HomeMy WebLinkAbout2756E3orrowe~ and Ler~dcr covenant and agree as folbw~:
1. Payment ot Prineipal and latere~~ Borrowe~ ahall pmmptly pay when due the principal ot and interest on the i~debtedneas
evidenced by the Note, prepayme~t a~d late chargea as pmvided in the Nute, and the principal ot and inte~eat on any h'uture Advancea secured
by this Mort~age.
2. I~nds for Ta=es end Insurance. Subjecl to applicuble law or to a written waiver by I.ender, li~,RUwer shull pay to l.rndrr uo the day
munthly inslaliments of principal and inteireat are payable under the Note, until the Note is paid in fuli, a sum Iherein "F unda") cqua) to one
twelfth otlhe yea~ly taues and seseasments which moy atlain priority uver this Mortgage, and gn,und renta un the Prupeirty, if uny, plua one
twelRh of yearly premium instaliments [or hatard inaurance, plus onetwel(ih otyea~ly prrmium inxtallmen4+ for moirtKuge insurance, if uny,
all as reaeonably estimated initially and from time to tin~e by (.ender oo the basis o( aseessmrnts and bilix and reasonublr exti~nates the~eof.
The Ftinda shall be held in an institution lhe depoeite or accounts of which are inaured ur guaranteed by a Federal or State agency
lincluding Lender if l.ender is such an institution). I.ende~ ahall apply the Munds to pay said taxes, aasesxments, insurance prrmiums and
Kround rents. l.ender may not charge for so holding and applying the Runda, analyzing said Account, ur verifying and compiling eaid
asaessments and biUs, unleas Lender pays Borrower intereat on the F unds And applicable law permita 1 render lo make auch a charge_ fiorrower
and Lender may agree in writing at the time ot execution o( thia Mortgage /hat interest on the h unds ahall be paid b Borrower, and unlesa
such agteement ia made or applicable law requirea sueh intereat to be paid, I.ender shali not be required to pay Fiorruwer any inlerest or
earnings on the Funda. I.ender shall give to Borrower, without charge, an annual accounting of the F unds showing credita and debita to the
Funde and the purpose [or which each debit to the F unds vvas made. 7'he F unds are pledged as additional eecurity [or the aumasecured by thie
Mortgage.
I[the amount of the Flinde held by I.ender, together with the future monthly inatallmenta of M unds payable prior to the duedates uf taxea,
aaseasments. insurance premiuma and ground rents, shal) e:cred the amount required to pay said taxes, aesexxments, iosu~ance premiuma
and ground rents as they fall due, auch excess shall be, at E3o~rower's option, either prompdy repaid to fiorrower or credited to i~rroweron
mo~thly inatallments of Funda. if the amount of the Funda held by Imnder shall not be sufficient to pay taxea, assexxmenta, insurance
premiuma and ground rents as they fall due, E3orrower shall pay to I.ender any amount neceYxary to make up the deficirncy within :10 daye
from the date notice is mailed by I.ender to Eiorrower requesting payment thereof.
Lpon payment in fuU of ali sums secured by this Mortgage, l.ender shali promplly rnfund to Iiurrower any funds held by t.ender. If under
paragraph 18 hereof lhe Properiy is sold or the Property is otherwise acquired by I.ender, I.ender shall apply, no later than immediately prior
to the sale of the Property or ite acquisition by I.ender, any F unds held by I.ender at the time of application as a credit against the sums secered
by thia Mortgage.
3. Appliealion of Payments. Unless applicablP law pnwides otherv-ise, all payments received by I~ender under the Note and
paragraphs 1 and 2 hereof shall be applied by I.ender firxt in payment otamounts payable to I.ender by Borroveer under paragraph 2 hereot,
then W interest payable on the Note, then to the principal of the Nute, and then to interest and principai on any M uture Advances.
