HomeMy WebLinkAbout0473Bo~rowe~ and Lender covenant and agne a~ followr
l. Payment o! Princlpal and lntere~t. F3orrower ahall promptly pey when due the principal oi and interest on the indebtedneas
evidenced by the Note. prepayme~t and iate charges ar provided in the Note, and the principal of and interest on any Fliture Advancee secured
by Lhi~ Mort~age.
2. Funds for Ta:es and lasurance. Subject b applicable law or to a written waiver by ixnder, Sorrower afiall pay to l.ender on the day
monthly inatellmenta of principal and intereat are payable under the Note, until the Note ia paid in full. e aum (herein "Funda"! equal to one
twelRh oflhe yearly taxes and asaesements which may attain priority over this Mortgage, and gtound rents on the Property, i(any, plus one
iwetEth of yearly premium insta{lments for fiazard inaurance, plus onetwelfth of yearly premium ina/allmente for mortgage insurance, if any,
ell a,~ rrasonably eatimated initially and from time to time by l.ende~ on the basia o[ aseessments and bills and reasonable eatimatea thereof.
The ~nds shall be held in an institution the deposits o~ accounts of which are inaured or guaranteed by a Federal or State agency
(including [.ender if l.e~der is such an institutioN. I.ender shall apply the Funds w pay said taxes, aseesaments, i»aurance premiuma and
grouad rents. Lender may not ch~~ge [ot eo holding and applying 1hc Funds, analyzing said account, or veritying and compiling said
assesaments and bills, unleas Lender pe~ys Bocrower intereet o~ the Funds and applicable law permits Lender to make such a charge. Borrower
and Lender may agree in ariting at the time of e:ecution o[ this Mortgage that intereat on the Funds ahall be paid to Borrower, and unleaa
such agreement ia made or applicable lew requires such intereat to be paid, I.endet shell not be required to pay Bomower any interest or
earninga on the Funds. l.ender shall give to BoROwer, without charge, an annual accounting of the Funds ahowing credita and debits to the
Funda and the purpose [ar which each debit to the Funds was made. The Funda are pledged as additional security for the suma secured by thie
Mortgage.
If the amount of the Funds held by i.ender, together with 1he future monthly inetallmenta of Funda payable prior to the due datea of taxea,
aaaeasmenta, inaurance premiums and ground rente, shall e:c2e~d the amount required to pay said ta:es, asaeasments, insurance premiume
and gwund rents as they fall due, auch exceae ehall be, et Bo~iower'e option, either promptly repaid W Borrower or credited w Borrower on
monthiy inatallments of Funda. If the amount of the Funds held by Lender ahall not be aufficient to pay taxee, seaesamente, ineurance
premiums and ground renta as they fall due, Bor~owec shap pay W Lender any amount neceeeary to make up the deficiency within 30 days
from the date notice ia mailed by I.ender to Borrower requesting payment thereof.
Upon payment in full olaU sums secured by thia Mortgage, I.enderahall prompdy refund to Borrower any tunds held by I.ender_ Itunder
paragraph 18 hereotthe Property is aofd or the Property ia otherwise acquired by Lender, Lender ahall apply, no later than immediately prior
to the sale of the Property or ite nequisition by Lende~, any Funds held 6y Lende~ at the time of application as a credit againat the ~ums secured
by thia Mortgage.
3. Apptication of Payments. Unlese applicable law providea otherwiee, al) payments received by Lender under the Note and
paragrapha 1 and 2 hereof ahall be appited by lxnder firat in payment of amounta payabie to t.ender by Borrower under paragraph 2 hereof,
then W intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea.
4. Chargea: Liena. Borrower shall pay all taxes, assessments and othercharges, fines and impoaitions attributable to the Yroperty which
may attain a priority over this Mortgage, and leasehotd payments orground rents, if any, in the manncr provided under paragiraph 2 hereof or,
if nat paid in such manner, by E3orrower making payment, when due, directiy tu the payee thereof. liorrower sha{I promptly turnish to Lender
all notices ot amounts due under this paragraph, and in the event t3orrower shall make payment directly, Born~r. er shall promptly turnish to
Ixnder receipts evidencing such payments. Borrower shall promptly dischargr any lien which has priority over this Mortgaqe; provided, that
Ebrrower shal! not be required todischarge any such lien so long as I~rruwer shall aqree in writing to the payment of the ubligation secured by
such lien in a manner acceptable to l.ender, or shall in good faith contest such lien by,ordefend enforcemento[such lien+n, legal prceeedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S_ Hazard Inaurance. Borrowrer shall keep the improvements now existinq or hereafter erected on the Property insured againat loas by
fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may reqnire and in auch amounts and for auch
periads as I.ender may reyuire; provided, that l.ender shall not require that the amount o( such coverage exceed that amount of coverage
required to pay the sums secured by this MortKage.
