HomeMy WebLinkAbout1159Eior~ower and I.ender covenant and eg~ee as tolbwr
1. Paya~ent ot Prit~cipal and Intere~t. Ao~ower shall promptly pay when due the principal ot and inte~eat on the indebtedness
evidenced by the Note, prepayment and latechargee as providPd in the Note, and the principa! ot and intereet on any F uture Advances secu:ed
by thia Moctgage.
2. ~tnde lorTues and I~aurance. SubjM to applicable luw or to a wrilten wuiver by l.ende~, Hurn,we~ shall pay to I.ende~ on the day
monthly inslalimente of principa! and intemst are payable under the Note, until the Nute is paid in full, a sum Iherein "H unds") equal to one
twelith of the yearly taxes and asseasments which muy attain priurity over lhis Mortgage, and Rruuod renta on /he f'roperty, if nny, plus on~
twelfth of yearly premium instaUments fo~ hpzard insurance, plus onPtwelfth of yearly premium installmrnts for mortK:sge insurance, i[any,
all as maeonably estimated initially and from time to time by I.ender on the busis of nssessments und bills ~nd re.-sunablr estimates thereof.
The Funds shall be held in an inatitution the depoaita or accounta of which are insun~l or guarnnteed by a Federal or State aKency
~includiog I.ender if l.ender is such an inatitution). l.ender shall apply the F unds to pay said taxes, asssess+menta, inau~anrn premiums and
~ound rente. I.ende~ may not charge for ao holding and applying the Funds, analyziog said account, or verifying and compiling said
asaesaments and billa, unleas Lender pays BoXrower interest on the Funds and ppplicnble Iaw permits l.ender to make auch a charge. Borrower
and l.ender may agree in writing at the time of execution ot this Mortgage that interest on the Funds ahall be paid to tiorrower, and unleas
such agreement is made or applicable law requirea such interest b be puid, l~ender shull not be required to pay E3orrower any interest or
earninga on the ~nda. Lender shall give to Eiorrower, without charge, an annuAl accc~untinK of the F unds showinR credits and debita to the
Funde and the purpose for which each debit to the F unds was m~de. The F unds are pledKed as additional security [orthe suma secured by this
Mortgage.
If the amount of the ~nds held by l.ender, together with the future monthly installments of N unds payable prior to lhedue datea of taxea,
assessments, insurence premiums and ground renta, shall excred the Amount required tu pay said taxes, assexsmentx, insurance premiuma
and ground rentx as they fall due, such excess shall be, at Bo~n-wer's option, either pmmptly repaid to l3or~rewer or credited to t3orrower on
monthly ine~nllments of ~nde. If the amount of the Funda held by I.rnder shull nut be suf~cient to pay taxes, assessments, insurance
premiums and gr~und renta as they fall due. E;orrower shall pay to I.ender any amount necessary to make up the deficiency within :i0 days
fwm lhe date notice is mailed by Ixnder b Born-wer requestinR payment thermf.
lJpon payment in full of all sums secured by this Mortgage, I.ender shall promptly mfund to I3onrower any funds held by t.ender. If under
paragraph 18 hereof the Property ia sold or the Pmperty is othemise aryuired by I~ender, l.ender shall apply, no later than immediately prior
to the sale of the Property or its acquisitiun by l.ender, any Funds held by I.ender ~t the time of applicatiun as a credit againsl the sums secured
by thia Mortgage.
