HomeMy WebLinkAbout0926 UHtpaw CoveNet+'r'a. Bomower and Le[?der covenan! and agrce as [ollows: ~
1. l~eot ot P~i~dpal asd INeraA. Borrower shal) pramptly pay when duc the ~tincipal of and intcrest on the
indebtednas evideaced by the Note. prepayment and late charges as p~ovided in the Note, and Ihe prirx:ipal of and interest
on any Future Advances securad by this Mortgage.
2. P~d~ [or Ta~as aei IwraK~a Sobject to applicabk law or to a writte~ waive~ by l.ender. Borrower shall pay
to Lender a~ the day monthly installments of principal and interest are payable under the Note, until the Notc is paid i~ full,
a sum (hercin "Fuads'~ equal to one-twelfth ot the yearly taxes and asxssments which may attain priority over this
Motigage, and ge+ound renb on the Property. if any. plus one-twelfth of yearly premium installments for hazard insurance.
plus ono-twelfth uf yeuly premium instaUments tor mortgagc insurance, if any. all as reasonably cslimated initially and fram
time to time by I.ender on the basis of assesxm:!+~s arid bilis and reasonable estimates thercof.
"ILe Funds shall be held in an institution the deposits or accounts o( which are insured or guarantced by a Foderal or t
sute agency (including Leader if Lender is such an institution). I.ender shall apply the Funds to pay said taxes. asussments.
insurance premiums and_ ground rcnts. Lender may not charg~ for so holding and ap~+lying the F~~ndc, analyzing said account,
or verifying and oompiling said assessments a~d bills. unless Le~der pays Borrower interest on the Fu~ds a~d applicablc law ;
permits Leoder to make such a charge. Borrower aad Lender may agree in writing at the time of execution ot this
Mort~age that iaterest on the Funds shall be paid to Borrower, and unless such agreement is madC or applicabk law +
roquires such intetest to be paid. Lender shall not be requircd to ~+ay Boirower any interest or eamings on the Funds. Lencier
shatl give to Bomower~ wit6out cbarge. an annual accou~ting of the FunJs showing credits and debits to the Funds and the ~
purpose for which each de6it to the Funds was made. The Funds are plodged as additional security for the sums secured ;
by this Mortgage. . !
If t6e anwunt of the Fundt held by l.ender. together with the future monthly installmcnts of Funds payabk prior to ±
the due dates of ta~ces, assessmeats, inaurance pnmiums and ground re~ts, shall excced the amount reyuired to pay said taxes. ?
aue~ments. insurance precaiums and ground rents as thay fall due, such excess shall be, at i3arrower
s option. either
prompdy rtpaid to Borrower or c[oditod to Borrower on monthly installments of Funds. If the amount o! the Funds
lx~d by Lender s6all not be su~cieat to pay taxes. as9escments. insurance pr+emiums and ground rents as they fall due,
Borroaer s6a11 pay to Lender any amount nocessary to make up the deficiency within 30 days trom the date notice is maikd
by I.ender W Borrower requastin8 WYment thereof.
Upon paytnent in full of all swns socured by this Mortgage, l.ender shall promptly refund to Borrower any Funds
held by Lender. If und~r paragraph 18 hereof the Property u sold or the Propeny is dhenvise acquired by l.ender, I.enJer
ahall apply. no later Ww immediately prior to the sak of the Property or its acquisition by i.ender, any Funds held by
L.eader at the time of application as a credit against the sums secured by this Mortgage.
3. A~licsfbs ot P~eNs. Unless applicable law provides otherwise, all payments received by Lender under the
Note and patagraphs 1 and 2 hereof shall be applied by l.ender first in payment of amounts payabk to l.ender by Borrower
under paragraph 2 heroof, tLen to interest payabk on the Nwe, then to the principal of the Note, and then to interest and
principal on any Future Advanves.
4. C~ Ijeas. Borrower shal! pay all taxes, assessments and other charges, fines and impositions attributabk to
tbe Property which may attaia a priority over this Mortgage. and lcasehold payments or ground rtMs, if any, in the mu?ner
pmvidai uader puagtaph 2 hereof or, if not paid in such manner, by Bornower making payment. whea due. diroctly to the
payae thercof. Borrower ahall promptly furnish to l.ender all notices of amounts due under this paragraph, and in the event
Borrower- shall make payment dirocUy. Borrower shaU promptly furnish to I.ender roceipts. evidencing such payments.
