HomeMy WebLinkAbout1046Borrower and Lender covenau~t and agre~e as folbwi:
1. Payment ot Priacipal and Interea~ Borrowei ahall prompdy pay when due the pinci~al o! and intrrea on the indebtednesa
evidenced by the Nota, prepayme~t and lats charges aa pt~ovided in the Note, and the prinapal ot and interest on any Future Advance~ eec~ued
by this Mort~age.
2. Flu~ds for T~ee and lnsurance. Subject to applicable law or to a written w•aiver by Lei-dcr, Borrower shaU pay to Lender on the day
monthly installmenta of principal and intereat are payable under tt~e Note, until the Note is paid in fuU, a sum (here-n "Funds°- equal to onc
twelfih of the yearly taxes and aasesamenta which may attai~ priority over this MoRgage, and ground rents on the Property, i(any, plas oae-
twelRh of yearly premium inataliments for hazard inaurance, plus onetwelfth of yearly premium installmmtslor mort~age inaurance, if any,
all es reasonably estimated initially and from time to tin~e by Lender on the basis of assessments and bills and rrasonable estimatea thercof
The flinds shall be held in an inatitution the depoaits or accouata of which are insured w guarantee~d by a Fcde:al or Sta4 agency
•(includin~ Lender if Lender ia such an in~atution). l.ender shaA apply the Funds to pay said ta:es, aaaeaaments, insuraner premiuma and
gmund nnts. Lender may not charge for w holding and applying the Fl~nds, analyzing said amouat, or verih~ing and compiling said
assuaments and bil4, unless Lender pays Borrower intereat on the Funda and applicabk law permits Lender w make such a charge. Boreow er
and I.ender may agrce in writing at the time of e:ecutioo of thia Mortgage that intereat on thr Funda shall br paid w Bor:oarer, and ank~a
euch ag~eement is made or applicable law requires such intereat to be paid, Lender shall not be required to pay Borrower any intera~.o~
earnings on the ~nds. Lendet shall give to Borrower, without charge, an annual accounting of the Funds show~ng cnviita and debita to t!u
Fuad~ and the purpo~e for which each debit w the Funda y as made. The Funds arc pledged as addiaonal security fo~ the aums aerurrd by this
Mortgage. ,
If the atnount of the F~nds held by Lender, together with the future monthly inatallmenu of Funda payable prior to the due datea oitues,
aseessmenta, insurance premiums and graund rents, ahall ezcted the amount required to pay said ta:ea, assessmenb, insurance Dr~au::ms
and ground rents as they lali due. such exceas ahall be, at Borrower'a option, either prompdy repaid to Sorrow er or aedited co Borrower on
monthly instaliments af fl~nds. If the amount of the Funds held by Lender shall not be suf~cient ta pay ta~ces, asseasments, insarance
premiums and g~round rents aa they fall due, Borrower ahall pay to Lender any amount ncoessary to make up the deficiency within 30 day~
from the date notice u mailed by Lendrr to Borrower requeating payment thereof_
Upon payment in fuU of all aums secured by this Mortgage, Lender shall promptly refund to Borrowa any funda held by Lender. Uunder
paragraph 1e8 hereof the Property is sold or the Property is otherv-~ise acquired by Irnder, Leader ahal: apply, no later than immediatdy prior
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br thi~ Mort~atce. - - - - - - • ~ -- -_-:: _-----~_~~~__:_ __.....~~_.,.,.
3. Appllcation ot Payments. Unless applicabie law providea oiherwise, all. payments recei~ed by LH-der under the 1Vote and
paragraphs 1 and 2 hereof shaU be applied by Lender fi~nt in paymenc of amounta pavable to Lender by Bocrovra unda para~raph 2 hereo~
then to intereet payable on the Note, then to the principal ot the Note, and then to interest and prindpal on any Future Advances~
4. Char~es; Liens. Borrower shall pay all taxes, asaes~menu and other rhazges, fines and impos~tions attributable to the Propaty wrhich
may attain a priority ovu thia Mortgage, and leasehold paymenta or ground rents, if any, in the manner pro~-ided under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, w hen due, directly to the pa~_ee ~titreof. Borrov-er shall promptly fumish to Lend~
all aoticee of amounta due under this paragtaph, and in the event Borrower shali make pa~•ment dinrtl~. Borro..er shall prompdy fumuh to
L.ender receipts evidencing such payments. Borrower shall promptly discharge any iien which hat priont~ o~ er thia ~iortgagr, pm~-ided, that
Borrower shall not be required to discharge any such i:en so long as Sorrower shall agm in w•nting to the pa~•ment of the obligation secured by
such lien in a mannez acteptable to I.ender, or shall in good faith conteat such lien by, ordefend enforcement oi such lien :n. tegal proceedin~s
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insnrance. Sorrow~er ahail keep the improvementa now existing or herea:ter ereeted on the Propert3 insuced againat lo~a by
fire, hazarde included within the term "extended coverage," and such other hazarda aa I.ende: ma3 requirr and in such amounta and for auch
periods as Lender may require; provided, that Lender shall not require that the amount oi such c~o~erage e:ceed that amount af co~era~e
required to pay the sums secared by this Mortgage.
