HomeMy WebLinkAbout0477 Utv~FUtt~~ Cov«+rt7s. I3orrow•er and I.~n~lcr c.~vc~c~iu •rnd :1$fCC JS ~(~IIA1kS:
I. P-r~iu.iii ut P~i+i.iprl aud I~tiic~c,t, lZ.:tr.:u•.r shalt pr,:mptly ps~' ~~hcn uuc thc rr~a~~s~:+l ~~f :+R~1 +ntcrr~l '1,.•
indebtedness cviJeiic~J hy the Nc~tr, prrp:~y~ment and late ~h:~rgcti r+ provi~eJ in ~he Nole, and the prinripal o( and in~crrti
on any Futurr Advenccs secured b~ thic ~lortgagc.
2. Funds [or Taxes and I~surAnce. Subject ta applicable !aw or to a written waiver by I.~ndcr. Aotrower shall p~y
to I~nJcr on Utic day munthly installmcnt~ <~t principal and intcrr~t are payabic un~cr thc Notc. unUt thc Notc is paid in tull.
a sum (herein "Funds") cqual to onc-tw•elfth of th~ yc.?rly ta~cs anJ acscssmcntc which may altain priority u~cr ~h~s
Mortgagc. and ground rertts on the Propcrry. if an), ptus onc-twcl(th af ycarly prcmium installmcros fur ha'rard imur~ncc.
plus u~x•twel(th of yearly prcmium iostallmcnls [or mo~tgage incurancc, if a~y. all as rcasonably cstimatcd initialty aml frum
time to limc by Lendcr an thc basis of a~+essments and bills anJ rea~unable estimatcs thereof.
The Funds shall be held in an inctitu~ion the deposits or accounts af which are insured or guarantced by a FeJeral or
state agency (including Lender if LenJcr is such an insti~utio~i). I.ender shall apply Ihe Fu~ds to pay said taxes. a~sessment~.
insurancv premiums and ground rents. I.eiider may oot charg~ (o~ so holding and applying the FunJs, analyzing said account.
or ~~eri[ying and cumpiling said asiessments and bills. unless LenJer pays Burrower interest on the runds and applicablc law
permits I_ender to make such a charge. Borrowe~ and Lender may agrce in writing at the time of execution af this
~lortgage that interest on the Funds shall bc paid to t3orrower. and unless such agreement is made or applicablc law
requira such intcrest to bc paid, Lender ~hall not be reyuircJ to p~y Rorrower any intcrest or carnings on the Funds. I.endcr
shall give to Borrower~ ~vithout charge, an annual accounting ot the Funds showing credits and debits to ihe Funds and the
purpcue for which each debit to the Funds was made. T'ne Funds arc pledgeJ as additional security for the sums secured
by this Mortgagc.
If ihe amount of the Funds held by Lender, togelhcr with the future monthiy installmcnts of Funds payablc prior to
the due dates of taxes, assessments, insurance premiums and gruund rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as thcy (all due. such excess shall be. at Borrower s option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. lf the amount of the i~unds
held by Lender shall not be sufficient to pay taxes, asscssments, insurance premiums 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 date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums sccured by this Mortgage, t.ender shall promptly rc[und ~o Borrower any Funds
held by I.ender. If under paragraph 18 hercof the Property is sold or the Property is otherwise acquired by I.ender, I_ender
shall apply, no later than immediatcly prior to the sale of thc Property or its acquisition by Lender. any Funds hcld by
Lender at tha time of application as a credit against the sums secured by this Mortgage.
3. Appllcation of Payments. Unless applicable law provicies otherwise, all payments received by Lender unJer the
Note and paragraphs 1 and 2 hereof shall be applied by i_cnder first in payment of amounts payable to Lender by Borruwer
under paragraph 2 hereof, then to interest payable on the Notc, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. Charga; Lte~. BorroK~er shall pay all taxcs~ asscssments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any. in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due. directly to the
payec thct+eof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragr~gh. and in the event
Borrower shall make payment directl~•. Borrower shall promptly (urnish to l.ender receipts evidencing such payments.
Bonov?er shall promptly discharge any lien which has priority over this Mortgage; provickd, that Borrower shall not be
required to discharge any such lien so long as Borruwer shall agree in writing to the payment of the obligaiiun szc.ured by
such lien in a manner acceptable to I.ender, ur shall in good faith contest such lien by. or defend enforcement of such lien in.
legal proceedings which operate to pre~ent the en[orcement of the lien or [orteiture of the Property or any part thereof.
S. Hazard Insurance. Borruwer shall keep the improvemcn~s noK• existing ur hereafter erccted on the Property insured
against loss by fire. hazards included a•ithin the tcrm "extended coverage", and such other hazards as I_ender may reyuire
and ia such amounts and for such~periods as (_ender may reyuire; pro~•ided, that Lender shall not reyuire that the amuunt of
such coverage exceed that amnunt of co~•erage required to pay the sums secured by this Mortgage.
