intrrest thereon, ahall }xrome additional indebtedneae of
Kortower aecured by thie Mortgaqe. Unleas E3orrower and l.ender agree to other terma uf payment, such amounte ehall be payable upon
notice from [.ender to Borrower requeating payment thereof, and shall bear intereat fmm the date of diAburaement at the rate payable from
time to time on outatanding principal under the Note unless payment ot intereat at such rate would be contrary to applicable law, in which
event euch amounta ahall bear intereat at the highest rate permieaible under applicable law_ Nothing containerl in thie paragraph 7, ahall
require Lender to incur any expenae or take any action hereunder.
g~~~349 P,UF1138
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