HomeMy WebLinkAbout15698orrowe* and Lender eovsnaat and s~ree as foUow~:
1. Paymeat of Pri~cipal wad IAteresR Bocrower ahaU promptly pay when due the pr~cipal ot a~d interat on the indebtednaa
evideneed by the Note. prepwyment end laee chu~e~ u provided in the Note. ~nd the principal otand interat on any I~ture Advancee ~ecured
by thi~ Mortga~e.
2. FLnds for Tue~ u~d In~ur~nce. 3ubject b applicable law or to a writte~ waiver by I.ender, Borirower shaU pay to l.ender on the dsy
mo~thly instaltments of pri~cipa) and int~rest are payable under the Note. until the Note is paid in tuq, a aum (heni~ "Funda") equal to o~s
twelEth of the yearly taxea and assessments which may attain priority over thi~ Mortgage, and grou~d rents on the Property. ilany. plw ons
twelfth of yearly premium installmeata for hazard insurence, plus onstwelRh of yearly pre~aium ins6allments [or mo~tgage insurance, itany,
all as reaaor-ably eatimated initially and trom time to time by Lender on the basis of assesament~ and bills and reasonable estimates thereof.
The ~nda shall be held in an institutior~ the deposits or accounts oi which are i~sured or guaranteed by a Federa! or State agency
(including Lenda ii l.ender iu auch an institution). Le~der shall apply the Fu~ds to pay said taxrs, assessme~ts. insurance premiuras and
ground nnb. Lender may not charge fot w holding and applyi~g the I~nds, analyzing seid account~ or verifying and compiling said
asseesments and bilb. unlas Lender psyn Borrower interest on the Ftinds and applicable law permita Lender to make such a charge. BotroweT
and I.ender may egree in writia~ at the time of e:ecution of this Mottgage that interest on the Funds shall be paid to Borrower. and unlea~
such agreement is made or applicable law requires such i~terest to be paid, Lender shall not be required to pay Borrower any inlereat or
earnings on the Flinds. Lender ~hall give to Borrower, without chuge, an annual accounting of the Funda ahowing credits and debits to the
Funds end the purpose for which each debit to the ~nds was made.'I7u Funda an pledged as additional security for iheeums secured by this
Mortgege. -
1f the amount otthe ~Lnds held by Lender, together with the future mo~thly i~stallments of Funda payable prior to the due dates of ta:cs,
aaseasmenta. insurance premiums and ground rents. shall exored the amount required to pay esid te:ea. asaeasments, inaurance premiums
and ground rents as they faU due, such e:oess shall be. at Borrower's option. either pmmptly repaid to Borrower or credited to Borrowa on
monthly installments of fl~nds. If the amou~t of the ~nds held by Lender shall not be sufficient W pay texes. aeaessme~ts. inaurance
premiums and grannd nnts as they fall due, Borrower shall pay to Lender any amount necesaary to make up the deficiency within 30 deys
firom the dale notice is mailed by l,ender to Borrower requeating payment thereof.
Upon payment in fu11 of all sums eecured by this Mortgege. Lender shall promptly retu~d to Borrower any funda held by Lender. I[under
paragraph 18 hereof the Property is sold or the Property ia otherwise acqnired by Lende~, [.ender shall apply, no later than immediately prior
to the sak of the Property or ita aoquisition by I.ender, any ~nda held by Lender at the time of epplication as e credit against the aume secured
by thia Mortgage.
3. Application of Paymeab. Unless applicable law pmvides otherwise. al! paymenta received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender first in payment otamounfa payable to Lender by Bormwer under para~raph 2 hereof,
then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on aoy Future Advanoea.
4. Charges; I.iens. Borrower shall pay all taxes, assessments and other chargea, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold paymenls or ground rents, if any, in the manner provided under paragraph 2 hereofor,
if not paid in such manner, by Borrower making payment, when due, directly to the payee lhereof. Borrower shall promptly furniah to Lender
all notices of amounts due under thia paragraph, and in the event Borruwer shall make payment directly, Borrower ahall pmmptly furniah to
Lender receipts evidencing such paymenta. Fiorrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shall ~ot be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
auch lien in a manner acceptable to l.ender, or shall in good faith contest such lien by, ordefend en[orcement of such lien in, legal proccedinga
which operate lo prevent the enlorcement ot the lien or forfeiture o[ the Property or any part thereof.
