HomeMy WebLinkAbout0003 .
. ~ r„ _ ~ . ,
~ t r s3
UNtt~oxn~ Cov~N~Nrs. $orrower and LeaJer covenant and ag~ee as follows:
1. Paymeat of Principal aad IMe~st. Borrower shall p~umptly pay when due the principal of and interest on the
indebtcdness evidenceJ by the Noto. prepayment and late charges as provickd in the Note, and the principal of s~d interes!
on aay Futurc Advanccs securod by this Mongaga. .
1. Fnnd~ tor Tua and lasursnce. Subject to applicablc law or to a written waivcr by Lender. Borrower shall pay
to Lender on the day monthly instalime~ts of principal and interest aro payable under the Note. uatil the Note is paid in full,
a aum (hercin "Funds'~ cqual to one-twelfth of the yearly taxes and assessments which may attaio priority over this
Mortgage, and ground n~tt on the Property. if any, plus ooatwelfth of yearly premium installments for hazard insurance.
plus one-twel(th of yearly pnmium installmenta for mortgage insurance, if any. all aa reasonably tstimated initially and from
timc to time by Lender on thc basis of assessments and bills and reasonable estimates thereof.
The Funds shall be held in an instilution the deposits or arcounts ot which are insurod or gvaranteed by a Foderal or
state agency (including Le~de~ if Lender is such an institution). !_ender shall apply tht Funds to pay said taxes, assessments.
insurance premiums and ground rents. l.ender may not charge for so holding and applying the Fueds, analyzing said accou~t~
or verifying and compiling said assessments and bills. uoless Leader pays Borrower interest on the Funds and appticable taw
petmits Lender to make such a charge. Barrowe~ and Lender may agree in writing at the time of execution of this
Mortgage that interest un 1he Funds shall bc paid to Bottower, and unless such agreeme~t is madc or applicable law
rcquires such interest to be paid. Lender shall not be rcquired to pay Borrower any interest or earnings on the Funds. Lender
shall give to 6orrower, without charge, an annual accounting oF the Fu~ds showing credits and debits to the Funds a~d the
pucpose for which each debit to the Fuads was made. The Funds are pledged as additional security for the sums securcd
by this Mottgage.
If the amount of the Funds held 'uy Lender, together v?•ith the (uture monthly installments of Funds payable prior to
the due dates of taaa, assessments. i~uurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lendtr shall not be sutRcient to pay taxes, assessments, insurance premiums and ground rents as they fall due.~
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrow•er requesting payment thereof.
Upoa payment in full of all sums secured by this Mortgage, t_ender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hercof the Property is sold or the Property is otherwise acquired by i.ender, Lender
shall apply, no later than immediately prior to the sale of the Prope»y or its acquisition by L,ender, any Funds held by
Lender at the time of application as a credit against the sums.socured•,by ~his ~I~origagc.
3. Applicatjon of Payments. Unless applicable law previdea ~t#wi,yy~s~all p39ments reccived by Lender under thc
Note and paragraphs 1 and 2 hereof shall be applied by I_ender first in payment
oE arp~uunts payable to Lender by Borrower ,
under paragraph 2 hercof, then to interest payaEle on the Note, then to the principal of the Note. and then to interest and
principal on an}• Future Advances.
4. Charges; Lkns. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the PropeRy which may attain a priority over this Mortgage. and leasehold payments or ground rents, if any. in the raanner
pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when d~e, directly to ihe
payee the~+eof. Borrower shaU promptly furnish to Lender a!1 notices of amounts due under this paragraph, and in the event
Borrower shall make payment direcd~•, Borrower shall promptly furnish to Lender receipts evidencing such . payments.
Borrower shall promptly dixharge any lien which has priority over this Mortgage: provided, that Borrower shail not be
required to discharge any such lien so long as Borrower shatf agree in ariting to the paymer~t of the obligation secured by
such lien in a manner acceptable to Lender, or shaU in good faith contest such lien by, or defend enforcement of 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. Borrow~er shall keep the improvements no~~ existing or hereafter erected on the Property insured
against loss by fire, hazards included witf~in the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such cor•erage exceed that amount of caverage required to pay the sums secured by this Mongage_
The insurance cazrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
• that such approval shall not be unreasonably withheld. Ati premiums on insurance policies shall be paid in the manner
provided unde~ paragraph 2 hereof or, if not paid in such mannei, by Borrower making payment, when due, direcdy to the
insurance carrier.
All insurance polieies and re~ewals thereof shall be in form acceptable to Lender and shall inctude a standard mortgage
clause in favor of and in form acceptab(e to C.ender. Lender shall have the right 1o hold the policies and renewals thereof,
and Borrower shal! promptly furnish to l.ender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender, Lender may make proof of loss if not made promptly
by Borrower. ,
Unless Lender and Borrower otherv?ise agree in writing, insurance proceeds shal! be applied to restoration or repair of
the Property dainaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. It such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the swY?$ secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by 8orrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier ofTers 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.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or poatpone the due date of the monthl} installments referred to in paragraphs I and 2 hereof or change the amount of
such instailments. It under paragraph 18 hereof the Property is acquired by l,ender, all right, title and interest of. Borrower
in and to an~ insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presen•alion aod ~laintenance of Propevty; Leaseholds; Condominiums; Planned • Unit Developments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deteriorat+on of the Ptoperty
and shali comply with the provisions 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, Borrow•er 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 regutations of the
condominium or planned unit development, and constituent documents. If s condominium or Qlanned uoit development
rider is executed by Borrower aad recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lende~'s Security. If Borrow~er fails to perform the covenants and agreements conta+ned in this
Mortgage, or if any action or proceeding ~s commenced which materiaUy aliects Lender's interest in the Property,
ineluding, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then I_ender at Lender's option, upon notice to Borrower, ma}~ make such appearances, disburse such
sums and take 6uch action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
reasonable attorney's fces and entry upon the Property to make repairs. If L.ender required mortgage insurance as a
condition of making the loan secured by this Mongage. Borrower shall pay the premiums required to maintain such
insurance in eftect until such time as the requitement for such insurance terminates in accordance with Borrowe['s and
~2~~3 3 ~