HomeMy WebLinkAbout1219Borrower and Lender rnvenant and a~ree ea folbwr
1. Payment ot Priacip~t and Iotecea~ Horrower shall promptly pay when due the principal of a~d interest on the indebtednes~
evideneed by the Note. prepayment and Istecharges aa provided i~ the Note, and the principel of and interest on eny Fl~ture Advances secured
by thiu Mo~a~e.
2. ELnd~ for Tase~ end Insursnce. Subject eo applicable luw or to a written weiver by I.ender, E3orrower ahal l pay to I.ende~ on the day
mo~thly installments of principal and i~tereat are payable under the Note, until the Note ia paid in full, a aum (herein "M unds") equal to oae
twelRh of the yearly taxes and aseeasments which may attain priority over this Mortgege, and ground renta on the Yroperty, itany, plus one
twelfth of yearly premium installme~te tor hasaod insurance, plus onetwelfth ofyea~ly premium installments for mortgage inaurance, if any,
al) aa naw~ably eatimated initiaUy and trom time to tirr~e by [.ender on the basis of asseaements and billa and reaaonable eatimatea thereof.
'11~e P1mda shaU be heW in an institurion the deposits or accounta ot which are inaured or guaranteed by a Federal or State ay~ency
~including Lender it Lender is such an institution). t.ender ehall apply the Fu~da to pay eaid taxea, asaeaemenb, inaurance premiums and
ground rents. Lender may not charge [or so holding and applying the Funda, analyzing eaid account, o~ verifying and compiling said
aseeeamenta and bills. unless Lender pays Bor~owe~ interest on the Flinda and applicable law permits l.ende~ to make such a charge. Borrower
and Lender may agree in writing at the tiane o! execution of thie Mortgage that interest on the Runda shall be paid to E3orrower, and unleas
such egreement is made or applicabk iaw requirea auch interest b be paid, I.ender shall not be required to pey Aorrower any intereat or
eamings on the E~nds. I.ender shall give to Borrowe~, without cherge, an annual accounting of the Funda showing credits and debits to the
Funds and the ptirpose [or which each debit to the Runds was made. The Funda are pledged as additional aecurity fo~ the auma secured by thie
Mortgage.
If the amount of the ~nda held by Lender, together with the future monlhly inatallments of Funda payable prior to the due datea of taxes,
aseeasme~ts, insurance premiume and ground renta, ahall excred the amount required to pay said taxea, asseasments, insy~ance premiuma
and ground rents ae they fap due, euch exceas ahall be, st Borrowei a option, either prompdy erpaid to Borrower or credited to Borrower on
monthly installmenta of ~nds. If the amount of the F unds held by I.ender shall not be eufficient to pay taxes, asseaementa, inaurance
premiums and ground rents as they tall due, Borrower ahall pay to l.ender any amount neceaeary to make up the deficiency within :30 days
from the date notice is mailed by L.ender to E3orrower requeating payment the~eof.
Upon payment i~ full otall euma secured by this Mortg~e, I~ender ahall promptly refund to Boerower any funds held by l.ender. lf under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I.endec, l.ender ahall apply, no later than immediately prior
to the eale of the Propecty or ita acquisition by l.ender, any Fl~nds held by I.ender at the time of application as a credit against the aums eecured
by this Mortgage.
3. Applieation ot Payments. Ualeas applicable law providea otherwiae, all paymente received by I.ender under the Note and
peragraphs 1 and 2 hereof shal! be applied by Lender firxt in payment of amounts payable to l.ender by E3orrower under paragraph 2 hereof,
then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances.
4. Charges; Liena. Borrowershall pay all taxes, sissesxmenis and otherrharges, fines:ind impositions attributable to the Property which
may attain a priority over this Mort~cage, and leasehold payments or ground ren~s, if any, in the manner pruvided under paraqraph 2 hereof or,
if not paid in such manner, by E3orrower making payment, when due, direclly to the payee therer-L l3orrowershall promptly furnish to l.ender
all notices of amounts due under this para~aph, and in the event E3orruw~er shall make payment directly, Bormwer shall promptly furnish b
Ixnder receipts evidencing such payments. Rorruwrr xhall promptly discharKr any lien which has priority over this MortKage; provided, that
E3orrower shall not be required todischarge any such lien so tunQ :~s &rrrower shall agree in writinK to thr p.-yment of theobliKation secnred by
such lien in a manner acceptable to I.ender, or sh:~ll in ga~d f:~ith cY~nt~wt such lien by, or defend e~forcrment uf such lien in, legal proceedings
which operate to prevent the enforcement of the lien ~~r forfeiture uf th~ Pro~Crty or :~ny part therev,C ~
5_ Hazard Inaurance. Borro~ver shall keep the impmvemen4: now existinK nr hereafter erected on the Property insured against lose by
fire, hazards included within the term "extended coveraKe," and such other hazards as Ixnder may require and in such amounts and forsuch
periods as I.ender may require: provided, that l.ender shall not reyuire that the amount ot such cuverage exceed that amuunt of coverage
required to pay the sums secured by this MortgaKe.
