HomeMy WebLinkAbout2167Borrower and Le~der covenant and a~ree eu folbwa:
1. Payment of Principal wnd Intere~t. Borrower ahall promptly puy when due the principa) oi and interat o~ the indebtednes~
evidenced by the Noee. prepayment and late chuga aa pmvided ir- the Note, and the principal ot and interest on eay Futurc Advances ~ecured
by thiu Morf~e~e.
2. I~nds tor Twues and insurance. Subject to applicable law or b a written waiver by Lender. Horrower shall pay w Lender o~ the d~y
monthly instaliments of principal and interest are payable under the Note, unti) the Note ia paid in full. a sum lherein "Funds") equal to on~
tweltih oithe yearly taxea and assessments which may attain priority over this Mortgege. and ground rents o~ the Property, itany, plw one
twelfth of yeatly premium installments for hasard insurance, plua onetwelfth otyearly prcmium inatallments for mortgage inaurance, if any.
all aa reaso~ably eatimated initially and [rom time to tin.e by I.e~der on the basie otaseeasments and biils and reasonable estimatea thereof.
The ~nds shall be held in an institution the depwite or accounta of which ars insured or guer,u~teed by s Federal or State agency
,.ncluding Lender ii Lender is snch an institution). l.ender shall apply the Funda to pay said taxes. assesaments, insurance premiuma and
ground rents. Lender may not charge for so hoWing and applying lhe Funds, analyzing said account, or verifying and compiling said
aaaessments and bills, unless Lender pays Bomower intereet oa the I~nds and applicabie law permits Lender to make ~uch a charge. Bo~ower
and Lender may agree in writing at the time of e:ecution of this Mortgage that i~tereet on the Fuads shall be peid to Borrower, and unless
euch agreement is made or appGcable law requires such intereat to be paid, Lender shali not be required to pay Borrowet any interat or
earnings on the P1~nde. Lender ahall give to Borrower, without charge, an annual accounting of the Funds ahowing credita and debits to the
Funde and the purpoae for which each debit to the Fl-nda was made. The Funda are pledged as additional security for the sums aecund by thi~
Mortgage.
If the amount of the I~Lnde held by Lender, together with the future monthly inatallmenta of Funda payable prior to the due dates ottaxta,
eaeeeamenta, insurance premiums and ground renta, ahall excre.~ the amount required W pay said ta:es, assessments, insurance premiums
and ground renta ae they fall due, auch excess ahall be, at Bonower e option, eithe~ prompdy npaid to Borrower or credited to Borrowe~ on
monthly inetaliments of ~nde. If the amount o[ lhe Funds held by Lender ahall not be sutficient to pay taxes, aaseeamente, inaurance
premiums and ground rents as they fall due, Borrower shall pay to I.ender any amount neceasary to make up the deficiency within 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in tup o! all aume secured by this Mortgage, Lender shaU prompdy refund to Borrower any lunds held by Lender. If under
paragraph 18 hereoi the Property ia sold or the Property is otherwise acquired by L.ender, Lender shall apply, no later than immediately prior
to the eale of the Pmperty or ita soquisition by Le~der, any Funda held by Lender at the time of application as a credit againat the aums eecured
by this Mortgage.
3. Application ot Payments. Unless applicable law providea otherwiee, all payments received by Lender under the Note and
paragraphs l and 2 hereof ahatl be applied by l.ender firat in payment of amounta payable to I.ender by Borrower under paragrap6 2 hereof.
then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea.
4. Chargee; Liene. Borrower shall pay all taxea, assessments and othercharges, finea and impoaitions attributable to the Property which
may attain a priority over this Mortgage, and lensehold payments orground rents, if any, in the manner provided under paragraph 2 hereolor,
if not paid in such manner, by Borrower making payment, when due, directly to the p~yee tfiereoL E3orrower shall promptly furniah to Lender
all notices of amounts due under this paragraph, and in the event Korrower shall make payment directly, E3orrower shall promptly tumiah to
[.ender receipts evide~cing such payments. I3orrower shpll promptly discharge 8ny lien which has priority over this Mortgage; provided, that
Korrower shall not be required to discharge any such fien so long as E3orrower shaU agree in writing to the paymentof the obligation secured by
such lien in a manner acceptable to lxnder, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal procecdings
which operate to prevent the enforcement uf the lien or forleiture of lhe Property or any part thereof.
