HomeMy WebLinkAbout1491BoROwer and Lender covenant snd a~ree a~ toliowr
1. Paymeat of Priacipal and letere~~ Boreower shaU proniptly pay when due the principal ot and interest on the indebtedneas
evidenced by the Note, prepayment aad late charges aa provided io the Note, and the principal of and intereat on a~y Future Advances secured
by this MwtQage.
2. F~usdi fi~r T~~ an+d inaurance. Subjeci to appiirabie iaw or w a written waiver by Le~der, F3oROwe~ shatl pay to l.enderon the day
.nonthly inatallments of pri~cipal a~d intercat are payable under the Note, unti! the Note ia paid i~ full, a sum (herein "Funds"- cqual to oae~
tweltth oEthe yearly taxes and assesaments whirh may attnin priority uver this Mortgage, and ground rents oo -he Property, ilany, plui one-
twe1M of yearly premium installmenta for hazard inaurance, plua unetwelfth of yearly premium inetallmenta for mortgage ineurance, if any.
sll as reaso~ably eatimeted initially and from time to tirr~e by l.ender on the basis ot assessmenta and bills und reusonable estimates thereot.
'IUe binds ehall be held in an institution the deposita or aecounte of which are insured or guaranteed by s Fcderal or State agency
(includiag Lendet if Lend~ ia auch an uutitution). Lender ahali apply the Funds to pay said taxes, assesamenta, insurance premiums and
Qround rents. Lender may not charge for w holding and applying the Funds, analyzing said account, or verifying and compiling ~aid
asseaameats and bilb, unless I.ender pay~ Borrower intereat on the Funda and applicable law permits I.ender to malce such a charge. Botrow~
and Lender may agree i~ wtiting at the lime ot e:ecution of this Mortgage that interest on the Ftinds shall be paid to Borrower. and unles~
snch a~riement is made or appliceble law requires such interest to be paid, L.ender shal! not be required b pay Borrower any interest or
eariungt on the Flinds. Lender shall give to Borrower, without charge, an annual accounting o[the Funde ehowing credits and debits to the
~ndi and the purpoee fo~ which each debit to the Funds vyas made. The Funda are pledged as additional eecurity fo~ the sum~ secured by thi~
Mortgage.
ltthe amount olthe ~nds held by Lender, together with the future monthly installments of Funde payable prior to the due dates of ta~ces,
asseasments, ineuranoe premiums and ground renta, ahall exczed the amount required to pay sE-id ta:ee, aaaeeamente, ineurance premium~
and ground rents as they fal) due, such exceea ahall be, at E3orrower's option, either prompdy repaid to Borrower or credited to Borrower on
monthly inatallmenta of ~nds. If the amount ot the Funds held by [.ender ahall not be aufficient to pay taxea, asaeasments, insurar-ce
premiums and ground renta as they fall due. Borrower shall pay to I.ender any amount necesaary to make up the deficiency within 30 day~
from the date notice is mailed by Lender to Borrower ~equesting payment thereof.
Upon payment i~ fyll of all sums eecund by thia Mortgage, i.ender ahall promptly refund to Borrower any funds held by [.ender. If under
peragraph 18 hereof the Property is aold or the Property is otherwiae acquired by Lender, l.ender ahall apply, no later than immediately ptior
to the sale of the Prope~rty or ita aequiaition by [.ender, any Funds held by I.ender at the time of application ae a credit againat the sums secured
by this Mortgage.
3. Applicatioa of Payments. Unleas applicable Iaw providea otherwise, all paymenta received by I.ender under the :`ote and
paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof,
then to interest peyable on the Note, then to the principal of the Note, and then to intereat and principai on any Future Advances.
4. Charges; I.iens. Borrower shall pay a11 taxea; assessments ar~d other charges, fines and impositions attributabie to the Property which
may attain a priority over thia Mortgage, and ieasehuld pa~ menta or gmund rents, i[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 thereoL Burruwrr shalt promptly furnish to [.ender
all noticea of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Borm..•er shal) promptly turnish to
I.ender receipts evidencing such payments. &,rrower shnll promptly dischargr any lien which h:~s priority over this Alortgage: provided, that
Borrower shali not be required todischarge any such lien so lonK as Rorroa•er shail :+gree in writing to the pa~•ment of theubligation secured by
such lien in a manner acceptable to l.ender. or shall in good faith contest such tien by, nrdefend enforcrmentofsuch lien in, leqai proceedin~s
which operate to prevent the enfurcemrnl uf the fien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Rurrow er shall keep the improvements now exiating or bereafter erected on the Property insured againat loss by
fire, hazarda included within the term "extended rnverage," and such other hazards aa I.ender may require and in auch amounfa and for such
periods as [.ender may require; provided, that I.ender shall not require that the amount of such coverage exceed that amount of coverage
required k- pay the sums secured 5y this Mortgage. ,
The inaurance carrier pro~•iding the insurance shall tu~ chosE•n by Horruv~•er subject to approval by I.endeY; pmvided, that such approvaf
ehall not be unreasonabiy withheld. All premiums on insuranre pulicies shaU he paid in the manner provided under pa~agraph 2 hereof or, if
not paid in such manner, b~ E3urrower making payment, when due, dirrc-th• to the inaurance carrier.
