HomeMy WebLinkAbout1955Bon+owe~ a~d Lender covena~t and a~ce aa follow~:
1. P~yment o[ Pcincipel and Iatere~~ Borrower shali pmmptly pay when.due the principal of and ir-tereat on the indebtednees
evidenced by the Note. pnpayment and late charges as provided i~ the Note, and the principal of and intereet on a~y Fl~turo Advancee secured
by this Mort~age.
2. I~tnds [or Taxes and I~surance. Subject ta spplicable law or to a written waiver by [.ender, Bormwer shall pay to I.ender on the day
monthly inatallme~te of principal and i~terest are payable under the Note, until the Note is paid i~ full, a aum (herein "Funds") equal Lo one
twelRh ot the yearly taxea and asseasments which may attain priority over thie Mortgage, and ground rents on the Property, if any. plus o~~
twelRh of yearly premium irtatallments [or hazard ineurance, plue onetwelRh otyearly premium inataliments for mortgage i~aurence, if any.
all as masonably eatimated initially and firom time to tirne by I.ender on the basis of assesamenta and billa and reasonable estimates thereof.
~The ~nds sha11 be held in an institution the deposits or accounts of which a~e inaured or guaranteed by a Federal or State agency
(including l.ender if l.ender is such an inetitution). Lender shall apply the Funda to pay said taxea, asseasments, ineurance premiums and
ground ~ents. I.ender may not cherge [or so holding and applying the Fu~ds, analyzing eaid account, or verifying end compiling said
assessments and bills, unlesa Lenderpsys $orrower intr.rratoo the Fund^ an~i ap~+licable lew pennit~ Lender to mske such a charge. Sorra~er
and Lender may agree in w~riting at the time o! execution of this Mortgage that interest on the Funds ahall be paid to Borrower, and unlea~
euch agreement is made or applicable law requires auch intereat b be paid, I.ender ehall not be required to pay Borrower any intereat or
earnings on the Fl~nds. Lender shall give to Bor~ower, without charge, an annual accouati~g of the Funda ahowing c~edits and debits to the
Funds and the purpose for which each debit to the F~nda was made. The F unda are pledged as additional security for the euma secured by this
Mortgage.
If the amount of the Ftinds held by Le~der, together with the future monthiy instalimenta of Funds gayable prior to the due dates of taxes,
assesameate, inanrance premiums and ground renta, shall eacred the amount required to pay said taxes, aaseasmente, inaurance premiums
and ground rents as they fall due, auch exceae ahall be, af Bo~TOwer e option, either promptly repaid to Borrower o~ credited to Borrower on
monthly installments of Ftinds. If the amount of the Funde held by l,ender ahall not be aufficient to pay taxee, seseasmenta, inaurance
premiume and ground rente as they fail due, Bormwer ahall pay to I.ender any amount necessary to make up the deficiency within 30 days
from the date notice is mailed by Lender b Borrower requesting payment thereof.
Upon payment in full of all aume secured by this Mortgage, Lender ahall promptly refund to Borrower any tunda held by Lender. If under
paragraph 18 hereof the Property ia eoi~ or the Property is otherwise acquired by l.ender, l.ender ahall apply, no later than immediately prior
to the sale of the Property or ite acquisition by l.ender, any Funds held by I.ender at the time of application as a credit against the eums aecured
by this Mortgage.
3. Appl~cetion of Peyments. Unleas applicable law provides otherwiae, all payments received by l.ender under the Note and
paragrapha 1 and 2 hereof ahall be applied by Lender firat in payment of amounta payable to l.ender by Borrower under paragraph 2 hereof,
then to intereat payable on t6e Note, then to the principa) of the Note, and then to intereat and principal on any Future Advancea_
4. Charges; Liena. E3orrower shall pay all taxes, assessments and other charges, finea and impoaitiuns attributable to the Property which
may attain a priority ove~ this Mortgage, and leasehold payments or Kruund rents, if any, in lhe manner provided under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, when due, directly to the payer there~f. Borrower shall promptly furniah to Lender
all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Bormwer shall promptly fumish to
l.ender receipts evidencinK such payments. E~rrower shall promptly discharRr any lien wt.ich h~s priority o~•er this Mongage; pmvided, that
E3orrower shall not be reyuircd to discharge any such lien su long ~ liorrower shall agree in writi~R tu the payment of theobligation secured by
such lien in a manner acceptable to I.ender, or shall in Rood faith cuntest such lien by, ~~rdefend enforcementofsuch lien in, leKal proceedings
which operate tn prevent thr enfurcement o( the lien or forfriture cif the f'roperty or any part thereu[.
S. Hazard 1 nsurance. f3orrow~er shall keep the improvements now existing or hereafter erected on the Property insured againat loss by
fire, hazards included within the term "extended coveraKe," and such other hazards as t.ender may require and in such pmountx and [orauch
periods as I.ender may reyuire; provided, that [xnder shall not require that the amount of such coverage exceed that arnuunt of coverage
required to pay the sun~s secured by thia MortKaKe.
