HomeMy WebLinkAbout1943Borrowes and Lende~ coveriant and aQrce a~ folbws:
1. P~ymeat of Prtneipal and Intere~t. Borrower shall pmmpqy pay when due the pcincipal of and inte~est on the indebtednes~
evidenced by the Note. prepayment and late charges a~ pmvided i~ the Note, and the principal of and interest on any Future Advances sccured
by thie Mortgage.
2. Ftinds for Taxes and l~~urence. Subject Lo applicable Iaw or to a written waiver by L.ender, Borrower shall pay to I.ender on the day
monthly inatallmenfa otprincipel and inteceat are payable under the Noee, unti) the Note is paid in full, a sum (hc~ei~ "Funds") equal to on~
~~welRh o[ the yearly taxes and aasessments which may attain priority over this Mortgage, and gmund nnta on the Rroperty. itany, plw o~~
twelRh of yearly premium installmente for hazard inaurance, plua onetwelRh of yearly premium installmente [or mortgage inaurance, if any,
aU as reaso~ably eatimated initially a~d firom time to time by Lender on the baais of asaeaements and billa and reasonable estimates thereof.
Tfie ELnds shull be held in an i~atitution the deposib or accou~ts of which are inaured or guara~teed by a Fedetal or State agency
(including L.ender if Lender is ~uch an institution). Leader ahall apply the Funda to pay said taxes, sesesaments, insurance premiums and
ground rents. Lender may not charge for w holding and applying the Funds, analyzing seid account, or veri[ying and compiling said
ass~ssments and bills, unless L.ender pays Borrower intereat on the Funds and applicable law permits I.ende~ to make such a charge. Borrower
and I.ender may agree in writing st the time of exccution ot thia Mortgage that interest on the Ftinds ehall be paid to ~iorrower, and unleas
euch agreement is made or applicabie iew repuires auch interest to be paid, Ixnder shall not be requircd to pay E3ormwer any interest or
earnings on the FLnds. Lender shall give to Borrower, without charge, an ennual accounting of the Funds ahowing credits and debits to the
Funds and the purpose [or which each debit to the Funda was made. 71~e Funds are pledged aa additional aecurity tor the eums secured by this
Mortgage.
Itthe amount of the ~-nda held by Lender. together with the future monthly installments otFunda payable prior to the due dates of taxes.
aasessmente, ineurance premiums and ground renta, ehall excxd the amount required W pay said taxee, asseasmenta, inau~ance premiuias
and ground rents aa they fall due, such e:cess ehall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on
monthly inatallments of F~nds. lt the amount of the Funds held by Lender ehall ~ot be sufficient to pay ta:ea, assessmente, inaurance
premiums and ground rents ae they fall due, Borrower shall pay to Lender any amaunt 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 fuU of all aums eecured by thia Mortgage, Lender shall promptly refund to Borrower any funda held by Lender. lf under
paragraph 18 hereof the Property ia eold or the Property is otherwiee acquired by Lender, Lender ahall apply, no later than immediately prior
to the sale ot the Property or ita acquisition by l.ender, any Funds held by Lender at the time of application se a credit againet the aume aecured
by this Mortgage.
3. Application of Paymente. Unless applicable law providea otherwise, all paymenta received by Lender under the Note and
parag~aphs 1 and 2 heoeof shall be applied by Lender firet in payment of amounts payable to Lender by Borrower under paragraph 2 hereo[,
then to interest payable on the Note, then to the principal of the Idote, and then to intereat and principa) on any Future Advances.
4. Chargee; Liena. Borrower shall pay all taxes, a.4sessments and othercharges, fines and impositions attributable to the Property which
may attain a priority over this MortgaKe, and leasehold payments or ground rents, if any, in the manne~ provided under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. E3ormwer shall promptly furnish to I.ender
all notices of amou~ts due under this paraqraph, and in the event Eiorrower shall make payment directly, Borrawer shall promptly turnish to
Lender receipts evidencing such payments. E3~rrower shall promptly dischargr any (ien which has priority over this Mortgage; provided, that
Borruwer shall not be ~equired to discharge any such lien so long as Borrov-ershall agrne in writing to the payment of theobligation secured by
auch lien in a manner acceptable to l.rnder, or shall in good faith cuntest such lien by, urdefend enfurcrment of such lien in, legal proceedings
which operate to prevent the enforcement of the lien ur forfeiture of the Property or any part thereot.
5. Hazard Inaurance. E3orrower shall keep the improvements now existing or hereafter erected on the Property insured against losa by
fire, hazards included within the term "extended coveraKe." and such other hazards as I.ender may require and in auch amounts and for auch
periods aa Lender may require; pruvided, that l.ender shall not reyuire that the amount of such coverage exceed that amount of coveraqe
required to pay the sums secured by this MortRaKe.
