HomeMy WebLinkAbout1147Borrowe~ and l.ender covenant a~d aQe~ee eu (ollowr
1. Payment o[ Pirincipa! and Interest. Borrower shall pmmpdy pay when due the principa! o.* L.-.~ i-•~,::E: on the indebtedncs~
evidenced by the Note, prepayment and late charga aa pmvided in the Note, a~d the principal of and intereat on any Future Advancea ~ecured
by this Mort~age.
2. F'unds for Taxes and l~surance. Subject b applicable law or to a written waiver by I.e~der, Eiorrower shall pay to t.ende~ o~ the day
monthly installmenta of principal end interest are payable under the Note, until the Note is paid in full, a aum (herein "Fu~ds") equal to on~
tweltth oithe yearly taxea and xssessme~ts which may etlain priority over this MortRage, and gmund re~ts oo the Propecty, if any, plus one
tweltth of yearly premium inatallments for hazard iosurance, plua oaetwelRh of yearly premium installmenta !or mortgage in~u~ance, if any,
all as reaeonably eatimated initially and firom time to titr~e by l.ender on the basis o[ aeaesamente and billa ar.d reasunable ee-timatea thereof.
The ~nde ahall be held in an inatitution the deposits or accounts ot which are inaured or Buaranteed by a Federa) or State agenry
lincluding l.ender if I.ender ie euch an institution). Lender shall apply the Funda to pay said taxes, asaeaxme~ts, inaurance prrmiume and
~tround renta. Ie~der mav not cha~ge tor so huldinq and apDlvinR the Fund., a~elyrng s~id account, or verifying and compiling ~aid
asseeaments and bills, unless l.ender pays Bormwe~ interest on the Funda and applicable law permits l.ender to make euch a charge. Borrower
and Lender may egree in writing et the time of e:ecution of thia Mortgage that inte~est on the Fbndw whwll he uaid to Borrower, and unless
euch agreement ie made or applicable law requirea such intereat to be paid, l.ender ahall not be required w pay E3oROwe~ any interest or
earninge on the Funde. l.ender ehall give to Borrower, without charge, an annual accounting of the Funds ahowing credite and debits to the
F unds and the purpoBe for which each debit to the Ftinds was made. The F unda are pledged as additional aecurity for the aums aecured by thie
Mottgxge.
If the amount o[ihe Ftinds held by l.et-der, together with the future monthly inetellmente of Funds payable prior to the duedatea of taxes,
aeaesements, ineurance premiums and ground renb, ehal) excxd the amount required W pay eaid ta:es, asaeaemente, inaurance premiume
and ground rente as they fall due, auch exceas shall be. at Bo~rower's option, either prompUy repaid to Borrower ur credited to Horrower on
monthly inetallmente oi Fu~ds. If the amount of the Funde held by Lender shall not be aufficient to pay taxc~, sesesamente, inaurance
premiums and ground renta ae they fall due, Borrower ahall pay to I.ender any amount neceasary to make up the deficiency within 3~ days
from the date notice ia mailed by Lender tu Borrower requeatinK payment thereof.
Upon payment in full of all aume secured by thie Mortgage, l.ender ahall promptly refund to Borrowe~ any funds held by l.ender. lf unde~
paragraph 18 hereot the Property ia eold or the f'roperty is otherwiae acyuired by [.ender, I.ender ahall apply, no later than immediately prior
to the sele of the Property or its acquieition by Lender, any Funda held by l.ender at the time of applicatiun ae a credit against theaums aecured
by this Mortgage.
3. Application of Payments. Unlesa applicable luw providea otherwise, all payments received by I.eoder under the Note and
paragraphe 1 and 2 hereof ahall be applied by I.ender firat in payment of amounts payable W[.ender by E3orruwer under paragraph 2 hereof,
then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any F uture Advancen.
4. Chargre; I.ierfs. Borrowershall pay ull tazes, assessments and othrrcharges, finrs and impusitiuns attributableto the!'roperty which
may attnin a priority o~ er this Mort~age, and leasehold paymenLs or Kround rents, if any, in the manner provided under para~aph 2 hereof ~~,
if not paid in such manner, by BorrowPr making payment, whrn due, directly tu the payre thereoL Rurrower shall prompUy furniah tu l.ender
all nolices of amnunts due under this paruKraph, and in thr rvent Fiorruwer shall make payment directly, Korrowrr shall promptly fumish to
l.ender rrc~ipts evidencing such pc~ymenLR I~~rruwer shall prumptly dixcharKr any lien which h:~s prinr~ly over this MurtKage, provided, that
I~rrower sh~ll nut he rrqu~reY1 tu d~scharKe any xuch lirn su I~mg as liorruwer sh:~ll a~crer i~ writinK tu thr payment olthrohliKation secured by
~uch lirn in :+ manner accept:-blr to lAnder, or shall in K~x1 f:uth ~•ontrst auch hen by, ordefend rnforcement of su~-h lirn in, I~•Kal pr~x•e~rlings
which oper.~te to prevent the enfurcrment of thr lien or fvrff•durr uf the Proprrty or an~ part thrrruf.
5. Nazard Inxurance. Rorrowrer shall keep the improvements nuw exist~nK or herraher erected on the Property ~nsured aKainat losa by
fire, hazards included within the trrtn "extended rnveraKe," and such other hazards as I.ender may require nnd in auch amounts and forsuch
prriods as I.ender m:iy re~~uire:'provided, that Ixndrr shall n~:t rryuire that thr amuunt of such cvveraKe excrcd that amuunt of coverage
rryuirre! to p:~y th~ sums urund b~ this tilortKaKe.
