HomeMy WebLinkAbout2893Horrower a~d l.ende~ cove~ant and a~ree eu tollow~:
1. Pwymeet of Principal ~nd Ietere~t. Borrower shall prompdy pay when due the principal ot a~d intercat on the indebtednes~
evidenced by the Note, prepayment and late char~e~ aa provided in the Note, and the principal of and interest on a~y I~ture Advances eecurcd
by this Mo~age_
2. ~nd~ for Ta:e~ and ln~urenee. Subject to applicable law or to a written waiver by l.e~der, Borrower ehall pay to I.ender on the dey
monthly inatallmenls of principal and i~terest are payable under the Note, until the Note is paid in full, a sum (he~ein "Funds") equal to ons
twelEth otthe yea~ly taxes and asseasmen4 which may attain priority over thia Morlga~e, and gmund rents on the Propeirty, if any, pius ont
twelfih of yearly premium installments tor hazard inaura~ce, plus onetwelRh otyearly premium instaUmenta fo~ moirtgage insurance, i[any,
aU as reasonably estimated initially and trom time to tirne by l.ender on the basia o[ seaeasmeota and billa ~nd reasoneble eatimatea thereof.
The ~Lnda shall be held i~ an institution the deporits or accounts of which are insured or guaranteed by a Federal or Stete agency
I~ncluding Lender it [.ender is euch an in~titution). l.e~der shall apply the Funds to pay said taxes, aases~ments, insurance premiums end
ground rents. Lender may not charge for w holdiog and applying the Ftinds, analyzing said account, or verifying and compiling said
, asaeesments and bills, unless I.ender pays Borrower intereat on the ~nds and applicable law permita l.ender to make such a charge. Borrower
and Lender may agree in writing at the time ot execution of this Mortgage that intereat on the Funde shall be paid to Borrower, aad unles~
euch agreement ie made or applicable law requires auch interest to be paid, I.ender ehall ~ot be required to pay Borrowe~ any interest or
earninga on the Ftinde. l.ender shall give to Borrower, wilhout charge, an annual accounting of the Fu~ds ahowing credits and debits to the
Funds and the purpose [or which each debit b the Funda was made. The F unds are pledged aa additional eecurity for the sume eecured by thu
Mortgage.
Ilthe amount of the F1nds held by Lender, together with the future monthty instaliments of Funds payable prior to the duedatea oftaxes,
aseeeemente, insurance premiums and ground renta, shall e:cxd the amount required to pay aaid ta:es, assesamente, ineurance premiums
and ground renta ae they tall due, auch excess ehall be, at Bo~mwer's option, either prompdy repaid to Borrower or credited to Borrower on
monthly installmente of Funde_ If the amount of the Funds held by [.ender shall not be aufficient to pay laxea, aseesaments, insurance
premiuma and ground rente ~ae they fall due, Bormwer ahaU pay fn I.ender any amount neceeeary to make up the deficiency within 30 days
from the date notice is mailed by [.ende~ to Borrower requeating payment thereof.
Upon payment in [ull of all auma secured by this Mortgage, I.ender ehall promptly refund to Eiorrower any funda held by l.ender. If under
parag~aph 18 hereotthe Property ia sold or the Property is otherwiee ecquired by Lender, l.ender ahell apply, no later than immediately prior
to the eale of the Property or ite acquiaition by Lender, any Funds held by i.ender at the time of application as a credit against the sums eecured
by this Mortgege.
3. Application ot Peyments. Unleae applicabie law providea otherwie-e, all payments received by t.ender under the Note and
paragraphs 1 and 2 hereof ahall be applied by [.ender firet in payment of amounta payable to l.ender by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, and then w intereat and principal on any Future Advances.
4. Charges; Liene. E3orrowershall pay aU taxes, asse~xsments and other charges, t nes and impositions attributable to the Property which
may attxin a priority over this Mortgage, and leasehold paymenls or Kmund rents, if any, in the manner provided under paragraph 2 hereofor,
if not paid in such manner, by I3orrower making payment, when due, directly to the payee thereoC Korrowe~ ahall promptly furniah to I.ender
all notices uf amuunts due u~der this paragraph, and in the event I3orrower shall make payment directly, Born-wer shnll promptly fumish to
I.ender recripts evidrncing such paymentx. I;orrower shall promptly dischargr any lien which has priority over this MortK:ige; provided, that
I~torrower shall not be ~eyuired tc~ discharge any such lien so long as E3orrower shpll agree in writing to the payment of theoblig.ition secured by
tiuch lien in a manner accepl:sble to I.ender, or ahall in gcx-d faith n-ntrst such lien by, or defend enformment ofsuch lien in, legal proceedings
which opert~le U~ prevenl the enfurcrment of the lien or forfeiture of ll~e Property or any part therrof.
5. Hazard 1 nsurance. liorn,wer ahall keep the impruvements now exiating or hereaRer erected on the Property insured againat loes by
fire, hazards included within the trrm "extendrd coverage," and such other hazarda as I.ender may require and in such amounts and forauch
periods as I.ender may reyuire; providcd, lhat l.ender shall not reyuire that the amount of such eoverage excred that amuunt of coverage
reyuired tu pay the sumx scY~ured b~• this MortKaKr.
