HomeMy WebLinkAbout0358 UxtFOwt CovarwNn. Borrower and Lender covenant and agree as Eolbws:
1. Parawt oE• Prlndpl and Iatenyt. Borrower shall promptly pay when due the printipal oE and interest on the
indebtedncu evidenced by the Note, prepayaient and late charges u provided in the Note. and che principal ot and inter-
eu on a~y Future Advanca :ecured by this Morcgag~e.
2 tLnds for Tua and Iawnace. Subjat to appliuble law or to a written waiver by Lendcr, Borrower shall pay
to Lender on the day monthly~installment: ot principal and interest ue payable under ~he Note, until the Note is paid in
tull, a sum (herein "Funds'7 equal to one-twel[th of the ytuly taxes and asxssmenu which aur atuin priority over this
Mortgage, and ground rents on the Property. it any, plus onatweltth o[ yearly pnmium installmenu tur hazard insurance,
plus onc~tweltth oE Yearly premium installments (nr mortgage insunnce, if any, aU u reasonably atimated initiallr and irom
cime to time by I.ender. on the basis ot asxssmenu and bills and nasonable estimac-s thereot.
The Funds shalt be held in a~ institution the deposits or accounu of which are iowred or guaranteed by a Fedenl or
state agency (including l.ender it Lender is such an institution). Lender shall apply the Funds to pay said taxes, assesstatats.
insurance premiums and ground rents. Lender may not chuge tor w holding and applying the Funds, analy:ing said ac-
count, or veriEying and rnmpiling said asseume~u and bills, unleu Lcnder pays Borrowt~ interest on the Funds and ap~
plicable law permits Lender to make such a charge. Borrower and Lender may agree in writiog at the time oE execution of
this :ltortgage that interat on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, I.ender sl~all not be requircd to pay Borrower anp interat or earnings on the Funds. l.ender
shall give to Bortnwer, without chargt. an annua! accounting of the Funds showing crcdits and debiu to the Fu~ds and the
purpose for which each debit to the Funds wu made. The Funds are pledged as additional sectirit~ for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with the [uture monthly installmenu of Funds payable prior to
the due data o[ taxes. assessmrnu, insunnce premiums and ground rents, shall exceed [he amount required to paq said
wces. assesunenu, insurance premiums and ground rents as thcy tall due, such excess sha11 be, at Borrower s option, eithet
promptly repaid to Borrower or cndited to Borrower on monthl} installmenu oE Funds. I( the amount ot the Funds held
by Lender shall not be suEficient to pay taxes, assessments, insurance premiums and ground rencs as they tall due, Borrower
shall pay to Lender any amount necessary to make up the de(icienry within 30 days (rom the date notice is mailed by Lender
to Borrower requesting payment [hereo[.
Upon payment in full of all sums xcured by chis Mortgage, L~ndn shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Propeny is otherwise acquired by Lender, Lender
shall applr, no later than immediately prior to the sale o( the Property or its acquisition by Lcnder. any Funds held by
Lender at the time oE application as a credit against the sums xcured by this \tortgaqe.
3. AppUcation o[ Payments. Unleu applicable law provides otherwise, ail payments recei~ed by Lender under the
Note and paragnphs 1 and 2 hereof shall be applied by Lender fint.in payment of amounu pa)able to l.ender by Borrower
under paragraph 2 hereof, then to intereit pa}~able on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arge~ Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which maY attain a priority o~~er chis 1ltortgage, and leasehold payments or ground rents, if an}. in the man-
ner pro~ided under paragraph 2 hereo[ or, if not paid in such manner, b~ Borrouer making payment, Mhen due, direcdy to
the payee thereof. Borrower shall promptly [urnish to I.ender all notices oE amounts due under this paragraph, and in the
event Borrower shalt make payment directly, Borrower shall pmmptly furnish to Lender receipts evidencinq such paymeots.
Borrower shaU promptly discharge any lien which has priority oeer this ~ionga~{e; pro~•ided, that Borrower shall not be re-
quired to dixharge any such lien so long as Bonower shall agree in writing to the pa}~mene of ehe obligaeion secured by such
lien in a manner acceptable to Lender, or shall in good [aith tontest such lien by, or detend entorcement of such lien in, le-
gal proceedinqs which operate to pre~•ent the enforcement of the lien or (or(eiture o[ the Propeny or any part thereoE.
