HomeMy WebLinkAbout2774Borrower and Lendec rnvenaat and a~ree as folbws:
1. Payment ot Princlpal ~Ad latare~~ Harn~we- ~hwll pmmpdy pay .vhen due the prinripal of and inter~at on tl~a iudeLtarineaa
evidenced by the Note, prepayment and late chugos w pmvided in the Note, and the principal of and interest o~ any Future Advances aecured
by this Mostgage.
2. Fltnds tar Tues ar~d Insur~nce. Subject to applicable law or to a written waiver by Lender, Borrower ehall pay to I.ender on the day
mo~thly inatallments of principal and intereat are payable under the Note, until the Note is paid in tull. a sum (herein "Funds") equal to one
twelfth of the yeady taxes and aeeeasments which may attairt priority over thie Mortgage. and ground rents on the Property, itany, plw onc
tJrelfth of yearly premium inatallments for hasard insuTance, pfus one-twefflh of yearly premium installments for mortgage inaurance. if any.
all as reasonably eatimated iriitially and firom time to time by Lender on the basis of asaeeaments and bille and reasoneble ealimstes thereof.
'I1ie ~nds shall be held i~ an inetitution the deposits or accounts of which are insured o~ gua~anteed by a Federal or State agency
(including L.endrr if Lender ia such sn inatitution). Le~der shall apply the Funds to pay said taxes, aaeeaamenta, insurance premiuma and
ground renta. I.ender may not charge for w holding and applying the Funda. a~alyzing said account~ oT verifying and compiling said
assesamenta and bills. unless Lender paya Borrower intereat on the F~nda and applicable law permits i.ender to make such a charge. Borrower
and Lender may agree in writing at the time of execution ot this Mortgage that intsrest on the F1nde shall be paid to Borrower. and unlees
euch agreement is made o~ applicable iaw requires such interesl to be paid, Lender shall not be required to pay Borrower any intereat or
earnings on the ~nde. Lender shall give to Borrower, without charge, an annual accounting of the Funda showing c~dita and debits to the
Funds and the purpose for which each debit to the Fl~nda waa made. The Funds an pledged as additionel security tor theaums secured by thie
Mortgage.
I[the amount of the FLnda hcld by [.ender, together with the future monthly installmenla oiFunde peyable prior to the due dates of taues.
asaesamente, insurance premiuma and ground renta, ahatl excred the amount required W pay aaid taxea, asaeasmenta, insurance premiums
and ground rente aa they fali due. auch excesa ahall be, at Borrower'a option, either promptly repaid to Borrower or credited to Bonower on
monthly installmenta of ~Lnde, if the amount of the Funde held by Lender ahall not be aufficient b pay tazea, aeaeeaments. insurance
premiwns and ground renLs ae they fa11 due, Borrower ahall pay to l.endcr any amount neceasary to make up the defiriency within 30 days
from the date notice is mailed by Lender to Borrower requeating payment thereof.
U pon payment in iull of all suma secured by this Modgage, I.ende~ shall promptly refund to Borrower any funds held by Lender. If under
paragraph 18 heceof the Pmpecty ig sold or the Property is otherwise acquired by Lende~, Lender ahaU appiy, no later than immediately prior
to the eaie of the Property or ite acquisition by l.ender, any Funds held by Lender at the time of application ae a credit against the sume eecured
by thia Mortgage.
3. Application o! Payments. Unlesa applicable law providea otherwiee, all payments received by Lender under the Note and
paragrapha 1 and 2 hereof ahall be applied by Leoder firat in paymeni o[ amounts paysble 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 interest and principal on any Future Advancee.
4. Chargee: Liene. Borrower ahall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, when due, directly ta the payee thereof. Bormwer shal! pwmptly furnish to Ixnder
ali notices of amounts due under this paraqraph, and in the event Borrower shall make payment directly, Borrower shall promptly turnish to
Lxnder receipts evidencing such payments. I3orrower shai) promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shal) not be required to discharge any such lien so long as E3nrrower sha{I agreein writing to the payment of the obligation secured by
~:~If'I'1 IIPTt ![1 A ITlAl111PT A(Y'P(~tRtilo fn I PI~lIPr I~r 0~3~! ,n ~;,{`~ ~3Ii~I ivi~LFSi biifti ~IEIi u3, uiUC~~ii(i rfl~Uil'fiiiC'il[ OI SLLC~I IICtI IR, legaf procecd-ngs
which operate to prevent the enforcement of the lien or forfeiture of the P~operty or any part thereof.
