HomeMy WebLinkAbout0424Borrower and l.ende~ cove~ant and agree as followa:
1. Payment ot Principa) and Interest. BoROwer ahall promptly pay when due the principal uf and intereet or. the indeblednexa
evidenced by the Note, prepayment and late charges ae provided in the Note, and the pnncipal of and intereat on any F uture Advancea Recured
by thie Mortgage.
2. ~tnde for Taaea and lneurance. Subject to applicable law o~ to a wntten waiver by lxnder, E3orrower shall pay to I.ender on the day
mo~thly installments of principal and interest are payable under the Note, until the Note ia paid in full, a sum lherein "1'unds"1 equal to une-
twelfth of the yearly taxes and asseusments which may attain priority over this MoRgage, and ground rents on the Pruperty, if any, plua one
twelRh of yearly premium installmenta fur hazard insurance, plus onetwrlfth o[yearly premium installments for mortgage insurance, if any,
all as reaso~~ably estimated initially and from time to tirr~e by l.ender on the basis of assessments and bills and reasonable rsti~nates thereof.
The Fl~nds shal) be held in an inatitution the deposita or accounta ot which are insured ur guaranteed by a Fedrral or State agency
(including I.ender if Lender is such en institution). I.ender shaU apply the F unds to pay said taxea, asaesementa, in~urance prrmiums and
ground rente. Lender may not charge for eo holdin~ and applying the Funda, analyr.ing said account, or verifjring nnd compiling said
asaeeaments and bitls, unless L.ender paya Borrower interest on the Funds and applicable law permits l.ender to make such a charKe. Borrower
and Lender may agree in writing at the timr of execution of thia Mortgage that interest on the Hunds shall be paid to Bormwer, and unleas
such agreement ia made or applicable law requi*es auch interest to be paid, l.ender shall not be required to pay I3orrower any interest or
earnings on the Ftinds. l.ender ehall give to Borrower, without charge, an annua! accounting of the Funds ahuwing credits and debita to the
Funde and the parpose for which each debit to the Fund$ w~as made. The F unds are pledged as additional security for the suma secured by this
Mortgage.
If the amount of the Funda held by l.ender, together with the future monthly installments of H unds payable prior to the due dates of taxea,
asseasments, insurance premiums and ground rents, ahall excred the Amount required to pay said taxes, assessmeets, insurance premiums
and ground rents as they fall due, auch excess ahail be, at E3o~TOwer's option, either promptly repaid to Borrower or credited to Borrower on
monthly inatailmenta of Funda. If the amuunt of the F unds held by Lender shall not be sufficient to pay taxea, assessments, insurance
premiama and ground renta as they fall due. Borrower shall pay to l.ender any amount necessary to make up the deficiency w•ithin 30 days
from the date notice is mailed by I.ender tn F;orrower requesting paymcnt thereof.
Upon payment in full otsU suma secured by this Mortgage, Lender sFiall promptly rnfund to E3orrower any funds held by l.ender_ If under
paragraph IS hereof the Property ia sold ur the Property is otherv-ise acquired b~• I.ender, [xnder shall appiy, no later than immediately prior
to the anle of the Hroperty orits acquiaition by Ixnder, any F unds held 5y I.ender at the time of application as a credit against the sums secured
by this Mortgage.
3. Application of Peymente. Unless applicable law provides otherwise, all payments received by Irnder under the Note and
paragrapha 1 and 2 hereof shall be applied by (.ender first in payment of amounts payable to l.ender by E3orruvrer under paragraph 2 hereof,
then to interest payable on the Note, then tu the principal of the Note, and then to interest and principal on any Future Advances.
