HomeMy WebLinkAbout0477Bgrrower ~nd Lendar cuveaant and aQrce a~ followe:
l. Payment ot Priacipal snd Intere~t. Borrower shall pmmptly pay when due the pri~cipal ot and interest on the indebtednesa
evidenced by the Note, prepayment and late cha~ge~ as peovided in the Note, and the principal ot and interest on any Future Advances aecured
by this Mortgage.
2. I~1u~de for Ta:ea and Insurance. Subject to applicable law or to a written waiver by I.ender. Borrower ahaq pay to I.ender on the day
monthty i~stallmente of principal and intereat an payabte under tfie Note, unti! the Note is paid in full, a sum (herein "Funda") equal W one
twelfth o[the yearly taxee and aaseaements which may attain priority ove~ this Morigage. and ground rents on the Property. ita~y, plus one
twelRh of yea~ly premium inatallmenfa [or hazard ineurance, plua onetwelM ofyearly premium inetallments [or mortgage inautance, i[any,
aU as maeonably eatimated initially and from time to time by l.ender on the basis of assesamenta and bills and reasonable estimates thereot.
'11~e Funda ahall be held in an institution the deposits or accounts ot which are iosured or guaranteed by a Federal or State agency
(including Lender if l.ender is such an inatitution). Lende~ ehall epply the Funda to pay said taxea, asaeaaments, 'snaurance premiums and
ground rents. Lender may not charge for w holding and applying the Funde, analyzing said account, or veritying and compiling said
asaesamenta and bills, unlesa Lenderpays Borrowe~ interest on the flinda and applicable law permita I.ender to make such a charge. Borrower
and I.ender may agree in writing at the time of execution o[ this Mortgage tAat interest on the ~nda ahall be paid to Borrower, and unless
auch agreement ia made or applicable law requires such interest to be paid, Lender shall not be required to pay E3orrower any interest o~
eamings on the Funds. Lender shall give to Borrower, without charge, an annual aceounting otthe Funds showing credite and debits to the
Funds and thc pur{wge for which each debit to the Funda was made. Tfie Funds are pledged as additional aecurity for the euma secured by this
Mortgage.
If the amnunt of thP F~n~e held 1*y ~ sstdtr, togetker s~:th tlse iutu~ n:~:.tl:ly insia:~ir~e~~trs uf Funde payabie prior to the duedatea of ta:es,
asaesamenta, insurance premiume and grou~d renta, ahall excred the amount required W pay said taxes, aseessmenta, insurance premiume
and ground rrnte aa they fall due, auch excese ahall be, at Bo~TOwer's option, either prompqy repaid to Borrower or credited to Borrower on
monthly insealimenta of ~nds. If the amount of the Funds held by Lender shall not be sufficient W pay taxes, aaeesamenta, insurance
premiums and ground rents aa they tall due, Borrower shall pay to [.ender any amount neceasary to make up the deficiency within 30 daye
from the date notice in mailed by Lender W Borrower requesting payment thereof.
Upon payment in full of all sume aecured by thia Mortgage, Lender shall promptly oe[und to Borrower any tunds held by I.ender. If under
paragraph 18 hereotthe Property is aold or the Property is otherwiee acquired by l.ender, Lender ahall apply, no later than immediately prior
to 1he sale of the Property or its acquiaition by Lender, any Funds held by Lender at the time of application as a credit against the suma secured
by thie Morigage.
3. Applieation ot Payments. Unlese applicable law provides otherwise, all payments received by Lender under the Note and
paragraphe 1 and 2 hereof shall be applied by Lender firat in payment otamounts payable W I.ender by Borrower under paragraph 2 hereof,
then to +nterest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancee.
4. Chargea: Liena. E3orrowershall pay all taxes, assessmenta and otherrhargea. finea and imp~u+itions attribulable w the Prugerty xhich
may attain a priority over this Morl~tage,-and leasehold payments orKwund rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by t3urrav-er making payment, when due, direc!ly to the payee therruf. Borrowershall promptly furniah to I,ender
all notices of amounts due under this paragrapfi, and in 1he event Borrower sfiall make payment directly. Bormwer shall promptly furnish to
Lender receipts evidencing such pa~ ments. Fiorrower shall promptly d~scharge any lien which has priority over this Mortgaqe: provided, that
E3orrower shail not he reyuired to discharge any such lien so long as E3~rrower shall agiree in writing to the paymentof the obligation secured by
such lirn in a manner accepwbie to ixnder, or shdll in good faith rnntest such lien by, orde[end enforcement of such lien in, IeKal procetrdings
which operate to prevent the enfurcemeat o[ the lien o~ forCeiture of the Property or any part thereuf.
5. Hazard Insurance. E3arrow+er shal) keep the improvements now existing or hereafter erected on the Property insured againat lose by
fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and [or auch
periods as Ixnder may require: provided, that i.ender sha11 not reyuire that the amount of such coveraRe exceed thac amount of coverage
required to pay the sums scrured by this MortRage.
