HomeMy WebLinkAbout1611U:v~f~uKt~~ Ca~•fr.anTS. Barrower anJ Lend~r cu~rnam and akr~ti ;~, (~~Iluw~:
1. Payment of Princlpal aod Inte~esl. Horruwcr .haU prumptly pay whcn duc ~hc principal o( and in~crest un the
indebtedness evidenceJ by the Note, prepayment anJ late chargeti a. praviJed ~n the No~e, and Ihe principa! of and interes~
on any Futurc Advaocec secured by Ihis Mongage.
2. Funds fo~ Tasa and lasunace. Subject to applicable law ar to a written waiver by I.ender, Rarrow~er shall pay
ta t.cnder on thc day monthly installmcnt~ ~f principal an~ intcr~tit are payahlc undcr the Note, until thc Notc ic paid in full.
a sum (herein "FunJs") equa) to ~~ne-twelfth of ~he }•early ta~e~ and acces~mentc which may attain priority over this
Mortgagc, and graund rents on Ihc Pmpcrty, if any, plus ~~nc-tw•clflh of yrarly premium installmcots for hazard in~ur~nce,
plus one-twelf~h af yearly premium in~tallmen~s for mortgage insurance, if any, all as reasonably ectimated initially and from
time to time h~~ t.ender on thc t-asis of as~cscmcnts and hills anJ rcaionablc es~imates thereof.
'ilie Funds shall hc held in an intititution thc Jep~~sih or arcounts o( which are insun,•c! or guarantced by a Federal or
state agency (including Lender if Lender is such an inc~itutiuni. LenJer.hall appl~• the Funds to pa~• said taxes, assessments,
insurance premiums and ground rents. I_ender ma~• nM char~; t~~~ ~o holding and applying Ihe FunJ~, analyzing said accaunt,
or veri[ying and rnmpiling said assessmcnls and hills, unlccs l.ender ~y~ Borrower inter~•st on the Funds and applicable law
permits 1_ender to make such a charge. 13orruwer aud Lender m•ry agree in writing at ~hc time i~t exec~tia~ of this
Mortgage that intcrest on Ihc FunJs shall hc paid to Barn~wcr, and unlcss such agrecmcnl is madc or applicable law
rcquires suc:~ interest to be paid, I.ender shall not hc rcyuired ti~ ~~~ Rorrower an~• inicrest or earnings on the Funds. l.ende~
shall give to Borrower, without charge, an ~nnua) accuunting of the Funds show-ing credits and debits to the Funds and the
purpose for which each debit to the Funds wa~ made. The Fund~ are pl~~lgrd at aJJitiunal ~ecurity for the sums securcd
by thi~ \lortgage.
lf the amount of the Funds held by LenJer, togcther with thc futurc monlhly installments of Funds paynblc prior to
the due dates af taxes, as~essneents, insurance premiunu and ground rents, shall exceed the :+mount reyuircd to p:iy said taxes,
assessments, insurance premiums and gmund renh ac ~hcy (•rll due, such ercess shall tx, at Borrower's option, either
prompUy repaid to Borrower or crcdited to Bormwer on monthly ~nctallments of Fund~. If ~he amount of thc Funds
hefd by Lender shall not be suflicient to pay taxes, assecsments. imur.~nce premiums and ground rents as they fall due,
B~rrower shall pay to Lender any~ amount necessan~ to makc up thc dcficicnc~• within 30 da~•s from thc datc nntice is m;~ilecl
by Lender to Borrower' rcyuesting paymcnt thercot.
Upon payment in full of all sums scc;ured by this Mortgagr. Lcndcr shall prompUy rcfund to Barrowcr any FunJs
held hy LenJer. If under paragraph 18 hcreof thc Propcrty ~~ s~~ld ur thc Property is othcrwisc acquircd by t_ender, Lcnder
shall ::aply, no later than immediately prior to the .ale of the Pro~x:rty or its acquisilion by Lcndcr, any f=undc helJ by
Lender at the time of appiication as a credit against the sum~ secured by thit Mortgage.
3. Application of Paymeats. Unless applicahle law pro.•ides otherw•i~e, all paymeMs reccived by LenJer under the
N~tc and paragraphs I and 2 hcrcof shall bc applicd by LcnJcr fint m paymcnt of amounls payablc to I.cndcr by Borrower
under paragraph 2 hereof, then to interest payablc un the Note. then ~o the principal of the Note, and then ta intercst and
principal on any Future Advances.
4. Charges; Liens. Borrower shsll pay all ~axet, a~~cs,mcnts and other charges, fines rnJ impositions attributable to
the Propeny which may attain a priority aver this Mortgagc, and Ieaschold paymcnts or ground rents, if any, in the manner
provided under paragraph 2 hereof ar. if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts duc under this paragraph, and in the event
Borrow•er shall make payment direcUy~, Borrower shall prompdy furnish to i.enJer re~eipts evidencing such payments.
