HomeMy WebLinkAbout1483Bocmwer end Lender covenant and a~ree aa followc
1. Psyment ot Pri~cipal and latere~t. Borrower shall promptly pay when due the principal of and ioterest on the indebtedneas
evide~ced by the Note, prepayment and latechargea ae provided in the Note, and the principal of and i~te~est on any Future Advancee secured
by this Moirtgage.
`l. i~'unde for Taxea a~d Insurance. Subject to applicable law or to e written waive~ by I.e~der, Borrower ahall pay to l.ender on the day
monthly installmente of principal and interest are payable under the Note, until the Note is paid in full, a sum lherein "Funds"1 equal to one
twelRh of the yearly taxes and aasesame~ts which may altain priority over this Mortgage, and ground renta on the Property, if any, plus ont
twelfih of yearly premium inatallmenta tor hazard inaurance, plua onetwelfth ofyearly premium inatallmente for mortgage insurance, it any,
atl ae reasonably estimated initially and firom time to tirne by l.ender on the besis of assessmenta and billa and reasonable eatimates thereof.
The Funda ahall be held in an iostitution the depoeita or accounte of which are inaured or guaranteed by a Federal or State agency
lincluding I.ender i[ Lender ia such an inatitution). Lender ahall apply the F unda to pay seid tazes, asaesaments, insurance premiume and
ground rents. Lender may not charge for eo holding a~d applying the Flinds, analyzing said account, o~ veritying and compiling eaid
aeaesemente and bilie, unleas I,eader paye Borrower interest on the Funds and appliceble law permite l.ender to make euch a charge. Borrower
and [.ender may agree in writing at the time ot execution of this Mortgage thet interest on the Funde shall be paid to E3orrower, and unless
euch agreeme~t is made or appliceble law requiree euch interest to be paid, Lender ehall not be required to pay Borrower any intereet or
earninga oo the Fl~nds. Lender ahall give to Borrower, without charge, an annual accounting oi the Funda ahowing credite and debita to the
Funds and the purpoee for which each debit to the F unds was made. The Funda are pledged as additional sec~rity for the euma serured by this
Mortgage.
If the amount of lhe Funda held by Lender, together with the future monthly installmenta of Funda payable prior to the due dates of ta:es,
assesementa, inaurance prnmiuma and ground renta, shall excted the amount required W pay said taxee, asseasmente, insurance premiums
and ground rnnts aa they fall due, such exceea ahall be, at Bo~~wer'a option, either promptly repaid to Borrower or credited to E3orrower on
monthly instalimenta of I~'unde. If the amount of lhe Funda held by Lender ahall not be aufficient to pay taxes, asseaemente, insurance
premiuma and ground rente ae they fall due, Borruwer shall pay to Lender any amou~t neceaeary to make up the deficiency within 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in [ull of all sume secured by this Mortgage, I.ender ahall promptly refund to Borrower any funda held by [,ender. If unde~
paragraph 18 heteof the Property ie sold or the Property is otherwise acquired by [.ender, Lende~ shall apply, no later than immediately prior
to the sale of the Property or ita acquiaition by [.ender, any Funds held by Lender at lhe time of application as a credit againat the sums aecured
by thia Mortgage.
3. Application of Peyments. Unlesa applicable law providea otherwise, all paymenta received by Lender under the Note and
paragraphe 1 and 2 hereof shall be applied by l.ender fir~t in payment of amounta payable to Lender by Borrower under paragraph 2 hereof,
then to intereat payable on the Note, then to the principa) of lhe Nute, and then to interest and principa) on any Future Advances.
4. Chargea; Liene. E;orrower shull pay all taxrs, assessments and other rharges, fines and impositions attributabie to the Yroperty which
may attain a priority over this hlortKaKe, and leasehold payments or grour:d ren~.s, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereot Bormwershall promptly furnish to l.ender
all notices of amounts due under this pa~:igraph, a~d in the event f~rrower shall make payment direc•tly, I3ormwer sh:-ll promptly fumish to
l.ender receipts evidencing such payments. Burrower shall promptly d~scharRe any lien which has priority over this Mortgage; provided, that
Korruwer shall not be reyuired to discharge any such lien so IonK as tiorrower shall agree in writing to the payment otthe ubligation secured by
such lien in a manner acceptable to Ix~der, or shall in gc-ud faith contrst such lien by, urdefend enforcement of such lien in, IeKal proceedinqs
which operate to prevent the enforcement uf the firn or forfeiture of the Property or any part therrof. -
5_ Hazard Inaurance. Kurmw~er shall keep the improvements now existing or hereafter erected on the Property insured against loas by
fire, hazards included within the term "extended cuverage," and such other hazards as lxnder may require and in such amounts and forauch
periods as l.ender ma~ reyuire: pn-vidcd, that Ixnder shall not reyuire that the amount of such coveraKe exceed that amuunt of coverage
required to pay the sums sc~•ured by this MortKaRe.
