HomeMy WebLinkAbout0312Borrower and I.ender coveaant and agree a~ folbws:
1. P~ymeM of Priacipal ~ad latere~~ Borrower ahall promptly pay when due the principal of and interest on the indebtedne~s
evidenced by the Note, prepayme~t and late charQes as pmvided in the Note, and the principal of and intereat on any Ftiture Advancea secured
by thu Mort~a~e. ~
2. Ftitnd~ for Ts~tea and la~uranco. Subject to applicable law or to a writtc~ waiver by I.ender, Borrower ahall pay to l.e~der on the day
monthly installmenb of principal and intereat are payable u~der the Note, until the Note ia puid in full. a aum (he~ein "Fu~ds") equal to ons
twelfth of the yearly taxee and assessments which may attain priority ove~ this Mortgu~e, and grouad renta on the Property, if any, plus o~t
twe1M of yearly premium inatallmenta for hazacd inaura~ce, plue onetwelfth of yea~ly premium inatallments for morlgage insurance, if uny,
ail as reasonably estimated irtitially and from time to tiR~e by I.ender on the basia o[ assessmenta and bills and reaaonable eatimal~ thereof.
The I~nds shall be heW in an institution the deposita or acrounts of which are inaured or gua~anteed by a Federal or State agency
(including l.ender if I.ender is auch a~ institution~ Lende~ shall apply the Funda to pay said ta:es, asseasments, inaurance premiume and
ground renta. I.ender mqy not charge for w holding and applying the Funde, analyzing eaid account, or veri[ying and compiling eaid
asseasmenta and bilb, untees I.ende~ pays Borrower intereat on the ~nds and applicable law permita I.ender to make euch a charge. Borrower
and l.ender may agree in w~riting at the time of e:ecution of thia Mortgage that intereat on the Funda shall be paid to Borrower, and unleas
such agreement is made or applicable law requires such interest to be paid, Lender shall ~ot be required to pay Borrower any intereat or
earnit~ga on the Flmds. Lender shall give to Borrower, without charge, an annual accountiog of the Funds ahowing credits and debits to the
Funds and the purpoee [or which each debit to the Flinds w~e made. The Funds are pledged aa additional security for the sums secured by this
Mortgage.
If the amount of the ~nda held by I.ender, together with the future monthly inetallmente of Funda payable prior to the due dates of ta~ces,
esaesaments, ineurance premiums and ground renta, shall excred the amount required to pay said taxes. aeaeasmenta, ineurance preraiuma
and ground rents aa they tall due. such excesa shall be. at Bo~rower a option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of fLnds. If the amount of the 1~'unda held by I.ender ehaU not be sutficient to pay taxea, aaseasmente, insurance
premiume and ground rents a8 they fall due. Borrowe~ ahall pay to i.ender any amoaot necessary to make up the deficiency within 30 days
from the date notice is mailed by I.ender to Barrower requeating payment thereof.
Upon payment in fuUrof all sums aecured by this Morigage, l.ender ahall promptly refund to E3orrower any funds held by l.ender. If under
parngraph 18 hereof the Property ia aold or the Property ie olherwise acquired by I.ender, I.ender ahall apply. no later than immediately prior
w the aale af the Propecty or its acquiailion by I.ender, any Funda held by Lender at the lime of application as a credit againat the sums secured
by thia lltortgage.
3. Application of Payments. Unlesa applicable law providea othecwiae, all paymenta received by Lende~ under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender firnt in payment of amounts payable to t.ender by Borrower under paragraph 2 hereof,
thet~ to interest payable on the Note, then to the principai of the Note, and then to interest and principa) on any Future Advancea.
4. Chargea; Liene. Borrowershall pay all ts~xes, as.~essments and other charges, finex i~nd impcu~itions attributable to the Yroperty which
may attain a priorityover.this Mortgage, and le:~sehuld paymentsorKmund rnnts, if:~n~, in themanner provided underparagraph 2hereofor,
if not paid in such manner, by Eiorrower making payment, when due, directly to the pay~r thereof. Rormwer shal) promptly furnish to l.ender
all notices of amounts due under this par~Rraph, and in lhe event l3orrower shall make payment directly, BorroN~er shall prompUy furnish to
l.ender receipta evidencing such paymenta_ Borrower xhall promptly discharRr i~ny lien which has priurity over this A1ortRage; provided, that
E3orrower ahall not be required todischurge any ~uch lien co IonK a~.ti liorruwer sh.dl aKree in writing to the payment of theobligation secured by
such lien iri a manner acceptable to I.ender, or shall in Kaxt faith rnntcst such lie~ bp, or drfend enfur<rment of such lieo in, legal proceedinge
which operate to prevent the enforcement of the lien or [orfriture i~f th~~ 1'ro~~erty or am• part thercti,f.
