HomeMy WebLinkAbout0161t3orrower a~d Lender covenant snd a~ee eu followa: ~
1. Paytaen/ of Pirincipal and Irttere~t. Borrower shall promptly pay when due the princ~pel of and inte~est on the indebtedneas
evidenced by the Note, prepayment and latecharges a~ pmvided in the Note, and the principal oi artd interest on any Future Advances aecured
by this Mortgage.
2. ~nds forTs:es and Inaurance. Subject to applicable Iaw or to a writlen waiver by l.ende~, &-rrower ahall pay to l.ender o~ the day
munthly inatallme~ts o[principat and interest are payable under the Note, until the Note ia paid in full, a sum lherein "Funda") equal to one
twelRh o(the yearly taxes and asseesments which mey attein priority ove~ thia Mortgage, and ground rents on the Propeirty, if any, plus one
iwelRh of yearly premium installments for hezard inaurance, plua onetwelfth o[yearly premium installmenta for morlgage inau~ance, if any,
~11 su~ reasonably estimated initially and from time to tirne by l.ender on the basis of assesamenta and bilis and reasunabie ee~timates thereof.
The ELnds shall be held in an institution the deposite or accounts of which are insured o~ guaranteed by a Federal or State agency
lincludiog Lcnder if I.ender is such an institution). Lender ahall apply the Funds to pay esid taaea, aaaeasments, inaurance premiuma and
ground rents. l.ender may not charge for so holdiog and applying lhe Fuods, analyzing said account, or veri[ying and compiling sa~d
asseeamente and bills, unless Lender pays Borirower inte~est on the F~nds and applicable law permits Lender to make auch a charge. Borruwer
and [.ender may agree in writing at the time of execution of thie Mortgage that interest un the Funds ahall be paid to E3orrowe~, and unless
euch agreement ie made or applicable law requirea such interest to be paid, Lender ahell ~ot be required to pay E3orrowe~ any intereat or
earnings on the FLnds. Lender ahall give to Borrower, without charge, an annual accounting of the Funds showing credita and debite b the
Funda and the purpoae [or which each debit to the ~nda was made. The M unde are pledged aa additional security tar the aume eecured by thie
Mortgage.
[f the amuuni of the ~nda held by Lender, iogether with the future monthiy inatallmrnta uf Funda payabfe prior to the duedatee of ta:ee,
aesesamente, insurance premiume and ground renta, ahall excaed the amount required to pay seid taxea, assesaments, inaurance premiume
and ground rente as they fall due, such excess ahall be, at Borrowei a option, either prompdy repaid to Borrower or credited to Borrower on
monthly inetallments of Funds. If the amount of the Funda held by Lender ahall not be su[ficient to pay taxea, assesamenta, insurance
premiuma and ground renta ae they fall due, Borrower ahall pay to l.ender any amount neceasary to make up the deficiency within 30 daya
from the date notice ia mailed by Lender to Borrower requesting payment thereof.
Upon payment in full of all aume aecund by this Mortgage, Leoder shall promptly refund to Borrower any funda held by Lender. If under
paragraph 18 hereof the Property ie sold or the Property ie otherwise acquired by Lender, Lender ahall apply, no leter than immediately prior
to the eale o[ lhe Ptoperty or ita acquisition by I.ender, any Funda held by I.ender at the time olappiication se a credit againat the suma eecured
by thia Mortgage.
3. Application of Payments. Unlese applicable law providea otherwiee, ail paymenta received by l.ender under the Note and
paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounls payable to [.ender by Borrower under paragraph 2 hereol,
then to interest payable on the Note, then to the principal of the Nole, and then to intereat and pnncipal on any F uture Advancea.
4. Charges; Liens. I3orrower ahall pay all taxes, assessments and uthercharges, finea and impuaitions attributable to the P~roperty which
~nay attain a priority over this MorlgaKe, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 he~eolor,
~f nut paid in such m~nner, by ftorrower makinq payment, when due, directly to the payee -hereot Borrowershali promptly furnish to I.ender
:~II notices of amounts due under this paraKraph, and in the event Borruwer shall make payment directly, Born~wer shall promptly furniah to
Lender receipts evidrneing such payments. Burrower shall promptly dischargr a~y lien vrhich has priority over this Mort~age; provided, that
Borrower shall not br reyuired tu discharge any such lien so lonR a~ }iorrower shall agree in writing to the payment of the obliKation secured by
~uch lien in a manner accepG-~bie tu Ixnder, or shali in Kcwd fa~th contest such lien by, ordefend enforcement ofsuch lien in, leKal proceedings
which operate to prevent the enfurcement of the lien ur forfeiture uf the Propert~• or any part thereof.
5. Hazard Inaurance. Eiurrowrer shail keep the impruvements nuw existinq or hereafter erected on the Property insured against loas by
fire, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in auch amounta and for auch
~,rriods as l.ender may reyuire; provided, that Ixndrr shall not require that the amount of such cvverage exceed that amount of coverage
rcquired to pa~~ the aums sirurecl by this MortQage.
