HomeMy WebLinkAbout0171Horrower and Lende~ covenant and a~ree a~ followr
1. Peyment ot Principal and Interest. E3oROwer shall promptly pay when due the pri~cipal of a~d interest on the indebtednees
evide~ced by the Note, prepayment and late charges as provided in the Note, and the pnncipal of and intereat on any F uture Advancea secured
b~ this btortgage.
2. Fltnds for Ta:es and Insurence. Subjecl to applicable law or to a writtrn woiver by l.ender, fiorrower ehal) pay to I.ende~ on the day
monthly inatallmente o! pri~cipal and intereet are puyaule under the Note, until the Note is paid in full, a aum (herein "Funda"1 equa) to ont
twelRh of the yea~ly tazes and asaesamenta which may attain priority over thia Moirtgage, and ground re~ts on the Property, if any, plue onr
twelRh of yearly premium installments for hazard inaurance, plua unetwelfth of yearly premium instaliments for moctgage inaurance, if any.
all as reasonably eatimated initially and from time to tin~e by lxnder on the basis of assessmenta and bills and ~easonable estimutes thereof.
The FLnds shall be held i~ an inatitution the depoaite o~ accounta of which are inaured or guaranteed by a Federal or State agency
(including Lender if l.ender ia such an institution). Lender ahall apply the Funds to pay aaid taxes, assesame~ts, i~surance premiuma a~d
ground renta. Lender may not charge tor so holding and applying the I~'unds, analyzing said accou~t, or verifying and compiling said
assesamente and bills, unlesa Lender pays Borrower intereet on the Funda and applicable law permite I.ender to make such a charge. I3orrowe~
and Lender may agree in writing at the time of execution of thia Mortgage that intereat on the Funda ahall be paid to Sorrower, and unless
euch agreement ia made or applicable law requirea auch interest to be paid, l.ender shall not be required to pay E3orrower any interest or
earninge on the ~nds. l.ender ahall give to Borrower, without charge, an an~ual accounti~g of the Funds ahowing credita and debite to the
Funds and the purpone for which each debit to the Flinda was made. The F unda are pledged ae additional eecurity for theaume aecured by this
Mortgage.
[f the amount of the Funda held by Lender, together with the tuture monthly inetallmenta of Funds payable prior to the duedates of taxes,
aeaeasmenta, insurance prnmiuma and ground renta, ahall excred the umount required w pay said taxea, aesesxmente, inaurance premiums
and ground rents as they fall due, auch excess shaU be, at Bu~rower's option, either promptly repaid to Borrower or credited to Borrower on
monthly installmente ot Runda_ It the amount of the Funda held by I.ender ehall not be eu~cient W pay taxea, asaeaemente, inaurance
premiuma and ground renta as they fall due, Borrower shall pay to l.ender any amount neceseary to make up the deficiency within 30 days
fro~n the date notice is mailed by Ixnder to E3orrower requesting payment ihereot.
Upon payment in ful) of ail auma aecured by this Mortgage, I.ender shall promptly refund to Borrower a~y [unds held by Lender. !f under
paragraph 18 hereof the Property ia sold or the P~operty is otherwise acquirctil by l.ender, I.ender shall apply, no later than immediately prior
to the asle of the Property or ita acquiaition by Lender, any F unds held by I.ender at the time of application as a credit againat the auma secured
by thia Mortgage.
3. Application of Paymente. Unless applicable law provides otherwise, all payments received by l.ender under the Note and
paragrapha 1 and 2 hereof ahail be applied by I.ender firxt in payment of amounts payable to l.ender by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Nute, and then to interest and principal on any Future Advancea.
4. Charges; Liens. Eiorrower shall pay all taxes, assessments and othercharges, fines and impusitions attributable to the Property which
may attain a priority over this MortQage, and leasehold paymenL4 or tiround rents, if any, in the manner provided under paragraph 2 hereof or,
i! not paid in such manner, by &~rrow•er making payment, when due, directly to the payee thereot liurn,wer shall prompUy turniah to i.ender
~-fl notices of amoun~s due under this para~craph, and in the rvent fiorrower shaii make payment directly, BormMer shall promptfy furnish to
I.ender receipts Pvidencing such payments. Rorr~~wer shall prompdy dischargr any lien which has priority oeer this 1~lortgage; provided, that
Borrower shall not t~e rryuired to discharge any such lien su IonK as Ftorrower shall agree in writinK to the payment of the obligation secured by
such lien in a mnnner accept:iblr to Ixndrr, ur sh:~ll in gnnd faith cuntrst such lirn bq, ordrfend enforcement of such lien in,leKa1 prr,ceedin~s
which operate tn prrvent thr ~nforcrment•ot lhe lien ur forfeiture of the F'ru{-rrt~• or any part thercr~f.
5. Hazard Insurance. Borr~~wer shali keep the improveme~ts now existinK or hereaRer erected on the Property insured against loas by
fire, hazards included w ithin the term "extended co~ eraKe." and such other hazards as l.ender may require and in such amounts and for euch
periods as Ixnder may reyuire; pruvided, that Ixnder shali nM require that the amount of such coveraKe exceed that amount o[coverage
reyuired to pa~• thP sums securecl by this lNurtRaKr.
