HomeMy WebLinkAbout0308Bo~rowu and Iwnda oownant and asra ~a lollo.vr.
1. Pa~r~nept ot Princlpal tad Iateees~ Borrower ~haU pcompt~y pay when due the princip~l of and intere~t on the indebted~ea~
evidenad D~r th~ Note. pnpsyment aad latech~a aa pwvided i~ the Note. and the principal otand intereatun any Fbtare Advanoe~ secnred
by thi~ Morfs~e.
Z. Fhad~ for Tue~ and larur~noe. 3ubjeet to applicable law or to a written waiver by I.ende~. Sorrower shall pay to Lenderon the day
monthly uuWltaeata oipsincipal and interest are psyable under the Note. until the Note u paid in tull, a sum (henin "i~ndi'~ equal to ons
tweltth oith~ yeuly taxM and a~~menb wbich m~y attain priority over thu Mort~age, and ~ou~d rent~ on the Property. if any, plw ons~
twdtth oi ye~rly premium installmenta fot haurd ir~awance. plw onatwel!!h otyearly pnmium inataUmenes ior mort~a~e insurance. if any.
aU as ceawnably atimated initially and tro~a time to time by Lend~ on the basia of asseaaments and bilb and reasonable estimates thenof.
Th~ Pbnd~ ~haU be held in an inatitntion the depwita or accounts oi which are in~ured or guaranteed by e Federal or State agency
t~ncludin~ I.~d~ it Lender iu nu~ an itutitutioa~. L~euder ~hall apply the Fundi to pay ~aid taxa. as~eaamenta, inaurance pnmiums snd
`ronnd reab. Leade~ mwy aot chasse !or ~o holdin~ aud applying the Fhnd~, analyzin~ said accoun~ or verifyin` end compilin~ wd
a~aeamenb and AiW. nnlea Lender ~-y~ Bor:ower iatere~t o~ the Fl~nds and applicabk lsw permits L'endar to make such a char~e. Borwwer
and La~d~r may asret in writiut at the time of ~ecution of thiu Mort~a~e that intere~t on the Fund~ ~hall be paid b Borroarer, and unlew
~~ch a`reement u made or applicabk laMr requin~ such interest b be paid. l.ender shall not be required b pay Horrower any interat or
earnin~ oa tl~e FLrid~. Lender ~hall sive to Hon~ower, rvithout char~e. an annual aceounting ot the Fund~ showin~ credie~ and debib to the
Funds and the pnrpo~s for which e~ch debit fo the ~nds was made. The Funds are pled~ed as additional ~ecurity for the ~uma ~ecurod by thi~
Mo~a~e. . .
If the amowit oithe [~nd~ hdd by I.ender, toQethrr with the futun monthly instaliments otl~nds payable prior to the due date~ of ta~ce~,
a~sments. insuranoe pr~ium~ and ground rents. ~hall racc~ed the amount required b pay said tsxes. a~seasmen4. insuranoe psemiuma
and ~ound ~ents a~ Wey inll due. ~uch pcoas ~hall be. at Bo~rower a option. either pmmpdy repoid b Boriower or credited to Borrower on
moathly iiuWlaneat~ oi F1~nd~. It the amount of the Funds heW by Lender shall not be suffrient b pay ta:ea, awewmenta. inaurance
premi~ and ~round rent~ a~ they idl due. Borrower shall pay to Le~der any amount nccessary to make up the de5ciency within 30 dsyi
from the date noiioe is mailed by Lender to Borrower nquesting payment thereof.
Upon payment in tuA ot all sum~ ~ecured by this MortRage. Lender shall promptly re[und to Borrower any fw~da held by Lender. If under
paresraph 18 hereof the Pcoperty u wld or the Property is otherwise acquired by Lender, Lcnd~ shail apply. no later than immediately prior
to the sak of the Propedy or ib aaquirition by Lender, any ~nds held by Lender at the time otapplication es a credit agairut the snms eecured
by thi. Mort~a=e.
3. Application of Pa~yment~. Ualew applicable law providea otherwise, all paymenta reoeived by Lender undu the Note and
pars~raph~ 1 and 2 hereof ahaU be applied by I.eoder first in payment of amounta payable W Lender by Borrower under para~nph 2 hereof,
then to intere~t payaWe on the Note. then to the principal of the Note, and then to intereat and principsl on any Future Advanoes.
4. Charta; I.ien~. Borrower shall pay all ta:ea, asseaaments aod other chargee, finea and impoeitions attributable to the Property which
may attain a priority ov~ this Mortgage, and leasehold payments or ground rents, if any, in the manner pmvided under paragraph 2 hereof or.
if not paid in auch manner, by Borrower maki~g payment, when due, directly to the payce thereof. Bor~ower aheU prompdy furnish to Lender
all notices of amounta due under this paregraph, and in the event Borrower ahall make payment directly, Borrower ahall promptiy turnuh to
Lender receipts evidencing such payments. Borrower ahap promptly diacharge any lien which has priority over this Morigage; provided, that
Borrower ahall not be required to discharge any auch lien eo long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manne~ acceptable to I.ender, or shall in good faith contest auch lien by, ordefend enforcement of such lien in, legal proceedings
which operate to prevent the entorcement of the lien or forfeiture of the Property or any part thereof. .