'Il~e insurance carrier providing the insurance shall be chosen by Borrower si~bject to approval by I.ender, provided.
that such approval shall not be unreasonably withhcld. All premiums on insurance policies shatt be paid in the manner
I~ provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
~ insurance carrier.
~ All insurance policies and renewals thereof shall be in [orm acceptable to LenJer and shall include a standard mortgage
~ clause in favor of and in form acceptable to l~nder. Ltnder 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 pcemiums. In the event of loss.
~ Rorrower shall gi~e prompt notice to the insurance carrier and l.ender. Lender may make proof of loss if not made promptly
~ by Borrower.
Unless Lender and Bonower otherwiae agree in writing, insurance procecds 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
not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage Kould
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Morigage, with the excess. if any. paid
to Borr.•wer. If the Property is ahandon~d h~ Dorrower, or it Borrower fails to respond to LcnJcr within 30 da~'s from the
date notice is mailed by Lender to Borrower ihat ~hr insurance carrier ofiers to scule a claim for insurance benefits, I_ender
is authori-ted to collect and apph• the insurance ~roceeds at Lrndcr's option cither tu restoration or repair of the Pro}xrty
ur to the sums secured by this 4lortgage.
Unless 1_endrr and Borrow'er utherui~e agree in writing, an~~ such application ~~f pr~xeeds to principal shall not extend
or postponc the due datc of the mor.thl~• installmcnts refcrrcd to in paragraph~ 1 and 2 hereof or change the amount of ;
such installments. If under paragraph 18 hereof the Prupe.rty is acquireJ by L.ender, all right, tide and interest of Horrow•er
i~ and tu any insurance ~licies and in an~i r~ th~ prcxecd. tficrcof resulting frc~m d~mage lo the P.operly prior to thc ~alc
ur acquisition sh:Jl ~ass to Lcnd~r to thr c~tcnt uf thc ~ums sccureJ by this ~lortgagc immediatciy prior to such ~a:r or
acquisition.
6. Preser~alion and ~taintenance of Y~operl~; Lrascholdr. ('ondominiun~ti; Pl~nncd Unit Dccelopments. B~rro~~cr
~ shall kccp th~ Property in gocd r~pair :,nd shall not commit ua~te or permit irnpairment or Jctcrioration of the Prop~rty
' and shall comp;}• ~~~ith thc provisions of :,tiy' Icase i[ thiti ~t~~rtgagc is on a lcaschold. If Ihis 1luribagc is on a unit in a
~ ~onduminium ur a planncd unrt d<<elr~•nunt. Borrow•cr ~h:,ll pcrfc~rm all of Rorro~~~cr s obligations undcr thc d~~laratirn
~ ur ruvcnants crcahng ~r govcrninc thc c~~i~domin~um ur planncd unit dc~•clopm~nt, the by-law+ and regulations .~f th~
~ condominium or planned unit Je.elopmcnt, and constituent ducumema. If a«~ndominium or planned unit decel~~pment
~ ~idcr is cxc~utcd b~~ Korrov?er :,r..l recc.~.ted tugcthcr •.~ith tht; ~t~~~tgaor. ihc covenants and :~~:r~emcnls of .uch n~tcr
~hal) b~: incorporatcd into and sh::ll amcnd and supplcmcnt thc co~cnants and a~rccmcnts of thiz '.i~rtgabc as i( thc ri~tcr
~ Here a part hercof.
7. Proteclion o[ I.enders Security. 1f I3~rr~~w'er fail~ t~~ perform the coti•enants and agrecmcnts contained in this
~ ~iortgage. Qr i( any action ur prurccdin~ i~ commcncc.l .~hich mat~riaUy aticcts LcnJcr's in.~rc~t in thc Pr~~p.:r3}•,
including, but not limited to, rmir~ent aom:+in, insoh•enc~•, cudc enf~~rcement, or arrangements or proceedings im~ol.~ing a
hankrupt or decedent, then Lender at Lender's option, u~n ~~~aice tu Borrower, may make such ap~xarances, disbun~ .uch
sums and iake such action :~s is n~~cc.ar~• to protcct l.cn~icr's intrrest, includin~, but not limitcd to, disburtcmcnt of
rcasonahle aUomep's tces and entry upon the Proper~~ t~~ m.lkc repairs. If Lcnder required mortgage incurance a
cundition o[ making thc loan ucureJ bc thiz ~tortg.icr. ti~~rru«rr shall pay thc premiums rcquircd to maint:un such
insurancc in eiiect until such timc as thc rcyuircmc~~t for w~h imuranc~ tcrminatcs in accordancc with Borrow~cr's ~nd
~ e~x 269 ~F 4 ~5 .
- . - ~X~