HomeMy WebLinkAbout0658 UN~FORtit CovEH~rrrs. Bortower and l.endcr covenant and agrre as foUows:
i. Panneat o[ PriaclPal aad Isterest. Borruwer shall promptly pay when duo the principal o( and interesi on tho
indebtedness ~videnced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
on aay Futuro Advaoces secured by this Mortgage.
2. R1~nds fot Tues aad lnwnace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to I.ender oa thc day monthly installments of ptincipal and interest are payabl~ under the Note. until the Note is paid in full,
s sum (herein "Funcis") equai to one-tv?•elfth o( the yearly tazes and assessments which may attain priority over this
Mongagc, and ground ren~ on the Property, if any, plus o~e-twelfth oi yearly prcmium installmeots for hazard insurance,
plus one-twelfth of yearly prcmium i~staltments for mortgage insurance, if any. all as reuonably es~ima~ed initially and from
time to time by Lender on the basis ot assessment~ and hills a~xi reasonable estimatrs thereof.
'il~e Funds shall he helu :z an institutioo the deposits or accounts of which a~e insurcd or guaranteed by a Fede~al or
state agency (including Lender if Lender is such an institutwn). t.ender shall apply th~ Funds ta pay said taxa, assessmenu.
insurance prcmiums and ground rents. Lender may not charge for so holding aod applying the Funds, aoalyzing said account.
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower a~d [.ende~ may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreertxnt is made or applicable law
requires such interest to be paid, Ixnder shall not be reyuired to pay Borrower any intercst or earnings on the Funds. Lender .
shall give to Borrawer, without chargt, an annual accaunting of the Funds showing credits and clebits to the Funds and the
purpose for which each debit to the Funds was made. The fiunds are pledged as additional socurity for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, toge~her with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insutance premiums and ground rents, shall exceed the amaunt reyuired to pay said taxes,
assessments, insuraoce premiums and ground rents as they fall due, such excess shalt be, at Borrower's opti~n, eithe~
promptly repaid to Borrower or credited to Borrowe~ on monthly insta!lments of Funds. If the amount of thc Funds
held by Lender shall noi be suRScient to pay taxes, assessments, insurance premiums and ground rents as thep fall due,
Borrower shall pay to Lender any amount necessar~• to make up the deficiency within 30 days t~om the date notice is mailed
by Lender to Borrower requesting paymeot ~hercof.
Upon payment in full of atl sums secured by this Mor~gage. 1-cnder shall promptly refund to Borrower any Funds
held by !_ender. If under paragraph 1R hereof ~hc Property it ~Id or thc Pro~+crty is othenvise acquircd by l.ender, Lcnder
shall apply, no later than immediatcly prior to the salc of thi Propcrty or i~s acquisition by Cender, any Funds held by
Le~der at the time o( application as a crcJit against the sums ~.~cured by th~s Mortgage. •
` 3. Applicatan of Paymeats. Unleu applicable laK~ provides olherwise, all payments received by l.ender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.ender hrst in payment af amounts payable.to Lender by Borrovrer
under paragraph 2 hereof, then to interest payablc on the Note, thcn to thc principal of the Note, anJ then to interest and
principal on any Future Advances.
4. CharRes; Lkas. BorroN•er shall pay all taxc~, a,~a:s~ments and othcr charges, fines and impositions attributable to
the Property which may atiain a priority over this 1~fortgage, and leasehold payments or ground rents, if any, in the manner
provided unJer paragraph 2 hereof or, if not paid in such manner, by~ $orrower making payment, when due, directly to the
payee thereof. Borrowet shall promptly furnish to Lender ali notices of amounts due und~r this paragraph, and in the event
Borrow•er shall make payment directly. Borrowrr shall prompdy furnish to l.ender receipts e~idencing such payments.
Borrow•er shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shal) agree in w rit~ng to the payment of the obligatiun secured by
such lien in a manner acceptable to Lender, or shall in good faith contesi such lien by, or defend enforcement ot such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the ~mprovements now existing or hereafter erected on the Property insured
against loss hy fire, hazards included within the term "~xtended coverage", and such olher hazards as Lender may require
and in such amounts and for such periods as t_ender may reyuirc; provided, that Lender shall not require that the amount o[
such caverage exceed that amount of co.~erage required to pay the sams secured by this Mortgage.
The insuraace carrier providing the insurance shall be chusen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreuonahly withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Bortower making payment, when due, directly to the
insurance carrier.
All iosurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable tu Lender. l.ender shall have the right to hold Ihe policies and n:new~als ihereof.
and BorroN~er shail promptly furnish to Lender all renewal notices and alt rcceipts of paid premiumc. In the event of loss.
Borrower shall give prompt notice to ihe insurance carrier :+nd Lender. Lender may make proof of loss if not made prompdy
by Borrawer.
iJnless LenJer and Borrower othervvise agree in w•riting, insurance proceeds shall be applied to restoration or repair of •
the Property damaged. proviJed such restoration or repair is cconomirally feasible and the security of this Martgage is
not thereby impaired. tf such restoration or repair is nat economically feasible or if the securiry ot this Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned b~~ Bormwer, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance rarrier af~ers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Un~ess Lender and Borrower otherwise agree in writing, any such application of proceeds to principai shalt not extend
or postpone the due date of the monthly instailmcnts rcferred to in paragraphs 1 and 2 hereof or change the amount of
such instaNments. If uoder parag[aph 18 hereof the Property is acyuired by Lender, all right. title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Propect~ prior to the sale
or acyuisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presenation and Naiotenann o( Properiy; t.eueholds; Condominiums; Planned Unit Devebpments. Borrower
shal! keep tbe Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if th~s hlortgage is on a leauhold. If this Mortgage is on a imit in a
conJominium or a planned unit development, Borrower shalt perform all of 8orrower's obligations under the declaration
or covenants creating or governing the condominium or planned uni! development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
riJer is executed by Borrow•.r and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend ane! supplement the co~•enants and agreements of this Mortgage as if the rider
w~ere a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this '
Mortgage, or if any action or proceeding ~s commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain, insolvency, code en(orrement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at l.endei s option, upon notice to Borrower, may make such appearances, disburse such
sums and lake such action as is necessary to protect I_ender's interest, including, but not limited to, disbursement of
reasonable attorney's tces and en~ry upon the Properry to make rcpairs. lf [.ender reqaired mortgage insurance as a
conditiort of making•the loan secured by this Mortgage, Barrower shall pay the premiums required to maintain such
insurance in eRect until such t~me as the requirement for such inwrance terminates in accordance with Borrower s and
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