HomeMy WebLinkAbout1475Horrower and l.ende- rnve~ant and a~ee aa folbw~:
1. Payment o[ Principal and Interest. Borrower sl~a11 pmmptly pey when due ihe priocipa) of and iMerest on the indebtedneas
evide~ced by the Note, prepayment and IatecharQe~ aa provided in the Note, and the principal o[and inttreston any Future Advances secured
by thia ~iortgage.
2. fi~nds tor Ta:es and ineurw~ce. Subject to applicable law or to a written waiver by Ltnder, Borrower shall pay tc- I.ende~ on the day
monthly installments of principal and inte~eat are payable under the Note, until the Note is paid in tull, a sum Ihe~ein "Funde"1 equal to one
twelRh atthe yearly taxea and aeeeasments which may attain priority ove~ this Mortgage, and ground ~ents on the Property, i[any, p-us one-
Iwe1Rh of yearly premium installmenta for hazard inaurance, plua unetwelfth of yearly premium installme~ta [or mortgage inaurance, if any,
all us ~eaaonably eatimated initial{y and firom time to tin~e by l.ender on the Dasis of asaeasmenta and bills and reasunable eatimates thereof.
The ~nds shall be held in an institution the deposits or accounla of which are insured or guaranteed by a Federal or Statr agency
(including l.ender if l.ender is such an inetitulion). Lender shall apply the Fu~da to pay eaid taxes, esaeasments, inaurance p~emiums and
ground rents. l.ender may not charge fot so holding and applying the Funds, analy:ing said account, or verifying and compiling said
aeeeaementa and biUs, unless Lende~ pays Bormvrer intereat on the Funde and applicable law permits l.ender W make euch a charge. Borrower
and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless
sach agreement is made or applicable lew rcquires such interest to be paid, Lender shall not be required to pay Borrower any intereet or
earninge on 1he F unds. l.ender ahall give to Borrower, without charge, an annua) accounting otthe Funde showing credita and debits lo the
E unde and the purpoae for which each debit to the Funds was made.'Rte F unds are pledged aa additional security for the aums aecured by thie
Mortgage.
If the amount of the Runds held Ly Lender, together with the future monthly inntellmenfa of Funds payable prior to the duedates o[ta:es.
asaeasmenta, inswance p~emiuma and ground renta, ahalt excxd the amount required to pay said texea, asseasmenta, inaurance premiums
and ground rents as they fall due, such exceas ahall be, at Borrowei e optioo, either pmmptly repaid W Borrower or credited to Borrower on
montt~ly inatallmenta of Funds. If the amount of the Funde held by l.ender ahall not be aufficie~t to pay taxea, asseasmente, inaurance
premiums and ground renta ae they fali due, 8orrower ahall pay to l.ender any amou~t neceasary to make up lhe deficiency within 30days
from the date notice is mailed by I.ender to E3orrowe~ requeattng payment thereof.
Upon payment in full of all sums aecured by this Mortgage. Lender shall promptly refund W Borrower any funda held by Lender. If under
paragraph 18 hereof the Properly ie sold or the Property ie otherwiee acquired by I.ender, [.ender ahal) apply, no Iater than immediately prior
to the sale of the Property or ite acquisition by l.ender, any F unda held by I.ender at the time otapplication as a credit against the suma secured
by this Mortgage.
3. Application ot Peyments. Unlesa applicable law providea otherwise, all paymenta received by Le~der under tAe Note and
paragraphs 1 and 2 hereof ahall be appiied by Lende~ first in payment of amounts payable to Lender by Borrower under paragraph 2 hereot,
then to intereat payable on the Note, then to the principal of the Note, and then to inurest and principa) on any Future Advances.
4. Chargea; Liene. Borrower shall pap all taxes, assessments and uther chargea, fines and impusitio~s attributabte to the Property which
may attain a priority o~•er this Mortgage, and teasehold paymrnls ur gruund rents, iiany, in the manner provided under paragraph 2 hereof or,
i[ not paid in such manner, by liorrower making paymenl, when due. directly to the payre thereoE Borrower shall promptly furnish to l.ender
all notices of amounts due under this para~Lraph, and in the e~e~t Borrnwer shatl rtake payment direct{y, {iorruwer shall promptly furnish to
l,ender receipts e~~idencing such pa~•mrnts. 13orroKer shall prumptly dischargr any lien which h~~s priority o~•er this Mortgage; provided, that
Fk,rn~wer shati not be reyuired tu dixcharge any such lien so long aK F~rruwer shall a~Rre in writing to the payment of the~~bliK~tion:cecured by
such lirn in a manne~ acreptxhlr W l.ender, nr shaU in ~«-d faith c~mtrst such lien by, urdefend enfon•ement of such lien in, le~;al prix-eedings
which operate ta pre~ent thr rnfurcrment of the I~en ur forfeiturP uf the Propert~ or am part the~ruf.
5. Hazard Insurance. t;orr~~w•rr shall keep the improvements nuw existinK or hereafter erected un the F'roprriy insured ugainet loae by
f-re, hazards included within ihe term "extended coveraRe." and such other hazards as I.ender may require and in such amounts and tor euch
periods aF I.ender may reyuirr: provided, that l.rnde~ shall ~nt require that the amount uf such mverage exceed that amuunt of coverage
reyuired to pay the sums ~r~-ured by this MortKaKe.