All ineurance policies and renewal~ thereof shall be in form acceptable to l,ender and ehall include a standard mortgage clauac in favor of
and in form acceptable to Lender. l.ender eshall have the riqht tn hold the policieR and renewala thereo[, and Borrower shall promptly furnish to
i.endrr ali renewai noticea and ail receipts of paid prem~ums. in the ever~t of to4s, tiorn~wer shall gi~e prompt notice to the insurance carrier
and Lender. i.ender may make proof of losa i[ not made promptly by Rorrower.
Unless Lender and Borrower otherwiae agree-in writing. insurance procee~is shail be applied to reatoration or repair ot the Property
damaged, provided such reatoration or repair ie economically feasible and the~security of this Mortgage is not thereby impaired. I! ~uch
reatoration or repair ia not economically [easible or if the security of this :-1ortRage wauld be impaired, the ineurance proceeds shall be applied
to the suma aecured by this Mortgage, with the exceas, if any, paid to Eiorrower. lithe F'roperty ia abandoned by Aorrower, or if Borrower fail~ to
respond to Lender within 30 daya from the date notice is mailPd 6_r• l.ender to Borruwer that the inaurance carrier of~ers to ~ettle a claim for
inaurance benefite, [.ender is authorized to collect and apply the insurance proceeds at I~ender'a uption either to restoration or repair of the
Property or the suma secured by this Mortgage.
Unleas Lender and Borrower otherwise agree in writing, any such :~pplication of proceeda to principal ahall not extend or postpone thedue
date of the monthly inetalimenta referred to in paragraphs 1 and `~ Fiereof or change the amount of euch inAtallmente. If under paragreph 18
hereof the Property is acquired by [.ender, ail right, title and interest of Borrovver in and to any ineurance policies and in and to the proceeda
thereof resulting from damaqe to Property prior to the sale or acyu-sition shall pasa to Lender to the extent of the sums eecured by this
Mortgege immediately prior to auch eale or acquisition.
6. Preservation and MaintenanceotProperty; Leaseholds:('ondominums; Planned Unit Developmenta.l3orrowershallkeep
the Property in good repair and ahall not commit waFte or permi! impairment or deterioration of the Property and ahal) comply with the
proviaiona of any leaae if this Mortgage iR on a leaaehold. If this ~tortgage ie on a unit in a condominium or a planned unit development,
Borrower ahall perform all of ~rrower'a obligationa under the declaration or covenanta creat~nQor governing the condominium or planned
unit development, the bylaws and regulations of the condominium or planned unit development, and rnnstituent documents. It a
rnndominium or plennrd unit development rider is executed by E3orrower anJ recorded together w~th this MoRgage, the cover.ants and
agreements of such rider shaU be incurporated intu and sh:~ll amend and supplement thecovenants and aKreementeofthis Mortgageasifthe
rider were a part hereof.
?. Prot~etion ot Lender's 3ecurity. If Borrower faile to perform the covenents and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affecte Lender's interest in the Property, including, but not limited to, eminent domain,
inwlvency, oode mtorcernent, or arrangements or proceedinge involving a benkrupt or decedent, then Lender at Lender'~ option,upon
notice to Borrower may make such appearances, dieburee auch aume and take such action ae is neceasary to protect Lender'~ interert,
including, but not I~mited to, disburaement ot reasonable attorney'e feee and entry upon the Ptoperty to make repai». If Lender requirad
mortgege in~urance as a candition of making the loan secured by thie Mortgage. Borrower ahaU pay the premium~ required to maintain
~uch in~urance in effect until euch time as the requirement for euch insurance terminates in accordance with Borrower's and Lendet'~
writtem agrcement or applicable [.aw. Borrower shall pay the amount of all mortqage inaurance premiums in the manner pmvided under
peragrsph 2 hereof_
My amounte disburoed by Lender persuant to this paragraph 7, with interest thereon, shall become additiona! indebtednep of
Borrower secured by this Mortgage. Untese Borrower and l.ender agree to other terms of payment, such amounts iha11 be payable upon
notice from Lender to Borrower requesting peyment thereof, and ehal) bear interest from the date of diebureement at the rate payable from
time to time on outstandinq principal under the Note unleas payment of interest at euch rate would be cayttrary to ~pplicable law, in which
event euch amounte shall bear intereet at the higheat rate permiaaible under applicable Iaw. Nothing contained in this paragraph 7. ~hall
require [.ender to incur any expenee or take any action hereunder.
30~J~ Y~Gf1,4s7lJ
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