HomeMy WebLinkAbout0503 UN~roxaf .CoveH~NTS. Borrowcr and I.cnJrr cuvenant and agrcc as foUows:
1. Pa~ment ot Principal and lnterest. Iiorrower sh~ll prni~iptly pay ~~hen due thc prinripai o( and intcrest .>n ~
inJebtcdness cvidcnceJ by thc Notc, ptcpaym~nt and late char~cs as pruvidcd in thc Note, and ihc prinripal of and i~'~ r~•a
on aay Fulu~e Advances secured by thix Mortgage.
~ 2. Funds [or Taxes And lnsurunee. Subject to a~plicable I~w or to a~~~riuen waiver by I.cnJer. Borrower shall ;.a~
tu l.rndcr on the day monthly inslallmcnts of principal and intcrc~t arc pa)'able under thc Note, unlil the Notc is paid in ; a:f.
a sum (herein "Funds") equ~l to onc-t~v~lfth of ~he yearly ta~es and assessments w~hich may attain priority uver ~h:.
Liortgagc, a~d ground rents un thc P~opc~ty. if any. plus onc-t~~clfth of yearly prcmium installments for hazard imu~.~n~~.
plus one-twelf~~ of ycarly prcmium ir~stallmcnts fo~ mortgaga insurancr, if any. all as rcasonably estimatcd initially anJ from
time to time by Lender on thc basis ~~f assessmcnts and bills and reason~ble es~imatcs thereof..
'I7~e Funds shall bc hcld in an institution thc depusits or arcounts of which are insured or guarantced by a Fedcral ~~r
state ager~cy (including Lendcr if Lcnder is such an i~s~itution). I_cnder shall apply the Funds to pay said taxes. assessments,
insurancc pnmiums and ground rents. 1_c~dcr may not charge fur so holding and applying thc FunJs. analyzing said acccunt,
or verifying and compiling said assessments and bills. unl~ss t_ender p:+}•s BorroH•er interest on the Fund~ and applicable law~
permits Lendcr ta make such a charge. Borrower and Lender u~ay agree in writing at ~he time ot execution uf this
Mortgage that interest on the Funds shall be paid to Burrower. and unless such agreement. is made or applicable la«•
requires such intcrat to be paid. Lender shall not be rcquired ta pay Horrowcr any intcrest or earnings on ihe Funds. I.cnd~r
shall give to Borrower, without charge, an annual accounting of the Funds showing creciits and debits to the Funds and the
purpose for which each debit to the Funds was made. Tne 1=unds are pledged as additional security for the sums seca~r~d
by this Mortgage.
If the amount of the Funds hcld by Lendcr. toge~hcr a~ith thc futurc monthly i~stallmcnts of Funds payablc prior co
the due dates of taxes, assessments~ insurance premiums and ground rents. shall exceed the amount reyuired to pay said ta;es.
assessments. insurance premiums and ground rents as they fall due, such excess shall be. at Borrower s option, either
promptly repaid to Borrower or credited to Borrovrer on monthly installments of Fumis. If the amount of thc I=u:~ds
hetd by I.ender shall not be sufficient to pay talces. assessments, insurance premiums and ground rents as they fall duc,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lende~ to Boriower requesting payment thereof.
Upon payment in full of all sums secuccd by~ this bfortgage, l.ender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hcreof the PropeRy is sold or the Propcrty is othenvise acquired by Lender, I_endcr
shall apply. no later ihan immediately prior to the sale of the Propcrty or its acquisition by Lcnder. any Funds held by
Lender at the time of application as a credit against the sums secured by this rlortgage.
3. Appltcation of Payments. Unless applicable law pro~•ides otherwise, all paymeMs received by Lender under the
~iote aitd paragraphs 1 and 2 hereuf shall be applied by I_cnder first in pa~~ment of amounts payable to Lender by Borro~•cr
under paragraph 2 hereof, then to interest payable on the Note, then tu the principal of the Note, and then to interest and
principal on any Future Advances.
4. Charges; I.ieos. Borcow•er shall Qay all taxes, asscssmcnts anJ other charges, fiaes and impositions atlributahle to
the Properly which may attain a priority over this Mortgagc, and Ieasehold papments or ground rents, if any. in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment. when due. directl}. to the
payee thereof. Borrower shall promptly furnish to Lender all no~ices of amounts due under this paragraph, and in the e~~ent
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrow•er shall promptly discharge any lien which has priority o.~er this 1liortgage; provided, that Borrower shall not be
required to discharge any such lien w long as Borrower shall agree in w•riting to the payment o[ the obligation secured by
such lien in a manner acceptable to I_ender. or shap in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforceme~t of the lien or forfeiture of the Property or any part thereof. ~
S. Hazard Insucaace. Borrower shall keep the improvements noti cristing or hereatter erected un the Property intured
against loss by fire, hazards included within the term "extended coverage". and such other hazards as I_ender may require
and in such amounts and for such periods as Lender may requirc: pru~~ided. that Lendcr shall not reyuire that the amount af
such coverage exceed that amount of coverage required to pa~ the sums secured by this Mortgage.
