HomeMy WebLinkAbout1561BoROwer u~d Leade~ covenaat and asres u folb~n:
t. Pqrmeat ot Principal u~d Iatere~~ Bore~ower ~hall promptly pay when due the principal of and intere~t on the indebtedncp
evidenoed by the Note. prepayme~t and late char~es u provided in the Note. and the principal of and intere~t on a~y Fl~ture Advance~ ~ecured
by thiu Moet~s~e.
2. I~Lnds !or T~ucea wnd I~~ur~nce. 3ubject to appliceble Iaw or eo a written waive~ by I.ender, Borrower shal l pay to Lmder on the d~y
mo~thly ii-etallments of principal and interest sre payable unde~ the Note. until the Note i~ paid in full. a sum (herein "I~1~rtds") equd b ons
twelRh of the yrarly taze~ and assessments which may attsin prioriey over thu Mortga~e, and ~round rents on the Property, i[any. plw ons
twelRh of yearly premium installments for heaard insurance. plua onetwelEth of yearly premium i~stallmenta for mort~a~e inaurance. iieny.
aU aa reasonably eatimated initially and from time to time by l.ende~ on the basia of aseeumenb and bills and reasonable eatimatea thereof.
'lUe FLnd~ ahall be held ie an institution the depwits or accour-b oi which are iruured or gua~anteed by a Federal or State egency
(ir~cluding I.endee if Leader is ~uch an institution). Lender shall apply the Funds to pay said taxa. assesamenta. insurance premiums and
ground renta. Lender may not cherge fo~ w holdir-~ and applying the Funds, analysing said account~ or verifying and rnmpiling ~sid
awessmenta and bilb. unle~s Lendes pay~ Borrower interest on the Ftinda and applicable law permita I.ender to make such a charge. Borrowa
and Lender mey agree in writin~ at We time oi execution oE this MortQege that intere~t on the fl~nds shall be paid to Bormwer, and unlew
such agreement ie mede or applicable law requires such interest to be paid, Lender shall ~ot be required to pay Bormwer any inte~eat or
earninge on the I~Lnda. Lender shall give to Borrower. without charge. an annual accounting of the Funds ahowing credits and debits to the
Funds and the purpose tor which each debit to the Funds was made.'I~e Fu~ds are pledged as additional security for the sume aecured by thu
Mortgage.
If the amount of the ~nds held by Lender. together with the future monthly instalimenta of Funds payable prior to the due dates oitaues,
aseessmenta, insurance pmniuma and ground rents, shall e:ceed the amount required to pay said taaes, asaesaments, insurance pnmiuau
and ground renta as they fall due, such excess shall be, at Borrower a option, either pmmpdy repaid to Borrower or credited b Borrower on
monthly inetallmenb ot Fl~nda. If the amount of the Funds held by I.ende~ shell not be sufficient W pay texes, asseasmenb, ir-surence
premiums and gmund nnts as they fall due, Borrower ahall pay to I.ender any amount ~ecessery to make up the deficiency within 30 deys
from the date notice is mailed by Lender to Borrower requeating payment thereof.
Upon payment in full of all sume secured by this Mortgage, Lender shall pwmpdy refund to Borrower any tunds held by Lender. If u~der
paragraph 18 henof the Property is aold or the Pmperty ia otherwise acquired by I.ender, Lender shall apply, oo later than immedietely prior
to the sale of the Property or its acquisition by Lender, any Fl~nds held by Le~der at the time of application ae a credit against the eums secured
by this Mortgage.
3. Applieatiop ot Paymenta. Unleas applicable law providea otherwiee, aU paymenta received by I.ender under the Note and
paragraphs 1 and 2 hereot ahall be applied by Lender first in payment of amounta payabie to Lender by Borrower under paragraph 2 hereof.
then to intereat payable on !he Note, then to the principal of the Note, and then to interest and principal on any Future Advanoes.
4. Charges; Liens. Borrower shall pay all taxea, asaessments and other rharges, finea and impositions attributable to the Piroperty which
may attain a priorily over thia Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or,
if nol paid in auch mannet, by Borrower making payment, when due, directly to the payee thereof. Borrower ahall prompUy furniah to I.ender
al! notices of amounts due under this paragraph, and in the event Borrower shail make payment directly. F~orrower ahall promptly fumish b
[.ender receipta evidencing such payments. Borrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that
Borrower shall not be required todischarge any such (ien so lonq as Borrowershall agree in writing to the payment o[theobligationaecured by
such lien in a manner acceptable to Lender, or ahall in Rood faith contest such lien by, or defend enforcement of such lien in, legal proceedings
which operate to prevent the enforcement of the lien o~ [orfeiture of the Property or any part lherru[
5. Hazard 1 naurance. Borrowrer shaU keep the improvementa now existing or hereaRer erected on the Property insured againet loea by
fire, hazards included within the term "extended coverage." and auch other hazards aa i.ender may require end in auch amounte and forsuch
periods ae Lender may require; provided, that I.ende~ ahall not reyuire that the amuunt of auch eoverage exceed that amount of coverage
required to pay the suma secured by this MortRagr.