5. Hazard lnsurance. Elorrower shal) keep the impmvements nuw existing or hereaRer erected on the Property insured against loss by
fire, hazards included within lhe term "extended coverage; ' and such other hazards as Ixnder may require and in such amounts and forench
periods as Lender may require; provided, that Lender 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 camer proriding the insurance shail be chosen by Korrower subject W approval by lxnder: provided, that such approval
shall not be unreasonably K::!:::~:~. ~:: pr~..-~:~~~w ~i i~~sure~~cr ~~iicirs snaii be paia in tne manner pmvided uncier paragraph 2 hermf or, if
not paid in sach manner, by fiorrower making payment, when due, directly to the insurance carrier.
All insurance policies and renewals thereoishall be in form acceptable to Lender and shail inciude a standard mortgageciause in favor of
and in form acceptable to I.ender. l.ender shall have the riqht to hold the policies and renewals thereof, and Borrower shall promptly fumiah to
~ ander all renewal notices and all receipts of paid premiums. In the eve:~t of loss. Bnrn-wer shaU give prompt notice to the insurance carrier
and Lender. l.ender may make proof of loss if not made promptly by Aorrower.
Unleas Lender and Borrower othervvise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. I[ auch
restoration or repair is not economically feasible or if the security otthis Mortgage would be impaired, the insurance proceeds shall be applied
to the sums secured by this Mortgage, wilh the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if ~3orrower faila to
respond to Lender within 30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier offera to aettle a claim for
ineurance benefits, [.ender is authorized to collect and apply the insurance proceeds at L,ender s option either to restoration or repair of the
Property or the sums secured by this Mor-gage_
Unlesa Lender and Kortower otherwise agree in writing,any such application of proceedstoprincipal shall notextend or postponethedue
date of the monthly installments referred to in paragraphx 1 and 2 hereo(or change the amount of auch instaDmenta. If under paragraph 18
hereof the Property is arquired by l.ender, al) right, title and intereat of Borrower in and to any insurance poliriea and in and to the proceeda
thereof reeulting from damage to Property prior to the sale or acqu~sition shall pass to i.ender to the extent o[ the euma secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preeervation and Maintenance of Property; I.easeholda; Condominums: Plenned Unit Developments. Borrowershall keep
tfie Property in good repair and shall nui ccimmit uastr or permit impairment or deteriuration of the Property and ahall comply with the
proviaione of any lease if this Mortgage ia on a leasehold. If thia l1lortgage is on a unit in a condominium or a planned unit development,
f3orrower shall perform all of Borrowei s obligationa under the declaration or covenants creatingor governing the condominium or planned
unit development, the by-laws and regulationa of the condominium or planned unit development, and rnnetituent documenta. If a
condominium or planned unit devetopment rider is exeruted by Borrower and recorded together with thia Mortgage, the oovenants and
:~greementa of such rider shall be incorporated into and shall amend and supplement the cuvenants and agreements of this Mortgage as if 1he
rider were a part hereof.
?. Protection of Lender'e 3ecurity. lf Borrower faila to perform the oovenante and egreemente rnntained in thia Mortgage, or if any
action or proceeding ie commenoed which materially affects Lender e interest in the Properiy, incfuding, but not limited to, eminent domain.
insolvency, oode enforcement, or arrangements or proceedings involving a bankrupt or deoedent, then Lender at [.ender a option,upoa
notice to Borrower mey make euch appearancer, disburse auch aums and taice such action as ie neceasary to protect Lender'~ interat,
including, but not limited to, disbursement of reasonable attorney's fces and entry upon the Property to make npairs. [f Lenda roquired
mortgege insurance as a condition of making the loan eeru~ed by th'se Mortgage, Borrower shall pay the premiums required to maintain
such ineurance in effect until euch time as the requirement [or such insurance terminates in accordance with Borrower's and I.endd~
written egreement or applicable Law. Borrower shaU pay the amount of all mortgage ineurance premiums in tht manner provided under
paragrsph 2 hereof.
Any amounte disbureed by Lender pereuant to this paragraph 7, with interest thereon, ehall become additional indebtedness of
Rorrower secured by thie Mortgage. Unless Borrower and Lender agree Lo other terms of payment, such amounts ~hall be payable upon
notice from Lender to Sorrower requeating payment there~f, and shall bear interest from the date of disbursement at the rate payable from
time ta time on outetanding principal under the Note untesa payment of interest at such rate would be contrary to applicable law, in which
event such emounte ahall bear interest at the highest rate permiasible under applicable 1aw. Nothing contained in thi~ paragraph T. shall
require Lender to incur any expense or take any action hereunder.
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