HomeMy WebLinkAbout1026Borrower and L.ende~ rnvenant and aQree as folbwc
l. Payme~t of Pirincipal and Intece~t. Borrower shall pmmpdy pay when due the principal o[ and intereat on the indebtedness
evidenad by the Note, prepeyment and late chuge~ aa pmvided in the Note. and the principal of end interest on a~y Future Advancea secured
by thia Motl~age.
2. F~tnd~ ~or Ta:e~ and Insurance. Subject to applicable lew or to a writte~ waiver by l.ender, Bonower shall pay to l.ender on the day
monthly installmenls of principal and i~tereat are payable ur-der the I~ote, until the Note is paid in full, a sum (herein "F'u~ds") equal to onc
twelRh o[t}it yearly taxes and asseasmenb which may attain priority over this Mortgage, and ground rents on the Property, itany, plu~ one~
twelflh of yearly premium instaUmeate for hazard inaurance, plus onetwelfth of yea~ly premium instaliments for morlgage insurance, if any,
all as reasonably eatimated initially and from tima to time by I.ender oa lhe basia of aaseasments and bills and reaaonable eslimates thereoL
The I~Lnda ahall be held in an in~titution the depwits or accounts of which are inaured or guaranleed by a Rede~el or State agency
(including Lender if Le~der is such a~ uutitution). Le~der ehall apply the Funds to pay said taxes, asaesamenta, insu~ance premiums and
ground rents. Le~der may not charge !or so holdiog and applying the Ftiods, analyziag said account, or verifying and compiling said
aeaessments and bills, unless Lende~ pays BorroweT intereat on the Fu~ds and applicable law pe~mita Lender to make such a charge. Borrower
and I.ender may agree in writing at the titae of execution of thia Morlgege that intereat on the Funds shall be paid to Borrower, end unless
auch agreement is made or applicable law requir~ auch interest to be paid, l.ender shall not be required to pay E3orrower any inte~est or
earnings on the Flinds. Lender shall give to 8orrower, without charge, an annual accounting otthe Funda showing c~edits and debits to the
Funds and the purpose [or which each debit to the Funda wae made. The Funda are pledged as additional eecurity for the eums aecured by this
Mortgage.
If the amount of the ~nds held by Lende~, together with the future monthly inatal lmente of Funda payable prior to the due dates oitaxes,
assessmente, inaurance premiums and ground re~ts, shall e:cred the amount required to pay said taxes, aasesements, insurance premiums
and ground rente as they lall due, such eacess shal! be, at Bo~rower'a option, either prompdy repaid to Borrower or credited to Borrower on
monthly inaeaUmenta of F~nds. I[ the amount ot the F unds held by Lender ehall not be sufficient to pay texes, aeseasments, insurance
premiuma and ground rents as they fall due, Borrower shall pay to Lender any amount neceasary to make up the deficiency within 30 days
frum the date notice is mailed by [.ender to Borrower requeating payment thereof.
Upon payment in full of all suma secured by this Mortgage, Lender ahall promptly refund to Borrowe~ any tunda held by Lender. I[under
paragreph IS hereof the Property ie sold or the Property ia otherwise acquired by l.ende~, l.ender aha11 apply, no later than immediately prior
to the sele of the Property or ita aoquisition by l.ender, any Funda held by I.eoder at the time of applicalion ae a credit againat the aums secured
by thia Mortgage_
3. Applicatioa ot Payments. Unleae applicable law providea otherwiae, all paymenta received by Lender under the Note and
paragraphs l'and 2 hereof shall be applied by Lender first in payment ot amounla payable to l.ender by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the pnncipa) of the Note, and then to intereat and principal on any Future Advancee.
4. Charges; Liene. Borrower shall pay all taxes, assessments and other charges, fines and imposition~ attributable to the Property which
may attain a priority o~ er this Mortgage, and leasehc-Id paymen~s ur gn,und rents, if any, in the manner pruvided under paragraph 2 hereotor,
if not paid in such manner, by Borrower making payment, when due, direi-tly to the payee therc~L I~ormwer shall promptly furniah to Lender
all notices of amounts due under this pa~ragraph, and in the event ~rrower shall make payment directly,l3orrower ahail promptiy furnish to
I.ender receipts evidencing such paymentx Eiorrower shall prompily di~chargr any lien which has priority over tbis MoriKage; provided, that
E3orrower shaU not he required to discharge any such lien tw I~nR a~ R~rrower shall agree in writinR to the payment of the obligation secured by
such lien in a manner acreptable to I.ender. or shall in Ra-d faith cY~ntrst such lien by, ordefend enforc~ment of such lien in, legal p~ocecdings
which operate t<- prnvent the enfurcement of the lien or forfeiture of the Property or any parl thereof.
5. Nazard Insurance. Borr~-w~er shall keep the impn,vementti nuw• eziatinQ or hereafter erected un the Property insured aqainst losa by
fire, hazardx included within the term "extended coveraKe," and such other hazards as I.ender may require and in auch amounts and forsuch
periods as l.ender may reyuire; provided, that (.ender shall not reyuire that the amuunt of auch cuverage excred that amount of coverage
requireci to pay the sums secured by this MoriKaRr.
