HomeMy WebLinkAbout0856Borrower and [.ende~ covenent and agree aa foUows:
1. Poyment of Principal •ad Intereet. BoROwer ahall promptly pay when due the principal of and intereat on the indebtednees
evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and intereat on any Future Advances secured
by this Mortgage.
2. ~nda tor Ta:ea and Insurance. Subject tu applicable law or to a written waive~ by Lender, Borrower ahall pay to I.enderon the day
monthly i~staliments of principal and interesl are payable under the Note, until the Note is paid in tull, a sum (herein "Funds") equal to one
twelRh of the yearly taxea and assesaments which may attain priority over this Mortgage, and ground renta on the Propeirty, itany, plue ont
twelfth of yearly premium inatallments for hazard insurance, plus onetwelfth otyearly premium installments for mortgage insurance, if any,
all as reasonably estimated initially and from time to ti~r~e by I.e~der on the basis o[ assessments and bills and reasonable eatimatea thereof.
~;L ~+~3 S«: ~~ ~..- ~:i:~ iTi ::It ITiui:~u~:ufi if~ld ucEniaiiew W n~~uu~~iri ui wnicn a~e inaured or U8T8i1[Ced b a Hederal or State
g Y agency
(including L.ender if I~ender is auch an inatitution). I.e~der ahall apply the Funda to pay said taxea, assesemente, insurance premiums and
ground re~ta. I.ender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling eaid
asaeasments and bills, unleee [,ender paye Borrowe~ interest on the Funds and applicable law permita i.ender to make auch a charge. Borrower
and L.ender may agree in writing at the time ot execution of this Mortgage that interest on the Funds shall be paid to Borrower. and unleea
auch agreement is made or applicable law requires such interest to be paid, l.ender shall not be required to pay gorrower any intereat or
earninga on the fi~nds. L.endtr ehall gi~e to Borrower, without charge, an annual acmunting of the Funds showing credita and debite to the
Funda and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sume aecured by this
Mortgage.
If the amount of the ~nde held by l.ender, together with the future monthly installments of Funds payable prior to the due dates of taxee,
aseesamenta, insurance premiuma and grvund rents, shall excaed the amount required to pay said taxee, assessmenta, inaurance premiume
and ground rents ae they fall due, auch excess shall be, at Bo~rower's option, either promptly repaid to Borrower or credited to Bonoweron
monthly inatallmenta of r~nda. If the amount of the Funds held by Lender shall not be aufficient to pay ts-xes, assessmenta, insurance
premiuma and ground rente ae they fall due, E3orrower shall pay to l.ender any amount necessary to make up the deficiency within 30 days
from the date notice ia mailed by lxnder to BorroWer requesting payment thereof.
Upon payment in full of all auma secured by this Mortgage, [.ender shaU promptly refi~nd to Borrower any funds held by l.ender. If under
paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender, I~nder shal! apply, no later than immediately prior
to the sale ef the Property or ita acquisition by [.ender, any Funds held by I.ender at the time of application as a credit against the sums secured
by thie Mortgage.
3. Application of Paymente. Unless applicable law provides othrrwise, all payments re.-~eived by L,ender under the Note and
paragrapha 1 and 2 hereof ahall be applied by l.ender firxt in payment of amounts payable to l.ender by E3orrower under paragraph 2 hereof,
then to intereat payable on the Note, then to the principal of the Note, and then to interest and principa) on any Future Advances_
4. Chargea; Liens. Borrower shall pay all taxes, assessments and other charKes, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and Irasehoid payments or gmund rents, if any, in the manner providecl under paragraph 2 hereofor,
if not paid in such manner, by Borrawer making payment, when due, directly~ to the payee thereof. Bormwer shall promptly furnishto Lender
ali notices of amounts due under this paragraph, and in the e~~ent Borrower shall make payment directly, f3ormwer shalt promptly furnish to
Lender receipts evidencing such payments. Ii~-rrov-•er shall promptly discharge any lien which has priority over this Mortgage; provided, that
E3orrower shall not be requirevi to discharge any ~uch lien so IonK ns l3orrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptabte to I.ender, or shaU in good faith <Y~ntrst such lien by, ordefend enformment of such lien in, legal proceedinge
which operate to pre~ent the enforcement of the lien n~ forfeiture of lhe Property or any part thereof.
5. Hazard lnsurence. Borrow•er shall keep thr i~nprovemen~s now existing or bereaRer erected on the Property insured against loss by
fire, hazards included within the tenn "extendecl co~~PraKe,"~ and such other hazards as I.ender may require and in such amounts and for auch
periods as Lender may require; provided, that I.ender shall n~~t ~eyui~e that the amount of such coverage exceed that amount of coverage
req~irecl to pay the sums secured by this Mortgage.
