HomeMy WebLinkAbout0809E3orrowe~ and Lender cove~ent a~d a~rse a~ folbws:
1. Paytaent o[ Piriacipal ^nd Itttere~t. $orrower shall pmmpqy pay when due the principal of and interest on the indebtedness
evidenced by the Note, prepayment and letecharges as provided in the Note. and the principal of and interest on any Future Adva~ces aecured
by thi~ Mortgage.
2. Ftitt~d~ fo~ Taxes a~d lnsureu~ce. Subject to applicable law or ta a writte~ waiver by l.ender, Borrower ehall pay to l.ender on the day
monlhly inatallments oi principal and interest are payable uode~ the Note, until the Note is paid in full, a sum ~he~ein "Fuods") equal to one
tweltth of the yearly taxea and asseaementa which may ettain p~ority uver this Mortgage, and grou~d rents on the Property, itany, plus one
tweltih of yearly premium installments for hazard ineurance, plue onetwelRh ofyearly premium inatallmente for morigage insurnnce, itany,
all aa masonably eatimated initially and firom time to time by l.ender on the basis of asaesamenta and billa and ~easonable e8timatea the~eof.
The ~nds shall be held in ao i~stitutio~ the deposite or accounte of which are ineured or guera~teed by a Federal or State agency
~including l.ender if I.ender is euch an institution). I.ende~ shall apply the Funda to pay eaid taxea, aaaeeamenta, insurence premiuma and
Rround rents. Lender may not charge tor so holdi~g and applying the Funds, a~alyzing aaid account, or verifying and compiling aaid
asaeaeme~ta and bills, unleea L.ender pays Borrowe~ intereat on the Funde and applicable law permita l.ender to make auch a charge. Borrower
~ and I.ender may egree in writing at the time oi e:ecution of this Mortgaqe that interest on the Funds shell be paid b Horrower, and unleas
euch agreement is made or applicable lew requires such intereat to be paid, l.ende~ shell not be requind to pay Borrowe~ any intereat or
earnings on the Funds. l.ender ahall give to Borrower, without charge, an annuul accounting otthe Funde ahowing credita and debits W the
F unds and the purpoee [or which each debit to the F u~da was made. The Funda are pledged as additional security tortheaume aecured by this
Mortgage.
(f the amount o[the Fl~nda held by l.ender, together vvith the future monthly installments of Funds payable prior to the duedatea of taxes,
asseaementa, insurance premiuma and ground renta, ahall excred lhe amouni required to pay said taxes, aeseasmenta, insurance premiums
and grouod rnnts ae they fal) due, auch excesa ahall be, af Bo~TOwer'a option, either promptiy repaid to Borrower or credited to Borrower on
monthly inefsllmenta o[ Fu~de. If the amount of the Funds held by l.ender ahall not be aufficie~t to pay taxee, aeseeamenta, inaurance
premiuma and ground Tenta as they tall due, E3orrower ahall pay to I.ender any amount neceaeary to make up the deficiency within :i0 days
from the date notice is mailed by l.ender to Borrower requesting payment Ihereot.
Upon payment in full of ail suma secured by thia MoirtgaRe, l.ender ahall promptly rctund to Fiorrower any [unds held by l.ender. lf under
paragraph 18 hereof lhe Properiy ia aold or the I'roperty is otherwiae acquired by Lender, l.ender ahall apply, no Iattr than immediately prior
to the aale of the Property or ita acquiailion by I.ender, any Funds held by l.ender at the time of application as a credil againnt the auma secured
by this Mortgage.
3. Application of Payments. Unleea applicable law provides otherwiee, all paymenta received by l.ender under the Note and
paragrapha 1 and 2 hereof ahall be applied by I.ender first in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, and then to intenret and principal on any Future Advancee.
4. Chargee; I.iena. Rorn,wer shall pay al) taxcas, assexsments and other charges, fines and impositiuns attributable to the Property which
may attain a priority over this Mortgage, and leasehuld paymenL4 orKruund rents, if any, in the manner pmvided under paragraph'lhereofor,
if not paid in such mnnner, by Burruwer m~king payment, when due, d~recqy to the payee thereot Rormwershall promptly furniah to I.ender
:ill noticrs of amoun~s duc under this par.igraph, and in the evrnl fiorrower shal) make payment directly, Born~wPr shall promptly furnieh to
I.ender ~eceipts evidencinK such p:~ymrntx. &~rruwer shall prumptly dischargr any lien which has priority over this MortKage; provided, that
fiormwer shall not be reyuired to discharge any such Grn so IonK as li~~rn•wer shaD a~er ~n writinK to the paymrnt of the obliKation secured by
nuch lien in a mannPr acceptable tu Ixnder, or shall in ti«x1 faith ~ti~ntr.r•t ~uch lirn by, urdefend rnfurcement of su~•h li~n in. Ic~al pruceedinge
w•h~ch operate to prevent the enfurcement of the lirn ur forfr~tur~~ uf th~• !'mperty or :my part therruf.