The insurance carrier pro~•iding the insuranm shall t-r chusen t-y lionower sub~ect to approval b~ lxndrr, providrd, that such approval
shall not be unreasrmably w~thheld. All premiums on insurance {N~li~•ir. shall t~e p,+id in the manner provid~l undPr paraKraph `L hereof or, i(
not paid in such manner, by~ &~rrower mak~nK pa~~mrnt, when due, diree•th• to the insurance carrier.
All inaurance policies and renewals thereof shall be in form acceptable to I.ender and shall include a standard mortgage clause in favorof
and in form acceptable to I.ender. l.ender shall have the riQht to hold the pulie~es and renewals thereot, and Borrc~.; ::~:; --; -:-•:•• ;a..-,:a ::,,,
r ~ r•~
i.ender all renewal not~ces and all receipts of paid premiums. In thr rvent of loss, It~~rrower ahall give prompt notice W the insurance carrier
and [.ender. I.ender may make proof of loss if not made promptly by &~rrower. _
Unlese l.ender and F3orrower otherwise agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property
damaged, provided auch resG~ration or repair is ecunumic:~lly feasible and the srcurity of this Martgage ia not thereby impaired. [f such
restoration or repair is not economically feasible or if the security of this MortQaKe would be impaired, the insurance proceeds Ahall be applied
tr~ the aums secured hy this MortKage, with the excrss, if any, pa~d to Borrower. l[the F'roperty is abandoned by Rorrower.or if fiorrower faila k-
reapond b[.ender within :30 day4 frum the date notice is mailPd by I.ender tu E3~~rrower that the insurance carrier ofters to aettle a claim for
insurance benefits, I.ender is authorized tu collect :ind :spply thr insurance proceeds at l.ender's optinn either to restoration or repair of the
Property or the aums secured by this MortKage. ~
Unless [.ender and Borrower otherwise aRree in wnting, any such application of proceeds to principal ahall not extend or poatpone thedue
date of the monthly insk~llmentA referred tc- in paraRraphs 1 and'L t-ereof or change the amount of such instalimenta. If under paragraph 18
hereof the Property is acquired by l.ender, all right, title and interest uf B~,rn~wer in and to any insurance policies and in and to the proceeda
thereof reeuiting from damage to Property prior to the sale or acqu~sition shal) pass to [.ender to the extent of the sums secured bv this
Mortgage immediately prior to auch sale or acquiaition.
6. Preaervation and Maintenanceof Property; Leeseholde; Condominume; Plenned Unit Developmenta. Borrowerahall keep
the Property in good repair and shall not commit wastr or permit impairment or deterioration of the I'roperty and shall comply with the
provisions of any lease if this Morigage is on a leasehold. If this Mortgage is un a unit in a condominium or a planned unit development,
E3orrower shall perform all of Borrower's obligationA under the declaration or covenants creatinKor governing thecondominium or planned
unit development, the bylaws and reRulations of the condominium or planned unit development, and conatituent documenta_ I[ a
condominium or planned unit development rider is executed by Borrower :+nd recorded together with this Mortgage, the oovenante and
:iKreements o(such rider shall tre inrnrporated intu and shall amrnJ and supplemenl thecuvenants and agreements otthis MortRaReas if the
rider were a part hereof.
7. Proteclioo of Lender's 3ecurity. If Borrower faila to perform the oovenanta end agreemente contained in this Mortgage, or if any
actioh or proceeding is commenced which materially affecte L.ender a interest in the Property, including, but not limited to, eminent domain,
insolvency. oode enforcement, or arrengemente or praceedings involving a bankrupt or decedent, then Lender at Lendei ~ option,upon
notice to Bornower may make auch appearances, diaburse euch aums and take such action se ia necessary to protect Lendtr's interes~
including, but not limited to, disburoement of reasonable attorney'a feee and entry upon the Property to make repairs. If Lender required
mortgage ineurance as e rnndition of making the loan aecured by this Mortgage, Borrower ahall pay the premiums required to maintain
euch ineurance in effect until euch time as the requirement tor euch ineurance terminatee in accordance with Borrower's and Lender'~
written agreement or applicable Law. Borrower ehaU pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereot.
Any amounts dieburaed by Lender perauant to this paragraph 7, with intereet thereon, ahall beeome additional indebtednew of
Borrower secured by thie Mortgage. Unleas Borrower and Lender agree to other terms ot payment, auch amounts shall be payable upon
notice from Lender to Borrower requeeting payment thereof, and shall bear interest from the date ot disbursement at the rate payable from
time to time on outetanding principa) onder the Note unleas payment of intereet at euch rate would bg oontrary to applicable law, in which
event surh amounte shall bear interest at the higheet rate permiaeible under applicable law. Nothing contained in this peraRraph 7, shall
require Lender to incur any expenae or take any action hereunder.
8~'~ 350 ~A~E 1953