"llie insurance carrier providing ihe insurancc shall be chosen by Borrower subject to approval by Lender. provided,
that such approval shall not be unreasonably wiihheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borro~er making payment, when due. directly to the
~ insurance carrier.
~ Ai! insurance policiesand renewals thereof shall be in form acceptable to [.ender and shall inclade a standard mortg3c~
clause in fa~or of and in form acceptable to Lender. Lender shall hare the right to hold the poiicies and renewais there~f.
~ 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 carrier and Lender. Lender may make proof ot loss if not made promptl~~
~ by Bonower.
Unless Lender and BorroHer otherwise agree in v?•riting, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such re.toration or repair is economically fcasible and the security of ihis hiortgage :s
not thereb~~ impaired. If such restoration or repair is not economicall~ feasihle or if the security of this ~Iortgage w~ould
be ;mpaired, the insurance proceeds shall be applied to th,e sums secured by this ~fortgage, N~ith the excess. if ~ny. paid
to Borrower. If the Propert~• is abanJoned hy Rorrower, or if Borrow~er fails to respond to I.ender N•ithin.30 da}~s frem tFe
date notiee is mailed b)' Lender to Borrow~er that the ins~rance c:~rrier ufIers to settle a claim for in~urance benefits, Le~~'~:
is authoriud to collect anJ apply the in~urance proceeds at Lender's option either to restoration or rcpair of the Proper.~~
or to the sums secured by this Aforigage.
Untess I_ender and Borruw•er otherwiu agree in ~~riting. any ~uc?~ application of proceeds to pr.nripal shall not e:~cr.d
or p..~stpone the due date of th~ monthly installmcnts r~ferr~d t~~ in paragraphs 1 and 2 herc~~[ or change the ar.wi:r.t of
such installments. If under paragraph 13 hereof the Prop~:rh• is acauired b}~ Lender. all right, title and interesl of Borrr~+er
in and to an~ insurancc Fsolicies and in anJ t~ thc proceedc thcr~rf r..ulting from damage to thc P~~~pcrty prior to thc ~s:c
or acquisition :hall pass to Lcndcr to thc cxtcnt of thc surn~ ~rcur~d t~y thi~ ~tortgagc immediatcl~• prior to such ~.,it c•r
acquisition.
6. Presenalion and ~Taintenance of Propert~; Lea~ehulds; Candomini~lins; I'lanned Unit De~-el~pments. Bc•rr:••••~_~r
u shall keep ttlc Pruperty in good repsir :,i1d shall m~t commit •.+astc or permit i~~pairment or deterioration uf the f'r.~; :rt~
~ and shall cc~mpl)' u•iih thc provisions of an)' Icase if this ~1rrt~aLC i. .>n a ic.:sch.~ld. If thi; \lrrt~ac;c is un a ur.~' ~
~ cundominium or a planned unit dcvclopmcnt, Borrower +h:~ll {~~rtotm a!1 uf BorruH~cr's obligati~ns undcr the dc.;i.~;::;;~•~
~ or covenants creating or governing Ihe condominium ur planned u~~it dc~~el.~pm~nt, the by-la~ti; end re5ulatiom ~~t- tt.t
condominiu~i or planned unit devclopmcnt, and constiturnt .lc,~umcm~. It a ro~~dominium or pF.mned umt dc.r!.~,~~~„•nt
ri~cr is cxccuicd b}~ Borru~~cr and r,~:orJcJ t.~~cthcr •..i~'~ th;~ ~t~~rtgagc. thc ~o~cnants and :?Lr~cmcr.ts of ~:~:n -.:e:
shall bc incotporatcd into and shall amcnd and ~upplcmcnt :he ~o~cnants an~i a~recmrnts of Ih~s ~ic~rtgagc as if thc *i.'_r
wcrc a part hereof.
7. Proleclion of i.enders Security. If E3orm~+~er fa:k ro ~xrform thc c~wen:+nts anJ agrecm~nts containrd itz
~iurlgage, ur if any action ~~r p~oceeding is cumnurtceJ ~~hich n~atcriall~ _ufirctc I.en~ler's interest in thc Prr, ~r:.:,
including, but nut liii~ited ~o, emirrnt d.~main, incol~•~nct. c.~de rnforc~ment. ~r :~rrangemen~s or rr.xc~dings inroh:n~: a
banknipt or deccdent,'then Lender at I.enJcr ~ option, ujx~n ~~~r;ice Borro~ccr, ma}' make sueh appearances, Jishur~r ~:~h
sums and take such action as is necec.ary to protect I_ender'c imrrest, incla~ting. but n~~t limitcd to. .fishurscn.~ ~t ~~f
reasonable attorney's fces and er.try upon the Propertc to make rcpairs. It Ler.der required n~~~rt~age inturancc :i
condition of making the loan secureJ by this ~tortga4e, N.~::.~~•rr shall pay thc premiums reyuireJ t~ maint:::n ~:.~h
insurance in etTect until cuch time as the rcyuirement for .u~h insurance tcrmin:~tes in accordanc~ uith Borroucr'. : c~~i
e~aK r.u7 i~cE ~IQ~ '