4. Charges; Liens. E3orrower shall pay all tax~s, assrctimen~ti and uthrr rharKes, fines and im~,sitiuns attributable u~ the Pruperty which
may attain a priorily over lhis 1~lortgage, and Irasehuld paymrnts orKn~und rents, if an~, in the manner pruvidE~1 under paragraph 2 hereof or,
if not paid in such manner, by E3orrower makinK p:iyment, when dur, dire~•th to the parrr thrreuC liurn~wt•r.h:~ll promptly furnish to [xnder
all notices of amounfs due under this paraRraph, and in the e~~ent li~~rruwt•r ,h.~tl make p:~ymcnt dirNCUy, Burruw•er shaU prompll~ fumish to
l.rnder receipls evidencing such p:i~ menLs. liurruwrr shall prumpth• di~i•h:~rK~• any lien v-hi~•h has priority u~•er this 11urtKaKe; provided, that
Fiorrower shall nol be required to discharge an~• such lirn su IonK ati li~~rruvrrr sh:~ll aKrr~• in writiny; tu the p.~~•mrnt of thr uLliKation securrd by
such lien in a manner acceptable to [.ender, ur sh.~ll ~n Kood faith ~~ml~:~t su~•h li~~n hy. ord~~ff•nd E•nfi~n•.•m~•nt of such hi•n in, lt~al procetidings
which operate to prevent the enG~rcement u[ the lirn or forfi•ituri• uf th~• 1'ru~•rt~~ or am• part thrnr,f.
~. Hazard Inxurance. Burrow er shall krrp th~ impr~,vements now ~•xistinK or here:dter erectrd un the PrupeK~ insured a~ainst loss by
fire, huzards included within lhe term "extended c~n•eraKe." :ind ~uch other haturds ds I.ender may re~uirr and in such.imountb and fursuch
pc~riods as Ixnder ma~ requirn; procided, that Ixnder shall nu1 rty~uire that the amuunt ~~f such cr~vrraK~• excred th;it am~~unt of coveraKr
required to pay the sums secured by thi~ hlortKaKr.
The insurancr carrier pro~•idinK lh~• insurnncr sh:Jl Ik• rh~~~~•n hy ISnrr.~w•~~r sub~iyt to appru~:J !n• I a•nd~•r, pru~•id~vl, that ~uch appru~•al
tihall not be unre.i~~nablt w•ithh~•Id. All pmm~um~ ~~n imurnn~•r {~~hr~c~..haii t~• pa~d ~n thr m:~nn~~r pr~~~•~d~Y1 undrr paraKraph'l hrrtr~f ur, if
nut paid in soch manner, bc }iornrwer mak~nK p:~~•m~•nt, wh~~n du~•. d~n.•11~~ t~~ thr ~n.uram•f• i:~mrr
All insurance policies and renew•als therctif ~hall F-e in form ar~rptahle tu 1 f•ndrr.ind shall include a standanl mortK:iKeclause in fAVOrof
and in form acceptable w l.ender. lxnder shall fiare the riKht G~ huld th~• ~M~li~•ies and n•n~•v~•.ils ther~•of. and linrrow•ershall prumptly furnish to
~.ender all renewal notices and all rcr•eipts uf p.tid prrmiums. In tht• ~~•E•nt uf I~~.s, linrru~aer ~h:ill Ki~•e prumpt nutice to the insurance carrier
and l.ender. l.ender may make pr~M~f of lus~ti if nnt madE~ promplh• by Kurruwrr.
