HomeMy WebLinkAbout0157Borrower and Lender covenant a~d aQree as folbwr
1. Payme~t of Principai wnd lntered. Borrower shall prompdy pay when due the principal of and intereat on the indebtedness
evidenced by the Note, prepayment and late chargea as pruvided in the Note, and the principal of and intereat on any Future Advances eecured
by this Mortgage.
, 2. ~tnde torTa:es and Insurance. Subject b applicable luw or to a written waive~ by l.e~der, Borrowerahall pay to I.ende~un theday
monthly installmenta o[pri~cipal and intereat are payable under the Note, until the Note ia paid in tull, a sum (herein "Funds"- equal to one
twelfth of the yearly taxea e~d aeaesaments which mey attain priority over this Mortgage, and ground renta on the Property, if any, plus one
tweltth of yearly premium inatallments for hazard inaurance, plue ooetwelflh of yearly premium inatallmenta fur mortgage inaurance, if any,
all as reaeonably eatimated initiaily and from time to ti~r~e by l.ender on the basis of assessments and bills and reasunable estimates thereof.
The Flrnds shall ae held in an institutio~ the depoaits or accounts ot which are iosured or guaranteed by a Federal or State agency
(ineluding I.e~der i[ l.e~der ie such an inatitution). [.ender ahall apply the Funds to pay said tazes, aaseasmenta, inaurance premiums end
ground rents. Lender may not charge for so holding and applying the Funds, analyzi~g eaid account, or ve~fying and compiling said
aeaeesments and bille, unlesa Lender pays Borrower inte~est on the Funda and applicable law permit8 Lender to make such a charge. f3orrower
and I.ender may agree in writing at the time of e:ecution of thia Mortgage that intereat on the Fuoda ahaU be paid to E3orrower, and unless
auch agreement is made or applicable law requires such intereat to be paid, I.ender ahall not be required to pay Borrower any intereat or
earninga on the F~nds. I,ender ahall give to Borrower, without charge, an annual accounting of the F unds ehowing credits and debits to the
Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional aecurity fortheaums eecured by this
Mortgage.
If the amount of the E u~da held by Lender, together with the future monlhly inatallmenla otFunda payable prior to theduedetee of taxee,
aeaeeaments, ineurance premiuma and ground rents, ahall e:cred the amount required w pay said taxes, anaeasmenta, ineurance premiuma
and ground rente ax they fall due, auch exceas ahall be, at Bo~tower'a option, either promptly repaid to Borrower or credited to Borrower on
monthly inataUments of Funda. If the amount of the Funde held by I.ender shall not be eufficient to pay tazea, asaeesmenta, inaurence
premiums and ground renta as they fall due, Borrower ahall pay to I.ender any amounl neceasary to make up the deficiency within 30 days
from the date notice ia mailed by l.ender to F3orrower requesting pnyment thereof.
Upon payment in full of all sume secured by this Morigage, Lender ahall promplly refund to Borrower any [unda held by l.ender. If under
paragraph 18 hereof the Property ie sold or lhe Propetty is otherwise acquired by l.ender, l.ender shall apply, no later than immediately prior
to the sale of the Property or ita acquisition by l.ender, any F unda held by I.ender at the time of application as a credit againat the aums secured
by this Mortgage.
3. Application of Paymenta. Unlesa applicable law provides otherwiae, all payments received by [.ender under the Note and
paragraphe 1 and 2 hereof ahall be applied by [~ender firat in payment of amounts payable to l.ender by E3orrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea_
4. Chargee; Liena. E3orrower shall pay al! taxes, :isses,ments and othercharges, fines and impositions attributable to the Property which
may attain a priority over this 111ortgage, and leasehold payments or ground rents, if any, in the manner pruvided under paragraph 2 hereof or,
if not paid in such manner, by Borrower makinR payment, when due, direcUy to the payre thereuf. Norrower shall promptly furnish to Lender
all notices of amounts due under this paraKraph, and in the event Burruwer shall make payment directly, Born~wer sh.~ll promptly furnish to
l:ender receipts evidencing such paymrnts. Borrower shall promptly discharQr anv lien which has priorit~ over thi~ MortKage; provided, that
Borrower shall not be required to discharKe any such lien so long as F~~rrower shall agree in writing to the payment of theobligatlon secured by
such lien in a mannrr acceptable to ixndrr, or shall in gw-d faith cuntrst surh lirn by. ordefend rnfor.-ement olsuch lien in, legal proceedings
which operate to prevent the enforcement u[ the l~en or forfi•iture uf thr 1'ruprrty or any part there~~f.
5. Hazard Insurance. Borrower shall keep the improvrments now ex~stinK or hereaher erected on the Property insured against loss by
fire, hazards included within the lerm "extendecl coveraKe." .ind such other hazards as Ixnder may require and in such amounf.4 and forauch
periods as (xnder m:iy rryuire: pro~•ided, that [xndrr sh~ll nnt reyuire that thr amuunt of such coveraRe exceed that amount of coverage
required to pay Ihe sum. src•urecl by this MortKaQe.
