HomeMy WebLinkAbout1403Bocrower and Gende~ covenant and agree as folbws:
1. Payment ot Principal and Interest. Borrower shall pwmptly pay when due the principal of and intereat on the indeDtednea~
evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of anc! interest on any Fliture Advencee secured
by this Mortgage.
2. ~Lnds for Ta:es and lneurance. Subjecl b applicabie law o~ to a written waiver by l.ender, E3orrower shall pay to I.ender on theday
mon-hly installments o[ principal and intereat are payable under -he Note, uotil the Note is paid io lull, a aum (herein "Funda") equal to one
twelfth of the yearly taxea and asaesamenta which may attain priority over this Mortgage, and ground rents on the Property, if any, plus on~
twelRh of yea~ly premium installmenta for hazard inaurance, plus onetweifth of yeariy premium instalimenta for mortgage insurance, if any.
all ea reaeonably eatimated initially and from time to ti~r~e by I.ender on the bsisis of assessments and bills and ~eaxunable estimatea thereot.
Th~ Fl~nda shall be held in an institution the deposite or accounta of which are inaured or guaranteed by a Federal or State agency
(including I,ender it Lender is such an institution). I.ender ahall apply the Funds to pay eaid taxea, asaeasinenta, inaurance premiume and
E[round rents. I.ender may not charge fo: so holding and applying the Funds, analyzing eaid aceount, or verifying and comp~ling said
asseasmente and billa, unlesa Ixnder pays Borrowerinterest on the Funds and appiicable law pennifs I.ender to make such acharg~. Borrower
and I.ender may agcee in writing at fhe time of execution of thie Mortgage that intereat on the Funde ahaU be paid to Borrower, and unless
euch agreement is made or applicable law requires auch intereat to be paid, I.ender shall not be required to pay Borrower any intereat or
earninge on the Ftinde. Lender shali give to Borrower, without cha~ge, an annual accouniing of the Funds showing credits and debita to the
Funda and the pur~wee Eor which each debit to the Runda was made. The Funda are pledged as additional eecurity for theaums secured by this
Mortgage.
Ilthe amount of the ~Lnda held by l.ender, together with the future monthly inatallmenta of Funds payable prior to the due datea of taxes,
seeeaaments, ineurance premiuma end ground rnnts, shal! excred the amount required to pay said taxea, aeseasments, inaurance premiums
and ground nnta as thay fall due, auch eaceas shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on
monthly instaliments of Funda. If the amount of the F unds held by Ixnder ghaU not be eufficient to pay taxes, asseasments, insurance
premiuma and ground renta ae they tall due, Rorrawer shall pay to Lender an3 amount necessary to make up the deficiency within 30 days
fr~m the date notice ia ma:ied by I.ender lo Borrower requesting payment thereof.
Upon payment in full of all aume secured by this 1Gfortgage, I.ender ahall promptly refund to Borrowe~ any funds held by Lender. !f under
paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by l.ender, Lender ahail appiy, no later than immedistely prior
to the eale af the Property or ita acquisition by Lender, any Funds held by t.ender at the time of application as a credit againat the auma secured
by thie Mortgage. •
3. Application of Paymenta. Unlesa applicable law provides otherwiee, all payments received by Lender under the Note and
paragraphs 1 and 2 hereof ahaU be applied by [.ender first in payment of amounta payable to I,ender by Borrower under paragraph 2 hereof,
then to intereat payable on the Note, then !o the principal of the Note, and then to interest and principal on any Future Advancea.
4. Charges; Liena. Borrower shall pay ail taxes, assessments and othercharges, finea and impositions attributable to the Property which
may attain a priority ovrr this Mortgagc, and leasehold payments oz qround rents, if any, in the manner pruvided under paragraph 2 here~f or,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereot Borrowershall promptly turniah to [.ender
aU notices of amounls due under this paragraph, and in the evrnt F3orrower shall make p:~yment directly, E3orrower shall promptly furniah to
l.ender receipts evidencing such payments. F3~~rrow•er shall promptly dischargr any lien which has priority over thiF Mongage: provided, that
Borrov` er shall not be required tn discharge any such lien so IonK as Rorrower shall . gree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Ixnder, or shaU in good f.~ith contest ~uch lien by, ordefend enforcement of such lirn in, lrgal proceedinge
w•hich operate to prevent the enCorcement of the lien or forfe~ture uf the Property or any part thereuL
5. Hazard I naurance. Rorruwer shali keep the impmvements now existing or hereafter erected on the Property insured againat losa by
fire, hazards included within the term "extended cin~erage," and such other hazards as ixnder may require and in such amounts and forsuch
periods as Lender may require; provided, that l.ender shall not reyuirc- that the amount of such coverage exceed that amount of coverage
required to p:~y the sums secured by this Mortgaqe.
