HomeMy WebLinkAbout0481Borrowe~ and l.ender covenaet and agree as folb~-~:
t. Payment ot Principal and Intereat. Borrowet shall promptly pay when due the principal of and intereat on the indebtedness
evidenced by the Note. prepayment and tate chuga as pwvided in the Note, snd the principal of and interest on any Future Advances eecured
by thu Mortgage.
2. I~lunds [or Tues aad Inaur~ce. Subject to applicable law o~ to a written waiver by Lender, Borrower ahall pay to [.ender on the day
monthly installmenta otprincipal and interest are payable under the Note, until the Note is paid in full, a aum Iherein "Funds") equal W une
tweltih olthe yea~ly taxes and sssessments which may attain priority over thia Mortgage, and ground renta on the Property, if any, plue one
twelfih o[yearly premium installmenta tor haza~d insurance, plus onetwelRh of yea~ty premium installmente tor mortgageinsurance, if any,
all ae reasonably eatimated initially and firom time to time by I.ender on the basia of aeaeasments and bills and reasonable estimates thereof.
The ~nds sha11 be held in en institution the deposita or accounts of which an ineured or guaranteed by a Fede~al or State agency
(including Lende~ i[ l.ender ia auch an uutitution). Lender shall apply the Funda to pay said taxea, aseeasments, insurance premiuma and
Etmund renta_ Lender mey not charge for w holding and applying the Funda, analyzing eaid account, or verifying and compiling said
asseasmenta and biUs, unless Lender pays Borrowe~ interest on the Funds and applicable law permite Le~der to make auch a charge. Borrower
and Lender may agree in *rriting at the time of e:ecution of this Mortgage that intenst on the Funda ahall be paid to Borrower, and unlese
euch agreement is made or applicable law requires such intereat W be paid, lxnder shalt not be required to pay Borrower any intereat or
earnings on the Fl~nds. Lender shall give to Borrower, without charge, an annual accounting of the Funds ehowing credita and debita to the
Funda and the purpoee for which each debit to the Funda was made. The Funda are pledged as additional eecurity for the sums eecured by thie
Mortgage. '
[f the amount otthe ~nds held by l.ender, together with the future monthly inatallment~ of Funda payable prior W the due datea of taxes,
aasesaments, inaurance premiums and ground renta, shall excxd the amount required to pay aaid tsxee, aeaeasmenta, ineurance premiume
and ground rents se they lall due, auch excess ahall be. at Borrower's option, either pmmpdy repaid to Borrower or credited to Borrower on
monthly installments of Funds. lf the amount o[ the Funds held by Lender ahal! not be eufficient W pay taxee, asaeaementa, inaurance
premiume and ground rents as ihey fall due, Bormwer ahall pay to I.ender any amount neceaeary to make up the deficiency within 30 days
from the dete notice ie mailed by Lendrr to Borrower requesting payment thereoL
Upon payment in full ot alt suma secured by this Mortgage, [.ender sha11 promptly refund to Bortower any funda held by Lender. lf under
paragreph 18 hereof the Property ia sold or the Pmperty ie otherwiee acquired by Lender, Lender ahall apply, no later than immediatety prior
to the eale oi the Property or ita acquisition by I.ender, any Funds held by Lender at the time of applicstion as a credit againat the suma secuned
by thia Mortgage.
3_ Application ot Payments. Unlesa applicable law provides otherwise, al{ payments received by Lender under the Note and
paragrepha 1 and 2 hereof ehall be applied by Lender firat in payment of amounta payable W Lender by Borrower under paragrspfi 2 hereof,
then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances.
4. Charges; l.iena. Bozro~ue: s!~al! pay all tazes, assessments and uthrr charges, f nes and impoaitions attnbutable to the Property which
may attain a priority over this Alortgage, and leasehoid payments or ground rents, if any, in the manner provided under paragraph 2 hereof or,
~f not paid in such manner, by Eiorruvrer making payment, when due, directly to the payee thereoC 13orrower shall promptly furnish to Lender
atl notices of arr:ounts due under this paragraph, and in the event f3orrower shall make payment directly, Bormwer shall promptly fumish to
I.ende~ receipts evidencinK such payments. fk,rrower shal{ promptly dischargr any iien which has priority o~•er this Alortgage; provided, that
[3orrower shall not be required to discharKe any such lien sa IonK as E3~rrower shall agree in writing ta the payment of theubligation secured by
such lien in a manner acceptable to [xnder, or shall in good faith contest such lien by, or defend enformment of such lien in, legal proceedings
which operate to prevent the enforcemenl of the lien or forfeiture of the 1'roperty or any part thercrol.
5. Hazard lnaurance. E3orrow er shall keep the impruvements now existing or hereafter erected on the Properiy insured againet loss by
fire, hazards inciuded within the tertn "extended coverage," and such other hazards as t.ender may require and in such amounta and for auch
periods as I.ender may require: provided, that I.ender shall not reyuire that the amount of such coverage exceed that amount of coverage
requfred to pay the sums secvred by this ;Nort}~aRe.
