HomeMy WebLinkAbout0766 t
i
UNIt~URM CuvkNrNTS. $~~rrowef and Lcn~Cr ~~~ven~nt ~nd :~~;~rc :i~ foUu~vs:
1. Yrymenf uf PrinciPal and IntrrcsL l3orroK~et sh:+ll promptly p:~y ~rhen due thc principal of and interest on the
indebtedness evidencc~l by the Note, prepayment and lale chargrc as providcd in the i~ote. :,nd the principal of and interest
on nny Future Advancrs sccurcd by this I~i~rtgage. °
2. Funds fo~ 7'ates and Insurance. Subject t~ applicable law or tu a~crittun waiver by i.en~ler. Borrower shall pay ~
to l.ender on the da~• monthly in~tallments of principal and interest arc payabie under ti~c Note, until thc ?vot~ is paid in fuif,
a sum (herein "FunJs") equal to one-twelfth of the yea~l~• ta~et and ascecsments which may attain priori~y over this i
T?tortg:,be, and ground rents on the Pmpertp, iC any, plus one-h~•elhh o! yearly premium installments for hazard imurance. i
plus one-tw~clfth of yearly premium installments tor mortgagc insurancc, if a~y, all as reaconably cstimated ii?itially and from ~
time to timc by Lcnder on the basis ot assessments and hills a~~d reasonable estimatcs thcreof. ~
'i?~e Funds shall he held in an institutiun the deposits or accounts o[ which are insureJ or guaranteed by a Federal or ~
state abency (including Lender if Leneiar is si~ch an institution). t.ender shall apply the Funds to pay~ said taxes, assessments,
insurance premiums and ground rents. l.endzr may not charge f~~r so h~~lding and ~pplying the Funds, analyzing said accaunt. ~
or verifping and compiling said assessments a~d bills, unless I.ender payc Borrower interest on ~he Funds and applicsble law ~
permits Le~der to make such a charge. Borrower and l.ender may agree in writing at the time of execution of this ~
Mortgage that interest on the Funds shall be paid to Botrower, and unless such agrcement is made or applicable law
r~quires such interest tu be paid. Lender shall not be requircd to pay Borrowcr any intcrest or earnings on the F~nds. Lcnder ~
shall gi~~c to Borrower, without charge, an annual accounting of the Funds shawing credits and debits to the Funds and thc €
purpose for which each debit to the Funds was made. 'I"ne Funds are pleelged as adJitional s~curity for the sums secured ~
by this Mortgage.
If thc amount of the Funds held by Lender, together ~vith the (uture monthly installments of Funds pa~•able prior to
the due dates of taxes, asseuments. insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes.
assessments, insurance premiums and gruund rents as they fall due, such excess shall be, at Borrower s option, eitner
promptly repaid to Borro~•er or credited to Aorrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufTicient to pay taxes, assessments, insurance premiumc and ground rents as they fall due.
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the dat~ notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, t_ender shall promptly refund to Borrower any Funds
held by Lender. lE under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
shall apply. no later than immediately prior to ihe sale of the Property or its acquisition by l.ender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provides othenvise, all payments received by I_ende~ under the
Notc and paragraphs 1 and 2 hereot shall be applied by I.cndcr first in paymcnt of amounts payable to I_ender by Borrower
under paragraph 2 hereof. then to interest payable on thc Note, then to the principal of the Noie, and then to interest and
principal on any Future Advanccs.
4. Charges; Liens. Borroµ~er ~h~ll pay all taxes, assessments and other charges, fines and impositions attributablt to
the Property which may attain a priority over this blortgage, and lcasehold payments or ground rents, if any. in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrowcr making payment, when due. directly to the
payee thereof. Borrower shall promptly furnish to Lcnder all noticcs of amounts duc under this paragraph, and in the event
Borrower shall make p•ryment directly, Borrower shall promptl}~ hirnish to Lender receipts evidencing such payments.
Borro~c~er shall promptly di~charge any licn which has priority o~•er this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Rorrower shall agree in vvriting to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or •hall in good [aith contcst such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now cxistinp~or hereafter erected on the Property iasured
against Iocs by fire, hazards included within the tcrm "extended coverage", and such other hazards as Lender may reyuire
't and in such amounts and for such periods as l.ender may require; pro~ided, that Lender shall not require that the amount of
such coverage exceed that amount o[ coverage required ta pay the sums secured by this Mortgage.
The insorance carrier providing the insurance shall be cifdsen by Borro~ver subjeet to approval by Lender, provided,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in ihe manner
provided under paragraph 2 hereof or. if not paid in such ma~ner, by Borrov?~er mal:ing payment, when due, directly to the
~ insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shail include a standard mortgage
clause in favor of and in fo:m acceptable to L.ender. Lznder shall have the right to hold the policies and renewals thercof.
and Borrower sfiall promptly furnish to Lender all renewal notices and aq rcceipts of paid premiums. In the e~•ent of loss,
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by l3orr~wer.
Untess Lender and Borruwer otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or reFair is economically feasible and the security of this I~tortgage is
not ~hereby impaired. If such restoration or repair is not economicatly feasihle or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to B~rrowcr. If the Propert}• is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier otfers to settle a claim for insurance benefits. Lender
is authorized to callect and apply the insiirance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this rfortgage.
Unless I_endcr and Borrower otherw~ise agree in writing, any such application oE proceeds to principal shall not extend
or postpone the due date of the monthlV installments refcrrcd to in paragraphs 1 and 2 hereof or change the amount'of
sach installments. If under paragraph 18 hereof the Property is acyuired by Lender. all right, titte and interest oE Rorrower
in and to any insurance policies and in and ta ti~e proceeds thereof resulting trom damage to the Property prior to the sale
or ncyuisition shall pa~s to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or '
acquisition.
6. Fresen•ation and ~laintenance of Property; l.easeholds; Condo~niniums; Planned Unit Developments. Borrower '
shal! kcep th~ Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and sh:,ll comply with the provisions of any lease if this Mortgage is on a leasehold. If lhis I~tortgage 1S on a unit in a
conclon~inium or a planned unit devclopment. I3orrower shall perform all of Borrower's obligations under the declaration
or co~enants creating or governing the cond~minium or planned unit development, the by-laws and regulations of the
conJominium or planned unit development, and constituent documents. If a condomioium or planned unit development
ricler is executed by Borrower and rernrded t~~gether with lhis I~iortgage, Ihe covenants and agreements of such rider
si~all b~ incorporated into and shall amend and supplement the co~~enants and agreements of this Mortgage as i[ the rider
~vere a part hereof.
7. Protection of I,ender's Securily. If Borro«•er fails to perf~rm the covenants and agreements contained in this
1~4ortga~e, or if any action or proceeding is commenced which materially affects Lender's interest in the Pruperty.
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or d~.eedent, then Lender at [_ender's option, upon notice to Borrower, may make such ap~earances. disburse sucn
sums and take such action as is necessary to protect Lcnder's interest, including, but not limited to. disbursement of
reasonaMe attorney's fecs and entry upon the Yroperty to makc repairs. lf I_ender required mortgage insurance as a
condition of m:?king thc loan sccured by this btortgagc, Borr~wcr shall pay thc prcmiums tcquircd to maintain such
insurance in e(iect until such time as the requirement [or such insurance terminates in accordance with Borrower s and
~ ~ . ~ ~ ~~V f'ACE 1 UU