3. Applieatio~ of Payments. Unless applir~ble law pru~•ides othervvise, all paymenf~c received by t.ender under the Note and
paragrapha 1 and 2 hereof ahaU be applied by l.ender fint in paymenl of nmounts payable to I,ende~ by F3orruwer under paragraph 2 hereof,
then to intereat payable on the Note, the~ to the principal of the Nute, nnd then to interest and principal on any Future Advances. ~
4. Charges; Liene. Bormwer shall pay al) taxes, .+ku~..mrnts and otht•r cha~Kes, fi~cw and im~~sitiuns:+ttributable to thr t'roperty which
may attain a priorih• over this MortKaKe, and leu~ehold p~~ymrntc or kround rents, if any, in the manner pro~•ided under paraRraph 2 hereof or,
if not paid in such manner, by liorrower makinK p.iymeM, when due, din~e~tl}• to thr pay~~~ thert~v~f. Rurmwer shall prompdy furnish to I.ender
:~11 notices of amuunts due under this paraKraph, and in the r~•ent Kurroa•er sh:~ll make pa}•ment direc-th. BorroN•er shall prompdy furnish to
I.ender receipts e~~idencinK such paymenls. Ik~rroa•er shall pr„mpth• d~scharKi• :~m• lien w•hich hac priorit~ o~•er this 1lurtkaKe; provided, that
{i~~rruwer shall not hereyuiree! todischarKe an}• such li~•n su lunti as 1{orruwi•r.h.ill aKnr in writinK tu the p:~~~mrnt o[th~•ubliK:riion securNd by
such lien in a manner acceptable tu Ixnder, or shal) in k~KK1 L•~ith c~~nt~•st wch li~•n h}•, urd~•f~•nd enfun•~•m~•nt of.ui•h li~•n in, lekal pmcrtdinKs
w•hich operaitP to prevent thr Pnf~~rcemrnt of thr~ li~~n ~~r furfritun• uf th~• 1'ru~x•rtv ur :~m• p:~rt then~~f.
5. Hazatd Insurance. 13urruwer sh.ill kre•p tht• impru~~ement~ nuK- i•xistinK nr hereafter ern•tc~ un the Prnperty insured aKainst Ic~gs by
fire, hazards included within the term "Fxtendc~l i-orera~;~." and such uther ha-r.:~rds as l.ender may rrc~uirt• and in such amoun~~ and for such
periads ¢-s [xnder may myuire; pruaidr~il, that l.ender shall not n•~;mn• that tht~ :~mount uf tiuch n~veraKe excc~d th.it amuunt of rn~erage
re~yuired to pay the sums srcund by thic 11ortKaKr.
The insuran~~e carricr pru~•idinK thi~ incur.~n~•i• shall ta• ~•hu.rn h~• It~~rr~~wi•r.ubjiK•t t~~ appn~~•al b~• I.~•nd~•r. pru~•idi~l, that +uch appro~•al
shall not be unrr.~inably w•ithht•Id eVl prt•miwnc un u~wr.~m•f• p~~tir~r..h:~ii iK• p:~id in th~• m:~nne~r Frr~~~•~d~~l undi•r par:iKr:~ph 2 hrnr~f or, i!
not paid in such manner, b~• lk~rruwer mak~n~ p.~ym~•~it, wh~•n ~lu~•. ~hr••••th~ t~~ th~• in~nra~n~•e• ~•:~rri~•r
All insurance pnlicies and renew~als thereof shall Fx~ in i~~rm accept:ible tn 1 ~~nder and shal) includ~• :i standanl mortg.iKe clause in fa~ or of
and in form acceptableto I.Pnder_ I.end~r shall h:~.•F'the ri~;ht t~~ h~~ld ihe• ~~Gc~.•~ and rrn~•wals ther~~f, and Rurruw•er shall promptly furnish to
t.ender all renewal notice~ and all rec•eipts nf puid prrmium+. ln thf• evrr~t ~~f I~~s., li~~rrua•rr sh.il! Ki~~r prumpt notice G~ the incurance camer
and l.ender. [xnder may makc prcH~f ~f locs if not mad~• prumpth• by R~~rruw•e•r.
Unless I.ender and Borruwrr othervei.E~ aKrcr in w•ntin~;. inwr.-nc~• pnK•tK~citi .hall M• applir~i to rrsturatiun ur repair of the f'roperty
damaged, provided such restoratiun ~~r repair ix ~r~~innmicall}• f~:~.iM~• and the cc-ivnh• uf this MortK:iKe is not thereby impaired. If such
restoration or repair is not economicall~ f~a+iblr ur if the sr~vrit~ uf this \turtK:ikr w~uuld tx• i:npaired, the insur~nce proceeds shall be applied
to the sumssecured by this M~-rtK:ege. w•ith the~x~-~•,c. ~f:im, p:~id tn It~~rruwer. If the ProFx~rty is abandunc~cl by F~~rruw•er, urif &~rrower fails to
respond to l.ender within :i0 da~~s frum the date noti~•e is mailFd hp 1,~•nder tu It~~rrow•i•r that the insurance camer offers to settle a claim for
insurance benefita, I.ender is authorizcd to c~~lltrt and apph• th~ intiur:~nce prvK-crds :it I.c~nder's uptiun either tu restoration or repair uf the
F'mperty or the sums secured by this ~tuRKaKe.
