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Borrow~ and Let~der covenant a~d a~ree aa loUo~v~:
1. P~ymeat o! Prlaclpal ~ad IAteren. Borrower shall pmmptly pay when due the principal ot and interat o~ the indebsedness
evidenced by the Note. prepaya4ent ~nd late charQu a~ provided in the Note. snd the p~incipal of and inteteat on any Fl~ture Advancee sccured
by thu Moriga~e.
2. Flutd~ tor Ta~[e~ and Ip~uranoe. 3ubjeet to applicable law or to a writte~ waiver by Lender. Borrower ahall pay to l.ender on the day
monthly installmenb of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Plinds") equal to one-
twelfth of the yearly laxes and asaesements which may attain priority ove~ this Mortgage, and ground rents on the Property. i[any. plw ona
twelRh of yearly premium, inatallments for har.ard insurance, plus onctwelRh of yearly preoaium installments [or mortgage i~surance. if any,
all es reasonebly estimated initially and trom time to time by Lender on the basia of asaeasmenta at~d billa and reasonable estimates thereo!
The Elinds ahsll be held in an institution the deposib or accounts o! which are insured or guaranteed by a Federal or State agency
(including Lender if Lender is such sa institution). I.e~der shall apply the Funds to pay said taxea, aeseasmenta. inaurance premiums end
ground nnb. Le~der msy aot charge for w holding and applying the Flinda, analyziag said acoount, or verifying and rnmpiling said
asaeeamenta and bills, unless I.eader pays Borrowes interest on the Ftinda and applicable law permits Lender to make such a charge. Borrower
and Lc~der may a~ree in ~vriting at the time of execution ot thia Mortgage that intsrest on We Ftinds ~hall be paid to Borrower, and unless
such agreement ia made or applicable law requires such intuest to be paid. Lender ahall not be required to pay Borrower any interest or
eamings oa the PWnds. Lender ahall give to Borrower, without charge, an annual acoounti~g of the Funda showing credits and debits b the
Funds and the purpoee for which each debit to the ~Lnds was made. The Funds are pledged as additional eecurity for the sume se~vred by this
Mortgage.
If the amount of the ~Lnds held by Lender, together with the tuture monthly installments of FY~nda payable prior to the due datea of ta~ccs,
assesaments, ineurance premiuma and ground rents, ehall exc2ed the amount required to pay said tax~. aeseasments. ineurance premiums
and ground renta as they fall due, such exceaa shall be, at Borrower s option, either pmmpqy repaid to Borrow~ or credited to Borrower on
monthly instalimenta of I~nds. If the amount of the Funds held by Lender ehall not be sufficient to pay taaes, assessments. ineurance
premiums and ground rents aa they fall due, Borrower ahall pay to Lender any amount neceasary to make up the deficiency within 30 days
firom the dale notioe is mailed by Lender to Borrower requesting payment thercwf.
Upon payment in full of all sums secured by thia Mortgege. I.ender ahall promptly refnnd to Borrower any funda held by Lender. If under
paragraph IS hereof the Property ia sold or the Property is otherwise acquired by Lender, Lender shstl apply, no later than immedialely prior
to the sale of the Property or its aoquisition by Lender. any Funda held by Lender at the time of application as a credit againat the euma secured
by this Mortgage.
3. Apptication of Payments. Unless applicable law providea otherwiee, all paymenta received by Irnder under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounte payable to Lender by Borrower under paragraph 2 hereof.
then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea.
!. Charges; Liene. Borrower shall pay all taxes, assessments and other chargea, finee and impositions attributable to the Prop~ty which
may attain a priority over this Mortgage, and leasehold payments or ground rents, i[any, in the manner provided under paragraph 2 hereof or,
if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to I.ender
all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promplly furnish to
L.ender reoeipts evidencing such payments_ Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that
Borrower shall not be required to discharge any such lien so long as Borrower shaU agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcementolsuch lien in, legal proceedings
which operate to prnvent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Ineurance. E3orrower shatl keep the improvements now existing or hereaRer erected on the Property inaured againat loas by
fire, hazards included within the term "extended rnverage; ' and such other hazards as [.ender may require and in such amounts and forauch
periods as Lender may require; provided, that I.ender shall not require that the amount of such rnverage exceed that amount of coverege
renuired t[- oav thP suma xornrwl hv t/-ia M...~oaoo
The insurance carrier providing the insurance shall be chasen by I3orroN er subject to approval by I.ender, pmvided, that such approval
ahall not be unreasonably withheld. All premiums on insurance p~licies shall be paid in the manner provided under paragraph 'l hereof or, if
not paid in such manner, by f;orrower making payment, when due, directly to the insurance carrier.
