HomeMy WebLinkAbout0175Borrawer und l~cnder covenunt and Agree s~s follow~a:
l. Payment of Principal end l~te~est. 13urn~wer ahall pn-mptly pey when due the principa) uf and intereat on the indrbtedneea
evidenced by lhe Note, prep+iyment and latecharges as provided in the Note, and the prinripnl of nnd interret un uny M uture Advnnc•ea xecured
by this Mortgage.
'l. ~nde for Taxea and Insurance. Subjrct tn applicaible law o~ u~ a written waive~ by I.ender, liorruwer ahull pay tu I.ender on the day
monthiy inatnllments of principAl und inlereat ure pnytible under the Nute, until the Nute ia paid in [ull, a xum (herein "Funde"1 ryu:-1 to unr
twelRh of the yearly lnxes und ne.gessmenta which mt~y ntta~in priority over thia MortgiiKe, s-nd gruund rents on the Nroprrty, if»ny, plus one-
twelfth of yearly premium installmen~v ti-r hnznrd insurnnce, plus un~twelfth ofyearly prrmium inst:~llmentx for murt~aKe inxurunce, if any,
all ax re.~nahly e~timated initially nnd firum time to time by I.cnder on the ba-xis of assrsyments i~nd billv and reasonnble estimat~~ thcrrof.
The FLnde ehall be held in an inatitution lhe depuxitx or uccounts of v~hich are inaurrd or gua~anteed by n Federal or titate agenry
lincluding l.ender if Ixnder ia euch an institution). I,ender ahnll apply the Funda to pny anid taxea, axac~xamente, inaurunce p~rmiuma and
~ound renta. l.ender may not charKe for eo holding and applying the !~'unda, analyziog eaid account, or verifyinQ und c~~mpilinK xaid
aeaeaamenta and billb, unlesa I.ender paye fiorrower interest on the F unda and applicable law permita I.ender to make auch a charge. fiorruvver
and I.ender may agree in writing at the time otexecution of thia Mortgnge thut interest on the Funda ahaU be paid to Burrower, und unlras
such agreemeot is made or applicable law reyuirea such i~terest to be pnid, I.ender shull not be reyuired to pay Burrower any intereat or
earninqs on the Funds. l.ender shal) give to t3orrower, without charge, nn nnnual accounting of the Funds ahowing creditu and debitrs to the
F unds und the purpuae for which each debit to the Funda waa mnde. The h unda nre pledged ns udditianul security tor the aums arcurrd by thia
Mortgage.
If the amaunt of the Funda held by l.ender, tnKethcr with the futum monthly inatallments of M undx payeble prior to the due dates of t~xee,
assesemente, insurance premiums and ground mnts, shall rxc ~ed the umount rcquired to pny xuid taxcs, asscssmentx, insurance premiums
and ground rents as they fall due, euch exces9 ahall ~r, a! l3oiTOw•er's option, either promptEy regaid !o Borrower or cmdited to Borrower on
monthly inatallments of hunds. If the amount of the h unds held by l.ender ahall not be su[ficient to pay taxes, a~xsmentx, insurance
premiuma and qround rnnta as they fall due, Borrowe~ ahall pay to l.ender any amuunt necessury to mz~ke up the deficiency w~thin 30 daye
from the date notice ia mailed by l.ender to E3orrower requesting payment therc~,f.
Upon payment in full of at! aums secured by this Mortgage; I.ender shall prumptly rrfund to Rorruwer any [unds held by l.emier_ It under
paragraph 18 hereof lhe Property ia sold or the Property is otherwiae acquirc~d by I.ender, I.ehder shall apply, no later than immc~diately prior
to the sale of the P[operty or its acquieition by I.ender, Any Funda held by I.enderat the time of applicntion as a credit aKainst the sums securrd
by thie Mortgage.
3. Applicetion of ~'aymente. Unlexe applicable law provides otherwise, all puymrnts received by I.ender under lhe Note .ind
paragraphe 1 and 2 he[eof ahall be applied by Lender firnt in payment of amounts payable to I.ender by R~~rrow~er under paragraph '~ hereof,
then to intereat payable on the Note, then to the principal of the Note, and thrn to interest and principal on nny Future Ad~•uncrs.
a. Chargea; Liene. E3urrower shull pay ull taxea,:~.ssexsmentr, Und ~,thercharKc~s, finrs and im{r~sitiunti.~ttributatrle tu thr Pruprrh~ w•hich
may attain A priorily over this DlortgaKe, and le~sehold paymentx or gmund ren4R, if any, in thc• manner prn~•idtd undrr paraKraph •l hercti~f or,
if not paid in such m~nner, by Konower makinK payment, v-•hen due, directlp to thr payr~ then~~C I;orn,wer shall prumptly funt~sh to 1 w•ndrr
aU notices of amounts due under thig paragraph, and in the event &~rrowrr sh.~ll make~ p,~ymeM d~rcY•th, lturruw•er ~hull prumptly furnitih tu
I.rnder receipta evidrncing such paymentn. E;orrower shall promptly dischargr any li~~n whic•h h:~ti priunty u~ t~r this \1~~rt~;:~Ke; prn~•id~~1, tkat
fiorrower shall not be required to discharge any su<~h lien so long.is li~rrruwer shall aKree in writinti t~~ the p:n•ment ~~f th~• ~~k,liK:it ion s~ti•ur<til by
,uch lien in a mannrr acrept~~b~e to I.ender, or shall in K~N~d faith c~~ntest ~uch lirn b~•, ordrfend enfurcement of su~•h I~t•n in, I~y;al pnK-rcKlinKs
w~hich operate to prevent the enforcement o[ the lien or forfeiture of the 1'roF-erh~ or any part then~~f.
