HomeMy WebLinkAbout0485Borrowe~ and I.ender rnvenant and a~ree w followa:
1. Payment ot Prir~cipal and I~tereat. Borrower shaU pmmptly pey when due the principal ot and intereat on the indebtednees
evidenced by the Note. prepeyment and late charges as pcovided in the Note, and the principal of a~d intereat on any Future Advances aecured
by this Mortgage.
2. I~1nds for Tues and I~surance. Subject to applicable law or to e writte~ waiver by [.ender, Borrower shall pay to l.ender on the day
monthly inatallmente of principal artd i~tereat an payable under the Note, until the Note ia paid in full, a sum (herein "Ftinda") equal b one
twelRh of the yea~ly taxea and asaessmente which may attain priority over thia Mortgage, and grou~d rents o~ the Property, if any, plus one
twelfth of yearly p~emium inatallments for hazard ineurance, plus onetwelRh otyearly premium inslallments for mortgage inaurance, i[any,
all as reasonably eatimated initially and from time to time by Lender on the basis of asaesamente and bills and ~easonable estimates thereof.
The ~nda shall be held in an inatitution the deposita o~ accounts ot which are inaured or guaranteed by a Federal or State age~cy
lincluding Lender if I.ender is such an institution). I.ender shall apply the Funds to pay eaid taxea, assesaments, inaurance premiums and
ground nnts. l.ender may not charge for sa holding and applying the Funds. analyzing said account, or verifying and compiling said
aeseasme~ta and bills, unle8s Lender pays Borrower interest on the Funds and applicable law permits l.ender to make such a charge. Borrower
and I.e~der may agree in writing at the time of execution of thia Morigage that intereat on the Funda ahall be paid to Borrower, and unless
euch agreement ie made or epplicable law requires euch intereat to be paid, l.ender shall not be required to pay Borrower any intereat or
eaminga on the ~nda. I.ender shall give to Borrower, without charge, an annual accounting of the Fu~ds ahowing credite and debit+s to the
Funds and the purpose [or which each debit to the Funda wae made.'l7~e Funda are pledged as additional aecurity for the eume secured by thie
Mortgage.
If the amount of the Fun~ia held by I.ender, together with the tuture monthly inatallmenta otFunda payable prior to the due datea ottaxea,
asaesamenta, ineurance premiume and ground rents, ahall excaed the amount requi~ed to pay said texes, asaesamenta, inaurance premiums
and ground rente se they fall due. such e:ceas ahall be. at Bonower e option, either prompdy repaid to Borrower or credited to Borrower on
monthly inatallmente of Funde. I[ the amount of the Funde held by Lender ahall not be aufficient to pay taxee, asseasmente, insurance
prnmiume and ground rente as they fall due, Borrower shall pey to Lender any amount neceseary to make up the deficiency within 30 days
from the date notice ie mailed by Lender to Borrower requesting payment thereof.
Upon payment in full of all aums secured by this Mortgage. Lender ahall promptly refund to Borrower any funda held by [.ender. If under
paragraph 18 hereof the Property is sold or ehe Property is otherwise acquired by I.ender, Lender ahall apply, no later than immediately prior
to the sale of the Property or its acquiaition by Lender, any Funda held by Lender at the time otapplication as a credit againat the aums eecured
by this Mory~age_
3. Applieation of Paymenta. Unleas applicable law providea otherwise, all paymenta received by Lender under the Note and
paragraphe 1 and 2 hereot ahall be applied by l.ender first in payment of amuunts payable to Lender by Borrower under paragraph 2 hereof,
then to intereat payable on the Note, then to the principal ot the Note, and then to internet and principal on any Future Advancea.
A. Cherges; Liena. E3orrowershall pay all taxes, assessments and otherchasgea, fines and impositions attributable to ihe Property which
may attain a priority over this htortgage, and leasehold payments or gmund rents, if any, in the manner provided under paragraph 2 hereofor,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Bormwer shall promptiy furnish to I.ender
all notices of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Bormwer shall promptly furnish to
l.ender reeeipts evidencing such payments. liorrower shAll promptly discharge any lien which has priority over this Mortgage; provided, that
E3orrower shall not 6e required to discharge any such lien so lung as Rorrower shall agree in writing to the payment of the obligatian secured by
such lien in a manner accrpt~ble to Ixnder, ur shall in guod faith contest such lien by, ordefend enforcement ofsuch lien in, legal proceedings
which oprrate to prevent the enforcement of thr lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrow er shull keep the improvements nuw existing or hereafter erected on the Property insured againat lose by
fire, hazards included within the term "extended coverage; ' and such other hazards as I.ender may require and in such amounts and fora~ch
periods as I.ender may reyuire; provided. that I.ender shall not require that the amount of such coverage exceed that amuunt of coverage
required to pay the sums securcd by this Mortgage.