5. Hanrd Inwnnoe. Borrower shall keep the improvements now existing or hereaEter erected on the.Property in-
wred against loss by fire, hazards induded wi[hin the term "extended co~erage", and such other hazards as Lender may re-
quire and in such amounts and for such periods as Lender may require: provided, that Lender shall not require that the
amount of such coverage exceed that amount of coverage required to pay the sums secured by this ~tortgage.
The insurance tarrier providing the insurance shall bt chosen by Borrower subject to approral b~• Lender: pro~tided,
'i that such approval shall not be unreasonably Mithheld. All premiums on insurance policies shall be paid in the manner
i provided under paragraph 2 hereof or. it not paid in such manner, by Borrower making payment, when due, direcdy to
I [he insurance carrier.
i All insurance policies and renewals thereo( shall be in form acceptable to Lender and shall include a standard mott-
, gage clause in [a~•or of and in Form acceptable to Lender. I.ender shall have the right to hoid ehe policies and mnewals
~ thereof, and Borrower shall promptly (urnish to Lender all renewal notices and all receipts oE paid premiumx In the e~ent
of loss, Bortower shall gi~e prompt notice to the insurance carrier and L.ender. L.ender may make proo[ of loss iE not made
prompdy by Borrowtr.
Unless Lender and Borrower otherwise aqree in Nritinq, insurance proceeds shall be applied to restoration or repair oE
thc Property damaged, provided such testoration or repair is economically teasible and the securitv of this ~tortgage is not
thereby impaired. If such restoration or repair is not economically feasible or if the securit~• of this ~tortqage would be im-
paired, the insurance proceeds shall be applied to the sums secured by this ~fortgage, with the excess, i[ an~, paid to Bor-
~ rorrer. If the Property is abandoned by Borrower, or if Borroaer fails to respond to Lender within 30 days [rom the date
~ notice is mailed by Lender to Borrower that the insurance carrier of[ers to settle a claim (or inwrance benefiu, Lender is
authorized to collect and appty the insurance proceeds at Lender's option either eo restoration or repair of che Property or
to the sums secnred by this ??tortgage.
Unless Lender and Bonower othervvise agree in writing, any such application of proceeds to principal shall not extend
or pcntpone the due date of tht uwnthly installments re[erred to in paragraphs 1 and 2 hereof or change the amount of such
' installments. If undtr paraqraph 18 hereof the Property is acquired by Lender, a11 right, title and interest of Botrowet in
and to any insurance policies and in and to the proceeds thereof resulcing (rom damage eo the Propercy prior to the sale or
atyuisition shall Pass to Lender to the extent o( the sums secored by this ~4ortgage immediately prior to suth sale or
acquisition.
6. Preservation and Maintenance of Properq; Leaseholds: Condominium~ Planned Unit Devdopments. Borrower
` s1~a11 keep the Property in good repair and ,ha1! not commit waste or permit impairment or decerioration oi the Property
~ and shall comply with the provisions ot an) lease i[ this ~fortqage is on a leasehold. IE this ~fort~ge is on a unit in a
i condominium or a planned unit development, Borrowtr shall perform all o( Borrower's obligations under the declaration
~ or covenanu creating or governing the condominium or planned unit developme~e, the by-laws and requlations of the mndo-
~ minium or planned unit development, and constituent dotuments. It a condominium or planned unit development rider is
~ executed by Borrower and recorded toqether with this titortgaqe, the co~enants and agreements of such rider shall be in-
E corporated into and shall amend and supplement the covenants and aqreements of this \tortgaqe as if the rider wert a part
~ hereof.
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~ Yrotection o[ Ltnder's Security. If Borrower fails to pertorm the covenants and agrtements contained in this ;
Mortgage, or if any action or proceeding is commenced which materially attects Lender s interest in the Property, including,
~ but not limited to, eminent domain, insoh•ency, code en[orcement, or arrangemenes or pr«eedings in~•olving a banknipt ;
~ or decedent, thcn Lender at I.ender's option, upon notict to Borrower, may make such appeannces, disburse such sums
~ and t~ke such action as is netessary to protect L.ender's interes~, includinq, but not limited to, disbursement of reasonablt
attornty's (ees and entry upon the Propeny to make repairs. If I.ender requirtd mortgage insurance u a tondition of
t making the loan secured br this ~tortgage, Borrawer shall pay the premiums required to maintain such insunnce in et-
~ (ece until such time u the requirement tor such i~uunnce terminata in accordance wieh Borrower s and Lender's written
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e~RK 2~3 ~~~,~f 357
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