HomeMy WebLinkAbout0032 Utv~FOR~a Covc.wxrs. Borrower and Lender cove~ant and agree as tollows;
1. Parneat of Prtacipal and lncereet. Borrower shall promptly pay when due thc pri~cipal ot and iotuest on the
inclebtedness evidenced by the Note, prepa}7nent and late charges as provided in the Note, and the principal of a~~d i~ter-
est on any Future Advanca secu~ed by this ~tortgage.
' 2. Fuac4 [or Taxea aad Iasurance. Subject to appliwble law or to a written waicer by Lender, Borrower shali pay
to La~der on the day monthly installments o[ pri~cipal and interest are payable unde~ the Note, until the,Note is paid in
full, a sum (herein "Funds") equal to one-twelfth o( the ytarly taxes and asussments which may attain priority o~~er this
~fortgagc, a~d gTOUnd rents on the Property, i[ any. plus onatwelfth ot yearly premium installmcnts (or harard insunnce,
plus one-twel(th o[ yearly premium installments [or mortgage insurance, if any, all as masonably estimated initially and [rom
time to time by Lender on the basis of assessments and bills and reasonable atimates thereof.
The Funds shali be held in an institutian the deposics or accounts of which are insured or gua~anteed by a Federal or
state agency (including l.ender if Lender is suth an institutionj. l.ender shall apply the Funds to pay said taxes, asscssments.
iusurance premiums and ground mnts. Lende~ may not chuge (or so holdinq and applying the Funds, analyzing said ac-
count, or ~•eri[ying and compiling said assessments and bills. unless Lcnder pays Borrower interest on the Funds and ap~
plicable law pertnits Lender to make such a charge. Borrower and Lender may agtee in writing at thc timt of execution of
this ~fortqage that interest on the Funds shall be paid to BorroMer, and uniess such a~eement is made or applicable law
requires such intemt to be paid, L.ender shall not be required to pay Borrower any interest or earninqs on the Funds. Lender
shall qi~•e to Borrower, without charge, an annual accounting of the Funds showinA credits and debits to the Funds and the
• purpose for which each debit to the Funds was made. The Fu nds are pledged as additional secvrity tor the sums setuted
by this hiortgage.
If the amount of the Funds held by L.ender, toqether with the [uture monthly installmenu o[ Funds pa}'able prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said
taxes, assessments, insurance premiums and gmund rents as they fall due, such excess shall be, at BorroNeis option, either
promptly repaid to Borrower or credited to Borrower on monthl}~ installments o( Fund~. If the amount oi the Funds held
by L.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they (all due, Borrower
shatl pay to Lender any amount necessary to make up the deficiency within 30 days imm the date notice is mailed by Lender
to Borrower requesting payment thereoE.
Upon payment in full ot all sums secured by this Mortgage, Lender shall promptly re(und to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is oche~ise acquired b~• I.end~r. Lender
shall apply, no later than immecliately prior to the sale of the Proper[y or its acquisition by I.ender, any Funds held by
Lender at the time of application as a credie against the sums secured by this \fortgaqe. .
3. Appliation o[ Payments. Unless applicable law provides otherwise. alt pa}'menu recei~~ed by Lender under the
1~'ote and paragraphs 1 and 2 hereot shall be appiied by Lender (irst in pa~-menc of amounts payable co Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. Charge~ Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions actributable to
the Property which ma} attain a priority o~•er this \fortgage, and leasehold ~ayments or ground rents, iE an}'. in the man-
ner pro~~ided under paragraph 2 hereot or, if not paid in suth manner, b~ Borrower making payment, when due, directly [a
the pa~~ee thereoE. Bononer shall promptlv [urnish to Lender all notices of amounts due under this paraqraph, and in the •
e~•ent Borrower shall make paytnent direcdy. Borrower shall promptl~ furnish to I.ender receipts evidencinR such paywents_
Borrower shall promptly discharge an}' lien which has priority o~-er this \tortgaRe: pro~•icled, that BorroMer shall not be re-
quired to discharge any such lien so IonR as BorruNer shall agree in writing to the pa}~nent of the obliqation secured by such
lien in a manner acceptable to Lender, or shall in Rood faith contest such lien by. or detend enforcement o( such lien in, le-
Ral proceedin~{s which operate to pre~•ent the enforcement o[ the lien or forteiture o( the Property or any pare thereof.