The insurance carrier pro~ iding the insurance shail be chosen by F3orrower subject tn approval by I.ender, pmvided, that such approval
shall not be unreasonably withheld. Al) premiums on insurance p~~licies shal! be paid in the manner pmvided under paragraph `L hereof ar, if
not paid in such manner, by E3orrower mak~ng payment, when due, dirrctly to the insurance camer.
All insurance policies and renewals thereof shall be in form acceptable to l.ender and shall include a standard mortgage clauae in favorof
And in form acceptable to l.ender. I,ender shall have the right to hold the policiea and renewals thereof, and Borrower ahall promptly furniah to
i.ender all renewal notices and all receipta of paid premiums. In the event of I~~sa, Korruwer ahall give prompt notice to the inaurance carrier
and Lender. Lender may make proof of loss if not made promptly by E3orrower.
Unlees Lender and E3orrower otherwise agree in writing, inaurance proceeds ahall be applied to restoration or repair of the Property
damaged, provided such reatoration or repair is economically feasible and the aecurity of thia Mortgage is not thereby impaired. lf auch
restoration or repair ia not economically feasible or if the serurity of this Mortgage woutd be impaired, the inaurance proceede shall be applied
to the aums aecured hy thia Mortgage, with the exceas, if any, paid to fiorrower. Itlhe Property is abandoned by Borrower, or i[ Borrower feils to
re»pond to Lender within :i0 days from the date not~ce ia maiird by I.ender to Borrower that the inaurance carrier offere to eettle a claim tor
insurance benefita, I.ender is authorized to collect and apply the insurance proceeda at Lender's option either to reatoration or repair of the
Property or the auma eecured by thie Mortgage.
Unleas Lender and Borrower otherwise agree in writing, any such application of proceed$ to principal ahali not extend or postpone thedue
date of the monthly installmente referred to in paragraphs I and 2 hereof or change the amount of such inatallmenta. If under paragraph 18
hereot the Property is acquired by I.ender, all right, title and interest of Bormwer in and to any insurance policiea and in and to the prooeeda
thereot reeulting from damage to Property prior to the sale or acquiaition ahaU pass to Lender to the extent ot the sums aecured by this
Mortgage immediately prior to such sale or acquisition.
6. Preeervation end MeintenanceotProperty; Leaseholde; Condominume; Planned Unit Developments. Borrowerahali keep
the Property in good repair nnd shall not commit waete or permit impairment or deterioration of the Property and ahall comply with the
proviaiona of any leaae if thie Atortgage ia on a leasehold. If this Morigage ia on a unit in a condominium or a planned unit development,
F3orrawer ahall perform all of Eionower'n nbligations under the declaration or covenanla creatinRor govern~ng the condominium or planned
unit development, the bylawa and regulations of the condominium or planned unit development, and conatituent documents. 1[ a
cvndominium or planned unit development rider ia executed by Borrower and recurded togelher with thia Mortgage, the oovenante and
:+greementa of auch rider shaU be incorporated into and shall amend and supplement thecovenants s~nd agreementaof this Mortgageasifthe
rider were a part hereot.
7. Protection of I.eader'~ Security. If Borrower faiis to perform the oovenanta and agreements rnntained in this Mortgage. or iteny
action or proceeding is commenced which meterially affects Lendei s interest in the Property, including, but not limited to, eminent domain.
insolvency, oode enfomtnen~ or arrangements or proceedings involring e bankrupt or decedent. then Lender at Lendrr'~ option,upon
notice to Borrower may make ~uch eppearance~, disburse such snrai and take ~uch action as is ne~easary to proeect Lender'~ intue~t.
including, but not limited to, diebursement of reasonable attorney's [eea and entry upon the Property to make repai». If Lenda required
mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premium~ required to maintaia
euch insurance in ef[ect until such time as the requirement for euch inaurance terminate~ in accordance with Borrower's and Lendd~
written agreement or applicable Law. Borrower ehaU pay the amount ot all mortgage insurance premiums in the manner provided undet
paragraph 2 hereof.
Any amounts disbnrsed by Lender persuant to thir paragraph 7, with interest thereon, shaq become additional indeMedneM of
Borrower secured by this Mortgege. Unless Borrower and Lender agree to other terms of payment, such amounb shall be payable upon
notice trom Lender to Borrower requesting payment thereof. and shall bear interest from the date ot disbursement at the rate peyable irom
time to time on outatanding principal~ under the Note unlas payment of interest at such rate would be contrary to applicable law, in which
event such amounte shall bear interest at the higheat rate permiesible under applicable law. Nothing contaia~+d in this paragraph 7, ~haU
require Lender to incur any expense or take eny action hereunder.
B'1~K•.7~0 fAGE1561 ,!
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