The insurance carrier pro~•~dmK the insuranm shall tx~ chusen by F~~rtuwer subject to approval by I.ender: pru~•ided, that such approva)
sfiaN not be unrrasnnably v-ithheld. All prem~ums on insurance p~~li~•icw shall he pa~d in the manner pro~ idecl under paraKruph'l hereof or, if
n~,t paid in such mannet, b~• li~rrower mak~ng p:+~ment, v~:hen due, directly tu the insurance carrier.
All insurance policies and renewals thereof shall be in [orm acceptable tn l.ender and shall include a standard mo~age clause in favor of
and in fo~m acceptable to I.ender. l.endershall have the riqht to hold thepoliciesand renewals thereof, and f3c~rrower shalt promptly furnish to
~xnder a{I renewal notices and all receipts of paid pmmiums. In the event o[loss. Born~wer ahall give prompt nutice to the insurance carrier
and I,ender. l.ender may make proof of loss if not made promptly by Bc,rrower.
~Tnless [.ender and F3orrower othervvise agree in writing, insurance proceeds shal) be applied to restoration or repair of the Property
damaged, pro~~ded such resturation or repair is econumically (easible and the security of this Mortgage ia not thereby impaired. If auch
rrstoration or ~epair ia not ecos-omically feasible or if the security of this Morigage would be impaired, lhe insurance proceeds ahall be applied
tn the sums secured by th~s MortgaKe, w~th the eares.Q, if any, paid to Borrower. Itthe PropeRy is abandoned by Borruwer.or if Eiorrower fails to
re3pond to I.ender within :i0 dacs from the date notice is mailPd b~ I.ender G~ E3orruwer that the insuranee carrier offers to aettle a claim for
msurance benefits. I.ender js authonzed to collect and apply !he insurance pmceeds at Lender's option either to restoration or repair of the
Yroperty or thr sums secured by this Mortgage.
Unless Lender and F3orrower otherwise aQree in wnting, any such application of proceeds to principal ahall not eatend or postpone thedue
date of the monthly installments referred k- in paragraphs 1 and'l hereof or change the amount of auch inatallmenta. If under paragraph 18
hereof the Property is acquired by l~ender. a11 right, title and intereat of Borrower in and to any inaurance policies and in and to the proceeds
thereof resulting from damage to Yroperty prior to the sale or acqu~sition shall pass to Lender to the extent of the aums secured by this
1lortgage immediately prior tv auch sale or aequisition.
6. Preservation and MaintenanceotProperty; I.easeholds; Condominuma; Planned LTnit Developmente. Borrowerahall keep
the Property in good repair and shall not commit vraste or permit impairment or deterioration of the Property and shall comply with the
prov~siona of any lease if this 111ortgage is on a leasehold_ If this Mortgage is on a unit in a rondominium o~ a planned unit development,
F3orrower shall pertorm all of fiorrower's obligations under the declaratinn or covenants creaunQor governing the condominium or planned
unit development, tfie by-laws and regulations of the condominium or pianned unit development, and conatituent documents. If a
c ondominium or planned unit development rider is executed by &,rrower and recorded together with this Mortgage, the covenants and
:~Kreements of such rider shall t-e incurpurated into and shall amend and supplement the covenants and aECreements of this Mort~age as i[the
nder were a part hereof.
?. Protection ot Lender's 3ecurity. If Borrower fai{a to prrform the rnvenants and agreemente rnntained in this Mortgage, or if any
action or proceeding is commenced which materially attecta Lender's interest in the P~operty, including, but not limited to, eminent domain,
~nsolvency, oode en(orcement, or arrangements or proceedinqs involving a bankrupt or decedent, then Lender et I.ender's option,upon
notice to Borrower may make such appearances, diaburse euch aums and take such action as is necessary to protect Lender's interat,
including, but not limit,ed to, disbursement of reasonab{e attorney's hes and entry upon the Property W make repaire_ If Lender reqaired
mortgage inswance ae a rnndition of making the loan secured by this Mortgage, Borrower shall pay the premiums required W maintain
euch insurance in eftect until such time as thr requirement for auch ineurance terminetee in accordence with Borrower's and Lmder"s
written agreemenl or applicable Law. Borrower shall pay the amount of ell mortgage ineurance premiums in the manner provided under
paragraph 2 hereot.
My amounta disbureed by Lender perauant to this paragraph 7, with interest thereon, ehall become additional indebtedness of
Horrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shal) be payable upon
notice from Lender to Borrower requesting payment thereof, and ahell bear interest from the date of diebursement at the rate payable from
time to Ume on outatanding principe) under the Note unless payment of intereat at such rate would be oonttary to applicabte lew, in whicfi
event such amounte shell bear interest at the higheat rate permissible under applicable law. Nothing rnntained in thie paragreph 7, shal)
require Lender W incur any expense or take any aMion hereunder. .
5!:~1K •J~ P!GE 481