HomeMy WebLinkAbout0914 1~his means that the u,serest ratc may cha~e each billing cycie. Each change '_n the interat rate wiU appfy to any principai
~alance ouutandic~ on tfie Fffoctive date of suc;~ change as well su to tht future advanca. An increase in the Index witr~ {
increase the Borrower's total interat ana the minimum monthly payment due pursuant to ihe Ag~eesnent. Lender re~erves
tht sight to, at any time, charge the Banower a lawer rate than the the formula might iadicato without losing any r:ghts.
lf ihe Index is no l~nger availsbk, I.eader wJl choose a new in3ex which is an interest rate index or a naao~~al or reg?onal ,
index that measures the rate of inflatic~n or :he rate of change in cot ~ mer dis~osable income. ; j
Borrower and Lender convenant and agrre as follows:
1. P~ymeal o! Priscipsl ~d l~tersst aad Pec~Tona~ace o! olrer Coveasals h the A=reemeat. Borrower shatl pay promptly
when dut thE principal, in:~rest and othor ~ndebtednes; evidenced by the Agreement. Borrower shail perform all other ~
covcnants coatained in the Agrctment. ; a
2. Applicado~ ot P~ymtats. Unfoss applirabte iaw provides otherwist~ all payinents recei~ed by Lerder under the Agreement ; I
and Paragraph I of this Mortgage shalt be appliod by Lender first to crcdit life insurance premium~ (where applicable); t~
then to late changa. if any; then to accured 'enterest payable under the Agrcem~nt; then to any applicable p~nalties and
fces. and finally co the principa! owed under the Agrament.
3. Prior Mort=ssa aed DeedY o! Ttust; Charta; I.iens. Borrower shall perform al! of Borrower's obligadoris under any
M~~s ~•.~~~ty aareemmc with a licn which has priority over inis Mortg~ge, including Berrower's
covenants to make paXments when due. ~rrower shall pay or causr to be paid a11 taxes~ assrssments and other charges~
fines and impositions attributabl~ to the PTOperty whizh may attain a priority over this Mortgage~ and leasehold payme~ts ~
or ground rents, if any.
4. Has~trd lssuraucs. Bonower shall kap the im~rovements now. existing or hereafter erected on the Property insured against
loss by fire, hazards included within the term "extended coverage", and such oth~r hazards as Lender may rEquire and
in such amounts and for such perio~s as l.ender may require.
The insurance carrier providing the insurance shall be chosen by Bonower subject to approval by Lender, prowided, that
such approval shall not be withheld unreasonabiy. Alt insuranee policies and renewa~s shal! be in a form acceptable to
Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender shall have ~
the right to hold the policies and renewals. subject to the terms of any mortgage~ deed of trust or other security agreement
with a Gen which has priority over this Moitgage.
In the event of loss, Borrower shall givo prompt notice to the insurance canier and Lender. Lender may make proof of
toss if not made promptly by Borrower.
If the Psoperty is abandoned by Borrower, or if Borrower faiis to respond to Lender within 30 days from the date notice
is mailed by Lender to Borrower that the insurance carrier offers to settle a ciaim for ir:surance benefits, Lender is authorized
to collect and apply the insurance proceeds, at Lender's option, either to restoration or repair of the Property or to the
sums secured by this Mortgage. whether or not then due.
S. Preservation and Mainteaance of Property; Leaseholds; Coadominiums; PIA~IItd U[Ill DCVtIOpRIC11fS. Borro~er shalt keep
the Pr~perty in good repair znd shall not commit waste or permit impairment or deterioration of the Property and shal!
comply s~rith the provisions of any lease if this Morigage is on a leasehold. If this Mortgage is on a unit in a condominium ;
or a planned unit develqpment, Borrower shall perform at1 of Borrower's obligations under the declaration or covenants
creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium ~
or planned unit development, and constitueni dacument~.
6. ProtecSoa of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, '
or if any action or p: oceeding is commenced which materially affects Lender's interest in the Property, then Lender, at
L.ender's opaon, upon natice to Borrower. may make such appearances, disburse such sums, inc[uding reasonable attorney's
fees, and take any action that is necessary to protect Lender's interest. If Lender required mortgage insurance as a condi-
tion of making the loans secured by this Mortgage, Borrower shall pay the premiums required to maintain the insurance
in effect until the time that the requirement for maintaining the insurance terminates in accordance with Borrower's and
. Lender's written agreement or applicable law.
Any amounts disbursed by Lender pursuant to this Paragraph 6 with interest thereon, at the Annual Percentage Rate
applicabk to loans made pursuant to the Agreement, shall become additional indebtedness of Borrower secur=d by this ~
Mortgage. Untess Borrower and Lend~r agree to oth~r terms of payr~ent, those amounts shalt be payabie upon notice , ;
from Lender to Bor;ower requesting payment thereof. Nothing contained in this Paragraph 6 shall req~ire Lender to incur ~
any expense or take any action under this Mortgage. '
7. Inspcetioa. Lender may make or cause to be made reasonable entries upon and inspectiois of the Property, provided
that L.ender shati give B~rrower notice prior to any inspection specifying a reasonable cause for the inspection which is
relatcd to Lender's interest in the Property.
Condemnat~on. The proceeds of any award or ctaim for damages, direct or consequential, in connection with any condem-
~Q nation or other takir~g of the Property, or part thereof, or for corveyance in lieu of condemnatian, are h:.reby assigned
and shall be paid to Lender~ subject to the terms of any mortgage, deed of trust or other securicy agreement with a Gen
~ which has prfority over this Morigage.
~ Borro~er Not Rekased; Forbrsr~ance by Leo~er Not a W~eiver. Extensia~ of the time for payment or modification of
} amortization of thc sums socured by this Martgage granted by Lender to any successor in interest of Borrower shall not.
operate to release, in any manner. the liability of the original Borrower and Borrower~'s successors in interest. Lender
shall not be require.d to commence proceedings against the successor ~r refuse to extend time for payment or otherwise
C~ ma~ify amartizaaon of the sums secured by this Mortgage because of any demand made by original Borrowe: and Bor-
~ rower's suxessors in interest. Any forbearance by L.ender in exercising any right or remedy :~ertuader er otherwise afford-
ed by a~plicabie law shall not be a waiver of or preclude the exercise of any right or ~emedy. Nothing contained in this
Parag~s~h~9 shall 5e c~nstrncd as modifying the pravisions of Paragra~h IS of this Mortgage.
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