HomeMy WebLinkAbout0285 IINIFORII CoveHetrn. Borrower and Lender tovenant and agree u[olbw~:
l. Parneat uI PrIndpal and Ioterat. Borrower shall promptly par when due the principal oi and interest on the
indebtedneu evidenced by the Note, prepaymenc and late charga u provided in the Note, and the principal o[ and inter•
est on any Future Advanca secured by this Mortgage.
2 tLnda Eor Tua and Iaannce. Subject to applicable law or to a writtc~ Maiver by Lender. Borrower shall pay
to Le~der on the day monthly installmeuu o[ principal a~d intetest an parable under the Note, until che Note is paid in
tuli, a sum (herei~ "Fu~ds") equal to one-twel(th oi the ytulr taxa aad assessments which may atuin prioritr ovcr this
~fortgage, and ground renu o~ the Propertr. if any, plus onatweltth ot yearly premium i~stallments tor hazard insunnct.
plus onc~tweltth ot ytuly premium installments tor ~nortgage insurance, i[ any, all as reasonably estimated initially and trom
~ime to cime bv L.ender o~ the basis oE assessmenu and biUs and reasonable estimata thereof.
The Funds shall be held in an institution the deposits or accounu o~ which are inwred or guaranteed by a Fedetal or
state agency (including l.ender i[ Lender is such an institution). Lender shall apply the Funds to pay said taxes, asscsunents.
insunnce premiums and ground rents. Lender may not charge (or so holding and applyi~g the Funds, analyzing said at-
count, or veritying a~d compiling said assessments and bills. unleu I.cnder pays Borrower intemt on the Funds and ap~
plicable law permits Lender to make such a charge. BorroMer and Lender may agrec in writing at the cime o[ execution of
this Atortgage that interat on the Funds shall be paid to Borrower and unless such aqreement is made or applicable la~v
requires such interest to be paid. Lender shall not be required to pay Borrower anr interest or earnings on the Funds. I.ender
shall give to Borrower, without charge, an annual accounting ot the Funds showing credits and debiu to the Funds and the
purpose tor which each debit to the Funds was rtucie. The Funds are pltdged as additional seturity tor the sums secuted
b~ chis Mortgage.
It the amount oE the Funds held by Lender, togethet aith the futun monthly installments ot Funds payable prior to
the due dates of taxa, asscsumn~s, insunnce premiums and ground renu, shall exceed the amount required to pay said
taxes, ass~ssments, insunnce premiums and ground tents u they (all due, such excess shall be, at Bonower's option. tither
promptly tepaid to Borrower or credited to Borrower on monthly installmcnts of Funds. lf the amount of the Funds held
by Lender shall not be suEficient to pay taxes. assessmenu. insurance premiums and ground rents as thep tall due. Borrower
shall pay to Lender any amount necessary to make up the de[iciency wichin 30 days (rom the date notice is mailed by Lender
to Borrowet requesting payment thereof.
Upon_ payment in [ull ot all sums secvrM by this Mortqage. I.endet shall promptly re[und to Borrower any Funds _
held by Lender. IE under pangnph 18 hereo[ the Property is sold or the Propeny is otherwise acquired by Lender, Lender
shall apply, no later than immediately prior to the sale ot the Property or iu acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Nortgage.
3. Application o[ Pa7menu. Unless applicable law provida otherwise, all payments recei~•ed by Lender under the
Note and paragraphs l and 2 hereof shalt be applied br L.ender tint in payment o[ amounu payable to Lender by Borrower
under paragnph 2 hereof, then to interest payable on the Note, then to the printipal of the Note, and then to interest and
principal on any Future Advances. _
9. Charge~ Liens. Borrower shall pay all uxes, assessments and other charges, fines and impositions attributable to
the Property which may at[ain a priority over this :ltortgage, and leasehold paymenu or ground rents, it any, in the man-
ner provided under puagraph 2 htreof or, it not paid in such manner, b} Borrower making payment, when due, directly to
the pa~•ee thereof. Borrower shall promptly turnish to I.ender all notices of amounts due under this paragraph, and in the
event Borrower shall make paymene directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Bonower shall promptly discharge any lien which has priority o~•er this Aiort~aqe: provided, that Borrowet shall not be re-
quired to diuturge any such lien so long as Bnrrower shall agree in writing to the payment of che obligation secured by such
lien in a manner acceptable to Lender, or shall in qooci (aith contest such lien by, or de(end enforcement of snch lien in, le-
gal proceedinRs which operate to prevene the enforcement of the lien or forfeiture o( the Property or any part thereof.
