HomeMy WebLinkAbout1156Borrower and l.eoder covenant end a~ree as [ollowa:
{. P*ymenl o! Principwl ~od lntesest. Borrowe~ shall proraptly paY when due the principal ot and interest on the indebted~es~
evidenced by the Note, prepsyment and late cha~ge~ aa provided in ehe Note, and the principa! of and inlrrest on any Future Advances securod
by this MortQage.
2. ~nds torTaxe~ end Insuranee. Subject to applicable law or to a written waiver by I.ender, E3orrowerahall pay to t.ender on lhe day
munthly installments oi principal and inttresl are payable under the Note, until tfie No1e is paid in full, a num Iherein "Funds"- equal to one
twelfth of the yearly taxea and aseeasments which may attain priority ove~ this Mortgage, and ground ~enta on the Property, if any, plus one-
twelfih of yeatly premium installments fos hazard insnrante, plusonetwelRh ofyre~tty premium instaiimenta tormortgageioaurance, i[any,
all as reasonably eatimated initially and from time to tirr-e by l.ender on the basia of asaessmenta and bills and reasonable estimacea thereof.
The ~Lnda ahall be held in an inatitutio~ the deposits or accounta ot which are inaurcd or guaranteed by a Federal or State agency
lincluding I.ender if L,ender is such an institution). l.ender shall apply the Funds to pay asid taxee, asaesaments, inaurance p~emiums and
ground rents. Lender may not charge for w holding a~d applying the Funds, analyzing said account, or verifying and compiling said
eaaeaamenta and bills. unless Lender pays Bor~ower interest on the Funda and applicable law permita Lender to maice auch a charge. Borrower
and Lender may agree in writing at the time of eaecution of thie Mortga~e that intecest on the Funds shall tx paid to Sorrower, and unleas
such agreement ia made or applieable law requires euch intereat eo be paid, Lender ehall not be required to pay Borrower any interest or
earninge on tt~e Funds. l.ender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credits and debits to the
Funda and the purpaae fo~ which each debit to the Funds was made.'R~e Funda are pledged as additional aecurity for thesume aecured by this
Mortgage.
If the amount of the FLnds held by I.ender, together with the future monthly instal lmente ot Funds payable prior to the due datea of taxea,
aasesamenta, ina~ance premiume and gmund rents, shall e:cred the amount r~quired w pay eaid taxea, aesesamenta, i~eurance premiums
and ground rents as they fall due~ auch excese shall be, at Bo-zower s option, either promptiy repaid f+o Borrower or credittd to Borrower on
monthly inetallments of Funde. It the amount of the Funds held by I.ender ahall not be sufficient to pay taxea, asaeeamenta, inaurance
premiuma and gmund rents as they fall due, Borrower ahall ~,ay to Lender any amount neceaeary to make up the deficiency within 30 days
from the date notice is mailed by l.ender to Borrower requesting payment thereot.
Upon payment in full of all auma eecured by this Mortgage, l.ender shail promptly refund to Botrower any tunds held by l.ender. lf under
paragraph 18 hereot the Property ie aold or the Property is otherwise acquired by Lender, Lender ahal! apply, no later than immediately prior
to the sale of the Properiy or ita acquisition by I.ender, any Funda held by l~ender at the time of application as a credit againat the suma secured
`} ?~:iS :c1vz£gube.
3. Application of Peyments. Unless applicable lavv provides otherwiae, all paymenta received by l.ender under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender firat in payment of amounte payable to Lender by Borrower under paragraph 2 hereof,
then W interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancee.
4. Charges; Liens. Borrower shali pay all taxes, assessments and other cha~qes, tnes and impositions altributable tothe Property which
may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereofor,
it nut paid in such manner, by Burrower mak~~g payment, when due, directly to the payee thereof. Rorrower shall prumptly furnish to Ixnder
all notices of amounLs due unde~ thic ~,~ragrap4-, and in the event EiorTOwer sha!! make payment directly, 8orrower shafl prumptty furnish to
l:ender receipts evidencing such payments. E3urrower shall promptly disch~rRr any lien which has priority over thi~ Mortgage; provided, that
E3orrower shall not be required to disch arge any such lien so IonK as Borrower shall agree in writinK tu the payment otthe obl igation secured by
such (ien in a manner acceptable t~~ Ixnder, or shal! in go«! faith contc~t such lien by, ordefend enforcement otsuch lien in, legal proceedings
which operate to prevent the enfurcement uf the lien or for[eiture af the Property or any part thereot'_
5. Hazard Inaurance. Borrower shall keep the irr~provements nuw existing or hrreafter erected on the Property insured againet loss by
fire, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in such amounts and for such
periods as (xnder may require; pro~ ided, that lxnder shall not reyuire that the amount of such coverage exceed that amount of coverage
required to pay thp sums serured by this Mortgage-
The insnranrn carrirr pruvidinK the insurance shall be chusen by Rnrruwer sub~e~K to appru~•al by Ixn~irr, providc~l, that such approval
shall not be unre:-.w~n:~fih• withheld_ All premiums un -nsuranc-e p~~licirs ~li.~ll tx paid ~n the m:+nner pr~~~ ~ded und~r par.~Kraph Y hermf or, i(
not paid in such manner, by f3orruwer makinK pa~~ment, v-hen due, directly tu the insur.+nce carrier.
