HomeMy WebLinkAbout0960 l,'~•.:~ ~.~a G.,.~~.~~.'~ ~urru«~r and L2nCar co~e~ant and ayr2e as (olio~,s.
1. Payment of Princlpal and Interes~ Bo~rower sha!! promptly pay when due thz pnnr,pai and interest in~!r~-
;~.~ness evidenced by the Note and late charges as provided in the Note.
2. Funds for Taxes and Insutance. Subject to applicable law or a written waiver by Lender, Borrower shaii pay
to Lender on the day monthly payments of principal and interest are payable under the Note, until the Note is pa~d in '
full a sum ~herein "Funds') equal to one•twelfth of the yearfy taxes and assessments (inciuding condominium and ~
planned unit development assessments, if any) which may attain priority over this Mortgage and ground rents on the
Property, if any, p?us one•t~~el(th of yearly premium instaliments for hazard insurance, plus one•nvel(th of yearly pre-
rrtium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender '
on the basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make such '
payments of Funds to Lender to the extent that Bocrower makes such payments to the holder of a prior mortgage or ~
deed of trust if such holder is an institutional lender.
If Borrower pays Funds to Lender, the Funds shalt be held in an institution the deposits or accounts of which are '
insured or guaranteed by a Federal or state agency ~including Lender if Lender is such an institution). Lender shall
apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lender may not charge Eor so
holding and applying the Funds, analyzing said account or verifying and compiling said assessments and bifls. unless •
Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to
Borro~ver, and unless such agreement is made or applicable law requires such interest to be paid, Lender sha11 not be
required to pay Borrower any interest or earnings on the Funds. Lender shal! give to Sorrou~er, w;thout charge, an
annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each deb~t to the
Funds u•as made. The Funds are pledged as additional securiry for the sums secured by this Mortgage.
lf the amount of the Funds held by Lender, togetherwith the future monthly installments oi Funds payabte prior to '
thz due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay I
said taxes. assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowei s i
option, either promptly repaid to Borroweror credited to Borroweron monthly installments of Funds. If the amount of
the Funds hetd by L.ender shall not be sutficient to pay taxes, assessments, insurance premiums and ground rents as
they Fall due, Borrower shal) pay to lenderanyamount necessary to make up the deficiency in one or more payments ~
as Lender may require. ;1,
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 17 hereof the Property is sold or the Properry is otherwise acquired by Lender,
Lender shall apply, rio later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds ~
held by Lender at the tim¢ of apptication as a credit against the sums secured by this Mortgage.
3. Applicatlon of Paymenta Unless applicable law provides otherwise, all payments received by Lender under
>,he Vote and paragraphs 1 and 2 hereof shall be applied by L¢nder first in payment of amounts payable to Lender by
Borrower under paragraph 2 hereof, then to interest payabte on the Note, and then to the principal of the Note.
4. Prior Mortgages and Deeds of Ttus~ Charg¢s; Llena Borrower shall perform all of Borrower s obligations
under any mortgage, deed of trust orother securiryagreementwith alien which has prioriry over this Mortgage. includ- ;
ing Borrower s covenants to make payments when due. Borrower shail pay or cause to be paid all taxes, assessments ;
and other charges, fines and impositians attnbutable to the Property which may attain a priority over this Mortgage '
and leasehold payments or ground rents, if any. :
S. Hazard lnsurance. aorrower shall keep the improvements now existing or hereafter erected on the Properry
insured against loss by fire, hazards included wiihin the term "extended coverage', and such other hatards as Lender
may require and in such amounts and for such periods as Lender may require.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approvat by Lender, pro-
vided. that such approval shall not be unreasonably withheld. Alt insurance policies and renew~als thereof shall be in a ~
form acceptable to ~ender and shatl include a standard mortgage clause in favorof and in a form acceptable to Lender.
Lender shal) have ihe right to hold the policiesand renewals thereof, subject to the teRns of any mortgage, deed of trust
or other security agreement with a lien which has priority over this Mortgage.
(n the event of loss. Borrower shall give p:ompt notice to the insurance carrier and Lender. Lender may make proof
of loss if not made promptly by Borrower.
If the Properry is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date
notice is mailed by Lender to Borrowerthat the insurance carrieroffers to settle a claim for insurance benefits. Lender
is authorized to colfect and apply the insurance proceeds at Lender s option either to restoration or repair of the Pro-
perty or to the sums secured by this Mortgage.
6. Preservatlon and Maintenance of Property, Leaseholda; Condominiums; Planned Unit Develop~
' ments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or
deterioration of the r e n
i P op rty a d shall comply with the provisions of any lease if this Mortgage is on a teasehold. (f this
' Mortgage is on a unit in a condominium or a planned unit developement Borrower shaN perform all of Borrower s
~ obligationsunderthedeclarationorcovenantscreatingorgoverningthecondominiumorplanned unitdevelopmen~
I the by-taws and regulations of the condominium or planned unit development and constituent documents.
7. Protectlon of Lende~'s Security. lf Borrower fails to perform the covenants and agreements contained in this
3~lortgage. or if any action or proceeding is commenced which materially affects Lender s interest in the Property, then
Lender, at Lender s option, upon notice to Borrower, may make such appearances. disburse such sums. including
I reasonable attorneys' fees, and take such action as is necessary to protect Lender s interest. if Lender required
mortgage insurance as a condition of making the toan secured by this Mortgage, Borrower shall pay the premiums
requ;red to maintain such insurance in effect until such time as the requirement for such insurance terminatesin accor•
dance with Borrower s and Lender s written agreement or applicable law.
.Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, at the Note rate. shall
become additional indebtedness of Borrower secured by this Mortgage. llnless Bonower and Lender agree to other
terms oi payment, such amounts shall be payable upon notice from Lender to Bonower requesting payment thereof_
tiothing contained in this paragraph 7 shall requi~e Lender to incur any expense or take any action hereunder.
8. Inspectlon Lender may make or cause to be made reasonable entries upon and inspections of the Property.
provsded that Lender shall give Borrawer notice prior to any such inspection specifying reasonable cause therefor
' related to Lender s interest in the Property.
9. Condemnatfon The proceeds of any award orclaim for damages, direct or consequentia~ in connection with
any condemnation or other taking of the Properiy, or part thereof, or for conveyance in lieu of condemnation. are
hereby assigned and shall be paid to Lender, subject to the terms of any mortgage. deed of trust or other security agree-
ment with aJien which has priority over this Mortgage. ; ~~r1~E
BOCK b l}
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