Borrow•er shall promptly discharge any lien which has ~riority ovcr this Morlgagc; provided. that Borrower shal) not be
required to discharge any such lien so long as Borrower shall agree in ~riting to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in gexxl faith rontetit such lien by, or defend enforcement of such lien in,
legal proa.eedings which operate to prevent the enforcement of thc hcn or forieiture of the Property or any part thereof.
S. Hszard Insurance. Borrower shall keep Ihe impro~ement~ now e~isting or hereafter erected on the Property insured
against Icxs by fire, hazards incluckd wi~hin the terni "c~tended coverage", and such o~her hazards as Lender may reyuire
and in such amounts and for such periods as 1_ender may reyuirr; pn.vided, that Lender shall not require that the amount of
such coverage exceed that amouM of coverage required to pay the ~umc securcd by this Mortgage.
"Il~e insurance rarrier providing the insuranre sh:,ll be ch~nen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonably withheld. AI! premium~ on insur~nce policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall tx: in form .:rrep~:~blc to ~enJer and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. I.ender shall have the right to hold the policies and renew~als thereof,
and Borrower shall promptly furnish to Lender all renev~al not~ces and all receipts of paid premiumc. In the e~•ent of loss.
Borrower shall gi~•e prompt notice to the inaurancr carner and Lender. Lendcr ma}' make prcx,t of loss if not made prompth•
by Borrower.
Unless LenJer and Borrowcr othcrv-•uc agrcc in writing, inwrancc pnxccds sh:~ll'bc applied to restoration or repair ~f
the Property Jamaged, provided such re~torat~~~n or repair is economica0y feasible and the security of this Mortgage is
not thereby impaireJ. It such rcstoration or repair is not rconumi~~ll}~ feasihle or if the security of this Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage. ~~ith the excess, if any, paid
to Borrow~rr. If the Propert~• is abandoneei b}• Borrow•cr. or it Borrower fails to resFx~nd to Lender within 30 days from the
Jate notice is mailed by Lender to Borrower th~t ~he insurance carrier utien to settle a claim for insurance benefits, Lender
i~ authorized to collect and apply the insurance proeeeJs ~t Lender'~ option either to restoration or repair of the Property
or to the sums ~ccured by ~his Morigage.
Unless Lender and Borrower otherwiu: agree m writing. any~ such application of prc-ceeds to principal shall not extend
or postpone thc duc date of the monthly installmcnts refcrrcd tu in paragraph~ I and 2 hereof or change thc amount of
such installments. If under paragraph I S hereof the Property i~ acywred b~~ Lender, ~11 right, title and interest of Borrower
in and to anp insurance policies and in and to thc proceecis thereo[ resulting from damage to the Property prior to the sale
or acyuisition sh~ll pass to Lender ro the e~tent of the sums aecured by this Mortgage immediately prior to such sale or
acquisition.
6. Preser~ation and ~laiatenance of Property; I.eacehulds: ('ondominiums; Plnnned Unit Developmenfs. Borrower
shall keep thc Property in good repair and sfiall not commit waste or permit impairment or deterioration of the Property
and shali comply with the provisions o[ any lease if this Mortgage is on a leaschoid. If this Mortgage is on a unit in a
condominium or a planned unh ik:vclopment, Borrower tih~ll perf~rm all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unrt develupment, ~he by-laws and regula~ions of the
conJominium or planned unit development, and constituent documen~c. If a con~lominium or planned unit Jevelopment
nder is cxecuted by Borrower and recorded tugether with thiti Mortgage, the covenants and agreements of such rieler
shall be incorporated into ~nd shall amend and wpplement the covenants and agrcements of this Mortgage as if the rider
were a part hereof.
7. Proteclion of I.ender's Security. If Borrow~er failt ta perform the covenant~ and agreements contained in this
Mortgage, ur if any action or proceeJing is commrnce~l which ma~erially atiects I.ender's interest in the Propert~~,
including, but not limited Io, eminent domain, insolvency~. c~.de enforcement, or arrangements or proceedings invoh•ing a
bankrupt or decedent, then l.ender at LenJer'~ option, upon notice to Borrov~er, ma}~ makC such appearances, disburse 3uch
sums and take such action as is necestary to protect l.ender's interest. including. but n~t limited to, disbursement of
reasonahle attorney's fccs and emry u~n thc Propcr:y to makc rcpair~. If Lcndcr requircd mortgage insurance as a
condition of making the loan secured b}• this M~~ngage. B~~r~owrr shall pay ihe premiums required to maintain such
insurance in efiect unul ~uch time as the reyuirement (or wch insurance terminates in aecordanee with Borrowers and
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