HomeMy WebLinkAbout1565BorrowK and Lender oov~aut and a~ u folbwr
1. Pwyment o! Principal w~d Iatereat. Bormwer ~haU pmmptly p~y when due the principal oi and iatend on the i~debtednew
~widenad by the Note. psepayment and late ehu`e~ aa provided in the Note. ~nd the principal of and interest o~ any Ftiture Advance~ aecured
by thiu Moct~a~e.
2. I~Lnd~ torTues aed in~urance. 3ubject to applicable Iaw or to e written waiver by Lender, Borrowershall pay to Lenderon theday
monthly irutallme~b o[ pri~cipal and interat an paysble uoder the Note, until the Not~ is peid in full. a aum (herein "I~1nda") equal to one
twelfth oi the yearly taxes and a~sersmenfa which may attain pdority ove~ thu Mo~e~e. and grou~d rents on the Property, itany, plw onc
twelfth of yearly premium i~atallme~ts tor hazard ir~surance, plua onrtwelRh of yearly premium installmen4 [w mort~age insurance, if any,
all as nasonably estimated initially and fr~otn time to time by Lender on the basia of asseaamenta and bills and reasoneble estimates thereof.
'l~e Fl~~ds shall be held in an in~titution the deposita or accounta of which are iniured or guaranteed by e Federal or State agency
lincluding Lenda if I.ender u such an inatitution). Lender shall apply the F~nds to pay said ta:ea, aaaasmenb, insurance premiuma and
ground rents. Lender may not char~e for w holding and applying the Flinds, eu~alysing said accoun~ or verifying and compiling eaid
aaaeesments and bilb; unlaa Lender pays Borrower interest on the Ftindi and applicable law permits Le~der to make ~uch a charge. Bo~rower
and La~du may aQree in writing at the time o! e:ecution of this Mortgage that interest on the ~nda ahail be paid to BoROwer. and unlws
auch agreement is made or applicable law requins such int~ernt b be paid, Lender ~hall not be required to pay Borrower any interat or
earnings on the PLnd~. I.ender ~hall give to Borrower, without chuge, an annual aecounting olthe Fand~ showing credits and debib to the
Funds and the purpose for which each debit to the Funds was made. The Fu~ds are pledged as additio~al security tor the sums ~ccured by thia
Mortgage.
If the amount of the ~nds held by Lender, together with the future monthly instaliments of Funds payable prior to the duedate~ ott~es.
eseessments, insura~ce pnmiums and ground rents. ahall e:e~ed the amount required •to pey said ta:es. asseasments, iasurance premiuma
and ground renta as they fall due. such e:ce~s ehall be, at Bonower a option, either pmmptly repaid eo Borrower or credited to Borrower on
monthly instaliments of i~Lnds. If the amount o[ tlie Funds held by Lender shall not be ~ufficient to pay ta:ea, asseesments, insurance
prrmiums and ground ~enta as they fall due, Borrower ahall pay to Lender any amount aeceasary to make up the deficiency within 30 days
from the date notice is mailed by Lender io Borrower requesting payment thereof.
Upon payment in fuU of all sume eecured by this Mortgage, Lender shal) promptly refund to Borrower any funds held by Lender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender; Lender shall apply, no tater than immediately prior
to the sak of the Property or its aoquisition by Lende~, any Ftinds held by Lender at the time of application as a credit againat the sums secund
by thia Mortgage.
3. Application ot Paymeats. Unlesa applicable law provides otherwise, all paymenta received by Le~der unde~ the Note and
paragraphs 1 and 2 hereof shall be applied by [.ende~ first in payment otamounta payable to Lender by Borrower under paragraph 2 hereof,
then to interest payabie on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances.
~. Charges; Lieas. Borrowerahall pay all taxea, asaessments and othercharRes, fines and impositions attributable to the Propetty which
may attain a priority over this Mort~cage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereo[or,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof.l3orrowershall promptly furnish to Lender
all notices of amounts due under thia paraRraph, and in the event E3orrower shall make payme~t directly, Borrower sha11 promptly furnish to
Lender receipta evidencing such paymenta_ E3orrower ahall promptly discharge any lien which has priority over this Mortgage: provided, that
Borrower shall not be required todischar~e any xuch lien su long ax E~,rrowe~shall agree in writing tu the payment of theobligation secured by
auch iien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ordefend eq[orcement of auch lien in, legal proceedings
which operate to prevent the enforcement of lhe lien or forfeiture of the Property or any part there~,f.
5. Hazard Ineurance. Borrowrei shall keep the improvementa now exiating or hereafler erected on the Property insured against losa by
fire, hazards included within the term "extended coverage," and such other hazards as I.ender may requirn and in such amounts and forauch
periode as Lender may require; provided, that Ixnder shall not require that the amount of auch coverage exceed that amount otrnverage
required to pay the sums secured by this Mortgage.
