HomeMy WebLinkAbout0793Borrowe~ and Lender covena~t and a~ee as folbwr
1. P~yment ot Prin~ipa~l and lntare~t. Borrower shali pcomptly pay when due the principal of ar-d interest on the indebtedness
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 Mort~ey~e. ~
2. F~und~ for Tsses and In~urance. Subject to applicable law or to a written waiver by I.ende~, Borrower shall pay to I.ender un the day
monthly installments of principal and interest ere payable unde~ the Note, until the Note is paid in full, a sum (herein "~nds") equal to one-
twelhh oithe yea~ly taxes and asaesemente which may attain priority over this Mortgege, and ground re~ts on the PropeRy, itany, plw ont
twelRh otyearly premium installments for hazard inaurance, plua onetwelRh ofyearly premium installments !or morigage i~eurance, if any,
all as reasonably eatimatcd initially and trom time to tirue by I.ender on the baais of assesame~ta and billa and reasonable estimatea thereof.
'll~e ~nds shall be heid in an institution the deposils or accounts of which are ineured or guaranteed by a Federal or State age~cy
(includi~g I,ender if [.ender is ~uch en institution). Le~der ahall appiy the Funda to pay said taxes, assessme~ta, insurance premiums and
girouad renb. Leade~ may not charge tor w holding and applying the Fu~da, analyzi~g said account, or verifyi~g and compiliog said
assessme~ta end bilis, unless [.e~der pays Borrower iotereat on the Ftihda a~d applicable law permits I.ender to makesuch a charge. Borrower
and I.ender may agree in writing at the time of execution of this Mortqage that interest un the Funds ahall be paid to Borrower, and unlesa
such agreement is made or applicable law requires such interest b be paid, Lender shali not be required to pay Bormwe~ any intereat or
earnings on the F1nds. Lender shall give to Bonvwer, without charge, an annual accounting o[the Funda ahowing credits and debita to the
Funds and the purpose [or which each debit b the Ftinda was made. The M unde are pledged ae additional security for the aume aecured by this
Mortgage.
If the amount of the ~nds held by Lender, together with the future monthly inatallments of Funda payable prior to the due datea of taxes,
asseesments, insurance premiums end ground renta, shall excred the amount required to pay said taaes, seaeasments, inau~ance premiums
and gmund rente as they fall due. such excesa ehall be, at Bo~TOwer s option, either promptly repaid to Borrower ~~ credited to Borrower on
monthly installments ot Flinds. If the amount of the Funde held by Lender ahall not be aufficient to pay taxes, asaessmenta, inaurance
premiums and gronnd rents as they fall due, Bor~ower ahell pay to Lender any amount necessary to make up the deficiency within 30 days
from the date notice ia mailed by Lender to f3orrower requesting payment thereof.
Upon payment in fuU of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funda held by i.ender. I[under
paragraph IS hereof the Property is aold or the Property is otherwise acquired by Lender, Lender ahall apply, no later than immediately prior
to the aale ot the Property or its acquisition by Lender, any F unda held by Irender at the time of application as a credit againet the sums aecured
by this Mortgege. •
3. Applicatio~ o[ Paymente. Unleas applicable law providea otherwiee, all paymenta received by l.ender under the Note and
paragraphs 1 and 2 hereof ahall be applied by Le~der firnt in payment of amounta payable to I.end~r by E3orrower under paragraph 2 he~f,
then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances.
~. Charges; Liens. Borrower shall pay all taxea, assessmentx and othercharges, finea and impaeitions attributable to the Property which
may attain a priority over this Mortgage, and le:isehold payments ar gmund rents, itany, in the manner pruvided under paragraph 2 hereofor,
if not paid in auch manner, by t3orrower making payment, when due, directly to lhe payee thereof. Bormwershall promptly furnish to I.ender
all notices of amounts due u~der this par:~graph, and ~n the event liorrower shal) make paymrnt directly, Bormwer shall promptly (urnish to
Lender receipts evidencing such paymenls Itorrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that
Borrower shal) not be require.~ to discharge any such lien so IonK as Borrower shall agree in writing to the payment ottheobligation secured by
auch lien in a manner acceptable to Ixnder, or shali in Kcwd faith cuntE~st such lien by, urdefend entorcement ofsuch lien in.leKal pruceedings
which operate to prevent the enfurcement of thr 6rn ur forfeiture uf the F'roperty or any part thereof.
5. Hazard Ineurance. Borr~~wrer shall keep the improvements nuw existing or hereafter erected on the Property insured againat losa by
fire, hazards included within the term "extended cover:~Ke," and such nther hazards as l.ender may require and in such amounts and for auch
perioda ae l.ender may reyuire; provided, that Ixnder shall not rryuire that thr amuunt of auch coverage exceed that amount uf coverage
required tu pay the sums secu~ed by this NortRaRr.
