HomeMy WebLinkAbout0892 UH~F~~ttH Covtt~,~n~TS. Burrowcr anJ Lcndcr c~~ven~nt anJ ~g~cc a+ tollc~ws:
1. P~Ymcat ot Priaclpd spd IMercct. H~~rrowe~ shall pr~~mp~ly pay whrn Juc ~hr principal af a~d interest on the
indebtedness evidenceJ by thc Note, prepayment a~d late charges ~c p~ovidrd ~n ~he Vn~c, and ~he principal af and intercst
on any Future Advances se~;ured by this Mortgage.
2• Ruads tor Tua and losursnce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on ~he day ~~otuhly installmen~s ot p~incipal and ~ntercct a~e payahle unde~ the Note, uotil tho Note is paid in tull,
a sum (herein "Funds") equat to c~~e-twel[th of the y~arly ta+~es and assessments which may attain priority over this
Morigage, and ground re~ts on ihe Pr~operly, if any, plus one-tw~clfth of yearly premium installmenta for hazard i~surat~ce,
plus one-twelfth o[ ycarly pnmium installments tor mongage i~surance, if any, all as rcasonably estimattd initially and fmm '
time to time by Lender on the 6asis of a?~es~ments and bills and reasc~nabk estimata thereof.
The Funds shall bc hetd in an institutinn the deposits or accounts of which are insured or guaranteed by a Federal or
slate agency lincluding Lender it l.ender is such ao institution). l.ender shall apply the Fuads to pay said taxa. assessmenu,
insurance premiums and g~ound rents. Lender may not charge For so hnlding a~d applying the Funds, analyzing said account,
or verifying and compiling said assessments and bilts, unless Lender pay~ Borrower interest on the Funds and applicable law
permits t_ende~ ta make such a cha~ge. 8orrower aod I.endtr may agree in writing at the time of execution of this
Mongagt that ir.terest on the Funds shall tx paid to Borrower. and unless such agreement is made or applicable law
requires such interat to be.paid. Lender shall no~ be required to pay Borrower any interat or earnings on the Funds. Lende~
shall give to Borrower, without charge, an annual accounting ot the Funds ~howing credits and debits to the Funds and the
purpose for whicA each debit ta the fiunds was made. The Funds are pleeiged as additional security for ihe sums secured
by this Mottgage.
lf the amount of the Funds held by l.ender, together with the tuture nionthly installments of Funds payabte prior to
thr due dates of taxes, assessments, insurance premiums and ground rents, shall exceed ihe amount required to pay said taxa,
assessments, insurance premiums and g~ou~d rents as they lall due, such excess shall be, at Borrowei s oPtion, eithe~
promptly repaid to Borrower or crcdited to Borrower on monthly installments of Funds. If the amount of the Funds
hEld by Lender shal! not be sufi'icient to pay taxes, assessments, imurance premiums and ground rents as they faN due,
Borrower shall pay to Lender any amount nec.essary to make up the deficiency withi~ 30 days from the date notict is mailed
by Lender to Borrower ~+equestiog. payment thereof.
Upo~ payment in full of all sums secured by this Mc?rtgage, l.ender shall promptly refund to Borrower any Fun~
held by I.ender. If under paragraph 18 hereo[ ~he Propcny is sold or thc Propcrty is othenvisc acquired by Lender, Lender
s6a11 apply. no later tha~ immediately prior to the sale of the Propeny or its acquisetian by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by th~s Mortgage.
3. Applicdion ot paymenis. Unless applicable law proviJes othervvise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall b~: applied by I.ender first in pryment of amounts payable to Lendcr by Borrower
under paragraph 2 hcrcof, then to interest payable on the Note, then to thr principat of the Note, and then to interest and
prineipal on any Future Advances. .
4. Ciwrges; Uens. Borrower shall ~ay all taxes, assessments and othcr charges, fines and impositions attributable to
the Propert} which may attain a priority over th~s Mortgage, and leasehold payments o~ ground rents, if any, in the manner
provided under paragraph 2 hereof _or, if ~ot paid in such manner, by Borrower making payment. when due, diroctly to the
payae thereof. Borrower shall promptly furnish to l.ender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrower shaU promptl~• (urnish t~. Leniler receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to dixharge any such lien so long as $orrower shall agree in writing t.~ the payment ot the obligation secured by
such tien in a manner acceptable to l.ender. or shall in good faith contest such ~ien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Propeny or any pari thereof.
S. Hazard lesurance. Borrow-er shall keep the improvements now cxi.ting or hercafter erected on the Property insured
against loss by fire, hazards included withirt the term "extended coverage". and such other hazards as l.ender may requirc
aad in such amounts and for such periods as Lender may requirc; provided, that Leoder shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'I~e insurance carrier providing ihe insurance shall be chosen by Borrow•er subjeet to approval by L,ender, pmvided.
that such approval shall not be unreasonably withheld. All premiums on insurance polieies shatl be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by 8orrower mak+ng payment, when due, direcdy to the
insurance carrier.
All insurance policies and renewals thereof shall bc in form acceptablr to I.enJer and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. l.ender shall have thg right to hold the poiicies and renewais thereof,
and Borrower shatl promptly furnish to Lender all renew~al notices and all receipts of paid premiumc. In the event of loss,
Borrower shall give prompt notice to the insurance ~arrier and Lender_ Lender n~ay make proof of loss it not made promptly
by Borrower.
Unless Lendcr and Borrower otherwisc agrce in w•riting, insurance prcxecds shalt t~c applied to restoration or repair of
the Prupert~• damaged, proviJed such restoration or repair is economically feasible and the security of this Mortgage is
not ihereby impaired. )f such restoration or repair is not eronom+cally fra~ible or if the security of this Mortgage would
be impaired, the ~nsurance proceeds shall be applied to the sums secured bp ~h~s Muctgage. w•ith the excess, if any, paid
to Borrowcr. U thc Propert~ is abandoned bc Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is maiied bp Lender to Borr~~wrr that the insurance carrier ofTen to settle a claim for insurance benefits, L.ender
is aulhorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the PropeRy
or to the sums secured bv this Mottgage.
Unless [.ender and Borruwer other.~•ise agree in writing, any such application of prcyceeds to principal sha11 not extend
or postpone the due dute of the monthly installments rclerred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph l8 hereof the Property is acquired by Lender, all right, tide and interest of Borrower
in and to an}~ insurance policees and in and to the proceeds thereof resulting from damage to the Property prior to the sale '
or aequisition shall pass to Lender to the extent of the sums secured by this hlortgage immediately prior to such sale or
acquisition. ~ ~
b. Preserval?wn sn@ :1~aintenance of Properiy; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower ,
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration af the Ptoperiy
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit deveiopment, Borrower shail perform atl of Borrower's obligations under the cleclaration
or covenants creat?ng or governing the cond~minium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. i[ a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such ridet
sha(I be incorporated into and shatl amend and supplement the covenants and agreemertts oE th~s Mortgage as if the rider
aere a pari hereof.
7. Protection of Lender's Security. ]f Borrower fa~ls to perform the covenants and agreements contained in this
Mortgage, or if. any action or proceeding is commenced which mate~ially afTects Lender's interest in the Property. ~
includ~ng, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Leader's option, upvn notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender s interest, including, but not limittd to, disbursement of
reasonable attorney s fees and entry upon the Property to make repairs. lf Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shali pay the premiums requirecf-tQ- maintain such
insurance in effat until such time as the requirement ior such insurartce terminates in accotdance with Borrower's and
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