HomeMy WebLinkAbout0493Bo~rower and Lende~ covensnt and a=ree a~ folb~vs: ~
1. Paymeat of Priucip~l tud Interea~ Borrowe~ ahall promptly pay when due the principai of and interest on the indebtednesa
evideaced by tbe Note. prepay~nent st~d late char~es as provided in the Note. and the principal of and intereat on any Future Advancee secured
by this Mort~ase.
2_ I~da torT~e~ ~ad Ia~uraace. Subject to applicable law o~ Lo a written waive~ by l.ender, Borrower shall pay to l.ender on the day
monthly installmeata of principal and intereat are payable under the Note, until the Note is paid i~ full, a aum (herein "Funda") equal w one
twelRh of the yearly tsuea and aaseasmenta which may attain priority over this Mortgage, and ground renta on the Property, if any, plus one
cweltih of yearly pre+n~um ina:allmena for hazard insurancs, plus onrtwelRh of yearly premium installmenes ior mo~tgage inaurance, if any.
all as reasonably estimatcd initially and from time to tirue by I.ender on the baeis of aaaesamenta and bills and ~easonable eatimates thereof.
'!Le Funds shall be held in an institution the depoeits or accounts of which are ineured or guaranteed by a Federal or State agency
fincluding Lende: if Lendet ia such aa institution). Lender shall apply the Funda to pay eaid taxea. aseeasmenta, inaurance premiuma and
ground rent~ L.ender msy not chacge far w holding and applying the Funds, analyzing said account, or verifying and compiling aaid
asse~aneata and bills, unles~ Lender psy~ Borrower int~eat oa the Funds and appliceble law peRnita Lender to make auch a charge. Bonower
ud I<ader may agree in w-ritin8 at tht time of esecution of thie Mortgage that interest on the Funds shall be paid W f3orrower, and unleae
auch agree~ner-t is made or applirabk law requires such i~teresi W be paid, Lender shall not be required to pay Eiorrowe~ any intereet or
earnings on the Funds. Leoder shaU give to Borrower, without charge, an annual accouuting of the Funds ahowiog credite and debita w the
Funds and the purpose for which each debit to the Funda v- aa made. The Funds are pledged as additional security for the eume aecured by this
Mortgage. •
If the amount ot the Flu-da held by Lender, together with the fnture month{y inatallmenta of Funds payable prior to the due datea of taxes,
asseasments, insuraner praniuma and ground renta, ehaD e~ccred the amount nquired to pay eaid taxea, asaesameRta, ineurance premiums
snd ground rrnts as they fall due, such e:ceas ahall be, at Borrower a option, either promptly repaid to Borrowe~ or credited to Borrower on
monthiy inatallments of Funds. tf the amount of the Funds held by Lender ehall not be eu~cient to pay taxea, aseeasmenta, insura~ce
premiuma and ground rcnts aa they tall due, Borrowe~ ahall pay to Lender any amount neceasary to make up the deficiency within 30 daye
trom the date notice ia mailed by Lender w Borrower requeating payment thereot.
Upon paymeat in lull of all sums secured bv this Mortgage, Lender ahaU prompily refund to Borrower any funds held by [.ender. lf under
paragraph 18 hercof the Property is sofd or the Properiy ia otherwiae acquired by l.ender, Lender ahall apply, no leter than immediately prior
to the aak ot the Property or ita acquiaition by Lender, any Funds held by Lender at the time of application as a credit against the suma secured
by this Mortgage.
3_ Appfieation oi Payments. Unleas applicable law providea otherwiae, all paymenta received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender firut in paymeol of amounta payable to [xnder by Borrower under paragraph 2 hereof,
then to intereat payabk on the Note, then to the principa! ot the Note, and then to interest and principal on any Future Advancea.
4. Charges: Liens. Borrower shall pay all taxes, assessments and other charges, finrs and impositions attributable to the Property which
ma> attain a priority o~ erthis Mortgage, and ieaseho:d payments or ground rents, itany, in thr manner provided under paragraph 2 hereof or,
if not paid in such manner, by EiorroK•er making payment, when due, di~ectly to lhe payee thereof_ Borrower sha{I promptly furnish to Lender
all notices of amounts due onder this paragraph, and in the event f3orrow•er shall make payment directly, tiorn-w•er shall promptly tumish to
I.ender receipts e~'idPncing such payments. Eiorrower shall promplly discharge any lien which has priority o~•er this Mortgage: pmvided, that
F3orrov-e~ shal! not 6e required tt~dsscharge any such {ien so (onR as Borruwer shall agree in writinR to the payment of theobligation secured by
such lien in a manner acceptable to I.ender, or shall in goud faith cuntest such lien by, ordefend enforcement of such tien in, legal proceedings
which operate to ~~event the enforcement of the lien or forfeiture o[ the Property or any part therruf.
a_ Hazard Insurance. I3oiruwer shati keep the impruvements now existinq or hereafter erected on the Yroperty insured againat losa by
fire, hazards includrd whthin the term "extrnded coverage," and such other hazards as l.ender may require and in such amounts and far aucfi
periods as l.ender ma~ require: pro~ ided, that Lender shall not require that the amount ot such coveraRe exceed that amount of coveraqe
required to pa~ lhe sums scrured bp this ~1ort~age.