5. Hazard Inaurance. Eiorrow~er ahal) keep the improvements now exiating or hereaRer e~ected on the Property inaured againat loea by
fire, hazanls included within the term "extended coverage; ' and auch other hazards ae I.ender may require and in auch amounta and for euch
periods as Lender may require; pmvided, that Lxnder shall not requirn that the amount of euch coverage exceed that amount of cove~age
required to pay the sums secured by this Mortgage_ ~
The insuranrn carrier providing the insurance shall be c~osen by Fiorrower subject to approval by I.ender; pn-vided, that such npproval
shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, it
nut paid in such manner, by Borrower making payment, when due, direcdy to the insu~ance camec '
All inaurance policies and renewals thereolshall be in form acceptable to I.ender and ahall include a standard mortgageclauae in favorof
and in form acceptable to l.ender. l.endershal) have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to
i.ender al) renewal notices and all receipta o[ paid premiums. In the event of loss, E3orn,wer ehall give prompt notice to the inaurance carrier
and I.ender. I.ender may make proot ot loss if not made promptly by Eiorrower.
Unleae I.ender and E3orrower otherwiae agree in writing, insurance proceeds ahall be applied to restoration or repair of the Property
damaged, provided such restoration or repair is econumically feasible and the aecurity of this Mortgage is not thereby impaired. If auch
restoration or repair is not econ~mically feasihle or if the security of this Mortgage would be impaired, the insurance proceeda ahall be spplied
b the aums aecured by thie Mortgage, with the exceaa, if any, paid to Borrower. lf the Property is abandoned by Bonower, or if Borrower taile to
resspond to Lender within 30 daya from the date notice is mailed by I.ender to Borrower that the insurance cerrier offers to settle a claim for
ineurance benefits, I.ender is authorized to collect and apply the insurance proceeds at Lendei a option either to restoration or repair of the
Pmperty or the sums eecured by this Mortqage. ~
Unleae Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not extend or poatpone thedue
date of the monthly installments reterred to in paragraphs I and 2 hereof or change the amount of auch inatallmenta. I[ under paragraph 18
hereof the Property ia aoquired by l.ender, all right, title and intereat of Borrower in and to any inaurance policiea and in and to the proceeds
thereof rrsulting from damage to Property prior to the sale or acqwaition shall paes to Lender to the extent of the aums eecured by this
Mortgage immediately prior to auch sale or aequiaition.
6. Preeervation and Maintenance otPmperty; Leaseholde; Condominums; Plenned Unit Developments. Borrowerahall keep
the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Properiy and ahal) comply with the
provisione of any lease if this Mortgage ia on.a leasehold. It thia Mortgage ia on a unit in a condominium or a planned unit developrnent,
I;orrower shall perform al) of I3orrower e obligations under the declaration or covenants creatinRor governing the rnndominium or planned
unit development, the by-laws and regulationa of the condominium or planned unit development, and rnnatituent documenta. If a
rnndominium or planned unit development rider is executed by Borrower and recorded together with thie Morigage, the rnvenante and
agreementa otauch rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortqage ae if the
rider were a part hereof.
T. Protection ot Lender'~ 3ecurity. If Borrower fails to perform the rnvenants and agrcements oontained in this Mortgege, or it any
aMion or proceeding is rnmmenoed which materially affecte l.ender i interest in the Property, including, bat not limited to, eminent domain,
insolvency, oode enforoanent, or arrangements or proceedings involving a bankru~t or decedent, then Lender at Lender'~ option,upon
notice to Borrower may make such appearances, disburse such s~uns and take such ection as is neoasary to protect Lenda'~ interest,
including, but not limited to. disbursement of reaaonable attorney e lees and entry upon the Property to make repain. If Lenda reqaired
mortg~age insurance as a condition of making the loan secured by thie Mortgage, Borrower shall pey the premiums required to maintain
such insurance in effect until wch time as the requirement for such insurance terminatea in accordance with Borrowtr's and I.ender ~
written agreement or applicable I.aw. Borrower shall pay the amount of all mortgage insurance premiuma in the manner provided under
paragraph 2 hereof. .
Any amounte disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtednas of
Eiorrower secnred by this Mortgaga Unless Borrower and Lender agree to other terme of payment, such amounts'shall be payable upon
notice from Lender to Borrower requesting payment thereof, and shall bear interest trom the date of disbursement at the rate payabk from
time to time on outstanding principel under the Note unlees payment of interest et such rate would be oontrary to applicable law, in which
event such amounts shall besr interest at the highest rate permiasible under applicable law. Nothing rnntained ia thie paragraph 7, ~hal1
require [.ender w incur any expen~e or take any action hereander. .
~~~K348 ~~~f1569
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