Bomo~ver shali promptly discharge any lien which has priority over :his Mortgage; provided, that Borrower shall not be
reqnired to discharge any such lien so long as Borrower shall agre~ in writing to tbe payment of the obligation socured by
sucL liea in a manner acceptabk to Lender. or shall in good faith contest such lien by, or defend enforcement of such lien in,
kgal proceedings which operate to prevent the enforcement o[ the lien or forfeiture of the Property or any part thereof.
S. Hazard I~ra~ce. Borrowor shall koeQ the improvements now existing or here~fter erected on the Property insurod .
against loss by Ste. hazuds included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for auch periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage eacced that amount of coverage required to pay the sums secured by this Mortgage.
T6e insurance carrier providing the insurance shall be chosen by Borrower subjoct to approvai by L.ender, providod,
that such approval s6a11 not be unreasonably withheld. All pr~miums on insurance policies shall be paid in the manner
'i providod under paragraph 2 hereof or. if not paid in such manner, by Borrower maJcing payment, wben due, diroctly to the
' iraur~noe catrier.
~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
i clause in favor of and in form acceptable to Leoder. Lender shall have ihe right to hold the poticies and ronewals thereof,
~ and Borrower shall prompUy furaiah to Lender all renewal notices and aU receipts of paid peemiums. In the eveot of loss,
~ Borrower shall give prompt aoiice to the insurance camer and Lender. Lender may make proof of loas if not made promptly
~ by Borrower.
~ Unless Lender and Borrower otherwise agree in writing, insurance proce~ds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if ihe socurity of this Mortgage would
be impaired, the insurance proceeds shall be applied to the swns secured by this Mortgage. with the excess. if any. paid
to Borrower. If the Property a abandoned by Borrower, or if Borrower fails to respond to [.ender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to setUe a claim for insurance benefits, I.ender
~ is aut6oriud to colled and apply the insurance pracxeds at Lender's option either to restoration or repair of the Propecty
or to the sums securod by_this Mortgage.
~ Unless L.ender and l~orrower otherwise agree in writing, any such application of proceeds to principal shall not extend
~ or poatpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
suc6 installments. If under paragrap6 18 heroof the Property is acquired by L.e~der, all right,~title and interest of Borrower
~ in and to any insurance policies and in and to the proceeds t6ereof resulting from damage to the Property prior to the sale
~ or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ ac9uisition.
6. PreservaHon aad Maiateoance of Property; I.easebolds; Condominiua~ Planned Unit DevdoPmeats. Borrower
shall kcep the Ptoperty in good repair and shall not comipit waste or permit impaern~ent or deterioration of the Property
{ and shall comply with the provisiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
~ condo~ninium or a planned unit development, Borrower shall perform all of Borrower s obligations under the declaration
` or covenants creating or governing tbe condominium or planned unit development, the by-laws and regulations of the
~ condoroinium or planned unit development, and constituent documents. If a condominium or planned unit development
' rider is executed by Bonower and recorded together with this Mortgage, the covenants and agreements of such rider
~ s6a11 be incorporatal into and shall ameod and supplement the covenants and agreements of this Mortgage as if the rider .
~ we~+e a part hereof.
` 7. Pr+nhet~oo of Ledde~s Secrrity. If Borrower fails to perform the covenams and agreements contained in thic `
~ Mocigage, or if any action or proceeding is commenced which materially aRects Lender's interest in the Property,
" including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
~ baduupt or decedent, tlten Lender at Leoder's option, upon notice to Borrower, may make such appearances, disburse such
~ sums wd take :ueh action as is necessary to protect Lender s interest. including, but nM limited to. disbursement of
~ reasonsbk attomoy's focs and entry upon the Property to make rcpairs. If [.cnder required mortgage insurance as a '
~ condition of making the loan socured by this Mortgage. Borrower shall pay the premiums required to maintain such
~ insursnoe in eHect until such titne u the requirement for such insurance terminates in accordance with Borrowers and
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