The insurance carrier pruvidinK the insuran~•e shall tx~ chusen hy l;orruv•er subjcrt to approval by Ixnder; provided, that such approval
shall ~ot be unrrasonably w•ithheld. All premiums on ~nsurani•t~ pnli~•ie~~ shall I~e p:~id in the manner providrd under paragraph 2 hereotor, if
not paid in such manner, by Eiorrower making payment, w•hen duF, dir~yth• trr the ~nsurance carrier.
All insurance policies and renewals thereof shall be in fc,rm acceptable u, I~nder and shall include a standard mortgageclaueein favorof
and in form acceptable to [.ender. I.endershall have the right u, huld the p~~licies and rE•newals thereof, and Borrowershal) promptly furnish to
i.ender all renewal noticea and all receipts of paid premiums. In the rveut of luss, Rurruwer shall qive prompt notice to the insurance carrier
and Lender. [.ender may make proof of loss if not made promptly by Borrow•er.
Unless Lender and f3orrower otherwise aqree in wntinK, insurance prorre~i: shal! be applied to restoration or repair of the Property
damaged, provided such restoration or repair is ecunomically fe~sibte and the~secunty of this Mortgage is not thereby impaired. If such
restoration or repair is not ecun~>mically feasible or if the security nf this Mortgage would be impaired, the insurance proceeds shall be applied
to thesumssecured by this MortKage, with theexcess~ it.iny, paid to F3urruveer. Ifthe E'roperiy is abandoned by fiorcower,orif Borrowertailato
respond to t.ender vrithin :iQ days from the date nuhce ~s mailed by I.ender to Rorruwer that the insurance carrier ~ffers to settle a claim for
inaurance benefiL4, I.ender is authorized to eullect and apply the i~surance pnx~eeds at I.ender's option either to restoration or repair of the
Property or the sums secured by this MortKaKe.
tinless [xnder and f~rrower otherwiw aKree in w•ritinK, any such application otpr~x•eeds to principal shall not extend or postpone thedue
date of the monthly instaliments referred to in paraKraphs 1 and `l hereuf or ch:~ng~ the amount of such installments. If under paragraph 18
hereof the Property ia acquired by I.ender, all right, title and interest of Borrnwer in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the saie or acywsition shall pass to I,ender to the extent of the suma secured by thia
Mortgage immediately prior to such sale or acquisition.
6. Preaervation and Maintenance of Property; l.easeholds; Condominums; Planned Unit Developmenta. Borrowerahall keep
ihe Property in qood rep:~ir and shall not cummit wastc ~~r permit impairment or drterioration of the Property and shal) comply with the
provisions of any lease if this Mortgage is on a leasehold. If this blortKa~e is on a unit in a condominium or a planned unit development,
Borrower shall perfortn all of F3orr~~wer's ~~bliKations under the declaration orco~enants creatinKor governing thecondominium or planned
unit development, the by-laws and re~ulations of the condominium or planned unit develupment, and constituent documenta_ If a
condominium or planned unit de~~elupment rider is execated by 1i~~rrow~er and recurded together with this Mortgaqe, the covenants and
agreements of such ri.a,er shall 1~ incorpurated intn and shall ame•nd and supplement the cuven:inLs and :~Kreements of this Diortgage as if the
rider were a part hereof.
?. Protection of Lender'e Security. It I3orro.~er fails to perform the rnvenante and agreementa contained in thie Mortgage, or itany
action or proceeding ia commenced which materia)ly affecte t.ender'e intereat in the Property, including, but not limited to, eminent domain,
insolvency, code enforcement, or arrangemente or proceedinga incolvir~g a bankrupt or decedent, then I.ender at Lender'e option,upon
notire to Borrower may make auch appearances, diaburse euch suma and take euch action ae ie neceaaary to protect Lender's interest,
including, but not l~mited to, diebureement of reaeonable attorney's feee and entry upon the Property to make repaire. If Lender required
mortgage ineurance ae a condition of making the loan secured by this Mortqage, Borrower ahall pay the premiums required to meintain
such ineurance in effect until such time as the requirement for auch inaurance terminatea in accordance with E3orrowei e and Lend~ s
written agreement or applicable I.aw. Borrower ahall pay the amount of all mortgaqe ineurance premiume in the manner provided under
paregraph 2 hereof.
Any amounte diebursed by [,ender perauant to thia paragraph 7, with intereat thereon, ahaU become additional indebtednees of
Borrower eecured by thin Mortgaqe. Unless E3orrower and [.ender aqree to other terma of payment, such amounte ehall be payable upon
notice from Lender to Iiormwer requeating payment thereof, and ahall bear intereat from the date of diabursement at the rate payable fiom
time to time on outetandinq principal under the Note unleas payment of inlereel at auch rate would be contrary to applicable law, in which
event auch amounts ehe,ll bear intereat at the highest rate permisaible under applicable law. Nothing contained in thia paragraph ?, ehall
require I.ender to incur any expense or take any action hereunder.
, ~ ~~~~~ P~~E
. # $55