4. Charges; Liens. Horrowershall pa~• all taxes, assrssments and uthrr charKes: fidcs and im{N~sitions attributable to the Property w•hich
may attain a priurity over this MurtgaKe, andieasehi~id payments or Kround rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, b~ Borrow•rr mak~nK paymt~nt, w•hen due, d-rectly to the payee thereuC Kurrower shali promptly furnish to I.ender
all notices of amoun~s due undrr Ihi~c par~KTaph, and in the r~•ent R~~rn~w•er shall make pa>•ment directly, Rorrower shall prompUy furnish tu
[.rnder receipts evidencing such p.iyment4. Ii~~rrower shall promptly disch.irKr an~• lirrs which has priorit~• u~~er ehis ~1ort~;aQe: {~n,viderl, that
Borrower shall not be rryuired to discharKt• a~n• such lit•n ~u IunK :,s Rurruwer shall ciKree in K•ritinK tu the payment of the~~bliK.ition srcured by
such lien in a manner acceptablr tu I.ender, ur sh.ill ~n ~;u~Ki i;~:th cuntr.t such lit•n hy, ordefend en6ercement uf suc•h Ilrn ~n, IrK:-i pn~cetdin~{s
which operale to pre~•ent the enfurcemt•nt uf the I~rn ur furfeiturt• uf the• f'rupertt~ ~,r am• part therruf.
:i. Hazard Insurancr. Burruw•er sh,~ll keep the improvements nuw existinK or hereafter erec•ted on the 1'roperty insure~ aKainst loss by
fire, hazards included v~ithin the trrm "extendcd cu~•rraKe.° and such uthrr hazards .~s Ixnder may reyuire and in such ~mounts and forsuch
pen~~ds as Ixnder may reyuire; pro.•idr~, that Lendrr shull nr~t requ~re that the .+muunt of such rnveraKe excc~ed that umount of coveraKe
required to pa>~ the sums se~vrc~i b,: this 11ortKaKe.
The insurance carrirr pr~~~~~dink the insur:~nce ~haU tx~ chnsen Ly Ki~rrower subltY•t t~~ appro~•:il hy Lrndcr: pn~~•idcK1, that ~uch appru~•al
shall not be unreasonabh• w'ithhrld. All premwm~ nn ~nwran~-r {r~hc~e. shall ta• pa:~ ~n thr m:in~irr pru~•id~Yl undrr p:-raKraph '~ her~.~f u~, if
not paid in such manner, b~• li~~rn~w~er m:~kin~; p:~~-mrnt, M•he•n du~•. ~iv~ti th~ t~~ th~• ir~~urance carrirr.
All insurance policies and renew•;~Is thereuf ch<ill t~ in form acc-eptahl~• tu I~~ndrr and shall include a standard murtKaKecl:-use in fa~•vr ot
and in form acceptable to Lrnder. l.ender shall ha~•e thP riKht t~~ h~dd thr po6cies anti renew•al~ therc~~f,:ind Horruw•er shall promptl~• furnish to
-.ender all renewal notices and all rece~pts ~~f pa~d prrmium.. In tF.f~ ~•ceiet ~~f I~~tis. Iiurr~~N~er.hall Ki~-e prompt nutice u~ !he insur~nce carrier
and I.ender_ [.ender ma~ make pr~~t uf luss if nnt made prumptl~• br liurrower.
Unlexs l.ender and F3orrowPr othrr.~•isr a~;rre in wntinK. insurancr proceeds shalt be applied to resturatiun or repair of the Property
damaged, provided such restor.itiun ur repair i. c~c•unumi~•ally feasihlr and the strurity uf this MortQage is n~t thereby ~mpxired. If such
restoration or repair is not ecunomi~~t~l!y fra.~hlr ~~r if tht• sr~•unty of this MurtKaKevcnuld hr i:npaired, theinsurance pr~ceeds shalllw applied
to the sums secured by this :~1~~rtKaKr. ~~~Eh thr c~x~~~•.., if any. p:i~d tu liorrnw•er. lf the 1'ruprrt~• is abanduned by [3orrox•er, ~~r if fi~irrow•er fails u~
respond to Lender Kithin :i(i dac~ fr~~m the date nut~ce ~s mail~cl by I.c•ndrr tu Be~rruw•rr that the insurance carrier offers to setde a claim for
insurance benefiLs, I.ender is authuriztd tu ~•u!I«~ct :ind appl~• tht~ insuranct• pr~N•reds at 1~•nder's optinn either t~~ restoration ~~r repa:r uf the
Yroperty or the sums secured by this MortKaKe.