The insurance carrier providinK the insurance sh.Jl tM chuu~n In• Ii~~rruw•rr subj~~-t to approv.il by (.ender; pnrvidrd, that such .~pproval
shall not be unreasonably withheld. Al) pmmiums un insurani•e• µ,lic•ies shall !K• p:~id in th~• m:~nn~•r proridrd under paruKraph 2 hermf or, if
not paid in such manner, by &-rrower makinK paymc•nt, w~h~•n du~~, din~•tl~• t~~ the insuranee carri~•r.
All inaurance policiea and rnnewals thereof shall be in form accept:~ble G- I.ender ~nd shaU include a atandard mortRage clause in favorof
and in form acceptable to [.ender. I.ender shall have the riKht G~ hold thP policies and renewals thereof, and Korrowershall promptly furnish to
~.ender all renewal notices and all receipts of paid premiums. In the event of loss, liorn~wer shs~ll Kive prompt notice tn the insurance carrier
and Lender. I.ender may make proof of los.q it not made prompdy by Fi~irrower.
Unleas I.ender and Borrower othervrise aKree in ~rritinK, insuranm proceeds shall he applied to restoration ot repair of the Property
damaged, provided auch restoralion or repair is econumically feasible and the security c-f this Mortgage ix not thereby impaired_ If such
reatoration or repair is not economically fcasihle or if the security uf this MorlgaKe would t-e impaired, the insurance proceeda ahall beapplied
to the auma secured by this MortRage, with thr exeess, if any, paid to fi~~rrow er. If the F'roperty is abandnned by E3orrower, or if Borrower fai18 to
respond to Lender within 30 days from the date nvtice iw mailyd by 1~ender d~ Eiorruwer that the insurance carrier offPre to settle a claim [or
inaurance benefita, l.ender is authorized t~~ collcct ~nd apply the insur:ince prnccvYls at l.ender's option either to resto~ation or repair of the
Pmperty or the auma eecured by this MortgaKe.
Unlese Lender and E3orrower otherwise agree in writing, any such applicati~-n of proceeds to principal shaU not extend or postpone thedue
date of the monthly inatallments referred t~i in paraKraphs I and t hereof or change the amuunt o[auch installments. If under paragraph 18
hereof the'Property ia acquired by l.ender, all right, title and interest uf liorrower in and t~~ any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale or acqwsiti~,n shall pass to I.ender to the extent of the suma secured by this
Mortgage immediately prior to auch sale or acquiaition.
6. Preeervation and Maintenance of Property; l.caseholds; Condominuma; Planned Unit Developmente. RurrowerahaU keep
the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the
provisiona of any lease if this Nortgage is on a leaxchold. If this MnRK:iKe is ~~n a unit in a n~ndominium or a planned unit development,
E3orrower shall perform all of Borrower'A obligations under the declar:~tion or covenantx ~~n•atinKor govermng the condominium or planned
unil development, the by-laws and reRulations of the cond~,minium or planned unit development, and constituent documente. If a
condominium or planned unit development rider is executed by &,rn-wer and recordecf together with this ~lortgage, the oovenante and
agreements of such rider shall be incurporated into and sh:ill amend and ~upplement the covenan~4 and agreements of thia Mortgage as if the
rider were a part hereof.
?. Protection ot Lender'e Security. If f3ormwer faila to perform the rnvenante and agreemente rnntained in this Mottgage, ar if any
aMion or proceeding is commenced which materially affecte Lender'e interest in the Property, including, but not limited to, eminent domain,
ineolvency, oode enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then [.ender at Lender's option,upon
notice to Borrower may make euch appearances, dieburee euch aume and take auch action as ie necessary to protect Lendei s interest,
including, but not limited to, dieburoement ot reaeonable attorneyb feee and entry upon the Property to make repaira. If Lenda ~equired
mortgage ineurance ae a condition of making the loan aecured by this Mortgage, Borrower shall pay the premiums required to maintain
such insurance in effect until euch time se the requirement for euch ineurance terminatee in accordance with Borrower'a and Lender's
written agreement or applicable L~w. Borrower ahall pay the amount o[ all mortqnge inaurance pmmiums in the man~er provided under
paragraph 2 hereof.
Any emounta diebursed by Lender pereuant to thie paragraph 7, with interest thereon, ehall become additional indebtedness of
Borrower secured by thie Mortgage. Unleae Borrower and Lender agree to other terme of payment, auch amounte ehall be payable upon
notice from Lender to Borrower requeeting payment thereot, and ahall bear interest fn-m the date of diebureement at the rate payable from
time to time on outatanding principal under the Note unlesa payment of intereet at such rate would be contrary to epplicable law, in which
event eueh amounte ehall bear interest at the higheat rate permiaeible under applicable law. Nothing contained in thia paragraph 7, shall
require I.ender to incur any ezpenae or take any action hereunder. .
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