The insurance camer pr~~~idinK thr insur:~m•~• ~hall t~r ~•h~~s~•~ b~• tt~~rruw•er subj~K to approval by Ixndrr: prn~•idc~1, that such appro~~al
shall not be unreasonabh• w•ithhrld. All prem~ums un insuranr~• {N~licu~. shall ~e paid ~n the manner prov~dt~1 undrr paraKraph 2 hereof or, if
not paid in such manner, b~• Ii~~rruwer mak~nK paymrnt, w•hen due. din~•tly tn thi• ~nwrance camer.
All insurance policiec and renewals thereof shall be in form acreptable Gi Ixnder and shall include a atandard mortgage clause in favorof
and in form acceptable to I.ender. l,endershall have the riKht tu huld thP {~~I~ciesand renrwals thererd, and Borruwpr shall promptly [umish to
i.ender all renewal notices and all rece~pts ot pa~d premiums. In the event of luss, ~rrnrwer shall give prompt nutice to the insurance carrier
and I~nder. l.ender may make proof of loss if not made promptly by &-rrower.
Unless [.ender and 13orrower otherwisr agree in writinK, insurance proceedx shall be applied to restoration or repair of the Property
damaged, provided such resG,ratiun or repair ~~ e~-onumically feasible and the sccurity of this'~1ortQaRe is not thereby impaired. If auch
restt,ration or repair is not ec•unomic~lly (rnsiblr ur if thr:~rc•urity of thix MortKaKe wuuW br impaired, the insurance prceeed8sha11 beapplied
to the sums secured by this l~lortKaKe, vv~th the rxcess, if any, pa~d to &~rruwer. If lhe Property is abandoned by E3orruwer, or it Borrower faila to
reapond to l.ender with~n :i0 d~p5 frum the date notice ~s mailyd by I.ender d- Borrowrr that the insurance carrier offers to settle a daim for
ineurance benefita, l.ender is authonzrd to collrct and appl~ thr insurance pruceedv at I,ender's uption either to restoration or repair of the
Property or the sums aecured by this MoRKaKe.
Unleae [.ender and iiorruwer otherwise aKree in writing, any such application of pmceeds to principal shall not extend or postpone thedue
date o! the monthly installmentis re(erred tu in par:-Kr:iphs 1 and'l l~ereot or change the amount of such installments. I( under paragraph 18
hereof the Property ia acquired b~ I.rnder, all right, title and interest ~,f Bormwer in and to any insurance policies and in and to the proceeda
thereof resulting from damaQe to Property prior to the sale or acyu~sition sh:ill pass to I.ender to the extent of the eume secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preeervetion and Meintenance of Property: I.easeholds; ('ondominume; Planned l,'nit Developmente. Borrowerahall keep
the Property in Rood repair and shall not commit waste or permit imp:i~rment or deterioration ot the Property and shall comply with the
provisions of r~ny lease i( this Mortgage is on a leasehold. (f this MortK:~Ke is on a unit in a condominium or a planned unit development,
Borrower ehall pertorm all of Borrower's obligations under the declaratinn or covenantx creatinKor Rovern~ng the condominium or planned
unit development, the hy-I8K3 and regulations of the c~mdominium or planncYl unit development, and conatituent documents. If a
condominium or planned un~t develupment rider is executrd by ~rrower snd recurded together with this Mortgaqe, the rnvenante and
agrrements of such rider shall be incorpurated int.~ :~nd shall amend and supplrment thpcovenants and agrc~ments uf this Mortgageas if the
rider were a part hereof.
7. Protection ot Lender's 3ecurity. If E3orrower faila to perform the covenante and agreements rnntained in this Mortgage, or if any
aMion or proceedinq is commenced which materially affecte [.ender'a interest in the Property, including, but not limited to, eminent domain.
ineolvency, oode enforcement, or anangements or proceedinge involving a bankrupt or decedent, then Lender at Lender'~ option,upon
notice to Borrower may make such appearences, diaburee such auma and take such action as is necessary to protect Lendei s intereet,
including, but not limited to, diebursement of reaeonable attorney's feee and entry upon the Property to make repairs. If Lender required
mortgage ineurance se a condition of making the loan secured by thie Mortgage. Borrower ehall pay the premiums required to maintain
euch insurance in effect unti! euch time es the requirement for euch inaurance terminates in accordance with Borrower'e and Lendei s
written agreement or applicable Law. Borrower ehall pay the amount of all mortqage ineurance premiuma in the manner provided under
paragraph 2 hereot.
Any amounta disbureed by Lender pereuant to thie paragraph 7, with interest thereon, ehal! become additional indebtedneas of
Borrower secured by thia Mortgage. Unleae Borrower and Lender agree to olher terme of payment, such amounta ehell be payeble upon
notice from Lender to Borrower requeating payment thereof, and ehal) bear interest from the date of diebursement at the rate payable from
time to time on outetanding principal under the Note unleaB payment of intereet at auch rate would be contrary to applicable law, in which
event euch amounts ehall bear internat at the higheat rate permiaeible under applicable law. Nothing eontained in thie paragraph 7, shall
require I.ender to incur any expenae or take any aMion hereunder.
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