The insuranm carrier providinK the insurancr shall br chusen by Hnrrv~wer subject to. approval hy Ixnder, pr~,~•ided, th~t such :~pproval
shall not be unreasonably vvithheld. All premiums un insurance p~~lic~rs shall be paid in the manner provided u~der paraKraph 'l hereuf or, if
not paid in such manner, b~ 13orruw•er makinK pu~•ment, when due, dirrctly to the insurance camer.
All insurunce policies and renewals thereof shall be in form acceptable to l.ender and shall include a stan~ard morigage clause in favor of
and in form acceptable to l.ender. l.ender shall have the right Gi huld the policies and renewals the~eof, and Borrower shall promptly furnish to
i.ender all renewal notices and all receipts of paid premiums. In the ever~t of loss, I3orrower shall give prompt notice to the insurance carrier
and Lender. I.ender may makc proof of loss if not made promptly by E3orrower.
Unlesa [.ender and Borrower otherwise agree in writing, insurance proreeds shail be applied to restoration or repair of the Property
damaged, pru~~ded sach restoratiun or repair is ecunomically feasible and the srcurity of this Mortgage is not thereby impaired. If such
reatorafion or rnpair is not economically feasiblP ~~r if the security of this blortgage would be impaired, the insurance proceeds shal) be applied
to the sums secured by this Mortgage, w~th the excess, if any, paid to Borrower. I[the Property ia abandoned by Borrower, or it E3orrower faila ta
reapond to I.ender within :Sfl days fr~,m the date notice is mailed by I~ender to Borrower that the insurance carrier oPfers to settle a claim for
inaurance benefita, I.ender is authorized to cullect and apply the insurance proceeds at I.ender's option either to restoration or repair of the
PropeKy or the suma secured by this Mortgage.
Unlesa Lender and Horruwer otherwise agree in writir.q, any such application of proceeda to principal ahall not extend or postpone thedue
date of the monthly installmenta referred tu in paraQraphs 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18
hereof the Property ia acquired by l.ender, all right, title and inlerest of Borrower in and to any insurance policiea and in and to the proceeds
thereot reeulting from damage to Property prior to the sale or acqu~sition shall pass to Lender to the extent of the aums secured by thie
titortgage immediately prior to such sale or acquisition.
6. Preeervation and Maintenance of Property; l.easeholds; Condominume; Planned Unit Developmente. Borrowerahall keep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the
proviaions of any lease if this Mortgage is on a leasehold. If this Murigage is ~,n a unit in a condominium or a planned unit development,
Horrower ahull perform all of E3cirrower's obligations ureder the declaraiion or covenants creatinKor govern~ng the condominium or planned
unit development, the bylaws and regulations of the condominium or planned unit development, and conatituent documenta. If a
c~ondominium or pls~nned unit de.-elopment rider is executed by E3orrower and recorded together wilh thia Mortgage, the eovenanta and
aKreements of such rider shall t-e incorporated into and shall amend and ~upplemenl thecovenants and agreementsof this Mortgageas if the
nder were a part hereuf.
7. Protection of Lender's 3ecurity. If Borrower fails to pertorm the oovenante and agreemente contained in thie Mortgage, ar if any
action or proceeding is commenced which materially affecfs Lender's interest in the Property, including, but not limited to, eminent domain.
insolvency, oode enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then Lender et Lender's option,upon
notice to Borrower may make euch appearances, disburse auch aums and take such action as is neoeesary to protect Lender s interest,
including, but not limited to, diabureement of reasonable attorney'e fees and entry upon the Property to make repaira. If Lender required
mortgage ineurance as a condition ot making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain
euch ineurance in effect until auch time as the requirement for each ineurance terminates in accordance with Borrower's and Lender's
written agreement or applicable Law. Borrower ehall pay the amount of all mortgage inaurance premiums in the manner provided under
paragraph 2 hereof.
Any amounte disbureed by Lender persuant to thie paragraph T, with intereat thereon, shall become additional indebtedncss ot
Borrower secured by this Mortgage. Unleas Borrower and Lender agree to other terms of payment, auch amounta shall be payable upon
notice from Lender to Borrower requesting peyment thereof, and ahall bear interest from the date of disbursement at the rate payable from
time to time on outelanding princi{-al under the Note unlese payment of interest at auch rate would be contrary to appliceble law, in which
event auch amounts ehall bear intereat at the highest rate permiseible under applicable law. Nothing contained in this paragraph 7, shall
require Lender to incur any expense or take any aMion hereunder.
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