Unless I.ender and Rorrowrr otherv-i~ aKree in w•ritinK, in~urancr pnx~r~~1ti shall he :~pplied to rrsturati~~n or rrpair of the I'ropertt
damaged, pro~~ded such resturation ~~r repair is M•unomtcalh• fea~ib)e a~d the srcvrit~• of this Slortkage is not thereby impaired. If such
rrstoration or repair is not economically feasible ur if the wc-urit~ nf thiti :11urtKaKr v-•uuld he impaired, the insurance proceedsshal) beapplied
to the sums eecured by this Mortgage, ~a~th thr exc~•.s, if an~ , p:~id tn Rorruw~er. If the YropeRy iti abanduned by Fi~~rroNer, or if liorrower faile to
re3pond to t.ender within 3(1 days frum thr date n~~t~~•f• is mailwi by Iknde•r tu fA~•ruw•er that the insurance camer offers to srttle a claim for
~nsurance benefits, t~ender is authorized tu c~dlect :ind apph~ thr in~urance pnK-~is :~t I~ender's option either to resturation or repair of the
Yroperty or the sums secured by this N1urtKaKr. , ~
Unleas l.ender and Borrower othervvisr aKree in vrritinK, any such application of procreds to principal ahall not extend ~-r postpone thedue
date o! the monthly inslallments referred kr in paraKraphs 1:md Y!ieren(nr ch:+nKN th~~ amount of such instaUments. If under paraKraph IA
hereof the Property is acquired by I.ender, all right. tide and interrst nf liorrnw•er in and tu :in~ insuranm policies and in and to the prceeeds
thereof reaulting from Jamage to Pmperty pnor t~~ the wle or acyu~sitiun shall pii54 to I~ender to the extent of the sums secured by this
Mortgage immediately prior to such sale or acquisition.
6_ PreeervationandMaintenanceofProperty:l,raseholdw;('ondominums.{'IannedUnitDevelopmenta.I3orrowerahallkeep
the Properly in Rood repair and shal) nut commit w•a~te or permit impairmrnt ur deterioratiun uf the Proprrty and shall rnmply with the
proviaions of any lease if this MortKage i4 on a leas~•hold. If this MoRKaKr is on a unit in a eY~ndominium or a planned unit develupment,
Korrower shall perform aU of t3orruv.•er's ubliKatiun~ under ti~e drelaratiun or coa~rnant~ ~•rt•atin~; ur Kn~•rrn~nK lhe cund~~minium or planned
unit development, the by-lawx and re~ulations nf the cnnduminium or planned unit de~•el~pment, and n-nstituent documentx. If a
c-ondnminium or planned unit drvelupmrnt ndPr is exrivttd b~• 1ir~rrower and nrordrd t~~cther with this Mortgage, the covenants and
~~Kreemen~s otsurh rider shall F-e ~ncurW,rat~K1 intn and shaU :~mr•nd and suppl~•mPnt thf•c•o~•enants and aKrc~•ments uf th~s ~1ortKaKeas if the
rider were a part herruf.
7. Protection ot I.ender'e Security. If E3orruwer faila to perform the «,venanta and aqreemente contained in thie Mortgage, or if any
~ction or proceeding ia commenced which materially af[ects I.ender's intereat in the Property, including, but not limited to, eminent domain,
ineolvency, oode enforcement, or arrangements or procerdinga involving a bankrupt or decedent, then l,ender at l.ender e option,upon
notice to Borrower may make auch appearancee, diaburee euch aume and take auch action ae is neceesary to protect Lender'e interest,
including, but not limited W, diebureement ot reaeonable ettorney's fees and entry upon the Property tn make repaire. If [.ender required
mortgage insurance as a condition ot making the loan aecured by thie Mort~tage. Korrower ahall pay the premiuma required to maintain
euch ineurance in effect until such time as the requirement for euch inaurance terminaeee in accordance with Borrower'e and I,ender s
written agreement or applicable Law. Borrower shall pay the amount of al) murtKage ineurance premiume in the manner provided under
paragraph 2 hereof.
Any amounte diebursed by I.ender persuant G~ thia paragraph ;7, with intcreet thereon, ahall t-ecnme additional indebtednean of
Fiorrower eecured by thi» Mortgage. Unlesa I3orrower and I.ender a~lree to other terma of payment, such amvunta shall be payable upon
nutice from I.ender to E3orrower requraung payment thereof, and shall bear iotereat fn,m the date of diAbursement at the rate payable from
t~me to time on outstanding principal under the Note unleas payment of intereat at such rate would be rnntrary to applicable law, in which
event euch amounte ehall bear interest at the highest rate permiasible under applicable law. Nothing contained in thie parx~raph 7, ehall
require [.ender to incur any e:penee ar take any action hereunder.
8~1K 34~ F'.'.~E~754
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