HomeMy WebLinkAbout0805Borrower snd Le~de~ rnvenant a~d s~ree as folbwr
1. Paymeat of Principa{ snd intare~t. Boirmwer shall promptly pay whe~ due the principai of and interest on the indebtedneas
evidenced by the Note, prepayment and late chargea aa peovided in the I~Iote. and the p~incipa! ot end intersat on any ~uture Advancea secund
by thia Mort~a~e.
2. I~td~ torTaues and In~urance. Subject to epplicable law or to a written waive~ by I.ender, Borrower xhell pey to l.ender on the day
monthly installmenta of principal and interest are payab{e under the Note, until the Note is paid in full, e sum lherein "Funds") equal to one
twelRh o[the yearly taxes and asseumente which may attain priority over this Mortgage, and ground rents on -he Pcoperiy, if aoy, plusone~
twelfth of yearly premium installments for hazard ineurance, plua onetwelRh of yea~ly premium instaUmenta tor mortgage ineu~ance, if any.
atl as reawnably estimated initialiy and from time to time by l.ender on the basis of assesamenta and billa and reasunable eHtimatea thereof.
The FLnda shall be held in an institution the deposite or accounts oi which are insared o~ guarapteed by a Federel or State agency
(includin~ I.ender iI Lender ie such an inetitution). Lender ahall apply the Fu~da to pay said taxes, aasessme~ts. ineurance p~emiuma and
grou~d rents. Lender may not charge for w holding and applying the Funds, analyzing said accou~t, or verifying and compiling said
aaseesments and bills, unleaa [~nder pays Bormwcr inteTest on the Runds and appiiceble lew permite l.ender to make auch a charge. Borrower
and Leader ~nay agree in writing at the time of execution of this Mortgage that interest o~ the Funds shal! be paid to Borrowcr, and nnless
such egreement ie made or applicable Iaw requires euch intereat b be paid. Lender shall not be required w pay Borrower any intereet or
earnings on the FLnds. l.ender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credite and debits to the
Funda and the purpose [or which each debit W the Funds was made. The Funds are pledged aa additional eecurity for the sums secured by this
Mortgage.
It the amount of the Funds held by I~ender, together with the future monthly inatallments of Funda payable prior to the due dales of taxes,
asaeeamenta, insurance premiuma and gronnd rents, sha11 excred the amount reyuired w pay said taxes, asaesaments, inaurance premiums
and ground rents as they tall due, such ezcese shaU be, at Borrower'a option, either promptly repaid to Borrower or credited to 8orroweron
monthly inetallmenLs of Funds. If the amount of the Funds held by Lender ahall not be aufficient to pay teaea, seaesaments, iaeurence
premiume and ground rents as they fall due. Borrower shall pay to I.ender any amount ~ecessary to make up the deficiency within 30 days
trom the date notice is mailed by [.ender to Borrower requesting payment thereof.
Upon paymenE in full of all sums secured by thia Mortga~ce, l.ender ahall promptly refund to BoROwer any funds held by Ixnder. lf under
paragraph 18 henotthe Property ia aold o~ the Property is otherwiee acquired by Lender, I.ender ahall apply, no later than immediately prior
to the sale of the Pmperty or ite acquisition by Lender, any F unds held by l.ender at the timP of application aa a credit againat the sums aecured
by this Mortgage.
3. Applicatlod of Payments. Unless applicable law providea otherwiae, all paymenta received by L.ender under the NoLe and
paragrapfis 1 and 2 hereof ahall be applied by Lender firxt in payment of amounts payablt to I.ender by Borrower under paragraph 2 hereof,
then to inteneat payable on the Note, then to the principal of 1he Note, and then to intereat and principal on any Future Advancea.
4. Chargee: Liens. Rorrower shall pay all taxea, assessments and othercharKes, f-nes and impositiuns atCributable ta the Property which
may attain a priority overthis Mortg:~ge, and leasehold p:~ymentsorgr~~und rents, itany, in the manner provided under paragraph 2hereofor,
if not paid in such manner, by Borrower makinq payment, when due, directly to the payee therruf. Rorn~wer shall promptly furnish to I,ender
all noticea of amounts due under this pa~agraph, and in the event l3orrower shall make payment directly, Born~wer shatl promptly furnish to
Lender receipts evidencing such payments. I~rrower shall promptly disch~rgr any lien which has priority over this Murtgage; provided, that
Borrower shal! nut be required todischarge any such lirn so I~~ng as fi~rnrower shall agree in writing to the payment uf theobligatior- secured by
auch lien in a manner acceptable to Ixnder, or sha1) in gaod faith n-ntrst such lien by, ardefend enforcemrnt ofsuch lirn in, legal proceedings
which operate W prevent the enfurcement of thr 6en or fi~rfeiture of the Proprrh or any part the~rof.
5. Hazard tnsurance. Borrow~er shall keep thr impruvements now existing or hereaker erected on the Property insured against losa by
fire, fiazards included within ihe term "extended coveraKe." and such other hazards as I.ender may require and in such amounts and for auch
periods aa Lender may reyuire; pravidcd, that Ixndrr sh:+!! nut rrquire that the amuunt of sunc ~overage exceed that amount of coverage
reyuired to pay the sums serured by this 1~1ortQaKe.
