HomeMy WebLinkAbout08178orrower a~d L.ender rovenant and a~c~e eu tolbws:
1. P~ytae~t •of FMncipal and Interest. Borrower shall promptly pay when due the principal o! and interest oo the indebtedness
evidenced by the Nots. prepayme~t and late charges aa provided i~ the Note, and the principal of and i~tereet on any Future Advancea securod
by this Mortgage. '
2. Ftinds for9'axes a~d Insurance. Subject b applicable law or to a written waiver by I.ende~, BoROwerahall pay to l.enderon lheday
mo~thly inetallmenes otprincipal artd i~terest are payable under the Note, until the Note ie paid in full, a aum (herein "F unds") equal lo one
twelRh o[ the yearly taxes and asseaemeob which may attain priority over tfiia Mortgage, and ground reota on the P~operly, if any, plus one
tweltth of yearly premium inatallments for hazard ineurance, plus onetwelhh of yearly premium i~atalimenta [or mortgage insurance, ~f any,
all ae reaaonably eatimated initially and from time to time by I.ender on the basis otasaesementa and billa and reasonable estimatea thereot.
'll~e Fl~nds shall be fieid in an inditution the deposits or accounta of which are inaured or guaranteed by e Federal or State agency
(i~cluding Lender it l.ender is such an institution). l.ender ahall apply thc Funds to pay said taxee, asaessments, inaurance premiuma and
ground rents. l.ender may not charge for so holding and applying the Funde, anelyzi~g said account, or veri[yi~g and compiliog said
adseesmenes and bills, unleas I.ender pays Borrowe~ intrreat on the Funds and applicable law permita Lender to make euch a charge. Borrower
and l.ender may agree in writing at the fime of execution of this Mortgage that interest on the Funds ahall be paid to E3orrower, and unless
such agreement ia made or applicable law requires such interest to be paid, l.ender shall not be required to pay Borrower any inteteet or
earninge on the Funds. l.e~der shall give to Borrower, without charge, an annual accounting of the F unda ehowing credita and debita to the
Funds and tfie purpose for which each debil to the Funda was made. The Funds are pledged as additional eecurity for the aums eecured by this
Mortgage.
[f the amount of the F~nds held by l.ender, together with the futum monthly inatalime~ts of Funda payable prior to the duedates ottaxea,
aseeasmenta, insurance premiume and ground rents, shall excred the amount required W pay said texea, assessmenta, inaurance premiums
and ground rents as they fali due, anch exceas ahall be, at 8oirower n option, either pmmptly repaid W Borrower or credited to Borrower on
monthly inatallme~ts of Ftinda. If the amount of the Funda held by Lender ahatl not be aufficient to pay taxea, asseasmenta, inaurance
premiums and ground renta aa they fall due, Borrower shall pay to l.ender any amount ~eceseary to make up the deficiency within 30 daya
from tfie date notice ia maiied by l.ender to Borrower requesting payment thereot.
Upon payment in full of all aums aecured by this Morigage, ixnder aha11 promptly refund to Borrower any [unda held by Lender_ If under
paragraph 18 hereof the Property ie sold or the Property is otherwiseacquired by l.ender, [.ender ahall apply, no later than immediately prior
to the sale of,the Property or ita acquiaition by Lender, any Funds held by l.ender at the time of application ae a credit against the auma secured
by this Morigage.
3. Applicetion ot Payments. Unlesa applicable law provides otherwise, all paymenta received by Lender under the Note and
peragrapha 1 and 2 hereof shall be applied by Lender firxt in payment of amounts payable to Lender by Borrower under paragraph 2 hereof,
then b interest payable on the Note, then to the principal ot the Nute, nnd then to intereat and principal on any Future Advancea.
4. C6argea; Liens. t3orrower sha11 pay aU taxee.:+ssessmrnts and uther charKes, fines and impusitiuns attributable to the I'roperty which
may attain a priority over this Mortkage, und (easehc~ld payments ur Kruund rents, if any, in the manner provided under paragraph 2hereof or,
if not paid in such mnnner, by Rorrower making payment, when due, directly to the payee thereof. Borruwershall promptly furnishto I.ender
ali notices of amounts due under this paragraph, and in the event Borruwer shall make payment direcdy, Korn,wer shall promptly furnieh to
I,ender receipts evidencing such pa~ ments. Ik-rrower shal{ prumptly diseharKr any {ien which fias priurity ovrr this Morigage; provided, thal
Eiorrower shall not he reyuired tu discharge any such lien so IonK .is Rorrower shall a~Cree in writinK to the payment nf the obliKxliun secured by
such lieh in a manner ameptable to lxnder, or shall in RcN~tf faith cuntc~st such lien-by, ordefPnd enforcement ofsuch lien in, leKal proceedings
which operate to prevent the enforcement uf the lien or forfeiture u( the Property or any part therer~f.