All inaurance policies and renewals thereof shall be in form acceptable to Lender and shal) include a standard mortgageclausein favorof
and in [orm acceptable to Lender. l.ender shall have the right to hold the policies and renewals thereof, and Borrowershall promptly furnieh to
i,ender all renewal notices and all receipts of paid premiums. In the event of loss, Borruwer shal) give prompt notice to the insurance carrier
and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unlesa Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property
damaged, provided auch restoration or repair is economically [easible and lhe security of this Mortgage ia not thereby impaired. If such
matoration or repair is not economicalty feasible or if the security of this Mortgage would be impaired, the insurance proceeda shall be applied
to the suma secured by this Mortgaqe, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to
respond to Lender within 30 days from the date notice is mailed by l.ender to Borrower that the insurance carrier offers to aettle a claim for
insurance benefita, I.ender is aulhorized to coilect and apply the insurance proceeds at Lender a option either to restoration or repair of the
Property or the auma secured by thie Mortgage.
Unlees L.ender and Borrower otherwise agree in writinq, any auch application of proceeds to principal ahall not e:tend or postpone thedue
date of the monthly installments referred to in paragraphs I and 2 ~~ereof or change the amount of euch installments. If under paragraph IS
hereof the Property ia acquired by l.ender, all right, title and inlerest ot Borrower in and to any ineurance policiee and in and to the proceeds
thereof resulting from damage to Property prior to the sale or acqu~aition shall pass to Lender to the eztent ot the sume secured by this
Mortgage immediately prior to such sale or aoquiaition. ~
6. Preservation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developments. Borrowerahall keep
the Property in good repair and shalf not commit waste or permit impairment or deterioration of the Property and shall rnmply with the
pruvisions ot any leaee if this Mortgage is on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development,
Borrower ahall perform aU of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and constitutnt documenta. If a
condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenante and
agreements of such rider shall be incorporated into and shall amend and supplement the covenanta and agreements of thia Mortgage ae if the
rider were a part hereof.
7. Protection of Lender's 3ecurity. [f Borrower fails to perform the oovenenfa and agreements contained in this Mortgage, or if any
action or proceeding is rnmmenced which meterially xf'fects Lender s intereat in the Propaty, including. but not limited to, emineat domain,
ineolvency, oode enforcement, or errangements or proceedings involving a banlcrupt or decedent, then Lender at Lender'a option.npon
notice to Borrower may make such appearances, disburse such sums and take such sction as is nece~sary to protect I,endd~ intereat,
including, but not limited to, diebursement of reasonable attomey's fees and entry upon the Property to make repain. If Lendet required
mortgage insurance as a rnndition of making the loan secured by this Mortgage, Borrower ehall pay the premiuau required to maintain
such insnrance in effect until euch time as the requirement for such insurance terminates in accordance w~iW Borrower's and Lendd~
written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
peragraph 2 hereoL
My amonnts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall beoome additional indebtednew oi
Borrower secured by this Mortgage. Unleas Borrower and Lender agree to other terms of peyment, such amounts shell be payable upon
notice from Lender to Eiorrower requesting payment there~f, and shall bear interest from the dat! of d'ubunement at the rate payable from
time to time on outstanding principal under the Note unless payment of interest at such rate would be rnntrery to appliceble law, in which
event such amounts shaU bear interest at the higheat rate pennissible under applicable law. Nothing oootained in this paragraph 7, shall
require Lender to incur any e:pense or take any action hereunder.
a<<'~ 350 p~GE 27E8
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