HomeMy WebLinkAbout0830 UNtFatt?~ CoveN,~N7s. Borrowec and I.enJer covenan~ and aR~~~e as foU~~w~: ' ,
1. rlUmewt ot Priocl~al aod luferest. Hc~rn?wet ~n:?n ~«.~~~a~~ rsy Nh~n duc Ihe principal and interest un thc
indebtedness evidenced by the Note. prepayment anJ late charge. a~ pruvided in the Note, and Ihe principal of and intercs~
or~ any Future Advances secured by this Mortgage.
2. I+'aads to~ Tuas aod lawrasce. Subject to applicablc law or ~o a N•rittcn waivcr by I.ender. Sorrower shall pay
to Lender on the day monthly installments of principal and intcr~a rrc payahlc unJe~ the Note, until the Note ic paid in tull.
a sum (herein "Furtda") equal ta one-twelfth o( IFte ycarl~• ta~c. and asa.-ssments which may attain priority aver this
Mortgage. and ground renta on th~ Pc+operty, if any, plus one-tweltlh af ycarly premium installmcnts tor hazard insurance,
plus one-twelfth of yaarly premium installments for mortgage inuirancc, if any, all as ~asonably estimatcd initially and from
time to time by ~ender on the basis of asx;ssments anJ hills and rc:+sunablc estimates Ihereot.
The Funds shall be held in an instituli~~n thc dep~ia a~ acc~~unts of which are insured or guaranteed by a Fcderal or
state agency (including Lender if Lender is such an instituti~n). I.ender shall apply the Funds to ~+:~y saiJ taxes, ascessments,
i[uurance premiums a~d graund rents. 1_ender ma~~ not cha~ge tor sa holding and applying the F~ind.. analyzing ~aid account,
or verifying and compiling said assessments and hill~, unless I.enJcr pay~ Bo~rower interest on the Funds and applicable law
permits Lender to make such a charge. Bc~rrower and I.ender may agrce in writing at the time ot caccution ot this
Mortgage that i~terest on !he Funds shall he paid to Rorrower, and unless ~~ch agrcement is made c?r applirable law
rcquires such interest to be paid. ~ender shall not tx req?eired to pap Borrower any interest or earnin~ on the ~'unds. Lcndcr
shall give to Borrower, without charge, an annual account~ng of the Funds ahowing credits anJ denits to the Funds and the
purpose for which each debit ta the Funds was made. The Funds are pleeigcd :u additional security for ~he sums secured
by this Mortgage.
lf the amount of the Funds held by LenJer, rogether with the futurc monthly inst:~llments of FunJ~ pay:~ble prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shaU exceed the amount rzyuired tu p:~~~ ~aiJ taxes,
assessme~ts. insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's optic.n, either
pr~ptly repaid to Borrower or ctedited to Bormwer on monthly installments of Funds. lf thc amount of thc i unds
hdd by Lender shall not be suf6cieat to pay taxes, assessments, insurance premiums and ground rents as ~hcy fall due.
Borrower shall pay to Lender any amount necessary to make up ~he Jrficiency within 30 da}~s from the da/c notice i~ mailed
by Lender to Borrower requesting payment thereot. _
Upon payment in full of all sums secured by this Mortgage. I.ender shall promptly ic(und to Born,H•er anp i~unds
held by I.ender. If under paragraph 18 hereof the Property ia sold or thc Property is othervvisc acquired by LcnJcr, I.rndcr
s6a11 apply, no later than immediatcly phor to the sale of the Property ar its acquisition by I.cnder, any Fundc held by
Lender at the time of application as a credit against the sums secured by this 1~lortgage.
3. Applicatloa of Paymeats. Unless applicable law provides otherwise. all payments received by l.ender unJer the
Note and paragcaphs 1 and 2 hereof sh•rll be appiied bv I_ender first in p:~}•ment of amounts payabtc to Lcnder by Borruwer
under paragraph 2 hercof, then to inte~est payable on thc Note, then to thc princip3l of the Note, and thcn to intcrest anJ
principal on any Future Advances.
4. C6arges; Lieas. Borrower shall pay all taxcs, assesSments and othcr chargcs, fines and impositiorts attribirtable to
the Property which may attain a priority over this Mortgage, and leaschold payments or g[ound rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payce the~+eof. Borrower shall promptly furnish to Lencier all notices o[ amounts due under this paragraph, aad in the event
Borrower shall make payment directly. Borrower shall promptly furnish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge a~y such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to l.ender, or shall in good faith contest such lien by, or defend enforcement oi such lien in,
legal proceedings which operate to prevent the enforcement of the lien or [orfeiture of the Property or any part thereof.
S. Huud lasurance. Borrower shall keep the improvcments now existing or hereafter crccted on the Property insured
against loss by fire, hazards included within the term "cxtended rnverage", and such oiher hazards as Lender may reyuire
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 Mortgage.
; 'I1~e iasurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
i that such approval shall not be unreasonahly withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, b} Borrower making payment, when due, directly to the
~ insurance carrier.
~ All ansurance policies and renewals there~f shall be in form acceptsble to Lender and shall include a standard mortgage
' clause in favor of and in form acceptable to Lender. lxnder shali have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prnmpt notice to the insurance carrier and l.ender. Lender may make proof of loss if not made promptl~~
by Borrower.
~ Unless Lender and Borrow~er oiherwix; ag~ee in writing, in~urance proceeds shall be applied to restoration or repair of
the Property damaged, proviJed such restoration or repair is econamically (easible and the security of this Mortgage is
not thereby impaired. If suc:h 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 sums secured by this Mortgage, with the excess, if an~•, paid
to Borrower. If the Propeny is abandoned hy Borrower, or if Borrower fails to respond to Lender within 30 days from the
dale notice is mailed by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, I_ender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propert}•
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 c~tend
or postpone the due date of the monthly inslallments referred to in paragraphs I and 2 hercof or change the amount of
suc6 installments. If under paragraph I8 hereof the Property is acyuired by lxnder, all right, tiNe and interest of Borrower
in aod to any insurance policies aad in and to the proceeds thereof res~lting from damage to the Property prior to thc sale
or acquisition shall pass to I.ender to the extent of the sums secur«i by this Mortgage immediately prior to such sale or
' acquisition.
~ 6. Preservation and ~laintenaace of PropeAy; Leasehulds; Condominiums; Planned Unit De~elopments. Borrowcr
_ shall Iceep the Property in good repair and shall not com~pit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease ii this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaratiun
~ or covenants creating or governing the condominium or planned unit development, the by-laws and regulationc of the
~ condominium or planned unit development, and constituent da:umems. If a condominium or planned unit development
~ rider is esocuted by Bonower and recorded rogether with this Mortgage, the covenants and agreements of such rider
~ shall be incorporated into and shall amend and supplcment the covenants and agrcements of this Mortgage as if the riJer
were a part hereof.
~ 7, protectioo ot Leoder's Security. If Borrower fails to perform the covenants and agreements contained in this
~ Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
~ including, but not limited to, eminent domain, insc?Ivency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
~ sums and take auch action as is cecessary to protect Lender
s interest, incloding, but not limited to, disbursement of
~ reasonable attomey's (ees and entry upon the Property to make repairs. If Ixnder required mortgage insurance as a
condition of making the loan secured by this Mortgage. Bonower shaU pay the premiums required to maintain such
inwrance in eftect until such time as the requirement for such insurance terminatea in accordance with Borrower s and
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