The ~nsuran~•~~ carr~t~r pro~~~dinK thr ~nsur.~n~•~• ~h:ill 1~• ~~h~~s~~n hy HnRON'/•r sub~e~•t to appnn•al bp I.rnd~•r, providtyl, that .uch apE-roval
sh:~ll nut tx• unrrasunably w•~thh~ld. All pn•miums nn insur:m~•~• µ~lictrs shall i~ p:ud ~o the m:~nn~•r pn~~•id~r1 undrr paratiraph'L hrrt~if ur, if
nol paid in su~h mannrr, tn~ li~~nuwcr mak~nK p:~y~m~•r.t, w•hrn duc, d~rri•th• t~~ thc• ~nsurance camrr
All insurance polic~rs and renewals thereof shaU be in form acceptable u- I.ender and shall include a standard mortgaKe clause in favor of
and in furm acceptable to I.rnder. l,ender shall ha~ e the riKht b~ hold the {x~lic•ies and renewals thereot, and Borruwer shall promptly furnish to
~.ender .iU renewal nutices and all receiptx uf paid premiums. In thr event of loss. B~~rruwer ahall K~ve prompt notice u~ the inwurance carrier
.ind (.ender. I.ender may makp prrx~f of loss if nnt made prumptly by ~irtower.
Unless I.ender and li~~rt~~wrr otherwir:e aKrre in writinK, in~urance procrrds shatl be applied to reatoration or repair nf the 1'roperty
damaKed, pru~•idNd yuch reyturat~un ur repair ~s eyonumically fr.~sible and the scrurity ~,f this Mortgage ia not thereby impaired. If such
rrsu~rHtion or repair is nut E~c-unomically fr:iti~i~lr nr if thr srcurily uf this MnrtgaK~ w~~uld be impnired, the insurance prucrcds xhall brapplied
to the sumssecurrd b.r• this 1~tur1K:~KP, v-~th th~•excrsx, if any. p:~id tu Fturruwer. If the Property is abandoned by F~rrnwer,ur if li~~rrower faile t~~
resp~md to I.ender within :i1! dayx frum thr datr nuti~•r ~K mailyd by l.ender G~ Korruwrr that the insu[:+nce casrier offers to settle a claim for
~neurance benefilx, I~ender ~s authurited to collrct and apply the in4urance prrx~rrds at Ixnder's upt~on either to rextoration ur repair uf the
Property or the suma eecured t-y thix MortK~+KP-
Unlesa [,ender and liurruwpr utherwise aKree ~n wntinK, any such applicatiun uf proceeds to principa) shall not extend or poatpone the due
date of the monthly inr~tallments rPferred G, in par~Kraphs 1 and'L hereuf or chanKe the amount of such ~nstallment9. 1[ under paragraph IR
hereof the Pn,perty is acyuirrd by I~ender, all right, title and interest ~~f !i~-rn~wer in and to any insurance policies and in and to the proceeds
therenf resulting from damaKe k~ Property prior to the sale or acqwsilion ahal) pass tn I.ender to the extent ot the sume aecured by thia
ylortgage immediately prior tn auch sale or acquisit~on.
f. I'reeervation and Meintenanceotf'roperty:l.raxeholde; Condominums; Planned Unit Developmente.l3orrowerahall keep
the i'roperty in K~~x1 repair and xhall not commit wayle or pr-mit ~mpairmrnt or deterioratiun of the Property and shall comply with the
provisionx of any lease if this MnrtKage is on a Irasehold. If th~x MurtgaKe is un a unit ~n a conduminium or a pia~ned unit development,
Itorruwer ahaU perfnrm all of finrruwer'a ubliKations under the declaration or covenants ~re:~tinKor govern~nq the condominium or planned
unit development, the bylawx nnd re~culations of the condominium or planned unit development, and conetituent documenta. If a
~~ondominium or pl~nned un~t development ridrr is rx~rutcd by &~rruwrr and recurded t~ethrr vrith this Mortgage, the a-venante and
:~Krremrnt~ nf such rider shall ix incor{N~rated intu :~nd sh:ill amend .~nd supplrment the cuvrnanL~ and agrre~menta ~f th~s MortgaKe as i[the
nder w~rrP a part hereof.
?. Protection of Lender's 3ecurity. If Borrower faila to perform the covenante and agreemente contained in this Mortgage, or it any
action or proceeding is commenced which meterially effecte [.ender's interest in the Property, including, but not limited to, eminent domain,
ineolvency, code enforcement, or arrangemente or proceedings involvinq a bankrupt or decedent, then Lender at I.ender's option,upon
notice to Borrou•er may make such appearences, disburoe auch eums and take euch action a~ u necessary to protect Lender i interest,
including, but not limited to, diebursement of reasonable attorney's tees and entry upon the Property to malce repairs. if Lender required
mortgage inaurance as a condition of making the loan aecured by thie Moriqage, Borrower ahall pay the premiums required to maintain
auch ineurance in effect until auch time as the requirement for such ineuran~e terminatee in accordance wilh &-rrower's and [.endei s
written agreement or epplicable I.aw_ Borrower shall pay the amount of all tlfortqaqe ineurance premiume in the manner provided uRder
paraqraph 2 hereof.
Any amounta diabureed by Lender pereuant tu this paragraph 7, with interest thereon, ahall become additional indebtednesa of
fiorrower eecured by thie Mortgage. Unleas Horrower and [.ender agree to other terme of payment, euch amounte shall be payable upon
notice from l.ender to Rorrower requesting payment thereof, and shal) bear interest from the date of disbureement at the rate payable from
time ta time on outetanding principal under the Note unleea payment of intereet at auch rate would be contrary to applicable law, in which
event euch amounte ehall bear interest at the highest rate permiseible under appiicable law. Nothing rnntained in this paraqraph 7, shaU
require I.ender w incur any e:pense or take any action hereunder. •
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