"1'F-e insurance camer pr~~v~dinK the insuranre~ .h:fl~ IM• Cf1~~5P0 I~~' I{11ff/1N'Pr subjeY•t to apprm•al by I.endt~r, pro~•idcK1, that such approval
shall not be unrr:-.~,n:~bly N~~thheld. All prem~um~ un ~n~ur.~ncr ~wl~~~~~•..hnit IK~ p:~~d ~n the m:~nn~•r pru~•idrd under paraKraph 2 her~cif ur, if
not paid in such mannrr, b~• [k~rruwer m.ikin~; paymf•nt. w~ht•n du~•, r1ir~~~•tlc t~~ the ~nsurancr carner.
Alt insurance policies and renewals there+~f shall be in form acceptable ~- I.rnder and shall include a standard mortgaKe clause in favorof
.ind in form acceptable to t.rn~er. l.rndcr shal) ha~•e the riKht d~ huld the EK~hcies and renewals therrof, and &-rrowershall prompdy furnish to
i.ender ali renewal notices and all rrceipts of paid prrmiums. In the r~rnt of luss, Borruw•rr shaD g~ve prompt no/ice to thF insurance carrier
and l.ender. I.ender may makr pruof of loss if not made prompU> by K~~rrow~rr.
Unlexs I.ender and f3urroK~er otherv~~isr a~gree in writing, insurance procrrds shall be applied to restoration or repair of the Property
damaged, pro~-idrd such resG~raUun ~~r rep.~ir is tY-unumically (easible and the srcurity of th~s Mortgage is not thereby impaired. If such
rrsG~ration or repair is not ec~mumically frasihle nr if thr security of this MurtKaKe v-ouid t-e impaired, the msurance procreds shall be applied
tu the sums secured by th~s M~~rtKaKP, with th~ ~xc.~sc, ~f am~, paid to F3~~rrow•er. lf the I'ropeR~ is abandoned by E3orrower, nr if Rorrower faila tn
re~pund to i.ender within 311 d.i~•ti frum thc~ d:~tr notice ~s mailyd by I.ender G~ Eiorruwer that the insurance camer offers to settle a cla~m for
inr~urance benefitr+, I.ender is authurizrd to collrrt .ind apply the insur~nce pn-cercfs at I.ender's optiun either to restoration or repair of the
Property or the sums secured by thi, l~torlKaKe.
~ linless [.ender and F3orrow~er utherwisr aKrrr in wnt~nK, any such applicat~on of pu-creds to principal ahall not extend or poatpone thedue
date of lhe monthly ins4~llmen~4 referred G~ in paraKraphs 1 and'l tiereof or change the amount of such installments. If under paragraph IS
hereof the Property is acquired by l.ender, all right, tttle and interest of Rurrower in and to any inaurance policies and in and to the proceeds
thereof resulting from damaQe to Yroperty prior to the xale or an~wsition shall pass to I.ender to the extent of the sums secured by thia
~lortgage immediately prior to such sale or acquisition.
6. !'reeervetion and 4faintenance of Property; I.easeholds; Conduminums; Planned Unit Developmente. E3orrower ahall keep
the Property in R«-d repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the
provisions of any lease if this Atortgage is on a le3sehold. If this 11urtKaKe is on a unit in a rnndominiom or a planned unit development.
t~,rrower shall perform all of Borrower's ubliQatiuns under the declaratiun or covenantx rrratin~or governrog the condominium or planned
unit development, the by-laws and regulations nf the cunduminium or planned unit development, and conatituent documenta. If a
cundominium or planned unit develnpment rider is raecute~cl by 13orrower and recorded together with this Mortgage, the covenanta and
:~Kreemen~4 of such rider shall be incorporatrd ~nto and shall amend and suppfrrt~rnt thecovenants and agreements of this Mortgaqe as if the
nder were a part hereof.
7. ProteMion oi Lender's 3ecurity. 1f Borrower faila to perform the covenante and agreementa contained in this Mortgage, or if any
action or proceeding ie commenced which meterially affecte t.ender's intereet in the Properiy, including, but not limited to, eminent domain,
insolvency, code enforcement, or arrangemente or procredinga involving a bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower may make euch appearances, diaburse auch eume and take euch action as is neceasary to protect Lender's interest,
including, but not limited to, diebursement of reaeonable attorney'e feee and entry upon the Property to make repeire. [f Lender required
mortgage ineurance ae a condition of malcing the loan eecured by this Mortgaqe, Borrower shall pay the premiuma required to maintain
euch ineurance in effect until euch time ae the requirement for such ineurance terminatea in accordance with Borrower e and [.ender s
written agreement or applicable Lew. Borrower ahall pay the amount of all mortgage inaurance premiums in the manner provided undrr
paragraph 2 hereof_
Any amounte diebureed by Lender pereuant to thie paragraph ?, with intereat thereon, ehall become additional indebtednese ot
Borrower secured by thia Mortgage. Unlese Eiurrower and Lender agree to other terme ot payment, such amounte shall be payable upon
notice from Lender to Borrower requeetinR payment thereof, and shell bear intereat from the date of dinbursement at the rate payehle from
time to time on oatetanding principal under the Note unleea payment oi interest at auch rate would be contrary to applicable lew, in which
event euch amaunte ahall bear intemet at the higheet rate pertnis6ible under applicable law. Nothing contained in this paragraph ?, shall
require (.ender to incur any expenee or take any action hereunder.
3;17K•,~ PNGE 1~~