All insutance policies and renewals thereof shal) be in form acceptable b l~enderand shal) include a standard mortgageclause in favorof
and in form acceptable lo I.ender. Lxnder sha11 have the right tu hold tfie policies and renewals thereof, and Borrower shall promptly furnish to
i.ender all renewal notices and all receipta uf paid premiums. In the event of loss, Bo~rower shall give prompt notice to ihe inaurance.arrier
and I.ender. [.ender may make proof of loss if not made promptly by Borrower.
Unless l.ender and 13orrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
damaqed, provided such restoratu~n or repair i~ ecunomically [easible and the aecurity of thia Mortgage is not thereby impaired. Ii such
restoratiun or repair is not economically fpasible or if the security of this Mortgage would beimpaired, the insuranceproceeds shall beapplied
to the sums secured by this MortKage, with the excrss, if any, paid to Borrower. lf the Property is abandoned by Borrower, or if E3orrower faila to
re~pond to Lender within :i0 days fr~~m the date notice is mailPd by l.ender tu Borrower that the insurance carrier offers tosettle a claim for
insurance benefits. I.ender is ~uthorized to cnllect and apply the insurance p~oceeds at l.ender'a option either to restoration or repair of the
Property or the sums secured by this Mortgage.
Unlese i.ender and Horruwer otherwise agree in wnt~ng, any such application of proceeds to principal ahall not extend or poatpone thedue
date of the monthly installments referred te- in pa~aRraphs 1 and 2 liereof or change the amount of such inataltmentx. If under paragraph 18
hereof the Property ia acquired by I.ender, all right, title and interest of Rorrower in and to any insurance policies and in and to the proceeds
t:-.ereaf r~as:isr~g fro~r~ ~ail~aKr tu i'roprrty pnur io ihe saie or acywsition shaii pass to Lender to the extent of the suma secured by thia
Mortqage immediately prior to such sale or acquiaition.
6. PreeervationandMaintenenceofProperty;Leaseholds;('oadominums;PlannedUnitDevelopments.BorrowerehaUkeep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the
pro~•isions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development,
E3orrower shail per(onn all of Borrowei a obligatio~s under the declaration or covenants creatinRor qovernrog the condominium or planned
unit development, the by-lawa and regulations of the condominium or planned unit development, and constituent dceumenta. If a
cundominium or planned unit develupment rider is executed by F3orrower and recorded together with this Mortgage, the oovenants and
agreements of such rider shall be incorporated into and shall ainend and supplrment thecovenants and agreementsof this Mortgage as if the
rider were a part hereoL
7. Protection ot Lender'e Security. If Borrower faila to perform the oovenente and agreementa rnntained in this Mortgage, or if any
action or proceeding ie commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain,
ineoive»cy, oode enforcement, or arrangements or procc-edinge invnlving e bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower mey make such appeacances, dieburse auch aums and take such action aa is necessary• to prota~rt Lender i intaest,
including, but not limited to, disbursement ot reasonable attorney'a [eee and entry upon the Property to make repairs. lf Lender required
mortgage ineurance as a condition of making the loan secured by this Mortgege, Borrower shall pay the preroiums required to maintain
such insurance in eifect until auch time as tht requiTement for auch ineurance terminates in accordance with Borrower's and Lender •
written agreement or applicable Lew. Borrower ahall pey the amount of all mortgage ineurance pcemiume in the manner provided under
paragraph 2 hereof.
Any amounte diebureed by Lenda persuant to this paiagrsph 7, with interest thereon, ehaU becorne additional indebtedness oi
Horrower secured by thie Mortgage. Unleas Borrower end Lender agrce to othet terma ot payment, such amounts sha11 be payable up~n
notice from Lender to Borrower requeeling payment thereof, and ehall bear interest from the date of disbunement at the rate payable ttom
time to time on outetanding principal under the Note unleee payment of interest at auch rate would be contrary to applicable law, in which
event euch amounte shap bear interest at the higheat rate permissible under applicable law. Nothing contained in thie paragraph 7, shall
require Lender w incur any expense or take any action hereunde~.
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