5. Harud Insurance. BorroMer shall keep the improvemencs now existing or hereatter erected on the Property in-
j sured against loss by fire, hazards induded within the term "extended co~•erage", and ~uch other hazards as Lender may re-
i quire and in such amounts and for such periods a~ Lender ma} require: provided, that Lender shall not require that the
; amounc of such coverage exceed that amount of cocerage required to pay the sums securecl by this ~IortRaRe.
I The insurance carrier providing ehe insurance shall be chosen by Borrorrer subject to appro~~al b~• Lender: pro~ided,
that such approval shall not be unreasonabl~~ Nithheld. All pre-miums on insurance policies shall be paid in the manner
f pro~•ided under paraqraph 2 hereof or. if not paid in such manner, by Borrower makinR payment, when due.-directly to
9 the insurance carrier.
~ 411 insurance policies and renewals thereo[ shall be in form acceptable to Lender and shall include a standard mort- -
~ qage clause in ta~•or of and in (orm acceptable to Lender. I.ender shall ha~•e the riqht tn hold the policies and rene~+als
thereof, and $orrower shall promptl~ furnish to Lender all renewal notices and all receipts ot paid premiums. In the e~~ent
of loss. Borrower shall gi~•e prompt notice to the insurance carrier and Lender. Lender ma}' make proo( of loss if not made
promptly by Borrower.
Unless Lender and BorroMer otherwise aRree in writinR, insurance proceeds shall be applied to restoration or repair of
the Pmperty damaged, pro~•ided such restoraeion or repair is economicalh• feasible and the securiey oF ehis ~fortgage is not
thereby impaired. I[ such restora[ion or repair is not economically (easible or it the securit~ oi ehis ~iortqaqe would be im-
paired, the insurance proceeds shall be applied to the sutns secured b~• this \tortgage, with the excess, if any, paid to Bor-
roM•er. If the Property is abandoned by Borrower, or if BorroMer fails to respond to Lender within 30 da~•s irom the date
notice is mailed by Ixnder to BorroMer that the insurante tarrier offen to settle a daim for insurance benefits, L.ender is
authorized to c~llect and apply the insurance prcxeeds at Lender's option either to restoration or repair of the Property or
to the sums secured by this ~tortgaqe.
Unless Lender and Borrower otherwise aqree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments reEerred a. in paraRraphs 1 and 2 hereof or chanRe the amount of such
in~tallments. If nnder paraqraph 18 hereot tt~c Proper~y is acquired by Lender, all riRht, title and interest of Borrower in
and to any insurance policies and in and to the proceeds thereof resultinq trom damaRe to the Property prior to the salt or
~ acyuisition shall pasc to Lender to the extent of the sums secured by this ~tortqaRe immediateh• prior to such sale or
acquisition.
"L
~ 6. Preservation and '.lfaintenance oi Propertp; Lea~eholds; Condominiums; Planned Unit Developments. Borrower
~ sl~all keep the Property in Roal repair and shall not commit waste or permic impairment or deterioration of the Property
~ and shall comply Mith the pro~isions of an} lease it this ~Iortj{age is on a leasehold. i( this ~torty,aRe is on a unit in a ,
~ condominium or a planned unit de~•elopment. Borrower shall Perform all o( Borrower's obliRations under the declaration
~ or co~~enants creating or goti•erning the condominium or planned unit development, the by-Iaws and regulations of the condo-
minium or planned unit de~•elopment, and constituent documents. If a condominium or planned unit de~•elopment rider is
~ executed by BorroNer and recorded toReeher with this ~iortgage, the coeenants and agreements of such rider shall be in-
corporated into and shall amend and supplement the co~~enants and aqreements of this ~(ortgaRe as if the rider were a part
~ hereof. • " _
~ Protection of Lender's Securiq. If Borrower (ails to pertorm the co~enants and aqreements contained in this
~iortgage, or if any attion or proceeding is commenced which materially affects Lender's interest in the Property, induding.
45 but not limited to, eminent domain, insoh~enc}, cocle entorcement, or arranqements or proceedings im•olving a bankrupt
~ 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 l.ender's interest, includin~, but not limitect to. disbursement of reasonable
~ attorney's tees and entry upon the Property to make repairs. If Lender required mortRaqe insurance as a condition of
~ makinR the loan secureci by this ~IortqaRe. IiorroMer shall pay the premiums required to maintain wch insurance in e[-
~ fect until such time as the requirement for such insunnce tetminates in accorclance with Borrowers and I.enders written
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