The insura~ce carrirr pro~~idinK the insurance shall be chosen by Rorrawer subject to approval by (xnder, provided, that such appruvai
shal) not be unreasunably v~ithheld. All premiums on ~nsurance ~rlicieti sh:~ll F~e p.iid in the m~nner providecl under paraKr:+ph 2 hereof or, if
not paid in such manner, by tiorrower mak~ng pa~•ment, when due. directly tu thr incurance carrier.
All insurance policies and renewals thereof shall be in form acceptable tu l.e~der and sfiall include a standard mortgage clause in favor of
and in form acceptable to [,ender. l.ender shall have the riRht w hold the policies and renewals thereof, and Bnrrower shall promptly furnish to
i,ender all renewal notices and all receipts of paid premiums_ (n the event of loss, Borruwer shall gi~•e prompt notice tu the insurance carriet
and I.ender. l.ender may make proof of loss if not made promptly by &~rrower.
[lnless [.ender and E3~rrnwer othervvise agree in writing, insurance proceeds shall be app{ied to restoration or repair of the Property
damaged, provided such restoration or repair is eronomically feasible and the srcurity of this Mortgaqe is not thereby impaired. If sueh
reatoration or repair is not economically feasible or it the security of this Mortgage would be impaired, the inaurance proceeda shall he applied
to the sums aecured hy this Mortqage, with the exces.g, if any, pa~d to I3~rrower. if 1he F'roperly is abanduned by Borrower, or if ~rrower fails to
respond to l.ender within :i0 days from the date notice ig mailed by I.ender to E3orrower that the insurance carrier oftera to aettle a claim for
~naurance benefitx. I.ender is authorized to collect and apply the insurance proceeds at I.ender s option either to restoration or repair of the
Property or the sums serured by this MortKage.
Unlesa Lender and Burrower otherwise agree in writinq, any such application of proceeds to prineipal ahafl not extend or postpone thedue
date of the monthly installments referred to in par~Rraphs 1 and 2 hereof or change the amount of auch installments. If under paragraph 18
hereof the Property is acquired by l.ender, all right, title and intFrest of E~rrower in and w any insurance policiea and in and w the proceede
thereot tesu{ting from damage t+o Yroperty prior to the saie or acqu~sition sha11 pass to Lender to the eatent of the auma secured by thie
Mortgage immediately prior to such sale or acquisitio~.
6. Preservation and Maintenance otProperty: Leaseholde; Condominums: Planned Unit Developmente. Borrower ahall keep
the Property in ga,d repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the
provisiona o[ any lease if this Alortgage is on a leasehold. If thie Mortgage is on a unit in a rnndominium or a ptanned unit development,
Borrower shall perform all of Borrower'a obligations under the declaration or covenante creatinRor govrrning thecondominium or planned
unit development, the by-lawa and regulations of the condominium or planned unit development, and conatituent documents. I! a
cnndominium or planned unit development rider is executed by I3orrower and recurded together with thia Mortgage, the covenante and
agreements of such rider shalt be inc•~r~x,ratrd i~tu and ~h:+ll xmenci and suppiement the covenants and agreeraents of this M ~rigage as if the
nder were a part hereaL
7. Protection ot Lender's 3ecurity. lt Borrower faile to perform the oovenents and agreemente contained in this Mortgage, or if any
action or proceeding is commenced whicfi maferially affecfe I.ender e interest in the Property, including, but not limited to, eminent domain,
ineolvency, oode enforcement, or anangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender's option,upon
notice W Borrowet mey make euch appearances, diaburee such aums and take such action as ia necxssary to protect Lender's interest,
including, but not limited to, disbursement of reasonable attorney'8 fees and entry upon the Property to ma1~e repairs. If [.ender required
mortgage ioeurance as a condition ot making the loan secured by thia Mortgage. 8orrower shall pay tfie premiume required to maintain
eurh insurance in effect until such time as the requirement !or auch ineurance terminates in accordance with Borrower's and Lender s
written agreement or applicable I.aw. Borrower ehall pay the amount of all mortgage insurance premiuma in the manner provided undtr
paragraph 2 hereof.
Any amounts diaburaed by Lender pereuant to thia paragraph ?, vrith intereat thereon, aha11 become sdditional indebtedness of
i3orrower secured by thie Mortgage_ Unless Borrower and Lender agree to other tetms of payment, such amounfs sheJl be payable upon
notice trom I,ender to Borrower requeating payment thereof, and ehall bear interest from the date of diabursement at the rate payable from
time to time on outstanding principa{ under 1he Note unlese payment of interest at sucfi rate would be contrary to applicable law, in which
event euch amounte shall bear interest at the highest rate permiasible under applicable law. Nothi~g contained in this paragraph 7, shail
require Lender to incur any expense or take eny action hereunder.
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