HomeMy WebLinkAbout0165Borrower and Lende~ covenant and a~ree a~ folbwr
1. Payment o~ Principwl and Intere~t. Bo~rower ahall promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note, prepayme~t a~d late chatgea ae provided in the Note, and the principal o[and intereston any Future Advancea aecured
by this MortgaQe.
2. Fltnds for Ta:es and Insurance. Subject to applicable law or to a written waiver by [.ender, Borrower ehall pay to I.ender on the day
monthly installments of principal and intereet are payable under lhe Note, until the Note is paid in full, a sum (herein "Funde") equal to one
twelRh of the yearly taxe8 and aseeaemente which may attain priority over this Mortgage, and giround rents on the Pmperty, if any, plua one
twelRh of yearly premium installme~ta for hazard ineurance, plua onetwelRh otyearly premium installments for morigage ineurance, if any,
all as reasonably eetimated initially and from time to tirr~e by I.ende~ on the baeis of asaessmenta and billa and reasonable eutimates thereof.
The Flinds ahall be held in an institution the deposita or accounte of which are inaured or gueranteed by a Federal or State agency
(including Lender if l.ender ia such an institution). Lender ahall apply the Funda to pay said taxea, easesamenta, insurance premiuma and
ground renta. Lender mey not charge for eo holding and applying the Runds, analyzing said accou~t, or verifying and compiling aaid
asaesamenta and bills, unlesa Lender pays Bormwer intereet on the Funda and applicable law permits Lender to make auch a charge. Borrower
and Lende~ may agree in writing at the time of execution ot thie Mortgage that i~tereat on the Funds shall be paid to E3orrower, and unleea
euch agreement is made or applicable law requires such intereat to be paid, Lender ahall not be required to pay Borrower any intereet or
earnings on the Flinds. Lender shall give to Borrower, without charge, an annual accounting of the Funda showing credita and debits to the
Funde and the purpoae for which each debit to the Funda was made. The Funds are pledged ae additional eecurity forthe aums aecured by this
Mortgage.
If the amount of the F~nda held by Lender, together with the (uture monthly inatallments of N unds payable prior to the duedates of ta:es,
asseeamente, ineurance premiums and ground renta, ahall excred the amount required W pay said taxea, asaeasmente, ineurance premiums
and ground rents as they fall due, such exceas ahall be, at BoeTOwer s option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of Funds. If the amount of the Funde held by L.ender shall not be eufficient to pay taxes, aseeasmente, insurance
premi~une and ground renta ae they fall due, Borrower shall pay fA Lender any amount neceesary to make up the deficiency within 30 daye
from the date notice is mailed by Lender to Borrower requeating payment thereof.
Upon payment in full of all euma secured by this Mortgage, I.ender ehall promptly refund to Borrower any funds held by Lender_ I[under
paragraph 18 hereof the Property ia sold or the Property is otherwiae acquired by Lender, I.ender ahall apply, no later than immediately prior
to the eale of the Property or ite acquiaition by l.ender, any Funds held by Lender at the time of application ae a credit againat the auma secured
by thia Mortgage.
3. Application of Paymenta. Unlesa applicable law provides otherwise, all payments received by Lender under the Note and
paragraphs 1 and 2 hereot ahall be applied by I.ender firat in payment of amounts payable to t.ender by Borrower under paragraph 2 hereof,
then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea.
4. Chargee; Liens. iiorrowe~ shall pay all taxes, assexsments and othercharges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and le.~+sehoid payments orgmund rents, if any, in the manner provided under paragraph 2 hereofor,
if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereof. Burrower shall promptly furnish to I.ender
all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Rorrc,wer shall promptly furnish to
l.ender receipts evidencing such payments. Borrower shall promptly dischargr any lien which has priority over this Murtgage; provided, that
E;orroveer shall not he reyuired to discharge any surh licn so long as l~rrowershal! agree in writing to the payrnent of thc obligation secured by
such lien in a manner accepG~blr to Ixnder, ur shall in Kuod f:~ith contrst such lien by, ordefend enforc-ementofsueh lien in.legal proceedings
which oprrate to prevent the enforcement of lhr lien or forfeiture uf the Property or any part thereof.
5. Hazard (neurance. t;urruwer shall kerp the improvements now existing or hereafter erected on the Property insured against loss by
fire, hazards included within the term "extended coverage," and such other hazards as l.ender may require and in such amoents and for such
periods as l.ender may reyuire; prnvided, that Lender shall not require that the amount of such coveraKe exceed that amount of coverage
required to pay the sums srcured by this :NortgaKe.