Unless L.ender and &,rruwer otherwisr aKrE~c• ~n wnt~nK, an~• such applicatioii of pr~xeeds to pnncipal shall not extend ur postpone thedue
date of the mont!~h~ installmenGs rPferrrci tn ~n par.iKraphs 1:~nd 2 hereof or ch:~nge the amount of such ~nstallmen~s. It under paraqraph 1R
hereof the Pmperty is acquired by I.rnder, all riKht. title and interF•st nf RurruNer in and to :~np insurance policies and in and to the proceeds
thereof resuiting from damaKe tn Prupert~ pnor to the :ale or acywsition shall pass tn I.ender to the extent of the sums secured b~ this
llortgage immediatety prior to such sale or acquisiti~~n.
6. Preeervation and Maintrnance of 1'roperty: IxHS~~holds: ('ondominums: Planned Unit Developmenta. Rorrowershall iceep
the Property in good repair and shall not cc~mmit w•a~te nr prrm~t ~mp:~i.-mt•nt or drterior~tion u! the Property and shall complr with the
prueisions of an_r• lease if this AfortKaKe is un a leasehold. If this ~TnrtKaKe is un a unit -n a cundumi~ium or a planned unit de~•elopment.
Borrower shall perform all of fiorn~w~er's obliKations undrr thr diY•larati~~n ~~r ~o~~enants cn:~tin~;or govern-nK the cunduminium or planned
unit development, the by-laws and reKulations nf thf~ cundominium or planned unit deePlopment, and constituent dxuments. If a
condominium or planned unit devrl~ipment rider is rxcti•utcKl hti• li~~rruw~t~r :+nd re~~orded tnKether w•ith this '.4lortgaKe, the covenants and
agreements of such rider shall br mc~~rporated intn and ~hall a~nrnd .~nd supE+lt•ment thr c~rr~n.ints and aKreements of this;ltortK~iKe asifthe
rider were a part hercrof.
7. Protection of Lender'e Security. If Borrov-er fails to perform the a~venante and agreemente contained in thie Moetgage, or if any
action or proceeding ie commenced which materially affecte l.ender'e interest in the Property, including, bat not limited to, eminent domain.
ineolvertcy, code enforcement, or arrangementa or proceedinga involving a bankrupt or decedent, then Lender at Lender'a option,upon
notice to Borrower mey make euch appearancee, dieburee Auch euma and take auch action ae ia necessary to protect Lender e iniereet,
includinq, but not limited to, diebursement of reaxonable attorney's feee and er.try upon the Property to make repaire. If Lender required
mortgage inaurance ae a condition of making the loan secured by thia Mortgage, Borrower ahall pay the premiuma required to maintain
such insurance in etfect until euch time as the requirement for euch ineurance terminatea in accordance with Borrower's and I.ender'e
written agreement or applicable Law. Aorrower ahaU pay the amount of aU mortgage inaurance premiuma in the manner provided under
paragraph 2 hereof_
Any amounts diabursed by Lender perauant to thia paragraph 7, with intereat thereon, ahall become additional indebtedneea of
Borrower eecured by thie Mortgage. Unlese $orrower and I.ender agree to other tetms of payment, auch amounte ehall be payable upon
notice from [.ender to E3~rrower requeeting payment lhereof, and shall bear intereat from the date of dieburaement at the rate payable from
time to time on outstandinq principal under the (~iote unleag payTnent of intereat at such rale w•ould be cantrary to applicable law, in which
event euch amounte ahall bear interest at the highest rate permiasible ur.der applicable law. Nothing contained in thia paragraph 7, ehaD
require Lender to incur any expenae or take any action hereunder.
C,r~~X.
,,~351 ~b~E 423