The inaurance camrr pr~~~•idinK the insur.~ncr shall hc~ ~~hnsrn h~• It~~rrow•er subject to approval by I.endrr; providcd, that such approval
shall not be unre:wwmably w•ithheld. All prrm~ums ~~n rovuran~•~• pdic~r. shall Fx~ pa~d ~n the mannrr provide~l under paraKr:~ph 2 hereof or, if
not paid in such manner, t~y liurrowrr making p:~yment, when due, dirr~•tly t~~ thi~ in~urance cartipr.
All ineurance polictes and renewals thereof shall be in forrn acce~~table to I.ender and ahall include a standard mortgageclauae in favor of
and in form acceptable to I.ender. l.ender shall ha~ e the riQht G~ hold Ihe policies and renewals thereof, and Rorrower shall promptly furnish to
i.ender all renewal notices and all receipts of paid prem~ums. In the event of loss, Br,rn~wer shall give pmmpt notice k- the insurance carrier
and l.endec I.ende~ may make proof ot loss it not made prumptly by R~,rrower.
Unleas I.ender and &~rrower otherwisr agrre in writing, ihsurance proceeds shall be applied to restoration or repair of the Property
damaged, pn-vided auch resu-ration ur repa~r is crunumically feasible and the scrurity of this Mortgage is not thernby impaired. If auch
reetoration or repair is ~ot economically feasible or if the wcrurity of this Mortgage would t~e impa~red, theinsurance prceeedsahall beapplied
W the aums secured by this MortKage, with thP excrss, if any, paid to &-rrovver. tf the F'roperty is abandoned by Borrower, or if Eiorrower faile Lo
rexpond to l.ender within :lf/ days from the d:ite not~cr is mailPCf by I,ender tu li~~rrower that thr insurance camer offers to settle A claim for
inaurance benefitis. I.ender is authorized tc, coll~vt and ~pply the insuran~r pmceeds at I.ender'a optinn either to restoration or repair of the
Pmperty or the euma aecured by thir+ MortKaqe.
Unlesa Lender and f3orruwer otherwise aKrer ~n wntinK, any such applicalion uf pmceeds W principal ehall not extend or postpone thedue
date of the monthly insts~llmentx referrrd G~ in paraKraphs 1 and'L F~ereotor change the amount of auch inatallmente. If under paragraph 18
hereot the Peoperty is acquired by Lender, ali nght, title and intereat of Rorruwer in and to any insurance policies and in and to the proceeda
thereot reaulting from damage to Property prior to the uale ur acyu~sition shall pas.s to (tnder to the extent of the aume secured by this
Mortgage immediately prior to auch sale or acquisition. ~
6. Preservation end MaintenanceotProperty; l,enxehold~; ('ondominums; Planned IJnit Developmenta. Borrowerahall keep
the Property in good repair and ahall not cummit waxte or permit impairme~t or deterioration of the Property and ahall comply with the
proviaiona of any lease if thie MortKage ia on a leasehold. If this Mortgage ie on a unit in a mndominium or a planned unit development,
t3orrower ahall perform all of f3o~ruwer's obliRatinns under the declaratiun or covenanta ~reat~nKor governing the condominium or planned
unit development, the by-laws and regulationA uf the condominium ur plannecf unit development, and conetituent documente_ If a
condominium o~ planned unit develupment rider ia e:cruted by Borrower and recurded t~~ether with thie Mortgage, the covenante and
aqreements otauch rider shall be incorporated into and .hall amend and supplement thecovenants and agreementaof this Mortgagea9 if the
nder wern a part hereof.
7_ Protection of Lender'~ 3ecurity. If Borrower faila to perform the oovenants and agreements conteined in this Mortgage, or if any
action or proceeding is commenced which materially affecte Lender s interest in the Property, including, but not limited to, eminent domain,
insolvency, oode entorcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower may make such appearances, disburee euch sums and teke such aMion as is neceasary to protect Lender i interest,
including, but not limited to, diebursement ot reasonable attorney'e fees and entry upon the Property to make repairs. If Lender required
mortgage insurance ae a condition of making the loan secured by thie Mortgage. Borrower shall pay the premiums required to maintain
auch insurance in effect until such time as !he requirement for such insurance terminatea in accordance with Borrower's and Lender'~
written agreement or applicable Law. Borrower shal) pay the amount of all mortgage ineurance premiums in the manner pTOVided under
paragraph 2 hereof.
Any emounfa disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terme of payment, such amounts shell be payable upon
notice trom I.ender to Bormwer requesting payment thereof, and shall bear interest from the date of disbunement at the rate payable from
time to time on outatanding principal under the Note unleee payment of interest at euch rate would be contrary to applicable law, in which
event auch amounte shall bear interest at the higheat rate permissible under applicable lew. Nothing contained in this paragraph T, shall
require Lender to incur any e:penee or take any action hereunder.
B~OK`J~J PACE ~,`3
,
~ ~
",~.t._ ?~~;:_~. _ ... _ _ -. ~~_. ~ __.~..~~