5. Hesard I osnrance. Borro~rer ahall keep the impmvemente now exiating or hereafter erected on the Property inaured egainst loss by
fire. hazarde included within the term "extended rnverage," and auch other hazards as [.ender may require and in auch emounta and for such
periods as Lender may require; provided, that l.ender ehall not require that the amount of such eoverage ~ceed that amaunt of coverage
required to pay the sums secured by thia Mortgage.
71~e insurance car~er providing the insurance shall be chosen.by E3orrower subject to approval by [.ender, provided, that such approva)
shall not be unreasonably withheld. All premiums on insurance policies shall be paid in Ihe manner provided under paregraph 2 hereof or, if
not paid in such manner, by f3orrower making payment, when due, directly to the inaurance camer.
All insurance policiea and renewals thereof shap be in form acceptable to l.e~der and shall include a atandard mortgage cisuse in favor of
and in fotm acceptable to I.ender. Lender ahall have the right to hoid the policies and renewals thereot and Borrower shall promptty [urnish to
i.ender a11 renewal notioes and all receipta of paid premiuma. In the event of loss. Borruwer shall give prompt notice to the ineurance carrier
and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unles~ Lender and Borrowe~ otherwiee egree in writing, inaurance proceeds shal) be applied to restoration or repair o[ the Property
demaged, provided such reatoration or repair is economically feaaible and the serurity ot this Mortgage is not thereby impairrd. It euch
restoration or repair is not economically feasible or if the eecurity ot thia Mortgage would be impaired, the insurance proceeds ahall be applied
w the sums secured by this Mortgage, with the eacesa, itany, paid to Borrower. I[the Property ia abendoned by Borrower, or if Borrower tails b
reapoad to Lender within 30 days from 1he date notice ia mailed by [.ender to Borrower that the inaurance carrier of[ers to setde a claim for
insurance benefits. Lender ia authorized to collect and apply the inaurance proceeds~at Lender a option either to nstoration or repair of the
Pmperty or the sums secured by thia Mortgage.
Unlsa~ Lendtr and Borrower otherwiae agree in writing, any auch application of prnceeds w principal shall not eactend or postpone the due
date of the monthly inataliments reterred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18
htreof the Property ie acquired by l.ender, all right, title and interest ot Borrower in a~d to any ioaurance policies and in and to the proceeds
thereof reaulting from damage to Property prior to the aale or acquisition aha{I pass to i.ender to the e:tent of the aums secured by thi•
Mortgage immediately prior to such sale or aoquiailion.
6. Pre~ervatloa snd Maintenance otPwperty; Leaseholds; Condominums; Plenned Unit Developmenta. Bormwer shall kcep
the Propedy in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall oomply with the
pmvisions ot eny lease if this Mortgage is on a leasehold. !f this Mortgage is on a unit in s rnndominium or a planned unit development,
Borrower shaU perform all of Borrower's obligations under the declaration or covenante creatingor governing the condominium or planned
unit developmen~ the by-laws and regulations of the condominium or planned unit development, and oonstituent documents. If a
condominium or plenned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenants and
agreemente of such rider sha11 be incorporated into and shall amend and aupplemenl lhecoLenanta and agreements of this Mortgage aa if the
rider wen a part hereof.
7. Peotectjon o! Lender'~ Sei.~urity. If Borrower lsib to per[orm the oovenant+~ and agrcements oontained in thi~ MortgaQe, or if any
action or prooeedins ia oommenoed which materially affect~ Lender's intere~t in the PropertY. inrludins, but aot limited b. eminent domain.
inwlvency. oode eaforoea~mR ~~~ements or procceding~ involving a benhrupt or deoedent, then Lender at I.ender'~ option.npon
notioe to Borrower may make such appearanoe~, disbune such sum~ and take snch action as i~ neoe~wry to protect I.ender'~ inta+est,
includin~, b~ not limited to, diibur~ema-t of reawneble attorney's fces and entry upon the Property to malce npairs. If i.euder required
mo~e~e iiuurance as a rnndition of making the loen secured by this Mortgage. Borrower shall pay the premium~ reqaired to maintain
~uch inanrance in eEtect nntil wch time eu the requirement for such iniurance terminat~ in acoordenoe with Boemwer'~ and Lende~~
written aQeement or applicabk Law. Borrower shall pay the amount of all mortgage inawance premiums in the manner provided under
pare~raph 2 haeof.
My amounta disbnned by Lender persuant to thia paragraph 7. with intenat thereon. ~t-dl beoome additiond indebtednew of
Borro~rer ~ecnred by this Mort~age. Ualea~ Borrower and Lender a~rre to othe~ terma ot payment, wch amonnt~ shall be payable npon
notics from Lender to Borrower requating peyment thereof, and ~hall bear intere~t from the date ot d'ubur~ement at the rate payabk from
time to time on oubtanding principal under the Note unless psyment ot intere~t st ~uch rete would be ooatrasy to ~p~licable law, in whicb
ev~t ~uch amounb shsl! bear interest at the highcst rate permiwible under applicable law. Nothing contained in thii pare~raph 7, ~hall
require Iwnder W inciu any expen~e or telce any action hereunder.
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BOOK J40 PAGE ~Q8
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