The insurance carrirr prurid~nK the insurane-~• ~h:ill tx~ chusen by Rorruwer subjeM tr- approval by I.ender, prov~derl, that such s+pproval
~;haU not be unreas.~nably withhrld. All premiums on ~nsurani•~• p~~lic~rs .hall be paid in the manner pn~videcl under paraKr:~ph '2 hercr~f or, if
not paid in such manner, by Ii~~rrowFr mak~nK paymrnt, when due, d~n~c•dy tu the inxur.~nce cArrier.
All insurance policiex and renewals thereotshall be in form acceptable tn l.enderand ahall include a standard mortqageclause in favorof
c~nd in (orm acceptable to l~ender. l,rnder shall have theright tr~ hold the policies and renewals thereof, and 13orrowershall promptly furnish to
i.ender aU renewal notices and all receipts of pvid premiuma. In the event of lose, Knrniwer shall give prompt notice to the inaurance carrier
and I.ender. [.ender may make pmof of loss if nnt made pmmptly by Borrower. '
Unleas l.ender and Hurrower otherwie-e agrre in writing, inaurance proceeds shall be applied to restoration or repair of the E'roperty
damaged, provided auch restoratiun or repair is ec.~nomically feasible and the arcurity of thia Mortgage is not thereby impaired. If such
reatoration or repair is not ecunomically feasible or if the s~rurity of this Mortgage wuuld be impaired, the insurance procreda shall be applied
to the sums secured by this MortK~ge, with lhe exreas, if any, paid to E3~rrower. If the Property ia abandoned by E3orrower, or if Eiorrower fails b
reapond to I.rnder.within :N- days from the d~te notice is mailPd by I.ender t~ fiorrower that the inaurance camer offera to aettle a claim for
insurance benefitx. I.ender is authurized to collcrt and apply the insurance procer~s at I.ender's option either to resturation or repair of the
Yroperty or the aums aecured by lhix MortKage.
Unlesa [.ender and Fiorrower otherwise aKree in writing, any such applicatiun of proceeda to principal ahall not extend or poxtpone thedue
date of the monthly insk-+Ilmentx referred k~ in paragraphe~ I and 2 l~ereof or change the amount of such inetallmenla. If under paragraph IR
hereo[ the Property ia acquired by I~ender, al! right, title and intereat u[ fi~-rrower in and to any insurance policiea and in and to the proceede
thereof reaulting from damage to Property prior to the ::ale or acqu~sition shall pass to l.ender to the extent of the auma eecured by this
Murtgage immediately prior to such eale or acquiaition.
6. Preeervation and Maintenanceof Property; Leac~eholda; Condominume; Plenned Unit Uevelopmente. Borrowerahall keep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ehall comply with the
proviaione of any lease if thiR Murtgage iA on a leaxehold. If this MortKage is c,n a unit in a condominium or a planned unit development,
Fk~Frower ahall perform all of (iorn,wer'a obligations under the declaratiun orcovenanta cre:~tinKor govern~ng thecondominium or planned
unit development, the by-lawx and regulationa ot the condominium or plr+nned unit development, and constituent dceumenta. If a
conduminium or ptanned unit development rider is executed by &-rrowrr and recorded together with this Mortgage, the rnvenants and
:~Kreements uf xuch rider shall be incurporatrcl intu and shall :~mrnd and supplement the covenant~ and agrrementsof this Mortg~ge aa if the
rider were a part herer~f. •
7. Protection ot Lender's 3ecurity. lf Borrower fails to perform the oovenants and agreements cuntained in this Mortgage, or if any
action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain,
insolvency, code entorcement, or arrangements or proceedings involving a benkrupt or decedent, then Lender at Lender'~ option,upon
notice to Borrower may meke such appearances, diaburse auch sums and take such action as is necessary to protect Lender'r intere~t,
including, but not limitcd~ to, diabursement of reasonable sttor~ey's feee and entry upon the Property to malce repain. If Lender required
mortgage insurance as e condition of making the loan secured by thia Morlgage, Borrower shall pay the premiums required to maintain
euch insurance in ef[ect until euch time as the requirement for such insurance terminates in accordance with Borrower's and Lendd~
written agreement or applicable Law. Borrower shall pay the amount of all mortgaqe ineurance premiums in the manner provided under
paragraph 2 hereof.
Any amounta disburaed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indrbtedness of
Aorrower secured by this Mortgage_ Unless Borrower and Lender agree to other terms ot payment, such amounts shatl be payable upon
notice from [.ender to Borrower requesting payment thereof, and ehall bear interest from the date ot disburseinent et the rate payable from
time to time on outstanding principal under the Note unleee payment of interest at auch rate would be contrary to applicable law, in which
event auch amounte shall bear intereat at the higheet rate permissible under applicable law. Nothing contained in this paragraph T, shall
require (.ender to incur any expenae or take any ection hereunder.
~ R~ ~x.348 FAGE28.91 .
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