The inaurance carrier providing the insurance shall be chosen by Fiorrower subjeM fn approva! by l.ender, provided, that such approval
ahall not be unreasonably withheld. Al) premiums un insurance p~lic•irs shall t-e paid in the manner pmvided under paraQraph 2 hereof or, if
not paid in such manner, by fic,rrower mak~ng payment, when due. directly tu the insurance earrier.
All ineurance policiea and renewals thereof shall be in form acceptable to l.ender and shall include a atandard mortgage clause in favorof
and in form acceptable to l.ender_ I.ender shall have the right to hold the policies and renewals thereof, and Borrowershall promptly [urnish to
~.ender all renewal notices and all receipls of paid premiums. In the event of loss, tiorruwer shall give prompt notice to the inaurance carrier
and Lender. I.ender may make proof of loas if no/ made promptly by Borruwer.
Unleae I.ender and E3orrower othervrise agree ~n writing, insurance proc~eeds shall be applied to reawration or repair oI the Property
damaged, pro~ided such reatoration or repair is ecc,nomically feasible and the security of this Mortgage ia not thernby impaired. If such
restoration or repair is not economically feasible or if the security of this Mortgage wuuld be impaired, the inaurance proceeda aha11 be applied
to the suma se~cured by this Mortgage, v~ith the excess, if any, paed to E3orrower. lf the PropeAy is abandoned by Borrower, or it E3orrower fails to
reapond to Lender within 30 days from the date notice ia mailyd by I.ender tv Borrower that the inaurance carrier oPfero to settle a claim for
insurance benefita. I.ende~ is authorized to collect and apply the insurance proceeds at t.ender a opt~on either to reatoration or repair of the
Property or the aums aeiured by this Mortgage.
Unleas Lender and Rorrower otherwiae agree in writing, any such application of proceeds to principa) ahall noteatend or postponethedue
date ot the monthly installmenta referred to in paragraphe 1 and 2 F-ereof or change the amount of auch installmente. [f under paragraph 18
hereof the Property ia acquired by I.ender, all right, title and intereat of Borruwer in and to any insurance policiea and in and to the proceeda
thereof resulting from damaqe to Property prior to the sale or acyu~sition shall pasa to I.ender to the e:tent ot the sums aecured by this
~lortgage immediately prior to such sale or acquiaition.
6. Preservation and Maintenance otProperty; I.easefiolds; Condominums; Planned Unit Developments. Borrowerahall keep
the Property in guod repair and ehal) not commit waste or permit impairment or deterioration of the Properly and ahall comply with the
proviaiona ut any leaee if this Mortqage is on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development.
f3orrower ehall perform all of E3orrower's obligatione under the declaration or covenanta creatinRor govermng the rnndominium or planned
unit development, the bylawa and ~ulatione of the condominium or planned unit development, and rnnstituent documenta. I[ a
condominium or planned unit development rider ia executed by E3orrc,wer and recorded together with this Mortgage, the oovenanta end
:~greements of such rider ahall be incorporated intn and shall amend and supplement the covenanta and agreementa of this Mortgage as if the
rider were a part hereoL
7_ Protection ot Lender'~ 3ecurity. If Borrower faile to perform the oovenants and agreements containcd in thia Mortgage, ot itany
action or procecding is commenoed which materially atfects Lender's interest in the Property, including, but not limited to, eminent domain.
insolvency, oode en[oroement, or arrangementa or proceedings involving a banluupt or decedari, then Lender at [.e~der i option.npon
notice to Borrower may make such appearanccs, disburse such sum~ and take suc6 action as u neceuary to protect Lender i intetes~
including, but not limited to, disbureement ot reaaonable attorney's fees and entry upon the Property to make repain_ It Lender required
mortgage insurance as a condition of making the loan secured by thia Mortgage, Borrower ahall pay the premiumi reqaired to maintain
euch insurance in effect until such time as the requirement tor such insurance terminates in accordance writh Borrowei ~ and Leadd~
written agreement or applicable I~w. Borrower shall pay .the amount o[ all mortgage insurance pmoium~ in the manner provided under
paregraph 2 hereoL
My amounte disbuned by Lender persuant to thie paragraph 7, with interest thereon, ehall beoome additional indebtednep ot
Borrower secured by this Mortgege. Unlesa Borrower and Lender agree to other ttrms of payment, such amounta sha11 be payabk upon
notice trom [.ender to Borrower requesting peyment thereof, and ahall bear intereat fmm the date of d'ubur~ement at the rate payabk fsom
time to time on outetanding principal under the Note unlese payment ot interest at such rate would be rnntrary to appUcable law, in wrhich
event euch amounts shell bear interest at the higheat rate permissible under applicable Iaw. Nothing rnntained in thi~ paragraph 7, ~hall
require Lender to incur sny eupense or teke any action bereunder.
sR~x 348 P~~E i565
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