The insurance carrier pruvidinK the insurance shall tx~ c•husrn by liorr~~wer subjrct tu appr~~val by Ixnder: pruvided, that such approval
shall not be unre.~sc~nabl~ withheld. All premiums un insuran~t~ p~~licit~; shall he paid in the ma~ner providecl under par:~Kr~ph 'L her~t or, i[
not paid in such manner, by Fiorruwer mak~nK p:~ymrnt, when due, directly to the incurance carrier.
All insurance policies and renewals thereof shall be in torm accepl:ible tu I.ender and shall include a standard mortgage clause in favor of
and in form acceptable to Lender. I.ender shall have the riRht G~ hold the policies and renewals thereof, and Bnrrawer shall promptly [urnish to
i.ender all renewal notices and all rereiptx of paid prem~ums_ In the event of loss, Borwwer shall give prompt notice to the insurance carrier
and l.ender. Ixnder may make proof of loss if not made prompUy by E3orrower.
Unlesa I.ender and E3orrower otherwise aqree in wntinK, insurance proceeds shall be applied to reatoralion or repair of the Property
damaged, provided such restoration or repair is econ~~mica!!y feasible and the sc~curity of this Mortgage is nat thereby impaired. If such
restoration or repair is not economically feasibte or it the security of this Mortgage wuuld be i~paired, the insurance proceeds shall be applied
to the sums secured hy this M~~rtK:+Ke. with thr excess, if any, paid to Rorrower. lf the Property ia abandoned by Borrower, or if Korrower fails to
reapond b l.ender within :3p days from the date notice is mailed by I~ender to E3orrower that the insurance carrier offers to settle a claim for
ineurance benefits. I~ender is authorized to collcrt and apply the insurance proceeds at l.ender's option either to restoration or repair o[ the
Pmperty or the suma secured by this Moriqage.
lJnless I.ender and Burrawer otherwise agree in wnting, any such applicat~on of proceeds to pnncipal ahall not extend or poatpune thedue
date of the monthly installments referred to in paraRraphs 1 and 2 t~ereof or change tbe amount o[such installmenta. If under paragraph 18
hereof the Property is acquired by l.ender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeda
thereof reaulting from damage to Pruperty prior to the sale or acqutsition shall paes to I.ender to the extent of the auma secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preaervation and Maintenance of P~operty; l.easeholds; Condominums; Planned Unit Developmente. Borrower ahall keep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the
provisions o! any lease if this Mortgage is on a leasehold. If this MortRagr is on a unit in a condominium or a planned unit development,
13orrower shall perform all of Rorrower's obliRations under the declaration or covenants creatinKar governing the condominium or planned
unit development, the by-laws and regulations ot the condominium or planned unit development, and conatituent documente. I[ a
conduminium or planned unit development rider is executed by Eiorrower and recorded together with thia Mortgage, the covenanta and
aKreements of such rider shall be incorpurated into and shall amend and ~uppfement the covenants and agreements of this Mortgage as if the
rider were a part hereof.
7_ Protection of Lender'e 3ecurity. If Borrower faila to perform the oovenante and agreements contained in this Mortgage, or if any
ection or proceeding is commenced which materially affecte Lender's interest in the Property, including, but not limited to, eminent domain,
insolvency, oode enfomment, or arrangemente or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower may make auch appearances, disburse such eums and take such action as is neceasary w protect Lender's intrrest,
including, but not limited to, diebursement of reasonable attorney'e fees and entry upon the Property to make repairs. It Lender required
mortgage ineurance as a condition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiums required to maintain
such insurance in effert until euch time as the requirement for such insurance terminates in accordanct with Borrower e and Lendrr ~
written agreement or applicable Law. Borrower ahall pay the amount o! al) mortgage insurance premiums in the manner provided under
peragraph 2 hereof.
Any emounte diebureed by Lender persuant to this paragraph 7, with intereet thereon, ehall become additional indebtedness ot
E3orrower eecured by this Mortgage. Unlees Borrower and [.ender agree b other terms of payment, such amounte shall be payable upon
notice from Lender to Borrower requesting payment thereof, and ehall bear interest from the date of disbunement at the rate payable trom
time to time on outetanding principal under the Note unleas payment of inlerest at such rate would be rnntrary to applicable law, in which
event auch amounte shall bear intereat at the highest rate permiseible under applicable law. Nothing contained in thi~ paregraph 7, shall
require [.ender to incur any expense or take any ection hereunder.
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