The inaurance carrier provid~nK thr insuranc•E• ~h.+li Fre• i•husrn bp It~~rruw•E~r sub~e~~t tn appruval by I.c-ndrr, pruvided, that such approval
ahall not be unreas~;nably withhrld. All premium~ un ~nwrxn.•~• tx~licir. ~hall t~e p:sid ~n the mannNr providc~l under paraKraph Y firreof or, if
not paid in such manner, bp liorruwer mak~nK p.~ym~•nt, wh~•n dui•. d~rw•th• tu th~• inwrance carrier.
A1i inaurance policies and rnnewals thereof shall be in form accept:~hle G~ I.rnder and shall include a standard mortgage clause in favor of
and in form acceptable to lrnder. (~ender shall have the nKht t+~ huld thP pohci.•s and renewats thereo(, and Aorruwer shall pmmptly furnish to
i~ender all renewal notices and all receipla of paid prem~umr. In the r~•rnt uf lusx, l~orn~wer sha11 give prompt notice to the insurance carrier
and Ixnder. I.ender may make pruot of loa+ if not made promptly by liorruwer.
Unleas Lender and Horrower otherwi~e aKree in wnt~nK. ~nsuranre proceeds shall br upplied to restoration or repair of the Property
damaged, provided euch resWraliun ur repair ic rcnn~~mically [ea~sihle and the srcunty of this :4lortgage ie not thereby impaired. Ii such
reatoration or repair is not economically feasilrlr or if the wrurity of thi4 MurtKage would tre impaired, the insurance proceeda ahall be applied
to the aume aecured by this MortKage. with the exct•ss, if any. paid to f3~~rrower. lf thr E'roperty is abandoned by f3orrower, or if Eiorrower faile to
reapond to Lender within :ill days ftom the date nati~r ~s maile~d by I~endrr to i3nrruwer that the insurance carrier offera to artde a claim for
inaurance benefits, [.ender is authorizrd to co11~Y•t and apply thr msur:~nce pr~kc~rds at [.ender's option either to rextoration ur repair of the
Property or the aume secured by thix MortK~Ke~
Unlees I.ender and Ek-rrower otherwise .iKree in wnUnK, any such application of proceeda to principal aha11 not extend or postpone thedue
dete of the monthly inataltments re[erred v, in paraKr:+phs 1 and'L lsereof or change the amuunt of such inatal)ments. If under paragraph 18
hereof the Property ie acquired by I.e~~der, all right, title and intereAt of Bc,rrc,wer in and to any insurance policiea and in and to the proceeds
thereot reaulting from damage to Property prior to the sale or acyuisition shall paas to I.ender to the extent of the euma secured by thie
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; I~easeholde; Condominums; Planned Unit Developments. Borrower shall keep
the Property in good repair and shall not commit waste or perm~t imp:iirment or drterioratiun of the Property and shall comply with the
proviaione of any lease i[ this Mortgage is on a leasehold. If th~s Mortgage is un a unit in a condominium or a planned unit devetopment,
Horrower shall periorm al! ot Iiorrower's obfigatiuns under the declaratiun or co~~enants crealinKor govemmg the condominium or planned
unit development, lhe by-lawe and re~tulatic,ns ~,f the condominium or planned unit development, and rnnetituent documents. If a
conduminium or planned unit develnpment rider is rxecuted by ~~rrower and rec~rded together with this MoRgage, the rnvenante and
agreementx ot sucfi rider shali t-e incorpe~rated into and ~hall amend and supplemrnt thrcovenants and agreements of this MortgaQe as ilthe
rider were a part hereof.
7. Protection of I.~nder's 3ecurity. it Borrower fails to perfomn the covenante and agreemente contained in this Mortgage, oc if any
action or proceeding is commenced which materially effecte l.ender's interest in the Property, including, but not limited to, eminent domain,
insolvency. code entorcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender i option,upon
notice to Borrower may make such appearances, disburae euch eums and take such actiun aa ia necessery to protect I.indrr'~ intrrert,
including, but not limited to, disbursement ot reasonable attorney's tees and entry upon the Propeety to make repairs. If Lender required
morigage ineurance as e condition of making the losn secured by this Mortgage, Borrower shaU pay the premiums required to maintain
such insurance in etfect until uuch time as the requirement tor such insuranct terminates in accordance with Borrower s end Lender ~
written agreement or applicable Law. Borrower shall pay the amount of all mortgage inaurance premiums in the manner pmvided under
paragraph 2 hereot.
Any amounts disbureed by L.ender pereuant to this paragraph 7, with interest thereon, ehall beeome additional indebtedness of
Borrower secured by thie Mortgage. Unleas Borrovrer and I.ender agree to other terms ot payment, such amounts shell be payable up~n
notice from Lender to Borrower requesting payment thereof, and shall'bear intereat from the date of disbunement at the rate payablt from
timt to time on outstanding principal under the Note unlese payment of intereet at euch rate would be contrary to applicable lew, in which
event such amounts sha{I bear interest at the higheat rate permissible under appiicable law. Nothing contained in thia paragraph 7, shaU
require Lender to incur any expense or take eny eMion hereunder. .
s~~K ~48 PR~~ 805
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