The msurance carrier pro~•iding the insuran~~c• ~hall ~w chusen by liurrow~er s~ti~rct to approval by I.ender; prn~•ided, that such approval
shall not be unre~uonably v~ ithheld. All premiums on insurar.~•e p~li~~ir. chall he paid in the manner pnn•ideci upder paragraph'L hereof or, if
not paid in such manner, by I3orrow•er makinK par•ment, w•ht•~ due. din•~•tl~• t~~ the incurance cArrier. '
All inaurance paliciex and renewals thereotshall be in furm acceptable W I,ender and shal) include a standard mortgageclauae in favorof
and in [orm acceptable to [xnder. l.endershall have the nght to h~.ld th_• p:>!iries and renewals thereof, and Borrowerahall promptly furniah to
i,ender all renewa) noticea and all receipts o! paid premiums. In the eveut of loss, Borruwer ahall give prompt notice to the insurance carrier
and Lender. Lender may make proof of loss if not made promptly by- BorruM•er.
Unlesa Lender and E3orrower otherv~ise agree in wnting, insurance precee~i: shall be applied to restoration or repair of the Property
damaged, provided such restoratiun or repair is ecunomically feAsible and the~srcunt} of this Mortgage is not thereby impaired_ If auch
restoration or repair is not econumically fe~Fible or if the security of this h1ortgage would be impaired, the insurance prceeeda shall be applied
co the suma secured by this hlortKage, with the exce:;s, if any, paid to 13~~rrowPr. If thP F'raperty is abandoned by F3nrrower, or if ~3orrower faila to
reypond to Lender within 3(! days fr~~m thr date notice is mailyd by ixnder to Borrowrr that the insurance carrier offera to aettle a claim for
insurance benefita, l.ender is authorizcrl to cutlc~ct and apply the insu~ance proceeds at I.ender's option either to restoration or repair of the
Property or the sums secured by this A1nrtK~+Ke
Unlesa l.ender and 6orrower otherw•ise aKrer in writinK, any such applicatiun uf pmceeds to principal shaU not extend or postpone thedue
date of the monthly installments referred to in paragraphs 1 and 2 hereof ur change the amount of such installmenle. I[ under paragraph 18
hereof the Property is acquired by i.ender, all right, title and interext of Rorrower in and to any insurance policies and in and to the proceeda
thereof resulting from damage to Praperty prior to the salc or acqu~sition shall pass to I.ender to the extent oi the sume secured by thie
Mortgage immediately prior to ~uch sale or acquisition.
6. Preeervation and Maintenance of Property: l.easeholds: C'ondominuma; Planned Unit Developmente. Borrowerahall keep
the Property in gond repair awd shall not commit wa,te nr permit impairment or deterioration of lhe Yroperty and shall comply w~th the
provisiona of any lease if this MortKage is on a leasehold. If this MortKaKe is un a unit in a condominium or a planned cnit development,
Rorrower ahal) perform all of I3~rrow~er's obliKatiuns under the dec•laration c~-covenants ~reatinKor governmg thecondominium or planne~
unit development, the by-laws and regu~a!i~~ns of the cunduminium or planneci unit development, and conetituent documenta. If a
condaminium or pla~ned unit deeelupment rider is executed bY BORUN'Pr :ind recurded tugether with this Mortgage, the oovenants and
agrerments of such ~ider ahall be incur~x~r.ited int~~ and shall amend and supplrment the co~ ena nts and aKreements of this Mortgaqe as if the
nder were a part hereof. ,
7. ProteMion ot Lender'e Security. If Bc~rrower faiie to p^rtorm the covenante and aqreemente contained in this Mortgege, or if any
action or prcx~eeding ia commenced which materially affecte I.ender'a interest in the Property, including, but not limited w, eminent domain,
~nsolve~cy, aode enforcement, or arrangemente or proceedinqa involving a bankrupt or decedent, then l.ender at Lender's option,upon
notic- to Borrower may make such appearancee, diaburee auch eume and take euch action se ie necesebry to pratect [.ender's interest.
including, but not I~mited to, dieburaement of reaeanable attomey's feea and entry upon the Property to make repairs. If Lender required
martgage inaurance ae a condition of making the loan aecured by thia MortKage, &~rrower ahall pay the premiums required to maintain
euch insurance in effect untit ~uch time as the requirement for euch inpurance terminatea in accordance with Borrower's end Lendds
written agreement or applicable l.aw. &-rrower ehall pay the amount of all mortgaqe ineurance premiurna in the manner provided under
paraqraph 2 hereof.
Any amounte diebursed by Lender pCrauant to thie paragraph 7, with intereet the-eon, ahall become addiiional indebtedness of
Borrower eecured by thie Mortgage. Unleae Rortuwer and l.ender agree to other trrme of payment, auch amounte ehall be payable upon
notice from Lender to Bo: rower requesting payment thereo(, and ahall bear intereat from the date of diebureement at the rate payable from
time to time on outetanding principal under the Note unleas payment of intereat at such rate wuuld be rnntrary to applicable Iaw, in which
event such amounta shall be~r intereat at tl~e highest rate permiasible under applicable law. Nothing contained in thu paragraph 7, ahall
require Lender to incur any eapenae or take any aMion hereunder.
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