The insurance carrier pro~•iding thr insuranm shaU t-e chosen by Rnrtower subjeM to approval b~ I.endPr, provided, that such appro~al
ehall not be unreasonably withheld. All premiums un insurance p~~lic•ies shall be paid in the mannet providPd under paraRraph 'L hereof or, if
not paid in such manner, by finrrow•er making p:iyment, when due, d~rectlp to the insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable tu I.enderand shall includea standard mortgageclausein favorof
and in form acceptable to Lender. I.ender shall have the right to hold the pulicies and renewals thereof, and Borrower shall promptly furniah to
iender all renewal notices and all receipts of paid premiums. In the event otlosa, Borruwer ahull give prompt noticr to the insurance carrier
and Lender. Lender may make proot of loss if not made promptly by E3orrower.
Unlesa Lender and Borrower otherwise agree in writinQ, insurance proceeds ahall be applied W reatoration or repair of the Property
damaged, provided auch restoration or repair is econumically feasible and the security of this Morigage is not thereby impaired. If auch
restoration or repair is not economically feasible or if lhe security of this Mortgage would be impaired, the insurance prceeeds ahall be applied
to the aums secured by this Mortgage, with the excess, if any, paid to E3~rrower. If the Property is abandoned by Eiorrower, or if E3orrower faila to
rea{-ond to [.ender wittiin 30 days from the date notice is mailerl by I.ender tu E3orrower that the inaurance carrier offers to settle a claim for
inaurance benefits, I.ender is authorized to collert and apply the insuranrn proceeds at I.ender's option either to restoration or mpair of the
Property or the suma secured by this Morlgage.
Unlees Lender and Borrower otherwise agree in writing, any such application otproceeds to principal ahall not extend or postpone thedue
date of the monthly inslallments referred tu in paragraphs 1 and 2 t~ereof or change lhe amount of auch inatallments. If under paragraph 18
hereof the Property is acquired by I.ender, all right, title and inlerest of Borrower in and to any insurance policiea and in and to the proceeda
thereof reaulting irom damaqe to Property prior to the sale or acqu~sition shall pass to Lender to the extent ot the sums secured by this
Mortgage immediately prior to auch sale or acquisition
6. Preservation and Maintenance of Property; Ixaseholde; Condominume; Planned Unit Developments. Borrowerahall keep
the Property in good repair and ehall not commit waste or pern~it impairment or deterioration of the Property and ahall comply with the
proviaiona of any lease if this Mortgage is on a leasehold. If this MortgaRe is on a unit in a condominium or a planned unit development,
Borrower ahall perform all of E3orrower's obligatiuns under the declaration or covenants creatinRor governing the rnndominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and conatituent documenta. If a
condeminium ~r planned unit development rider is executed by Borrower and recorded together with this Mortgage, the aovenants and
agreementa of auch rider shall be incorporated int~, and shall amend and supplement theco~enants and agreementsof this Mortgagea9 if the
rider were a part hereof.
~. Protection of Lender'~ 3ecurity. I[ Borrower faila to per[orm the covenants and agreements rnntained in this Mortgage, or if any
action or proceeding is commenced which meterially at[ecte Lender s interest in the Property, including, but not limited to, eminent domain.
insolvency, oode enforcement, or arrangements or proceedinga involving a bankrupt or deoedent, then Lender at Lendrr'~ option.upon
notice to Borrower may make such appearances, diaburse auch eums and take such action as is neceasary to pmtect Lender'~ intereat,
including, but not limited to, diebursement of reaeonable attorney a fees and entry upon the Property to make repairs_ If Lender required
mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shaD pay the premiums required to maintain
such insurance in eftect unti) such time aa the requirement for such insurance terminatea in accordance with Borrower's and Lendd~
written agreement or appliceble I~w. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 henof.
My amounts disbursed by Lender pereuant to this paragraph 7, with intereet thereon, shall become additional indebtednew of
Borrower secured by thie Mortgage. Unleas Borrower and Lender agree to other terms of paymen~ such amounte shell be payable upon
notice from Lender to Borrower requesting payment thereof, and shall bear intereat from the date of disbunement at the rate payable irom
time to time on outatanding principal under the Note unleea payment of interest at euch rate would be oontrary W applicable law, in Mrhich
event such amounts shall bear interest at the highest rate permissible under epplicable law. Nothing ootstainetl in thu paragraph 7, shall
require Lender to incur any e:pense or teke any action hereunder.
~~x350 ~A~~1941