HomeMy WebLinkAbout0980 UNtFO~ttN CoveN~NTS. Bor~owe~ and Lender covenant and agrce as [ollows: ' ,
1. 'i~'01tYI O~ Pf~wCIwI ~Od IIII!flfl. Bor~ovver shall prompUy pay wheo due the principal of and interest on the '
indebtednas evidenced by the Note, prepayment a~d late charges as provi~kd in the Note, and the principal of and intercst
on any Future Advances secured by this Mortga~e.
Z. I~od~ to~ Tn~es aa~ Irrrs~ce. Subject to applicable law or to a written waiver by I.ender. Borrower shall pay
to Le~de~ on the ciay monthly installme~ts of principal and inte~at are payable under the Note, until the Note is paid in full,
a aum (hercin "Fun~") equal to one-twdtth of the yea~ly taxes and assessments which msy attain pri4rity over this
Mongsge. and arowid renu on the Prss~.+sny. if a~y, plus one-twelfth ot yearly premium installme~ts for hazard insurance.
plus oc~-twel[th of yearly premium iastallmenu tor mongage insurance, if any. all as reasonably estimatcd initially and from
timc io time b} Leader on the basis ot assessments and bills and rcasonable estimates thereof.
The FLnds shall be beld in an institutio~ the deposits or accounts of which arc insured or guarantoed by a Fede~al or
state agency (including Leader if Le~der is such an iastitution). l.ender shall apply the Funds to pay said taues. uussmeats.
iruurance premiums and ground rents. Lender may not cbarge tor so holding and applying the Funds. analyzing said account.
or verifying aad compiling said assessments and bills, unless Leader psys Borrower interest on the Funds and applicable law
permits l.ender to make such a charge. Borrower and L.ender may agrce in writing at the time of exocution of this
Morigage that iaterest on the Funds shall be paid to Borrower. and unless such agreement is mada or applicabk law
requires such interat to be paid. Le~der shall not be rcquired to pay Borrower any interest or earaings on the F~ads. Lender ,
sball give to Botrower, witlwut cAarge. an annual accounting of the Funds showing credits and debits to ttu Funds and the
purpuse for which each debit to the Funds was mad~. The Funds are plodged u additional security for the sums secured
by this Mort~age.
If the anwunt of t6e Fuads held by Leader, together with the future auonthly installmeats of Funds payabk prior to
the due dates of taxes. assasmeats. inturance premiums and ground rents, shall exceod the amount requirod to pay uid taxes.
assaune~ts. insurance premiums and ground rents as they fall due. such excess shall be. at Borrower
s option. eithe~
prompQy repaid to Borrower or credited to Borrower on mo~thly installme~ts of Funds. If t6e amount of the Funda
held by Lender shaU not be su~cient to pay taxes, ~ss~t?enta, insurance premiums and gmund rents as they fall due,
Borrower shaU pay to Lender any amouat necessary to make up the deficicncy within 30 days from the date notice is mailod
by Lender to Borrower requating payment thereof.
Upon payment in full of all sums ~cured by this Mortgage, I_ender shall promptly refund to Borrower any Funds
held by L.ender. If uader puagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply, no later than immed'utely prior to the sale of the Property or its acquisition by Le~der, any Funds held by
I.ender at the time of applicatioa as a credit against the aums sccured by this Mortgage.
3. A~io~ of P~rertr. Unless applicabk law provides otherwise, all payments received by Lender under the '
Note aad paragraphs I and 2 hereof shall be applied by l.ender first in payment of amounts payable to [~~der by Borrower
under puagraph 2 heroof, tben to interest payabk ca the Note, then to the principal of the Note, and then to interest and
principal on any Future Advanoes.
1. Citsr=e~ I.ke~. Borrower sl~all pay all tax~s, assessments and other chargas, fines and impositions attributabk to
the ProFerty which may attain a priorit~? aver this Mortgage. and leasehold payments or ground rents, if any, ia t6e manner
' provided under puagraph 2 bereof or, if na paid in such manner. by Borrower making payroent. whd~ duF. diroctly to the
payee theroof. Borrower a6a11 praaptly furaish to Lender all noticu of amounts due under this pusgraph, and in the event
Borrovrer shall make payment diroctty. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly d'acharge any lieo which hu priority over this Mortgage; providcd, that Borrower shall not be
required to discharge aay such lien so long u Borrower shall agret in writing to the payment of the obligation securod by
such lien in a manner aoceptabk to Lender. or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to preveat the enfor~cement of the lien or fodeiture of the Property or any part thereof.
S. Haz~rd Iowra~ce. Borrower st~ap koep the improvements now eaisting or hereafter erected on the Property insurod
against loss by Sre, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods az Lender may roquire; provided. that Lender shall not require that the amount of
such rnverage exceed t6at amount of rnvcrage requircd to pay the sums socured by this Mongage.
'Ibe inwrance carrier providing ihe iawranet shall be chosen by Borrower subjoct to approval by Lender, provided.
that such approval shall not be unreasonably withheld. All prcmiums on insurance policiea shsll be paid in the manner
provided under paragnph 2 6ereof or, if not paid in such manner, by Borrowa making payment, when due, dira:dy to the
insurance carrier.
All insurance policits and renewals thereof shall be in form acceptable to I.ender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have t4e right to hold the policies and renewals theroof.
! and Borrower shall promptly furnish to Lender all renewal notioas and all receipts of paid premiu~ru. In the event of loss.
j Borrower shall give prompt notice to the insurance carrier and L,ender. Lender may make proof of loss if not made promptly
; by Bonowcr.
~ Unless Leader aad Borrower otherwise agree in writing, insurance proceeds shall be applied to rcstoration or repair of
the Property damaged, providod such restoration or ropair is economically feasible and tt~e security of this Mortgage is
not thereby impairod. If such restoration or repair is not economically feasible or if the socurity of this Mortgage would
be impai~ed, the insurance proceeds shall be applicd to the sutns secured by this Mortgage, with the excess. if any. paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower ihat the insurance carrier oRets to settle a claim for insurance bene6ts. I.ender
is authorizod to collect and apply We i~urance proceeds at Lender's optioa either to restoration or repair of the Property
or to the sums securod by this Mortgage.
Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend
or pcutpone the due date of the monthly installments referrod to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, titk and interest of Borrower
in and to any iasurancc policies and ia and to the proceods theroof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the ezteat of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. traervatjoo aod Maiotensoce ot Property, Lea9eholds: Condominitims: Plauned Ueit DereloPments. Borrower
shall keep the Property in good repair and shall not commit waste or permit :mpairroent or deterioration of the Property
and shall comply with the provisioos of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower
s obligations under the declaration
or covenants creating or governing the condominium or planned unit development. the by-laws and tegulations of the
~ condominium or planned unit development, aod constituent documents. If a condominium or planned unit development
~ rider is executed by Borrower and recorded together with this Mortgage. the covenants and agrcements of such rider
shall be incorporated into and shall amead and supplement the covenants and agreements of this Mortgage as if the rider
~ were a part heroof.
7. Protectioo of I.esder's Stcarity. lf Be~rrower fails to perform the covenants and agrcements contained in this
Mortgage. or if any action or prooeeding is commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain, insolveocy, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then l.ender at Lender's option, upon notice to Bonower, may make such appearances, disburse such
sums and take auch action as is necessary co protect Lender's interest, including, but not limited to. disbursement of
reuonable attomey's fees and entry upon the Propeny to make repairs. If Lender required mortgage insurance u a
condition of making the loan secured b}• this Mortgage. Borrow-er shall pay the premiums required to maintain such
insurance in ef[ect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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