HomeMy WebLinkAbout0854 UN~FORC~~ CovtNAHTS. Borrower and LenJer covenant and agrce as foltows:
1. Paym~at ot Principai and Iutenst. Borrowu shall promptly pay when due the principal of and interest on the
indcbtcdness c~~idenced by the Note, pnpayment and late charges as provided in the Nate, and the principal of and intercst
on any Future Advances secuted by this Mortgage.
2. Fuads fo~ Taxes aod Iasurmce. Subject to applicable law or to a written waiver by Lender, Borrowor shall pay
to L.ender o~ the day monthly installments of principal and interest are payahle under the Note. vntil the Note is paid in full,
a sum (herein "FunJs") equa) to one-twelfth of the yearly ~axes and assessments which may attain priorily ovor this
Mortgage, and ground rents on the Propeny. if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium i~stallments for mortgage insurance, it any, all as reasonabiy estimated initialty and from
time to time by~ I.ender on thc basis of assessments and hilfs and reasonablc estimates ihereof.
'R~e Funds shal! he held in an institution the deposits or accaunts of which are insured or guara~teed by a Fcderal or
state agency (including Lender if Lender is such an institution). l.ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyziog said account,
or verifying and rnmpiling said assessmeots and bilts, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Ix~der may agrce in writing at the time of execution of this
Martgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable taw
requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender *
shall give ta Borrawer, without charge, an annual accounting of Ihe Funds showing credits and debits ta the Funds and the
purpose !or which each debit to the Funds was made. The Funds are pleeiged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together K•ith the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall etceed the amount reyuired to pay said taxes.
assessments, insurance premiums and ground rents as they fall due, such e~cess shall be, • at Barrovver's option, either
promptly. repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shal[ not be sufticient to pay tares. assessments, insurance premii~ms and ground rents as they fall due,
Borrower shal! pa}~ to Lender any amount necessary ta make up the deficien:y within 30 days trom the date notice is mailed
by Lender to Borrower requesting payment thereof. .
Upon payment in full of all sums ser.ured by this Mortgage. l.cnder shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or thc Property is otherwi~e acquired by Lender, Lender
shal! apply, no later than immediately prior to the sale of the Propert~~ or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage. _
3. Application of Paymeats. Untess applicable law provides otherwise, all payments rereived b~~ Lender under the
Notc and paragraphs 1 and 2 hereof shall bc applied by I.ertder first in payment of amounts payable to 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 Adva~ces.
4. Chatges; Lieac. Borrower shalf pay alt taxes, assessments and other charges, fines and impositions attributable !o
the Property which may attain a priority over this iiortgage, and leasehold payrnents or ground rents, if any, in the maoner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payce thereof. Borrower shall promptly fur~ish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment dire.:tl}~. Borrower Shall promptl~• furnish to I.ender receipts evidencing such payments.
Borrower shait promptty discharge any tien a•hich has priority over this Mortgage: provided, that Borrower shall not be
required to discharge any such lien so long as Borrow~er shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith~contest such lien by, o~ defend e~forcement of such tien in,
legal proceedings which operate to pre~~ent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Huard [nsurance. Borrower shall i;eep the ~mprovements no~ existing or hereafter erected on the Praperty insured
against loss by fire, hazards incluc~ed within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such peri~xls as Lender ma}~ require; prc~videJ, that Lender shall not require that the amount of
; such coverage ecceed that amount of coverage required to pap the sums secured by this Mortgage.
! The insurance carrier providing the insurance shall be choser~ by BorroWer subject to approval by Lender; provided,
~ that such approval shall not be unreasonably withheld. All prcmiums on insurance policies shall be paid in the manoer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
~ insurauce carrier.
All insurance policies and renewals thereof sha!! be iR form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptabte to Lender. Lender shatl have the right to hold the policies and renew~als thereof,
and Borrow~et shall promptly furnish to Lender all renew•al notices and ail receipts of paid premiums. In the event of lass,
Borrower shall gi~~e prompt notice to the insurance carrier and Lender. I_ender may makc proof of loss if not made prompdy
~ by Borrower.
~ Unless Lender and Borrower othervvise agree in writing, insurance proceeds shall be applied to restoration or repaic of
the Property damaged, provided such restoration or repair is economically feasible and t6e security of this Mortgage is
not thereby impaired. If such restoration or repair is not economicatiy feasible or if the seeurity of this 4fortgage would
~ be impaired, the insurance proceeds shall be app)ied to the sums secured by this Mortgage, with the excess, if any, paid ,
` to Borrower. If the Propert}• is abandoned b~~ Borrower, or jf Borrower fails to respond to Lender within 30 days from the
; date notice is mailed by Lender to Borrower that the insurance cas~ier otiers to settle a claim for insurance benefits, Lender
~ is auth~rized to collect and app[y the insurance proceeds at Lender's option either to restoration or repair of the Propeny
t or to the sums secured b}• this Mortgage.
t~nless Lendcr and Borrow~er othen+~ise agrec in wnting, an}• such appiication of proceeds to principal shail aot extend
_ or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph t 8 hereof the Propeny is acquired by~ I.ender, all right, title and interest of Borrow~r
in and to an}• insuranre policies and in and to'the proceeds thereof resulting from damage to the Property prior to the sale
- or acquisition shall p~ass to I.ender to the extent of the sums se.:ured by this Mortgage immediately prior to such sale or
' acquisition.
6. Presen~ation aod ~taiatenance of Property: Leaseholds; Condominiums; Planned Unif Developments. Borrower
` shall ~eep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply ~vith the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planncd unit de~~ctopment. Borrower shall perform aIl of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned tmit development
riJer is execufed by Borrower and recorded together with this Mortgage. the covenants and agreements of such rider
shall be iacorporated into and shall amend and supplement the covenants and agreements ef this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Securitv. 1f Bc~rrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially afiects I_ender's interest in the Property,
including, but not limited to. eminent domain, insoh•ency, code enforcement, or arrangements or proceedings involving a
bankrupt or decrdent. then f_ender at Lender's option, upon notice to Borrower, ma} make such appearances, disburse such
~ sums and take such action as is necessar~• to protect L.ender's interest, including, but not limited to, disbursement of
' reasonable attorney''s fccs and entry upon the Property to make repairs. If I_e~der required mortgage insurance as a
condition of making the loan secured b} this ~iongage. Borrower shall pay the premiums requireci to maintain such
insurance in etiect until such time as the requirement for wch msurance terminates in accordance with Borrower s and
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