5. Hazard Inaurance. ~iorrower shal) keep the improvements nov- existinq or hereaRer ercrted on the Property insured against lase by
fire, hazards included within the term "extended coverage." and such other hazards as Lender may require and in such amounts and for euch
periods as Lender may require; provided, that Ixnder shall not require that the amount of such eoverage exceed that amount of coverage
required to pay the sums secured by this Mortgage. •
The insurance carrier providinQ the insuranm shall be chosen bp liorrower subject to approval bp Ixnder, pro~ ided, that such :ippruva)
sha11 not be unreas~mably withhrld_ All premiums nn insurance policirs shall be paid in the manner proeided under paraAraph 'l hereof or, if
not paid in such manner, by Rorrower making pxyment, when due, dirrcUy to the insurance carrier.
Al) inaurance policies and renewals thereof shall be in form acceptable to I.ender and shall include a standard mortgaqe clauae in [avorof
:~nd in form acceptable to Lender. l.ender shall have the right to hold the policies and renewals thereof, and Ei~rrower shall promptly [urniah to
~.ender al) renewal notices and all receipts of paid premiums. In the event of luss. E~rn,wer shall give prompt notice to the inaurance carrier
and I.ender. Ixnder may make proof of loss if not made promptly by Borrower.
Unlesa Lender and I3orrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or repair of the F'roperty
damaged, provided such restoration or repair is econumically feasible and the aecunty of this Mortgage ie not thereby impaired. If auch
restoration or repair is not economically feasible or itthe security o! this Mortgage would be impaired, the insurance proceeds shall bespplied
to the sums secured by this Mortgaqe, with the excess, if any, paid to E3orrower. If the Pmpertyia abandoned by Borrower, or if Borrower fails to
reapond to Lender within :~0 days from the date notice is mailed by l.ender to Borrower that the insurance carrier oRers to setde a claim for
inaurance benefits, I.ender is authorized to collect and apply the insuranm proceeds at Lender's option either w reatoration or repair of the
Property or the sume aecured by this MorlRage. ~
lTnleas L.ender and f3orrower otherwise agree in writing, any such application of proceeda to principal shall not e:tend or poatpone thedue
date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of such installmenta. I[ under paragraph 18
hereof the Property ia acquired by I.ender, all right, title and interest of E3orrower in and to any insurance policiea and in and to the proceeda
thereof reaulting from damage to Property prior to the sale or acqu~sition shall paas to [.ender to the e:tent of the sums secured by thia
~tortgage immediately prior to such eale or acquiaition.
6. Preservation and MaintenanceotProperty; Leaseholde; Condominums; Planned Unit Developments. Borrovrershall keep
the Property in good repair and shal) not commit waste or permit impairment or deterioration of the Property and shall comply with the
proviaiona ot any lease if this Mortgage is on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development,
Fiorrower ahall perform all of I3orrower'a obligationa under the declaration or covenants creatingor govern~ng the condominium or planned
unit development, the by-lawa and regulations of the condominium or planned unit developmeni, and conetitaent documenta. [f a
condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenante and
agreements of such rider shall be incurporated into and shall amend and supplemrnt the covenanta and aqreements of thislNortgage as if the
rider were a part hereof.
7. Protection ot I.ender's 3ecurity. If Borrower fails to perform the oovenants and agreanents oontained in this Mortgage. or if any
action or proceeding is commenoed which materially affecta Lender's intereat in the Property, including, but not limited to, eminent domain.
insolvency, code enforcement, or errengements or proceedings involving a banlwpt or deoedent, then Lender at Lender i option,npon
notice to Borrower may mate euch appearances, disburee such aums and take such action as u necaaery to protect l.ender'~ intenst~
including. but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repain. 1t Lenda required
mortgage ineurance as a condition of,making the loan secured by thie Mortgage, Borrower shell pay the premiums reqaired to maintain
Ruch insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and Lec-dd~
written agreement or applicable I.aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
My emounts disbureed by Lender pereuant to this paragraph 7, with intereat thereon, shall become additional indeM~dnea of
E3orrower secured by thia Mortgage. Unleas Borrower and Lender agrce to other ternu of payment, such amounts ~hall be payable upon
notice from Lendrr to Borrower requeating payment thereof, and shall bear interest lrom the datt of disbursement at the rate payabk brom
time to time on outetanding principal under the Note unlese payment of interest at such rate would be contrary W applicable Iaw, in wrhich
event such amounts ehall bear intereat at the highest rate permisaible under applicable Iaw. Nothins contained in thu paragraph 7. shaU
requirt Lender to incur any expense or tr~ke any action hereunder_
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