5. Hazard Insurance. Borruw~er sh.ill krc•p thr impruvementx now existing or hereafter erected on the Properly insured aqninat loaa by
fire, hazards included v-ithin the terrn "rxtendrd ~ti,veri~ge." and such uthrr hazards as I.ender may reyuire and in auch amounts and for euch
prricids as Ixoder may reyuirr, provided, th.it Ixndrr shall nut reyu~rr that thr amuunt nf such a»erage excerd that amount of coverage
reyuired to pay the sumti ~ec•urE~! by this 11ortK,K~'
The insurance camrr pro~~~d~nK thP insuran~•.~ sh:iU IN• i•hos~•11 I~\' I{iIAOV-Pf tiUI))~Y'L ~O:ippruval I~y Ixnder, proeidrd, that such appruval
tihall not be unre:-.w~nahh• M Uhhrld All prFm~wns un insuran~•f~ ~«~h~•~r. sh:ill t~r p:ud ~n thr m:~nnrr provl(~tYI Uf11IPf ~araKraph `L herec~f or, if
n~~t paid in such manner, b~• li~~rruwrr mak~nK paymtmt, whrn duf•, d~nY~tlv t-~ thi~ ~nsurance camer
All insurance policicw and renrwals thereof shall br ~n form acceptable d-1.~•ndEr and shall include a standard mortgage clause in favorof
and in form acceptable to I.Pnder. l.rnder xhal) ha~•e the nKht G~ hold the ~~lu•ies and renrwals thereof, and Burtowershall prumptly furnish to
~.rnder all renewal nuticex :+nd aU receipts of p~id premiums. In thP evrut ot luss, li~~rruwer shall Kive prompt notice to the ~nsurance carrier
.+nd l.ender. I.e~der may m,ikr pn,ot of loss if not made promptly bp Ii~~rrovver.
Unless I.ender and fi~~rrower othervvisr aKrer in wnUnK, inxuranc~~ pr~xeeds shall be appl~ed to restoration or repair o[ the E'roperty
damaged, pro~~ded such resbrratiun or repair is eY•unumically fPasiblr and the srcuritp of this Mortqage is not thereby impaired. If auch
rrsGxation or repair is not ecun~~mically feas-ble or if the security ~~f this MortKagewould be impaired, the ineurance ptoceedashal) beapplied
tn the sums aecured by this MnrtKage, v-~th th~• ex~~e.w. ~f .iny, p.nd to Burrower. lf the f'roperty is abandoned by ISorrower, ur if Eiorrower faila to
rewpond to I.ender w~th~n :i0 days frum the d:~tP noUcr ix mailyd by I.rndrr d~ liorruwrr that the inaurance carrier offers to settle a claim (or
insurance benefit~g. I.ender is authunzc~ tu i•u11M•t ~nd apply thr insurance pnx•ercfa at I.ender's aption e~ther to reatoration or repair of the
F'roperty ur the sums eecured by this MurtK%~KP-
Unlesa I.ender and BorroweR atherwise agrt~e• in wntinK.:iny such appl~c•ation of proceeda tn principal shall not extend or postpone thedue
d<ite of the monthly inAtallmenLv refPrreKl tu in par:igraph. 1 and `.~, hereof or change the amount of such inslallmente. If under paragraph 18
hereo( the Property ia acquired by Iknder, all right, title and inlerrst of Borrower in and to any inaurancr policies and in and to the proceeda
therer~f resulting from damaRe to Prnperty prior to the s:~le or acywsition yhall paas tn I.ender to the extent of the some secured by fhie
:~1oRgage immediately prior to such sale or acqu~sition.
5. Preservetion and Maintenance of !'roperty; l,eaxeholdx; ('onduminuma; Planued Unit Developmenta. F3orrowerahall keep
the Property in ga~d repair and shall not commit waxte ur prrmit ~mpairmrnt or deterioration of the Property and shall comply with the
pruv~siona of any lease if this i1lr~rtK.iRe is on a leaseh~-Id. (f this 111orlKaKe is ~rn a unit in a cundominium or a plannrd unit development,
It~~rrower ahall perform all ~-f I~>rruwer's r-bligatiuns under the ~ierlaration or cuvenantx ~•reatinQur Kovem~ng the condominium or planned
unit development, the by-lav-s and reKulationA of the cundominium or planned unit development, and conatituent documents. If a
~~~~ndominium or plannrd unit develupmPnt ridNr ia rxcrutrd by fir~rrowrr and recorded together with thia MoRgage, the rnvenants and
,~Krremrnts of surh rider shall t-e incorporatecl intu and shall :~mend :~nd wpplrment theco~•enan4K and agreements of this MortK<~Keas if the
n~lrr were a part hereof.
7. Proteetion ot Lender's Security. If Borruwer fails w perform the covenante and agreementa contained in thie Mortgage, or it any
ectiun or proceeding is commenced which materially affecte l.ender's interest in the Property, including, but not limited to, eminent domain~
~neolvency, mde enforcement, or arrangemente or proceedinga involvinq a bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower may make such appearancee, dieburse auch eums and take such action as ie necessary to protect Lender's interest,
~ncluding, but not limited to, diebursement of reaaonable attorney'e feee and entry upon the Properiy to make repairs. If Lender required
mortgage ineurance ae a condition of ineking the loen stcured by thia Mortgage, Borrower ehall pay the premiutns required to maintain
euch insurance in effect until euch time as the requirement for euch inxurance terminates in accordance with Borrower a and [.ender ~
written agreemen! or epplicable Law. Borrower ehall pay the amount of all mortgage insurance premiums in lhe manner provided under
paragraph 2 hereof.
Any anwunts dieburoed by I.ender pereuent to this paragraph 7, with •interest thereon, ahall become additiona) indeMedness of
fiorrower secured by this Mortgage. Unless Rorrower and l.ender agrte to other terme oi payment, euch amounts shall be payable upon
notice bom I.ender to Borrower requesting payment lhereot, and ehall bear interest from the date ofdisbursement at the rete payable Erom
time to time on outetanding principal under the Note unlese payment of interest at Ruch rate would be contrary to applicable law, in which
event such amounte ehell bear interest at the highest rate permiasible under applicable law. Nothing contained in this paragraph 7, ahal)
require l.ender to incur any expense or take any aMion hereunder. .
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