The insurance carrier pn+~•idinK thr ~nsurane~• sh:~ll IK• ~•husPn In~ Kortuw•er sut-~ect to appro~~al by Ixnder, pro~•~ded, that such approval
shal) not be unrea~mably v-•ithhrid. All premiums on msuranre p~~hr~rs .hall tx~ p:iid ~n the manner pruvideY! undrr paraKraph 'l hereotor, if
not paid in such manner. by~ liorrua•er makm~; p.iymrnt, wht~n due, dirrctly to the insurance carrier.
All insurance policies and mnewaig therrof shall br in form acceptable tn l.rnder and ahall include a standard mortgage clause in favor of
and in lorm acY~eptable to I.ender. Ixnder shall have the nKht tn hutd thr {«~Lcier and renewals thereof, and Korrower shall prompUy furniah to
i.ender all renewal nntices and all receipts of pa~d premiums. In the r~•e~~t of loss, Born,wer shall give prompt notice to the inxurance carrier
and l.ender. I.ender may make proof of loss if not made pmmpth by Korrower.
Unlesa l.ender and Borruwer otherwisr agree in writing. ~nsurancr proceeds shall br applied to resturation or repair of the Property
dama~ed, provided e-uch restoratiun or repair is er-unomically feasible and the serurit~• of this Mortgage ie not thereby impaired. If such
restoration or repair is not economically feasible nr if the secunty of this Mortgage would be impaired, the insurance proeeeda ahall be applied
to the sums secured by thia MurtKaKe, w~th thr excr~a, if any. paid tu Bornrwer. If the Property is abandoned by Borrower, or if F3orrower faila tn
reypond to I.ender with~n :i0 dn~•s from the d~te n~~ticr ~s m.iilyd by l.ender G, Fiorr~-wer that the inaurance camer of[ers to settle a rlaim for
insurance benefits. I~ender is authorizrd tu collrct and apph• the insurance procerds at I.ender'a option either to restoration or rrpair of Q~e
Property or the sums aecured by thie MortKage. ,
Unlese Lender and Borrower otherwise aKrPe in wnt~ng, any such applicat~on of pr«.~eeda to principal ahall not extend or postpone thedue
date of the monthly inatallmentx referred t~- in paraKraphs 1 and 2 hereof or change the amuunt of auch instellmenta. If under paragraph 18
hereof the Property is acquired by l~ender, all right, title and intereat of E3~,rrower in and to any ~nsurance policiea and in and to the proceeda
thereof resultinR from damage to F'roperty prior to the sale or acywsition shall pass to [xnder to the extent of the eums secured by this
Mortgage immediately prior to auch sale or acquis~tion.
6. Preservation and Maintenenceof Property; Leal+eholds; ('ondominums; Planned Unit Developments. Borrowerahalt keep
the Property in guc,d repair and shal! not commit waxte or permit ~mpairment or deterioration of the Property and ahall comply with the
provieions of any leaee if this Mortgage is on a leasehold. It this Mortgage ie on a unit in a condominium or a planned unit development,
Rorrower Bhall perform all of Einrrower'e obligations under thr declaration or covenants crratinQor govem~ng the condominium or planned
un~t development, the by-laws and regulationa of the conduminium ar planned unit development, and conatituent documenta. If a
condominium or planned unit develnpment rider is excruted by f3~,rruwer and recorded together with this Mortgage, the cuvenanta and
:~Qreementx of r;uch rider shall be incorporatrd into and shall amend and supplrment thecovenanls and agreements of this Mortgageas ifthe
rider were a part hereof.
7. Protection of Lender'~ Security. lf Borrower faila to per(orm the oovenants and agreements oontained in this Mortgage, or itany
aMion or proceeding is commenced which matrrially atfecte Lender's interest in the Property, including, but not limited to, eminent domein,
insolvency, c~ode enforcYment, or arrangemenb or proceedinge involving a bankrupt or decedent, then Lender at Lender i option.upon
notice to Bornower mey make such appearances, dieburse euch sums and take such action as u neceesary to protect l.ender'~ intere~i,
including, but not limited to, diabursement of reasonable attorney's (ees and entry upon the Property to make repairs. If I.ender required
mortgage insurance ae a condition of making the loan secured by this Mortgage, &,rrower shall pay the premiumi required to meintain
euch insurance in effeM until euch time as the requirement for such ineurance terminates in accordance with Borrower's and [.endd~
wntten agreement or epplicable Lew. Borrower shall pay the amount of all mortgage insurance premianns in the manner provided undrr
paragraph 2 htreof.
My amounts disbursed by Lender persuant to thi~ paragraph 7, with interest thereon, shall beoome additional indeM,ednew ot
fiorrower secured by this Mortgage. Unleas Borrower and Lender agree to other tern~~ ot payment, such amounts shall be payable upon
notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
time to time on outstanding principal undet the Note unlesa payment of intereat at soch rate would be rnntrary to applicable law, in which
event such amounte shall bear interest at the higheat rate permissible under applicable law. Nothing contained in thu paragraph 7, ~haU
require l.ender to incur any eapense or take any action hereunder.
g~~K348 P~~E102E
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