The insurance camer pr.~~•idinK lhe insurance shall iri• chusen by ltorrower sub~ect to appro~•al b~• l.ender, pro~•idevt, that such .~ppruval
sh:~i( not be unrea~~nabl~ w•ithheld. All prrmiums un ~nsuran~•r µ~li~•~r~ sh.il) t-e pa~d in the manner provide~l undrr paraKraph Y herruf or, if
nut paid in such manner, by Fiurruwer makinK paymrnt, whrn due, dirr~•tlv t~~ the ~nsurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to I.ender a~d ahall include a standard mortqageclause in favor of
and in form acceptable to [.ender. l.endershall have the right G~ hold the pulicies and renewals thereof, and Borrower shall promptly furniah to
i.ender all renewal notices and aU receipts of paid premiums. In the event o! loss. E3orruwer shall give prompt notice to the insurance camer
and I.ender. I.ender may make proof of loss if ~ot made prompdy by Borrower.
Unleas I.ender and F3urrower otherwiiee agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
damaged, pro~~dcd such restnratiun ur repair is ecunumically feasible and the srcurity of this Mortgage is not thereby impaired_ If such
rrstoration or repair is not economically feasible ur if the security of this Mortgage would t-eimpaired, the insurance procredashall be applied
to the sums aecured by this 111~~rtKaKe, v-~th the exeess, if any, paid to Borrower. lf the F'roperty is abandoned by Rurrower, or if E3~rrower faila to
reapond to I.ender within :i(1 days from the date notice is mailyd by I.endPr to E~rruwer that the insurance carrier of'lers to settle a claim !or
~nsurance benefitx, l.ender is authorizrcl to collect and apply the insurance proceeds at I.ender's option either to restoration or repair of the
f'roperty or the sums secured by this MortKage.
Unless I.ender and E3ortower olherwise aRree in writing, any such application of proceeds to principal ahall not extend or poatpone the due
date of the monthly installmentx referred to in par:-graphs 1 and 'Ll~ereof or change the amuunt of such installmenta. If under paragraph 1R
hereof the Property is acquired by I.ender, all right, title and interest of Ebrrower in and to any insurance policies and in and to the proceeda
thereof resulling from damage tn I'roperty pr.or to the sale or acqu~sition shall pass to I.ender to the extent of the sums secured by this
~tortgage immediately prior to such sale or acquisit~on.
6. Preservation and Maintenence of Property; l.easeholde: Condominume; Planned Unit Developmente. f3orrowerahall keep
the Property in g~~od repair and shall not commit waste or permit impairment or drterioration of the Property and ahall comply with the
provisione of any lease if lhis ~lortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development;
ftorrower shall pertorm all ot Fiorn,wer's obligations under the declaratiun orcovenanta creatinKor govern~ng thecondominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documenta. lf a
condominium or planned unit development nder is executed by &-rruwer and recorded togrther with this Mortgage, the rnvenante and
:~QrPements of such rider shall be incorporated intu and shall amend and ~upplement the covenants and aKreements uf this Alortgage as if the
nder were a part hereof.
7. Protection of I.ender's 3ecurity. If Bonower faile to per[orm the covenants and agreemente contained in this Mortgage, or if any
action or proreeding is commenced which materially affecte Lender's interest in the Property, including, but not limited to, eminent domain,
ineolvency, rnde en[orcement, or arrangemente or proceedinga involving a benkrupt or decedent, then Lender at l.ender's option,upon
notice to Borrower may make such appearances, diabarse such sums and take such aMion as is necessery to protect Lender'~ interest,
including, but not limited to, disbureement of reaaonable attorney'e fees and entry upon the Property to make repain. If Lender required
mortgage ineurance ae a rnndition of making the loan eecured by thie Mortgage, Bonower ahell pay the premiums required to meintain
euch insurance in effect until such time ae the requirement for such insurance terminates in acrnrdance with Borrower'e and Lendei ~
written agreement or epplicable t~w. Borrower ehall pay the amount of all mortgage insurance premiums in lhe manner provided under
paragraph 2 hereof.
Any amounte diebureed by Lender pereuant to this paragraph ~, with interest thereon, shall become additional indebtedness of
F3orrower eecured by thie Mortgage. Unlese Borrower and Lender agree to other terms of payment, such amounts shal) be payeble upon
notice from I.ender to Aorrower requesting payment thereof, and shell bear interest from the date of disbursement at the rate payable from
time to time on outetanding principal under the Note unleee payment of intereat at such rate would be contrary to applicable law, in which
event euch amounte shall bear intereat at the highest rate permiaeible under applicable law. Nothing contained in thie paragraph 7, shall
require I.ender to incur any expense or take any action hereunder.
a~~x 350 PN~E 161