5. Hanrd Insunnoe. Borrower shall keep the improvemena now existing or herea[ter erected on the Pmperty in-
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sured against loss by fire, hazards induded within the term "extended rnveraqe", and such other hazards as Lender -may re-
quire and in such amounts and tor such periods as l.ender may require: provided, that Lender shail not require that the
amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortp,aqe.
~ "The insurance carrier providing che insunnce shall be chosen by Borrower subject to appro~~al by Lender: provided,
~ that such approval shall not be unreasonably withheld. All premiums on insurance policia shall be paid in the manner
! pro~•ided under paragraph 2 hereof or, if not paid in such manner, by. Borrower making payment, v?hen due, direcdy to
~ tht insurance carrier.
~ All insurance policies and renewals thereoi shall be in torm acceptable to Lender and shall include a standard mort-
gage clause in tacor o( and in form accepeable to L.ender. Lender shall ha~•e the riqhE to hold the policies and renewals
thereot, and Borrower shall promptly turnish to I.ender all renewal notices and all receipts of paid pre~niums. In the event
of loss. Borrower shall give prompt notice to the insurance carrier and I.ender. Lender may make proof of lou iE not made
prompdy by Borrower.
Unless Lender and Borrower othetrvise aqree in writinq, insurance proceeds shall be applied to restoration or repair of
the Propetty damaged, pro~•ided such restoration or repair is economically feasible and the security of this ~fortqage is not
thereby impaired. IE such restoration or repair is not ecanomically teasible or if the security o( this ~iortgage would be im-
paired, the insurance proceeds shall be applied to the wms secured b? this ~fortgage, with the excess, i[ any, paid to Bor- ~
rower. IE the Property is abandoned by Borrower, or iE Borror.er fails to respond to Lender within 30 da~~s from the date
notice is mailed bv Lender to Borrower that the insunnct nrrier offen to settle a claim for inwrance beneEits, Lender is
authorized to collect and applr the insurance proceeds at Lender's option either to restoracion or repair of the Property or
to the sums secured by this Mortqage.
Unlesx Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the mon[hly installments reEerred u~ in paraRraphs 1 and 2 hereof or change the amount ot such
inctallments. If under paraqraph 18 hereof the ProPerty is acquired by Lender, all riqht, title and interest o( Botrower in
and to any insurance policies and in and to the proceeds thereof resultinq Erom damage to the Property prior to the sale or
acyuisition shall pass to Lender to the extent o! the sums secured by this ~tortRage immediately prior to such sale or ~
acquisition.
6. Pre~ervation and '_lfaintenance of Property; Letieholds; Condominium~ Planned Unit Devdopments. ~orrower '
~ shall ktep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property ;
and shall comply Mith the provisions ot an} lease if this :lforegage is on a leaxhold. If this ~fortqage is on a unit in a ~
~ condominium or a planned unit de~•elopment. Borrower shall pcrform all o[ Borrower's obliRations under the dedaration ~
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or covenants creating or go~erninq the condominium or planned unit development, the by-laws and regulations of the condo-
~ minium or planned unit development, and constituent documents IE a condominium or planned unit de~•elopment rider is
executed by Botrower and recorded toqether with this Atongage, the covenants and agreementc o( such rider shall be in-
corporated into and shall amend and supplement the covenantx and agreements of this itortgage as i( the rider Mere a part
hereoi.
7. Protection of Lendet't Securiq. If Borrower fails to perform ehe covenants and agreements contained in this
Atortgage, or it any action or procetdinR is commenced which materially a((ects Lender s interest in the Property, intluding,
but not limited to. eminent domain, insol~~ency. code en(orcement, or arrangemenes or proceedinqs incol~~ing a bankrupt
a
- or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums
and take such action as is necessary to protect Lender's interes~, including, but not limited to, disbursement ot rtasonable ~
attorneY s fees and entry upon the Property to make repairs. IF L.ender required mortqage insurance as a condition of
making the loan secured by this :~fortgage, Borrower shall pay the premiums required to maintain such insurance in ef•
fece until such time as the requirement (or such insnrante terminates in accordance with Borrower's and Lendet's vrritten
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