HomeMy WebLinkAbout0686 U~~FUxat CovE~:~NTS. Borrowe~ and LrnJer ca~•ertaot and agrre a~ tollows:
l. Psyment of Pr~ncipal and lnterrsf. 13orro»•~r shall promptly pay tihcn clue the princip~l oi :?nd inlerost an the
indehtcdn~ss evidenced by the No~e. prepayment and late ch~~bes ac pruvi~ed in the hote, and the principal of and interest
on sny Future Adv~nces secured by thic Mortgage.
2. Fuods ior Taxes und lnsurance. Subject to applicable law or to a~•ritten waiver by Lender. Barrower shal! pay
to Lcndcr o~ thc day monthly installments of principal and i~tterrst are payable under the Note. until thc Note is paid in tull,
a sum (hercin "FunJs") cqu~l to one-tw~ltth o[ thc ycarly taxes and assessme~ts which may attain priority over this
riurtgage, and ground rents on thc Pcupetty, if any. plus onc-t~val(th of yearly prcmium installme~ts for hazard insurance.
plus u~e-t~~~e!(th of yearly prcmium ir~stallments for mortgagc insurance. ii any. ali as reasonably estimated inilia!!y and from
time to timc by Lertdet an the bas+s of assessments and bills and reasonable estimatcs the~eof.
'the Funds shall b~ held in an institution the deposits or accounts of which are insured or guaranteeef by a Federal or
state agency (includi~g Lender i[ Leoder is such an institution). ~rnder shall apply the Fu~ds to pa~ said taxes, assessments.
insurance premiums and ground rents. [.ender may not charge for so holding a~d applying the Funds, anal~zing said accoont.
or verifying and compili~~g said assessments and bills. unless Lender pa~~s Borrower interest on Ihe Funds and applicable law
permits Lendec to make surh a cha~ge. Burrowe~ and Lender may agree in writing s! tl~e time of execution of this
I?iortgage that interest on the Funds shall be paid to Rorra~ver. and unless such ag~eeme~t is made or ~pplicable law
requires such interest to bc paid. Lendcr shalt not be requircd to pay Borrower an~• interest or carnings on the Funds. Lcnder
shafl gi~•e to Borrawer, without charge, an annual accounting of the Funds sho~ving crectits and debits to the Funds and the
purpc~se for which each debit ta the Funds was made. Tne Fu~ds are pledged as additional security for the sums securcd
by this ~tortgage.
If the amount af the Funds hetd by Leoder, tagether with the tnture monthly installments of Funds payable prior to
the due dates of taxa. assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assessments, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower
s option. either
promptly repaid to Bormwer or credited to Borrower on mont6ly instattments of Funds. 1[ the amount of the Funds
held by I.ender shali not be sut~cient to pay taxes. assessmen!s, insurance premiums and ground rents as they fall due.
Borrower shaQ pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of alt sums secured by t6is Mortgage, t.cndcr shall p~omptly cetund to Bormwer aRy Funds
held by Lender. If upder patagraph 18 t~eieof the Property is sold or the Property is otherwise acquired by Lender. Lender
s6a11 apply, no later than immediately prior to the sale of the PropeRy or its acquisition by Lender. any Funds held by
Lender at the time of application as a credit against the sums secured by this Diortgage. "
3. Application of Payments. Unless applicable law provides otherwise. atl payments received by Lender under thc
Note and paragraphs 1 and 2 hereof shall be applied by I_ender f~rst in payment of amounis payable to Lcnder by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances.
i. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines anJ impositions attributable to
the Ptoperty which may attain a priority over this Tiortgage, and leasehold payments or ground rents. if any. in the manner
provided under paragraQh 2 t~creof or. if not paid in such manner, by Borrower making payment. when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts duc under this paragraph, and in the cvent
Borrower shall make payment directl~. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any Iien which has priority a~•er this hiortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shaU agree in w•riting to the payment of the obligation secured by
such lien in a manner acc~ptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the licn or fodeiture of the Property or any part thereof.
S. Hszard Insurance. Borrower shall kcep the improvements now existing or hereafter erected on the Propeny insured
against toss by fire. hazatds inctuded within the term "extended coverage and such other hazards as Lender may require
and in such amounts and for such periods as Lender may require; provided. that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums securcd by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approva) by Lender, provided.
that such approval shail no: be anreasonably withheld. All premiums on iosurance policies shall be paid in the n~anner
provided under paragraph 2 hereof or, if not paid in such manner, by Bonower making payment, when due, direcdy to the
insurance carrier.
All insurance policies and renewals thereof shall be in fotm acceptable to Lender and sha11 irtclude a standard martgage
clause in favor of and in form acceptable to I.ender. Lznder shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carricr and Lender. Lender may make proof of loss if not made prompt]y
by Borrower.
Untess Lender and Borrower otherwise agree in writing. insurance proceeds 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
I not thereby impaired. If such restoration oc repair is not economically feasihle or if the security of this Mortgage wouid
i be impaired, the i~suraace proceeds shall be applied to the sums secure`d by this Mortgage. with the excess. if any, paid
~ to ~orruwer. Ii tne Froperiy is a'oandvurel by 5~?:::~~.. a: if Bv::~WPS S?!~S tn rec;x,~d tn I.ender within 30 davs from the
~ date notice is mailed by Lender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, Lender
is authorized to collect and apply t6e insurance proceeds at Lender's option either to restoration or repair of the Propeny
or t~ the sums secured by this Mortgage.
~ Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend .
t or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount -of
~ such installments. If under paragraph l8 hereof the Property is acquired by Lender, a!t right, tiUe and interest of Borcower
i in and to any insurance policies and in and to the proceeds thereof resultiag from dan~age to the Property prior to ihe sale
; oc acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ acquisition.
€ 6. Presenation and ~laiptenance of Property; I,easeholds; Condominiu~ns; Planned Unit De~etopments. Barrower
shall kcep the Property in good repair and shali not commit w~aste or permit impairment or deterioration of the Property
and shali compiy with the provisions of any lease if this Morlgage is on a leasehold. If this Mortgage is on a~mit in a
~ condoininium or a planned onit dcvelopment, Borrower shall perform all of Borrower s obligations under the declaration
! or co~•enants c~eating or governing the condominium or planned unit development, the by-laws and regulations of the
i condominium or planned unit devefopment, and constituent documents. I[ a condomirtiurti or planned ~:~it development
i rider is executed by Borrower and recordeJ togeiher with this Mortgage, the co~enants and agreements of such rider
shall be incorpotated into and shall amend and supplement the covenants and agrcements of this Martgage as if the rider
K•ere a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
I?iortgage, or if any action or proceeding is commeneed a~hich materially affects Lender's interest in the Properry,
including, but not limited io, eminent domain, insc~lvency, codc enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender
s option, upon notice to Borrower. may make sucfi appearances, disburse such
sums and take such action as is necessary to protect L.ender s interest, including, but not ~imited to, disbursement of
reasonable attorney's fees and entry upon the Proper~y to makc repairs. I[ Lendcr required mortgage insurance as a
condition of making the loan secured by this Morigage. Dorrower shall pay the premiums required to maintain such
insurance in effect until such time as the requiremeat for such insurance terminates in accordancc with Borrower s and
.
fr~ r ~JO PAI~~ ~v~