5. Hazard Ineurence. E3orrower ehall keep the improvements now existing or hereaftrr erected on thc I'ru{~c~rt~- insurwl Against loss by
fire, hazanls included vrlthin the term "extended coverage," and xurh other hazards ay I.ender may require and in such amvunts.u~d forsuch
periods as l.ender may require; provided, that Lender ehnll not require such coveraKe amount exc~~c~iing the minimum, as may t~e reyuired by
atate or federa) regulationa go~~erning aclivilies of I.ender, or that amount of coveraKe reyuired to puy the sum~ securecl b~• this !11ortK.i~;e,
whichever is the greater_
The insurance camer providirtK the insur~nce ahxll tx~ ch~titien by f3urruwer sub~e~•t u~ appr~n :~! h}~ 1 w•nd~•r; prna-idi~1, that sui•h :ippr~n•a)
she+ll not be unrr:~nably withheld_ All premiums on insurance pulici~~ shall Ix paid in the manr-f•r pmvirl~r! undrr p.ir.~Kraph '_' hc•r~~~f nr, if
nut paid in such m~nner, by E3urrower making payment, When due, dinrtl~• to the insur.~nce c.irrier.
All inaurance policiea'and renewala thereof ahali be in form accepk-+ble to l.ender and shall include H sta~dard murt~;:iKr clause in favor of
and in form acceptable to l.ender. l.ender ahal) have the right to hold the policies and renrwals thrrruf, and Borruw~er sh.-II prumptly furnish u,
i,ender all renewal notices and all receipta of paid premiuma. In the e~•ent of luss, E{orn~wer shail ~vr prompt nuticP to the insur.-nce camer
and Lender. I.ender may make proof of loas if not made promptly b~~ tiorrnwer.
Unleas Lender and BorTower otherwiae agree in writing, ineurance proceecls ahall be applied to restoration or repair of the Property
damaged, provided such reatoration or repair ia economically feasible and lhe srcurity of this 111ortgage is nut thereby impaired. If such
rratoration or repair is not economically feasible or if the sec~rity of this ~lortgage w ouid be impairrd, the ine,ur,ince procerds shall l,e appiied
to the eums secured by thie hlortgage, with the excesa, if any, paid to Borrower. lf the I'roperiy ia abandoned by Borrovrer, or if I~~rrovicer fails to
reapond to I.ender within 30 days from the date notice ia mailed by I.ender tn Born,wer th:+t the inaurance camer offers to aettle a claim for
inaurance bene6te, Lender is authorized to coltect and apply the insurance pruceeds at I,ender'e nption either to reatoration or repair ~~f the
Yroperty or the sums eecured by this MortKage.
tJnless Lender and E3orrower otherwise agree in writing, any auch application of proceeds to principal shall not extend or puatpone the due
date of the monthly inataUments referred to in paraKrapha 1 and `2 hermf or changc the amount of such installments. If under paraQraph 1M
hereof the Property ia acquired by I.ender, all right, title and interest of l~c~rmwer in and to any insurance policies and in and to the proceede
thereof resulUng from damage to Property prior to the sale or acquiaitiun ahall pase lo lender to the extent of lhe suma secured bv this
MoRgage immediately prior to such sale or acquiAiUon_
6. Preeervation and Maintenance otProperty; LeaReholda: Condominume; Plenned Unit Uevelopmente. &~rrower shall keep
the Property in qood repa~r and ahal) not commit waete or permit impairment or deterioration of the Property and shall comply with the
pruviaions of any lease if thie Mortgage is on a leasehold. If this Mortqage is on a unit in a cY,ndominiu~n ur a planned unit develupment,
13orrower ahall perform all of I3orrower's obliqations under the declaratiun or covenanta creatingor governing the condominium or planned
unit development, the by-lawe and regulationa of the condominium or planned unit development, and constituent documente. [f a
~~~~ndominium or planned unit devel~:pment rider is executed by I3orrower and recurded together with this Mortqage, the covenante and
.~Kreements of such rider shall be incorporated intn and ehall nmend and supplement thecovenants and agreemenLv of this MortK.iKe as if the
nder were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the oovenants and agreements contained in thie Mortgage, or if eny
action or proceeding ie commenced which materially affecte I.ender'e interest in the Property, including, but nat limited to, eminent domain,
ineolvency, aode enforcement, or artangemente or proceedings involving a bankrupt or decedent, then [.ender at Lender'e option,upon
notice to Borrower mey make euch appearancee, dieburee euch suma and take euch aclion aa ie neceeaary to pmtect I.ender's intereat,
including, but not limited to, diebureement of reasonable attorney'e feee and entry upon lhe Property tu make repairo. If Lender required
mortgage ineuranee ae a condition of making the loan eecured by thie Mortgage, Borruwer ehall pay the premiuma required to maintain
euch ineurance in effect until such time ea the requirement for euch ineurance terminatee in accordance with Borrower'e and Lender's
written agreement or applicable Lew_ Borrower ehall pay the amount of aU mortgage inaurance premiume in the manner provided under
paragraph 2 hereof.
Any amounte diebursed by Lender persuant to thie peragraph T, with intereet thereon, ehall become additional indebtedneee of
E3orrower eecured by this Mortgage. Unleae Borrower and [.ender agree to other terme of payment, auch amounte shall be payable upon
notice from L.ender to Borrower requesting peyment thereof, and ahall bear intereet from the date of dieburecment at the rate payable ftom
time to time on oufstanding principal under the Note unleea payment of intereet at auch rate would be contrary to applicable law, in which
event auch amounta ahall bear inteteet et the higheat rate permiaeible under applicable law. Nuthing contained in thie paragraph 7, ehall
require Lender to incur any expenee or take any action hernunder.
8~~x350 F~UF 175