Unless l.ender and Borrower otherwise aKrer in w•ntinK, any Quch appli~•ation of prvK•eecls to principal shail not extend or postpone thedue
date of the monthly instailment~v referred tu in paraKraphti 1 and 2 henti~f ur chanKe the amuunt of such installmenta. If under par~graph lA
hereof the Property is acquired b~• I.ender, all right, title :-nd inter~~st ~~f liurruw•er in and tu :~ny insurance {xiliciec and in and to the pmceeds
theteof resulting from damaRe to Pm~rty prior tc~ the sale ur a~•ywsitiun sh:~ll pass to Irnder tu the extent of the sums secured by thic
ilortgage immediately prior to such sale or acquisition.
6. Preaervation and biaintenanceotf'roperty; I.eascholds:('ondominums; Planned Unit Developmente. E3~rrowershall keep
the F'roperty in Q«-d repair and sh.ill not commit w~a~tr ~rr ~x•rn~t ~mpairrnrnt nr dt~teriuration of the Proprrty and shaU rnmply w-ith the
provisions of any lease if this Mort~aKe is on n leasrhold. If this MortKaKe i~ on :~ unit in a i~~ndominium or n planned unit development,
Itorrower shali perform all of &~rruwer's ubliKations undrr the dc~c~larati~~n ~rrcoven:~nts ~-n•at~n~ur Ko~ern~nK thecnndominium or planned
unit development, the by-laws and reKulations of the cund~~minium or planncd unit developtnent, and conslituent documents. If a
~•ondominium or planned unil developm~•nt rider is rx~Y•uted hy liorrow•t•r and rtr~~rdetl t~ether with this MortRage, the covenants and
,~KreemenLs c~f such rider ~hall }-e incurporat~~1 into and ~h:~ll a~n~•nd and wpplemf~nt the~ co~•rn:~nts :ind aKreementsof this MortgaKe as if the
ridcr were a part hereof_
7. Protection of Lender'e Security. If I3orrower failA to pertorm the covenante and agreements contained in thie Mortgage, or if any
action or proceeding ia commenced which materially affecte l.ender's intereat in the I'roperty, including, but not limited to, eminent domain,
ineolvency, oode enforcement, or arrnngemente or proceedings involving a bankrupi or decedent, then Lender at Lender'e option,upon
notice to Borrower may make such appearancea, diaburee such suma and take auch acti~~n ae is neceesary to protect Lender'e interest,
~ncluding, but not limited to, disbureement of reasonable attorney's [eee and entry upon the Property to make repaire. It Lender reqaired
mortgage ineurance ae a condition of making the loan aecured by this MortgaRe, Borrower ahall pay the premiuma required to maintain
euch ineurance in effect until auch time as the requirement for auch inaurance terminatei+ in accordance with Borrower's and Lender e
written agreement or applicable Iaw. Borrower ahall pay the amount of all mortKage inaurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts diebun+ed bv I.ender perauant to this paragraph 7, with intereat thereon, ahall bccume additional indebtedneae of
Rorrower eecured by this Mortgage. Unleas Borrower and I.ender agree to other terma of payment, auch amounte ehall be payable upon
notice from [.ender to Borrower requesting payment thereot, and ehall bear intereat fn,m the date of diabursement at the rate payable from
time to time on outetanding principal under the Note unlese payment of intereat at such rate would be contrary to applicable law, in which
event auch amounte shall bear interest at the highest rate permissible ander applicable law. Nothing contained in thie paragraph ?, ehall
require I.ender to incur any eapenee or take any action hereunder.
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