The insurance catrier pr~~~•idinK the ~nsurance shall t-e chosen by Itonower subject to appn-val by Ixnder: provided, that such approval
shall not be unrr.+~~nablv withheld. All premiums un insur.in~•r puln-~rs shall I~e paid in the mannPr prnvid~~c1 undrr paraKraph'L herer-for, if
not paid in such manner, by fiurruv~er mak~nK payment, w•hen dur, dinrtl~• tu the m~urance carrier.
All insurance policies and renewals thereof shall be in form acceptable u- l.ender and shall include a standard mortgage clause in favor of
and in form acceptable to I.ender. I.ende~ shall ha~•e the ri~eht G~ hold the }wliciea and renewalR thrrw~f, Hnd Rorrower c~~~~ ps...,,~ly r.~~;Q~ ~
i.ender all renewal n~~tices and all receipts of paid premiums. In the ever~t of loss, fiorn~wer shall give prompt notice to the insurance carrier
and I~ender. l.ender may make proof of loss ~f not made promptly by Eiorrower.
(1nle~cs I.ender and liorruwer otherwise agree ~~ wridnq, insurancc proceeds shall be applied to restoration or repair of the Property
damaqed, pro~~ded such resu~ration or repair is ecunomicaliy feasible and the srcurity of this Mortgage ia not thereby impaired. If auch
rraf~ration or repair ~s not economically [easible nr if the security of this Mortgage would be impaired, theinsurance proceeds shall beapplied
to the sums secured by this M~,rtgaRe, with thr excrss, if any, paid to &~rrower. If the E'roperty ia abandoned by Borrow•er, or if EiorroM er taila to
respc~nd to l.ender within :iO days from the date n~~tice is mailyd by I,ender u~ 13orruwer that the insurance carrier offers to settle a claim for
insurance benefits, I~ender is :~uthorized to collec•t and ~pply the ~nsurance proceeds at I~ender's option either to reatoration or repair of the
Property or the sums secured by this MortKaar.
Unlesa l.ender and E3orrower ~~therw•ise aKree in wnting, any such application of proceeds to principal ahall not extend or poatpone the due
date of the monthly inslallments referred tn in paraQraphs 1 and 2 l~ereof or change the amount of auch installmentx. I[ under paragraph 18
hereof the Property is acquired by l.ender, all right, title and interest of E3ormwer in and to any insurance policies and in and to the proceeds
thereot reaulting from damage to F'roperty prior to the sale or acqu~sition shall pass tc> [.ender to the extent of the suma secured by this
Mortgage immediately prior lo such sale or acquisition.
6. Preeervation and Maintenance of Property; Leaeeholda; Condominuma; Planned Unit Developmenta. Borrowerahall keep
the F'roperty in Koud repair and shall not commit wa~te or prrmit impairment or deterioratiun of the Property and shall comply w~th the
provisions of any lease if this Aturtgage is on a leasehald. If this MorlgaKe is on a unit in a condominium or a planned unit development,
Fiorrower shaU perform all of F3orrower's ubliKations under the declaratiun or covenanta creatinKor govem~ng the condominium or planned
unit development, the by-taws and reQulations of the condominium or planned unit development, and constituent documents. If a
condominium or planned unit developmenl rider is executcd by &~rrower and recorded together with thie Mortgage, the covenante and
aKreemenls.-f such rider shall be incurporated ~nt~~ and shall amend and supplrment theco~•enants and agreementsof this 11ortKaKeasi[the
rider were a part hereof.
T. Protection ot Lender's Security. (f Borrower faila to perform the covenante and agreements contained in this Mortgage, or if any
action or proceeding ie commenced which materially affecte [.ender's intereet in the Property, including, but not limited to, eminent domain,
insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender et [.ender'e option.upon
notice to Borrower may make euch appearances, diaburoe sych sume and taice auch action as is neceseary to protect Lender: interest,
including, but not limited to, diabursement of reasonable attomey'e fees and entry apon the Property to make repairs. If Lender required
mortgage ineurance ue a condition of making the loan secured by this Mortgage, Borrower ehall pay t}:e premiums required to maintain
auch ineurance in effect untif auch time as the requirement [or euch insurance terminatee in accordance with Borrower'e and Lendds
v-ritten agreement or appliceble Law. Borrower ehall pay the amount of all mortgage inaurance premiuma in the manner provided under
paragraph 2 hereof.
Any amounte diebursed by Lender pereuant to lhie paragraph 7, with intereet thereon, ahall become additional indebtedness of
E3~rrower eecured by thie Mortgage. Unleas Borrower and Lender agree to other terms of payment, such amounta ehall be payable upon
notice from Lender to Borrower requeeting payment thereof, and ehall bear interest from ihe date of diebursement at the rate payable from
time to time on outetanding principal underthe Note unleae payment of intereat at euch rate would be contrary to applicable law, in which
event euch emounte ehall bear interest at the higheat rate permiesible under applicable Iaw. Nothing contained in this peragraph 7, shall
require I.ender to incur any e:penee or take any action hereunder.
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