5. Hazard Insurance. Borrower shall keep the improvernents now existinK or hereafter erected un the Property insured againat loss by
fire, hazards includeci within the term "extrnded coveraKe," and such other hazards as I.ender may require and in such amounts and forauch
periods as l.ender may reyuirr; provided, that Ixndrr shall nut reyuire that the amount of such cnveraKe exceed that amuunt of coverage
required to pay the sums secured fiy this A1ortKage. -
7'he insurance camrr providinK thr ~nsur:~nc-~~ shall Ix• ~•h~~sf•n b~~ konow~r sub~ect to :~ppruval bY I.rnder, pru~•idecl, th:~l such approval
sha{I not be unrcas~~nahly withhrld. All premium~ un msuran~~• ~~li~•ir~ tih:~ll t-r p:~~d ~n the m.~nn~~r pru~•idcrl undt•r p:~r.+Kruph l hereof or, if
not paid in such mannrr, b~• Fiorruw•rr maki~K p:s~~mrnt, whrn due, dinK•th' ti~ thc ~n~urancr carr~er. '
All insurance policies and renewals thereo[shall be in form acceptable tn I.rnder and shall include a standf~rd mortgage clause in favorof
and in form acceptable tn I,ender. I.ender shall havethe nKht b~ huld the pulic~es ~nd renew•als thereof, and Borrov-ershall prompdy fumish to
~.er-der all renevrral notices and all receipt4 of paid premiums. 1n the eve~~t of ioss, iiorruwer shaU g~ve prompt notice to the insurance carrier
and I.ender. l.ender may make prcwf of loss if nut made prompUy by Kc~rrowe~.
Unless l.ender and Rorrower otherwise agrrr in wntinK. insurance proceeds shall be applied to restoration orrepair of the Property
damagrd, provided such restoratiun ur repair is ec~mumically feasible and the secunty of this Mortgage is not thereby impaired. If such
restoration o~ ~epair is ncd economically [eastible or ~~ the secusity of tfi+s Mortgage vrou{d be impaired, the insurance procee~ds shall be applied
to the snmssecured by this 41ortKaRe, w~th thr excrss, if any, paid to ~rrrower. lf the PropeRy is abandoned by Borrower,or if E3orrower fails to
reapond to l.ender within :1(1 days frum the date nutire is mailrc! by I~ender w B~.rrower that !he insurance carrier ofters to settle a claim for
insurance benefita. t~ender is authonzed to collect and apply the insurance pn-cetda at I.ender's option either to restoration or repair of the
Property or the aums aecured by this MortKage.
Unlesa [.ender and Rorruwer otherwise agree in wnt~nK, any such ap~lication otpmceeda W principal ahall not extend or poatpone thedue
date ot the mnnthly installments referred tn in paraKraphs 1:ind'l her~of or change the amount of auch inatallments. If under paragraph 18
here~f the Property is acquired h~ lxnder, a{I right, title and interest of Kurrnwer in and to any insurance policies and in and to the proceeds
thereof reaulting from damage to Pmperty prior to the saie or acyu~sition shall pass to l.ender to the extent of the suma secured by thia
Mortgage immediately prior to such sale or acquisiUon.
6. Preservation and Naintenance of Property: lxaxeholds: Condominums; Planned Unit Developmente. E3orrowerahall keep
the Property in R~x~d repair and shall aot commit waste or permi! ~mpairment nr deterioration of the Properiy and shall compiy with the
proviaione ot any lease if this MortKage is on a leasrhold. If this 61ortKaKe ix on a unit in a condominium or a planned unit development,
Borrower ehall perfurm all nt F~rrower a obliRations under the declaration or covenants cre~t~nQor governing the condominium or planned
unit development, the bylav-a and re~en{ati~ns of the condominium or planned unit development, and conatituent documentn. If a
conduminium or p'lannrd unit development rider is exerutcrl by &~rrower and recorded togethe~ vrith this Mortgage, the covenante and
agrerments ~-f such rider shaU t-e incorporated intn and .r•hall amend and supplrment the co~ enants and a~treements uf this Mort~age as i[the
nder were a part hereof.
~T. Protection of Lender's 3ecurity. If Borrower isils to perform tiie covenante and agreements contained in this Morigage, or if any
action or proceeding ie commenced which materially affects I.ender'e interest in the Property, inciuding, but not limited W, eminent domain,
ineolvency, aode enforcement, or arrangements or proceedinge involving a bankrupt or decedent, then Lender at [.ender's option,apon
notice W E3orrower may meke euch appearancee, disburee such eums and take such action as ia necesaary to protect Lender's interest,
including, but not limited to, disbursement of reaaonable attorney's lees and entry upon the Property to make repairs. !f [xnder required
rnortgage insurance ae a rnndition of making the loan secured by thia Mortgage, Borrower ahall pay the premiume required to maintain
auch ineurance in effect until euch time as the requirement for such ineurance terminatea in accordance with Borrower e and Lendels
written agTeement or applicable Law. Botrower sha11 pay tfie amount of all mortgage ineurance premiuma in the manntr provided under
paragraph 2 hereof.
Any amounte diebureed by I.ender pereuant to thie paragraph 7, with intereet thereon, ahaU become additional indebtedness of
Horrower secured by this Mortgege. Unleee Horrower and Lender agree to other terma of payment, euch emounts shall be payable upon
notice from Lender to Bornower requesting payment thereo(, end ahall bear intereat from the date of diebursement at the rate payabie from
time w time on outatanding principal under the Note unleee payment of intereat at auch rate would be contrary to epplicable law, in which
event euch amounte ehall bear intereat at the higheat rate permiseible under applicable law. Nothing contained in this paragraph 7, shall
require [.ender to incuT any expenee or take any action hercunder.
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