5. Hazard Insurance. ~3orrower shall keep the improvementx now existinK or hern~fter erected on the Yroperiy inxured againat lo~s by
fire, hazarda included within the term "extended coverage," r~nd such other hazards us I.ender may require and in such amountsand forsuch
perioda_as [.ender may require; pmvided, that I.ender shall nut require that the amount of such coveraKe exceed that amuunt of coverage
required to pay the sums secured by this Mortg.~ge_
The inaurance carrier pro~•iding the in~uran~r shn~ll 1-r chus~~n b~• tiurruw•er subj~rt !o .~ppro~•al b~• I A~nde~; pn-vidrel, that such approval
ahall not be unreasunably wilhheld. All premiumc un insuran~Y• ~N~licicw sh:ill t~e p;~id in th~~ m:~nn~•r pru~•idetif under par.~Kr:-ph 2 hereof or, if
not paid in such manner, by Rorrower makinK p:~~ ment, wi~en due, direY•tly t~~ the in.urance carrier.
All inaurance policiea and renewals therrof shall l-e in form acreptable d~ I,ender and shall include a standard mortgageclause in favoro(
and in [orm acceptable to I.ender. l.ender ~;hall have the riKht t~~ hold the ~x~licies and renrwals thereof, and ltorrower shall promptly furniah b
i.ender all renewa) notices and al) reeeip~s uf pnid premiums. In thr e~•eut of loss, li~~rn~wer shall Rive pmmpt notice to the insurance carrier
and Lender. I.ender may make proof nf loss if not made pr~~mptly bg fi~xrow•er.
Unlese Lender and E3orrower otherwise .~Kree in writinK, insurance proccY~ds shall Ix• appliecl to reatoration or repair of lhe Property
damaged, provided auch mstorati~~n or repair is econ~~mic:+lly fensible and the security uf this Mortgage is not thereby impaired. If auch
reatoration or repair is not economically feabible or if the security of this A1ortK~e would_be impaired, the insurance proreeda ahall be applied
to the aums secured by this Mortgage, with thP exmsx, if any, paid to I~-rruv-er. ltthe 1'roperty is abandoned by Borrower, or if I3orrower fails to
respond !o I.ender within 30 days from the date notice is mailyd by I.ender k~ I3orrower that the insurance carrier uf~ers to aettle a claim for
insurance benefits, t.ender is suthorized to collect :ind apply the insurxnce prcxri~is at I~ender's option either to restoration or repair of the
Property or the sums secured by this Mortgage.
Unlese Lender and fiorrower otherwise agree in writinK, any such applicatinn of pn-ceeds to principal ahaU not extend or postpone thedue
date of the monthly installments referred tu in paraKraphx I and '2 itiereof or change the amount otsuch installmenta. If under paragraph IS
hereot the Pro.perty ie acquired by l.ender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale ur acqu~sition sfia11 paxs to l.ender to the extent of the auma secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preeervation and Maintenance of Property; Leasrholds; ('ondominuma; Planned Unit Developmente. Borrower ahal) keep
the ProFerty in good repair and ahal) not commit waz:te or permit impairment or deterioration of the f'roperty and ahall eomply with the
provisions of any lease if this Mortgaqe is on a leaseh~~ld_ Jf this MortKage ie on a unit. in a condominium or a planned unit development,.
Borrower ahall perform all of E3ormwer e obliKations under the declaratio~ or covenants creatinKor governing thecondominium or planned
unit de~elopment. the by-Iaws and regulations of the condominium or planned unit development, and constituent documenta. [f a
condominium or planned unit develupment rider ia executed by Born,wer and recorded together with lhis Mortgage, the wvenants and
agreementa of such rider shaU 1-e i ncorpnrated into and :~hall amend and supplement the rnvenants and aKreementa of lhis Mortgage as if the
rider were a part hereof.
7. Protection ot Lender's 3ecurity. If Borrower faila W perform the ouvenante and agreemente contained in this Mortgage, or if any
action or proceeding ie commenced which materially affecta l.ender'e intereat in the Property, including, but not limited to, eminent domain,
insolvency, oode enfurcement, or arrangements or proceedinge involving a bankrapt or decedent, then Lender at Lender's option,upoa
notice to Borrower may mal~e such appearances, dieburee auch sume and take auch action as is neceaeary to protect I,ender's interert,
including, but not limited to, dubursement of reasonable attorney's feea and entry upon the Property to malce repairs. If Lender required
mortgage insurance as a condition of making the loan eecured by thie Mortgage, Borrower ehe11 pay the premiume required to maintain
such inaurance in effect until such time ae the requirement for auch inaurance terminateP in eccordance with Borrower's and Lender ~
writteA agrcement or applicable Law. Borrower shall pay the ~mount of all mortgage insurance premiuma in the manntr provided under
paragreph 2 hereof.
My amounte disburaed by I.ender pereuant to thia paraqraph 7, with interest thereon, ahall bec~ome additional indebtedness of
Horrower eecured by thia Mortgage. Unleas Rorrower and [.ender agree to other terms of payment, such amounte shall be payable upoa
notice from [.ender to Borrower requeeting payment thereof, and ehall bebr intereet from the date of dinbureement at the rate payable from
time to time on outatanding principal under the Note unleae p~yment of interest at auch rate would be rnntrary to applicable law, in which
event such amounte ehall bear intereat al the higheet rate permiaeible under applicable law. Nothing contained in this paragraph 7, ~hall
require [.ender to incur eny e:pewee or teke any action hereunder.
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