HomeMy WebLinkAbout1533Borrower aad Lender oovena~t and ~~re~ ~a folbwn:
1. Paymeat ot Princip~l aad latere~t. Borrower ~haU prompdy p~-y when due the principal ot and intenat on ehe indebted~eas
evidenced by the Note. prepayment snd late cha~es aa provided in the Note, and the principai otand intereat on any Future Advapces ~ecured
by thiu Mort~a~e.
2. Ptittd~ [or Ta~ce~ and Ia~uranoe. 3ubject to applicable law or to a written waiver by Lender. BoROwer ahall pay to l.ender on the day
monthly inatall~e~ts of principal and inteteat are payable unda the Note. until the Note is paid in full, a sum (he~in "Funds'~ equal to one
twelRh of the yearly taxes and asses~ment~ which may attain priority over thia Mortga~e, and ~ound rents on the Property. itany. plw one~
twelRh of yeul y premium irutallments for hazard insurance, plw onetwelRh otyearly pnmium installments fo~ mort~a~e insurance, i[any.
all as reaaonably estimated initially and from time to time by [.ender on the basis ot asseumenta and bilb and reaao~able estimatea thereot.
The ~nds ahall be held in an institution the deposits or accounts of which are inaured or guaranteed by a Federal or Stete a~ency
(including Lender if Le~der is such an inatitution). [.ender shall apply the Funds b pay said taxes. askaaments. insurance premium~ and
ground rents. Lender msy not charQe for w hoWing and applying the Fl~nds, analy~n~ asid aecounR or verifyina and compilins said
aasessmenfa and bilis, unleas Lender pay~ Bort~ower intenat oa the ~nds and applicable law permib Lendet to make ~uch a charge. Borrowa
and l.ender may agree in wrritin~ at the time of executio~ of thu Mo~age that interest on the Runds shall be paid to Borrower, and unlas
such agreeme~t is made or applicable law requires such interat to be paid, Lender shall not be requirsd to pay Barrower any intereat or
earnings on the Fltt~d~. Lender ~hall give to Borrower, without charge, an annual aca,unting o[the Funds ahowi~g credits and dcbits to the
Funds and the purpwe for which each debit to the ~nds was made.'R~e Funds are pled~ed aa additional security fo~ theauau secured by thia
Mortgage.
If the amount of the F1nds held by Lender. together with the future monthly installmenta otFunds payable prior to the due dates olt~ea,
aese~sme~ta. insurance premiums and gmund rents, shaU euczed the amount required to pay said taxa, esseasments, insuranoe premiums
and ground rents as they fall due. such exoeas ahaU be. at Bo~tower'a option, either pmmptly repeid to Borrower or credited to Borrowa on
monthly inatallments oi ~nds. It the amount o! lhe Funds held by Lender shall not be ~ufficient to pay taues, asseas~nents, insurance
premiums and ground nnts as they tall due, Borrower shall pay to Lender any amount necessary W make up the deficiency within 30days
from the date notice is mailed by Lender to Borrower requeating payment thereoL
Upon payment in ful! of all sums aecured by thia Mortgage, Lender shall prompUy refund to Borrower any funds heW by Lender. If under
paregraph 18 hereof the Pmperty is sold or the Properiy is otherwise acquired by Lender, Lender shall apply, no later than immediately prior
to the sale of the Property or ite aoquisition by Le~de~, any ~nda held by l.ender at the time of epplication as a credit against the sume aeture~d
by thia Mortgage. . ~
3. Application ot Paymeab. Unieas applicable law provides otherwise, a11 payments received by L.ender under the Note and
paragraphs i and 2 hereoi ehall be applied by l.ender fint in payment o[amounta payable to Lender by Borrower under para~raph 2 hereof,
then to interest payable on the Note, then to the principal ot the Note, and then to intereat and principai on any Future Advances.
4. Charges; Llens. Borrower ahall pay all taxea, asseasments and other chargea, fines and impositions atiributable to the Nroperty which
may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph `l hereof or,
if not paid in such manner, by Borrower making payment, when due, directly to the payee lhereoL Korrower shall promptly fumiah to Lender
all notices of amounts due under lhis paragraph, and in the event E3orrower shali make payment directly, E~rn,we~ shall promplly fumish to
I xnder receipts evidencing such payments, E3orrower ahall promptly discharge any lien which has priurity over this Mortgage: provided, that
Borrower shall not be required to discharge any auch lien so long as F~rrower shall agree in writing to the payment of theobligalion secured by
auch lien in a manner acceptable to l.ender, or shall in good faith cuntest such lien by, ordefend enforcement of such lien in, legal proceedings
which operate to prevent the enlo~cement o[ the lien or forfeiture of the F'~perty or uny part thereof.
~ 5. Hazard Inaurance. E3orrowier shall keep the improvementa nuw exiating or henafter erected on the Pmperty insu~ed againat lase by
fire, hazards inciuded within the term "extended coverage," and such other hazards as I.ender may require and io auch amounts and forauch
periods aa Lender may require: provided, that Lender shall not reyuire that the amount of auch coveraqe e:ceed that amount of coverage
reyuired to pay the sums secured by this MurtRage. .