The insurance cr+rrirr prn~•idsng thr msurancr shall Ix~ chusen by i~.~rruwer sub~ect tu appruv:il by Ia•ndrr, prorided, th:~t such appruval
shall nnt be unreastmably w~thhf~ld. All prpm~ums on insur:~nrP {H31~cirs shal( he p:ud ~n the mannPr pru~ idrd under paraKraph 2 herrof or, if ,.
not paid in such manner, tn• Fi~~rr~~wrr m:~k~nK ~~aymrnt. ~•hen dur, d~r.-:tly b~ th~• msurancr c:~mer.
AH inaurance policies and re~ew•als thereof sF.all be in form acceptable t~ l.ender and shall include a standard mort¢age clauaP in fT~or~j
nus in furm accepwi-ie to i.endrr_ I.endrr shalt ha~ e the nKht tn hold !hr po{~ries and renewals thereuf, and Rorruv~er shall promptly furnish to
~.ender all renewal noticrs and aU reeeip~v of pa~d premiums. In the eveut of I~~ss, I~xn~wer shall give prompt nutice to the insurance carrier
and l.ender. I,ender may make proof of loss if not made pn,mptly b) I;OROWPf.
Unlexs [.rnder and I~~rrower ~~therv-ise agree ~n wnting. insurance proceeds shall be appiied to restoration or repair of the f'roperty
damaRed, pro~~ded surh resb~ratiun nr tepa~r is eronomically feasible and the arcunty of this Mortgage is not thereoy impaired. 1f such
resturation or repair is no! ecunom~~all~ feasiMP ~~r if the xecunty of this MortRage would be impaired, theinsurance proceeds shall beapplied
U~ ihe sums secured by th~s tllortkage, w~th thP exc•ras, ~f any, pa~d to Rorrower. If the I'roperty ia abandoned by F3orrower, or if f3orrower faila to
resp~nd to I.ender withi~ :i11 dayc lrom the date notice ~s mailyd by I,ender to Horrower that the insurance carrier offers to settle a claim for
~nsurance benefits, f.ender is authnnzrd tu collect and apply the insurance proceeds at irnder'a option either to reRtoration ar repair of the
Yroperty ot the sums secured by this A1ortKage.
Unlesa I.ender and Eiorrower otherwisr agree in wnting, any such application of proceedatopnncipal ahall not extend or postpone thedue
date of the monthly installrr.entx referred to in paraRraph:~ l a~d `L t~ereo[or change the amount of auch installments. If under paragraph 18
herec-f the Prr~perty is acquired by l,ender, all right, title ~nd interest of Eiorrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to 1'roperty prior to the sale or acywsition shall pass to l.ender to the extent of the suma secured by thi,~
titurtqaRe immediately prior to such sa{e or acquisition.
6. Preeervation and Maintenenceof Property; Leaaehulds;Condominuma; Planned Unit Uevelopments. Bonowerahallkeep
the Nroperty in g~wd repair and shall not commit waste or permit impairment or deterioration of the Pruperty and ehal) comply with the
pro~isiona r,t any {ease if this A1urIKaRe is on a leasehold. 1f this MortRaKe ie un a unit in a condominium or a planned unit development.
fiorrower shall perfortn aU of &,rrower's obligations under the declaralion or covenants creatinKor govtrn~ng the condominium or planned
unit development, the bylaws and reRulations of the condominium ur planned unit development, and conatituent documents. If a
~~ondominium or planned un~t devrlupment rider is executed by &~rrower and recorded t~ether with thia Mortgage, the rnvenanta and
aKreemenls ~~f tiach nder shall be incorpurated ~nto and shalt amrnd and supplement thecovenants and agreements of this MortgaKe as if the
nder were a part hereot.
7. Protection ot Lender's 3ecurity. If Borrower faile to perform lhe covenante and agreements contained in this Mortgage, or if any
aMion or proceeding is commenced which materially affecte l.ender's intereat in the Property, including, but not limited to, eminent do~ain,
ineolvency, code enforcement, ar arrangemrnts or proceedings involving e baniwpt or decedent, then Lender at Lendes's option,upon
noticx to Borrower may make such appearances, diaburse auch euma and take such action as is necesaary to protect Lender's interest;
including, but not limited to, disbursement ot reasonable attorney's feea and entry upon the Property to make npairs. If Lender required
mortgage insurance as e condition of making the loan secured by thia Mortgage, Borrower shall pay the premiume required to maintain
euch insurance in efttet until euch time as the requirement tor such insurance terminates in accordance with Borrower s and Lender's
written agreement or applicable I.aw. Borrower ahal) pey the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereot.
Any amounte disbursed by Lender pereuant to tfiis paragraph 7, with interest thereon, shall become additional indebtedness of
Rorrower secured by thie Mortgage. Unlese Borrower and Lender agree W other terms of payment, such amounts shull be payable upon
notice from [.ender to f3orrower requesting payment thereof, and ehall bear interest from the date of disbureement at the rate payable ftom
time to time on outetanding principal under the Note unleaH payment of interest at sach rate would be contrary to applicable law, in which
event euch amounte ehall bear inte~est at :he higheat rate permissible under applicable Isw. Nothing rnntained in this paragreph ?, shall
require (.ender to incur any expense or take any action hereunder.
BOOK~c~ PdCE~,~~4