77~e insurance carrier Pm~•idinK thr ~nsuranc~ shaU t-e chusen by Bortow•er subject to appruv,;l by l.ender, provided, that such appruval
shall not be unre~~nabi~ vcithhrld. All premiums un insur~m~e polic~ec ~hali be pa~d in the m:inner provided under p.+raRraph'L her~~f or, if
not pa~d -n sucfi manner. by fic,rrovrrr mak~nR pa~~ment, whrn due, directly to ihe insurance carrier.
All insurance poli~ies and renewals thereof shall be in ~orm acceptable to Ixnder and shall include a atandard mortgagr ci~use in iavor oi
and in form acceptable to t.ender. l.ender shall have the riqht to hold the pnlic~es and renewals thereof, and E3orrower shall promptly [urnish to
i,ender all renewal notices and all receipts of paid premiums. In the event of losa. Burn-wer shall give prompt notice to the inaurance carrier
and lxnder. Ixnder may make prcwf of loss if not made promptly by Borrower.
~'nlesa Lender and Eiorrower other.ivise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
dama~Ced, pro~~ded such resturatiun ur repair is econnmically [easible and the scrurity of this MortQage ia not thereby impaired. I[ such
rrstoration or repair is not economically feasible or ~f the security of this Mortgage would be impaired, the insurance proceeds shall be applied
to the sums secured by this ~1ortRsRe. v~ ~th the excess, if any, paid lo B~rrower. {f the Properiy is abandoned by 8orrower, or if i3~rrower faila to
re~pond w Lender within :i0 da~•s from the date notice ~s mailyd by I.ender tu $orrower that the insuranre carrier oHers to settle a claim for
~nsurance benefita. Lender is authorized to collect and apply the insurance procerds at l.ender's option either to restoration or repair uf the
Property or the sums secured by this MortKage.
l;nlesa Lende~ and Rurro..er othe~ise a~ree in wnting, an~ such applicatsono(proceeds to principal ahail not extend or postpone thedue
date of the monthll installments referred to ~n paraQraphs 1 and 'l hereof or change the amount of such installments. if under paragraph 18
hereof the Property is acquired by l.ender, all right, title and interest of Borrower in apd to any insurance policies and in and to the proceeds
therrot reaulting tmm damage to Property prior to the sale or acqu~sition shall pass to Lender to the e:tent of the auma secured by this
Mortgage immediately prior to such sale or acquisition.
6_ F'reservation and MaintenanceotProperty: Leaseholda; Condominums: Planned Unit Developmenta. Borrowerahall keep
the PropeRy in good repair and shall not commit .+aste or permit impairment or deterioration of the Property and ahall comply with the
proazsions oi an~ lease i! this l~tortgage ia on a leasehold. If this 111ortgage is on a unit in a condominium or a ptanned unit development,
Borrvwer shali per[orm al) of Eiorrcrwer's obligatiuns under the declaration or covenants creatinKor governing the condominium or planned
~r,:. .:e.e;v~.-.e.-.~. :'r+e ~3-:aws an3 refcuiaiions of tne condomin~um or piannea un~t deveiopment, and conat~tuent documenta. I[_a
ronduminium.or planned unit develupment rider is executed by Sorrower and recorded together with thie Mortgage, the covenante and
eKreements of such nder shall be ~ncc~rporatrd intu and shall amend ~+nd supplement the covenants and a~creements of this Mort~tage as if the
nder were a part hrreof.
7. Protection ot Leoder's Security If Borrower faile to perform the covenante and agreements contained in this Mortgage, or if any
action or procYeding is commenecd which matrrialiy aftecte Lender's interest in the Property, including, but not limited W, eminent domain,
insolvency, cvde mforoement, or arran8emmts or proceedings involving a bankrupt or decedent, then Lender at Lender's option.upon
notice to Aorrower may make such appearances, disburse euch aume and take auch action as ie necessary to pmtect [.endrr's interest,
including, but not limited Lo, disbureement of reasonable atWmey's fees and entry upon the Property to ma1~e repairs_ If Lender required
moregage insurance as a condition of msking the loan secured by this Mortgage, 8orrower shall pay the premiums required to maintain
euch insurance in ef~ect until sach time as the requirement for such insurance terminates in accordance with Borrower's and L.ender's
writtm agreement ~ applicable L~w. Borrower shall {-ey the amnunt of all mortgage insurance premiuma in the manner provided under
paragraph 2 hereaL
My amounts disbursed by Lendrr perauant to this para~raph ?, vrith intereat thereon, shall become edditional indebtedness of
Borrower secured by this Mortgage. Unless Borrowet end Lender agree to other terms of payment, such r~mounta shall be payable upon
notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
time to time on outstanding principal under the Note unless payment of interest at sucfi rate would be contrary to applicable law, in which
event such amounta sha11 bear interest at the higheat rate permissible under appliceble law. Nothing rnntained in this paragtaph ?, shall
require l.ender to ~ncnr any e:pense or take any action htreunder.
~~~x 3~ p~ ~~ 493
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