The insuranrn carrier providinR the insuranm shall t~e chosen by Korrower subject to approval by I.ender; providcrl, that such appruval
hhall not be unreas„nably withheld. Al) premiums on insurance policirs shaU be paid in the manner prov~ded under paraRraph 2 hereof or, if
not paid in such manner, by f;orrnwer making payment, when due, directly tn the insurance carrier
All iosurance policies and renewals thereo[ahall be in form acceptable to irnder and ahall include a standard mortgageclause in favor of
and in form acceptable to Lender. I.ender shall have the right to hold the policiea and renewale thereof, and &-rrowerahall promptly fumish to
~.ender all renewa! noticea and all receipta df paid premiuma. In the event of losa, Burruwer ehall give prompt notice to t6e inaurance carrier
and t.ender. Lender may make proof of loas if not made promptly by Eiorrower.
Unleae [.ender and E3orrower othervrise agree in writing, insurance proceeds shail be applied to reatoration or repair of the Property
damaged, provided auch restoration or repair is economically feasible and the serurity of this Mortgage is not thereby impaired_ If snch
reatoration or repair is not econumically feasible or if the security of this MortRage would be impaired, the inaurance proceeda ahall beapplied
tn the auma eecured by this Mortgage, with the excess, if any, paid W Borrower. [f the Property is abandoned by Borrower, or if Borrower faila to
reapond to I.ender within :i0 daye frum the date notice is mailed by I~ender to Fiorrower that the inaurance carrier offero to aetde a claim for
~nsurence benefits, t.ender is authorized to collect and apply the insurance proceeda at [.ender's option either to reatoration or repair of the
Froperty or the suma eecured by this Mortgage.
Unleea Lender and Borrower otherwiae agree in writing, any auch application of proceeds to principal ahall not e~ctend or postpone thedue
date of the monthly installmenta re(erred to in par~graphs 1 and 2 tiereo[or change the amount of auch inatallments. lf under paragraph IS
hereof the Property is acquired hy I.endvr, all right, title and interest of Eiorrower in and to any insurance policiea and in and to the proceeds
thereof reaulting from damage to Property prior to the sale or acyu~sition shall paaa to Lender to the extent ot the suma aecnred by this
hlortgage immediately prior to such eale or acquisition.
6. Preservation and Maintenance of Property: Leareholds; Condominums; Planned Unit Developments. Borrowershall keep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahal) comply with the
proviaione of any leaae if thie Mortqage is on a leasehold. I! thia MortgaRe ia on a unit in a.rnndominium or a planned unit development,
Rr-rrower ehall pe`torm all of I;orrower e obligationa under the declaration or cuvenants creatinRor govern~ng the condominium or planned
unit development, the bylaws and requlations ot the condominium or planned unil der-elopment, and conatituent documenta_ If a
ronduminium or plannecf unit development rider ia executed by Borrower and recorded together with th~a Mortgage, the oovenants and
agreementa of spch rider ahall be incorporated iqto and shall amrnd and supplement thecovenants and agreementautthia Mortgageasifthe
rider were a pa~rt herevf.
7. Protection ot Lender's 3ecurity. If Borrower fails to prrform the oovenants and agreemenb cantained in thu Mortga~e, or if any
action or proceeding is commenced which materially aftects Lender's interest in the PropMy, including, but not limited to, eminent domain,
insolvency, oode enforcement, or arrangements or proceedings involving a bankrupt or deoedea~ then Lender at [.ender'~ option,npon
notice to Borrower may make such appearance~, disburse such sums and talce ~uch action eu ia neoe~sary to proteet Lender ~ iatere~t,
including, but not limited to, disbunement of reasonable attorney's tees and enpy upon the Property to make repain. It Lender reqnised
mortgage insurance as a condition of making the loan secured by thia Mortgage, Borrower shall pay the premiuma required to maintaiu
auch insurance in eftect until such time as the requirement for such ineuranee terminata in accordence with Borrower i and Lendd~
written agreement or applicable Lew. Borrower ehal) pay the amount of all mortgage ineurance premiunu in the manner provided unde~
paragraph 2 hereof.
Any amounts disbursed by Lender persuent to this paragreph 7, with interest thereon, shell become additional indebtednep ot
Borrower secured by thie Mortgege. Unless Borrower and Lender agree to other terma oE peymmt, ~uch amount~ ~haU be payabk npon
notice from Lender to Rorrower requesting payment thereot, and ~hall bear interest from the date of d'ubunement st the rate psyabk [mm
time to time on outatanding principel under the Note unlese priyment of interest at such iate would be rnntrary to applicabk law, in which
event auch amounts shal) bear intereat at the higheat rate permisaible under applicable law. Nothing wntained ia thy paragraph T, ihall
require I.ender to incur any e:pense or take any action hereunder.
8~OK348 PA~E1533
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