The inaurance carrier providing the ~nsurance shail be chosen b~• Borrower subject to approval bc Lender, pro.-ided. that such approval
shall not be unnasonably withheld. All premiums on insurance policies shall be paid in the manner pro.-ided under paragraph 2 here~f or, if
not paid in such manner, by Borrower making payment, w•hen due, directl~ to the insurance camer.
A11 insurance policies end renevrale thereof ahail be in form acceptable W Lender xnd shall includt a standard mortga~eclawe in favoref
and in form acceptable to L,ender. Lendet ehall have the right to hold the policiea and renev- als thereof. and Borrow a sha13 promptly furniah to
i.ender all renewal notices and ail receipta of paid premiums In the e~ent of loss, Borruwer ahall g~ve prompt notice w the inaurance carrirr
and Lender. Lender may make proot of loss if not made promptly b~ Borrow•er.
Unlers Lender and Bortower otherwise agree in wnting, insurance procee~ shall be appl~ed to rratoration or repair of the Property
damaQed, provided such restoration or repair is economically fe~sible and the~securit~• of this :-fortgage u not thereby impaited_ If such
reatoration or repair is not economicaily [easible or if the security of this Nortgage.a~ould be ~mpaired, the insurance procreda shall be applied
to the aums kcured by thia Mortgage, w~th the excess, if any, paid to Borrovrer. If the Propert~• ia aba~-doned b~ Borrow-er, or if Borro.rer faiL Lo
respond to Lender within 30 daya from the date notice is mailed by I.ender w Borro..er that the inaurance carrier af'fers w setde a claim for
insurance benefite, Lender ia euthorized to collect and apply the insurance pra~eeds ae Lender's option eether to restoratian or repair of the
Property or the eums secured by thia Mortgage.
Unleau Lender and Borrower otherwise agree in v- riting, any such application of prareds to principal shall not e:tend or postpone thedue
date of the monthly installmenta referred w in paragraphs 1 and 2 hereof or change the amount of such installments_ If under paragraph 18
hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to an~ insurance policies and in and to the proceedi
thereof resulting from damage to Property prior to the sale or acqmsition shall pass to Lender to the e:tent af the suma aecuned b~ thia
Mortgage immediately prior to euch sale or aoquisition.
6. Preservation and Maintenance of Property; Leaaeholds; Condominums: Planned t'nit Developmenta. BorzoVrrr ahali keep
the Property in good repair and ahall not commit vvaste or permit impairment or detenoration of the Propert>• and shall comply with the
provieions af any lease if this Mortgage is on a leasehold. If this ~tortgage is on a unit in a condominium or a planned unit de~elopment,
Borrower shall ptrform all of Borrowei a obligations under the declaration urco~enante creat=nRor governing thecondomin:um or pIanned
unit development. the by-lewe and regulationa of the condomin~um or planned unit dereiopment, and conatitumt documenta. If a
condominium or planned unit development rider ~s executed by Borrower and recorded together vrith thia ~tortgage, the co~enants and
sgreements of auch rider ahal) be incorporated into and shall amend and supplement the co~•enants and agreements o(this ~tortgage as if the
rider were a part hereof.
9. Protection o[ Lender'~ Security. If Borrower faile w perfortn the rnvenanse and agrcementa contained in this Nortgage, ot if any
action or proceedin~ i~ commenced which meterially affecte I.ender's intereat in the Property, inc;uding, but not limited w, eminmt domain,
inwlvency, oode enforament, or arrangements or proceedings involving a bankrupt or decedent, then Lender at I.endQ'~ optioa,upoa
noticx to Borrower may ma1~e ~uch appearances, diaburse such euma and take snch action aa ia necessary w prote~t Leadei ~ interert,
including, but not l~mited to, diebureement of reaaonable attorney's fees and entry upon the Property to make repain. If La~da reqaired
mortgege in~urance ai a condition ot making the loan sccured by this Mortgage. Borro.rer shali pay the pmaium~ teqaind to maintain
~uch in~urance in effect until ~uch time as the requirement for euch insurance terminatea in accordance vcith Borrowei ~ and Leadd~
written agreement or applicable Lew. Borrower shall pav the amount of ali mortgage insuranee premiums in the manner provided under
paragraph 2 hereof.
My amounts disbursed by Lender persuant to thie paragraph 7, v~ith intereat there~n, shall become ad3itionel indeb4rdnws of
Borrower secured by this Mortgage. Unlese Borrower and Lender agree to other terms of payment, such amounLS shall be payable.npoa
notice ftam Lender to Borrower requeeting peyment tFiereof, and shall bear intereat from the date of du+bursement at the rate payabk ~om
time to time on outstanding principal under the Note unleae pay~nent of intereat at such rate would be contrary W applicable law, in wI-icL
event such amounte ehall bear interest at the higheat rate permieaible under applicable law_ tioth~ng contained in thu paragraph 7, ~hall
require Lender to inccr eny expenee or take any action hereunder.
6~~351;~:~~1044