HomeMy WebLinkAbout0230 UHtFOnnt CoveN+Nrs. Borrowcr and l.endrr cuvenant and agrre a~ foliaws~ '
I. 1'aymeut o[ Prtoclpd aod latercsl. &xrowcr sh~ilt p~omptly~ pay ahcn duc thc p~incipa! of a~~d intere~t ~n ihe
indebtedruss evidenced by the Note, prcpayment and latc charg~~ a~ providcd ~n thc Notc, and ~he principal of and ~n~rrest
on any Futuro Advancec securecl by this Mar~gage.
2. Ithads ior Tues aad lasurance. Subject to applicable law ~~r to a N~riUcn waivc~ by l.cnder, HoRC~wer shatl pay~
to L,ende~ nn the day monthly instaliments of pri~cipal :~nd ~nterc.t arc payablr unJ~r the Nc~te, until the Note ~c paid in full.
a sum (herein "FunJs") cqual ta one-twelfth ot !hc ycarly ta~~+ •rn~) ~~~cssmcnt~ which may auain priurity ovcr ~h~c
Martgage, aod ground rents on the Property, if any, plus o~c-twclhh ut ~~ea~ly prrmium installmcnts for hazard insurance. ~
plus oae-tweltth of yearly premi~m instaUmcnts (or mortgagr insurancc, it any, all as rcasonably cuima~cd initiaUy an.l from
time to time by I_ender on the basi~ of ass~snicnt, :~nd hilk :ind rea~unablc estimates thcr~of. •
The Funds shall be held in an institution thc deposit~ or acrnunts e.i which are insurtJ ~~r guaraotced hy a F'eJeral or
state agcncy (including Lender if Lender is such an institwionl. I.cnJer shali apply the fundc to pay said taxes, ascessments,
insurance prcmiums and ground rents. Lender may not charge tor ~o hotding :~nd applyin¢ the Fun~i.. anal~~~ing caid acc~unt.
or verifying and compeling said assessments and bilh, unlrss I.ender pa~•s B~~rrowcr intcrest c~n the Funds and •rpplicable law
permits l.e~der ta make such a charsc. 13~irn+wer and l.cndc~ may agrcc in writing at ~hr timr M crrcutio~ o[ thi~
Mortgage that interest on the FunJs shall he paid tc? 13orrower, anJ unless such agreement i~ maJc ur applicabk law
requires such interest to t~ paid, !_ender shatl not be reyuirect to {?:ry Borrower ~n~• in~erest or e:~rning, un the Funds. Lrnder
shall Qive to Rnrrower. without chante, an annual accuunting of the Funds ~huwing creclils and dchits to the (=unds and thc
purpose for which each debit to the Funds was maJe. 71~e Funds are pledg~~i a~ additi~~nul secu~ity f~r the sums secured
by this Mortgage.
If the amount of the Funds held by Len~ler, together ~+i1h thc luture monthl~• inslallmenis of Fund~ pa~ahlc prior to
the due dates of taxes, assessments, insurance premiums anJ grounJ rents, shall exccecl Ihe amount reyuired tu p:,y ~aid taxes,
assessments, i~surance premiums and ground rents as thc}~ fall dur, such e~re,s ~hall be, at BorroK•er't e~puon, rither
promptly repaid to Borrower or crcdited ta Bnrm~ver on monthly installments of Funds. If thc :+mount ~~f thc Funds
held by Lender shal! not be suttcient to pay taxes, assessments, insurance premium~ and grounJ rents as thcy iall due,
Borrower shall pay to Lender any amount necessar~~ ta make up the deficiency within 30 da}s (rom the date nouce is mailed
by Lender to $orrower requesting paymcnt therco(,
Upon payment in fu11 oF all sums sc:cured 6y this Mortgage. l.cndcr shall promptly rcfund to Rarrowcr an}• fiunJs
held by I.enckr. If under patagraph l8 hereof the Property i~ sold or thc Propert} is otherwise acqu~rcd b~~ Lender, Lender
shall apply, no later than immediatclp prior ta the sale of thc Propcrty or its acyuisition b}• Lcnder, any F~undt hcW by
1_ender at the time o[ application as a crcdit against th~ sums secured b}• thi~ A}ortgage.
3. Appticatlon of Paymeats. Unlcss applicable law provi~les oihen~~ise, all payments re~civcd b~ Lendcr unJer the
Note and paragraphs 1 and 2 hereu[ shall be applied b} I.endcr first in pa}~ment ot amounts payablc to Lcnder by $orroWer
under paragraph 2 hereof, then to interest payablc on thc Note, thcn to thc principal of ~hc Notc, and thcn tc. in~crest anJ
principal on any Future Advances.
4. CiwrRes; Liens. Borrower shall pay ail taxes, assessments artd other charges, fioes and imEwsitions attribu~ahle to
the Properiy which may attain a priority over this Mortgage, and leaschold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, K~hen Sue, directly to the
payce thereo(. Borrower shall promptly furnish to Lender all notices of amounts duc under this paragraph, and in the event
Borrower shalt maLe payment directly, Borrox•er shall promptly furnish to Lender rereipts evidencing such payments.