The insurance carrier pro~ idin¢ thr insurancr shall br chosen by Itorrow•er subject to approval by Ixnder; pnn•ide.~, that such approval
~hall not be unreasonably v~•ithheld. All premiums on insutani•e p~~licir+ shall be paid in the mannrr prnvidrd under paraRraph 2 hereof or, if
not paid in such manner, by Korrower making payment, when due, directly to the insurance carrier.
All insurance policies and renewals thereof shal) be in form acceptable tn l.ender:+nd shall include a standard mortgaQeclause in tavorof
and in form acceptable to l.ender. l.ender shall ha~ e the riqht G- hoid the policies and renewals thereof, and Borrower shal! promptly furn~ah to
i.ender all renewal notices and all receipts o( paid premiums. In the event of loss, E~rruwer shal{ give prompt notice to the inaurance carrier
and Lender. i.ender may make proof of loss if not made promptly by &~rrvwer. -
Unless I.ender and &~rrower otherwise agree in writing, i~surance proceeds shall be applied to restoration or repair of the Property
damAged, pro~~ded such reytoration ur mpair ic econumically feasible and the scrurity of thia Mortgage ig not thereby impaired. !f auch
reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be appiied
to the sums secured hy this Mortgage, with thr excess, if any, paid to B~rrower. lf the I'roperty is abandoned by E3orrower, or if Eiorrower faila to
mapond to Lender within ;it) days frum the date notice is mailvd by l.ender to E3orrower that the inaurance camer offers to settle a claim for
insurance benefita, I.ender is authorized to collect and apply the insurance proceeda ai I.ender's option eilher to reatoration or repair of the
Property or the suma secured by this Mortgage.
Unleas Lender and E3orrower otherwise aKree in writing, any such application of proceeda to principal shall not extend or postpone the due
date of the monthly installments referred to in paraRrapfis f and'2 hereof or change lhe amount of auch installmenta. If under paragraph 18
hereof the Property is acquired by I.ender, all right, title and intereat of E3ormwer in and to any ineurance policiea and in and w the proceeds
thereof reaulting from damage to F'roperty prior to the sale or acqu~sition shall pass to [.ender to the extent of the suma secured by this
Mortqage immediately prior to such sale or acquisition.
6_ Preeervation and Maintenance of Property; Leaseholda; Condominums: Planned Unit Developmente. Borrower ehall keep
the Property in good repair and shal) not commit waste or permit impairment or deterioration of the Property and ahal! comply with the
provisiona of any leaae if this lllnrtgage is on a leasehold. If this MortgaRe is on a unit in a condominium or a planned unit development,
f~orrower shall peTform a11 of Rorrower'a obliqations under the declaration or covenanta creaunKor governing thecondominium or planned
unit development, the by-laws and re~culations of the candominium or planned unit development, and conatifuent documenta. If a
condominium or planned unit development rider ia executed by F3nrrower and recorded together with this Mortgage, the covenants and
aKreements otsuch rider shall be incorporated into and ,hall amend and supplement the covenants and agreementsof this MortgaReas if the
rider were a part hereof.
7. Protection ot Lender'~ 3ecurity. If Borrower faile to pertorm the rnvenante end agreemente contained in this Mortgage, or if any
action or proceeding is commenced which materielly atfects Lender s interest in the Property, including, but not limited to, eminent domain,
ineolvency. oode enforcement, or arrangementa or proceedinga involving a bankrupt or decedent, then Lender at Lendei s option,upon
notice to Barrower may make ench appearancea, diaburee auch sums and take such ection as is necessary to protect Lendei ~ interea~
including, but not limited to, disbursement of reaeonable attorney's fees and entry upon the Property to make repaire. If Lender required
mortgage insurance as a condidon of making the loan aecured by thie Mortgage, Borrower ahal) pay the preroiums required W maintain
auch ineurance in effect until sucfi time as the requirement for such inaurance terminates in accordance with Bortower's and Lender's
written agreement or applicable [.aw. Borrower ahall pay the amount of all mortgage insurance premiume in the manner proviaed under
pa~agraph 2 hereof.
Any a~nounts disburoed by Lender pereuant to this paragreph 7, with interest thereon, ehall become edditional indebtedneas of
Eiorrower eecured by thia Mortgage. Unleas Borrower and Lender agree ta otl~er terma of payment, such amounts ehall be payable upon
notice from Lender to Borrower requeeting payment thereof, and ehe~ll bear interest from the date of disbureement at the rate psyabk from
time to time on outetending principa) under the Note unlese payment o! inlereet at such rate would be rontrery to epplicable law, in which
event euch amounts ehall bear intereet at the higheat rate permissible under applicable law. Nothing contained in this paragraph 7, [hall
require l.ender to incuc any expenee or take any action hereunder.
B ~7K •)~O FNGE ~~ t