$orrower shall prompNy discharge any lien w~hich has priority iiver this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in N•riting ~o the payment of the obligation secured by
such lien in a manner acceptabte to Lender, or shall in gcwd fsith contr~t su~h lien by, ar Jefend enforcement of such lien in, -
legal proceedings which operate to prevent the enforcement ot the l~en or for[e~wre of the Propertl• or any part thereof_
S. Huard Insursmce. Bocroaer shall keep the impro~•emcnts no~ etiisting or hercafter crrctcd on the Property insurcd i
against loss by fire, hazards ineluded a~ithin the term "eslendeJ coverage", and such other hazards as Lender may reyuire i
and in such amounts and for surh periods as Lender may reyuire; provided, that I_ender shall not require that the amount of i
such coverage exceed that amount af coverage required to pay the sum~ secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
provided undec paragraph 2 hereof or, if not paid in such manner, by Borrower making paymeni: when due, direcUy to the
insurance carrier.
All insurance palicies and renew~als thereof shall be in form arceptable to LenJer and shall include a~tandard mortgage
clause in favor of and in form acceptable to Lender. 1_ender shall have the right to hold thr policies and reneK•ak thereof. ~
and Borrow•er shal( promptty~ furnish to Lender aN renewal notices and all receipts of paid premiumc. In the event of loss.
Borrower shal! give prompt notice to the insurance carrier ~nd I.ender. Lender may make prcx~f of loss if not made pmmptE}•
by Burrower.
Unless Lenekr and Borrow•er otherwix agree in writing, insurance procecds s6a".I be applied to restoration or repair of
fhe Property damaged, provided surh restoratron or repair is econom~ca!!~~ feasibie and !he security of this Mortgage is
not ~hereby impaired_ It such restoratio~ or repair is not econumirally feasihle or if the security of this Mortgage woulJ
be impaired, the insurance proceeds shall br, applied to the sums sccureJ by this 111ortgage. with the excess, if an}', paid
to Borrower. If the Propert~~ is abandoned hy Borrowcr, or il Borrower faik to res~nd to Lender within 30 days from thc
date notice is maited b}• L.ender to Borrower that the insurance carreer otTen to seule a claim for insurance benefits, Lender
is authorizeci to collect and appl~~ the insurance proceeds at Lendcr's option either to restoration or repair of the Propeny
or to thc sums sccured by this ;1lorigagc.
Unless Lender and Borrower otherwi~c agree in w•riting, any such application c~f prc•ceeds to~prirtcipal ShaH not extend =
or postpone thc duc date of the mon~hly installmcnts referrcd t~. in paragraphc 1 anJ 2 hcrcof or change the amount of
such installmenis. If under paragraph 18 hereof the Propert~~ is acyuireJ h~ I.endcr, all right, litle and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the ProFerty prior to the sale
or acquisition shalt pass to Lender to thc extent ot the sums secured bp this ,~tortgage immediately prior to such sale or ~
acquisition.
c
6. Presen•stion and :~laiatenance of Propert~; I,easeholds; Condominiums; Planned Unit De~elopments. Borrow•cr
shall keep the Propeny in good repair and shall not comroit w~aste ar permit impairment or deterioration of the Properry
and shall rnmplf~ with the provisions of any lease if this Mortg:~ge i~ ~.n a icasehuld. If this lHartgage is on a unit in a ~
condominium or a planned uni~ developmen?, Borrou~er ~hall perfnrm aU of Borrower's oblig•rtions under the declaratiun -
or covenants creating or governing the condominium or planncd unit devclopmcnt, the by-laws and regulationc of thc
condominium or planaed unit development, and constituent ducumentti. I( a condominium or planned imit de~•efopment
rider is executed by Borrower and rerordeJ tugether with this M~rtgage. Ihe covenants and agreements of cuch ridcr
shait 6~ incorporated into and shall amend a~J supplcment the covcnants and agrcemcnts of this Mortgage as if the ri~er
w•ere a part hereof.
7. Protection of Leoder's Security. If Borrower fails ~i~ perform the covenants and agreements contained in thic
Morigage, or if any action or proceeding i~ commenced ahich materiall~~ atiects I.enJer's interest in the Praperty,
inetuding, but not limrted to, rmroent domain, incolvency, a~de ent~rcement, or arrangcments or proceedings involving a
bankrupt or decedent, then Lender at I.eAder's option, upon notice to Borrower, ma~~ make such appearances, disburse such
sums and take such action as is necessary to prutect l.ender's mterest, including. bat oot limited to, disbursement of
reasonable attorney's fees and eMry upan tf~e Propcrty to maFc rcpairs. It Lcnder rcyuircJ mortgage insurancc as a
condition ot making the loan secured by this Mortgage,- Borri?w•cr shall pey ~he premiums requireJ to maintain such
inautance in cBect until such time as the requiremen~ fo~ such msurance terminatcs in accordance with Borrower ~ and
B~UK~~1 F.1CE ~~9
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