HomeMy WebLinkAbout0835 UN[patt?t CoveN~NTS. Borrower and ~cndc~ cavcnant ~nd agr~~c as faUuws:
1. ~IIIt01 OE PI'~t1CI~ ~ IIIIlflS~. l3c~rrowcr shall pn~mpU~• p:.y when due the prinripal of and i~terest ~~n the
indebtedness evidenced by the Note, prepayment and late charg~~c ax pravided in ~he Nate, and the principal of and interest
on any Futurc Advances secural by th~s Mortgage.
2. Fuad~ tor Tues aad l~araece. Subject to applicable law ~~r to a w-rit~en waiver by I_ender, 8atrower shall pay
to Lender o~ Ihe day moothly installmeots of principal and ~ntcrcct .~re payable under the Nata until the Note ic paid in (ull.
a swti (herein "Funds") equa) to one-twel[th of the yeariy~ ~a~c~ an~l as~essments which may attain priority aver thic .
Mortgage. and ground rcnts on the Property, if any, plus onc-tw~clfth ot yearly prcmium installmcots fo~ hazard insurance,
pius one-twelfth of yearly premium installments for mor~gage insurance, i( any, all as rcasonably pctimated initially anJ from
time to time by 1_ender on the basis of atsc.aments and hills and rrau~nablc estimates thercot.
71~e Funds shall be held in an institution the depos~ta or accuunts ol which are in~ured or guaran~eeJ b)• a Federal or
state agency (including L.ender if Lcndcr is such an institutiool. 1_ender ~hall apply the Funds ta pa}' said taxes. as~cssmcnts,
insurance premiums and grcwnd rents. l.enJer may not charge lo~ so h~lding and appiying ~he Fundc. an:~lyxing said account.
or verifying and compiling said asseuments and bills, unless Lender pays Borrower interest on the Funds and applicaMe law
permits l.ender to make such a charge. ~rrawer and IanJer may agrre in writing at the time ut rxc~:uti~m ot this
Mortgage that interest on the Funds shall t+c paid ta Borrower, and unless such agrcemem is madc ~~r applirablc law
requires such interest to be paid. l.ender ahall n~t tx reywrecl to pay Borrower any imerest or carning, on thc FunJs. !_cndcr
shall give to Borrower, wit6out charge, an an~ual accuunung af ~he Funds showing credits and Jebits to the Funds and thc
purpose [or which each debit to the F~nds was madc. The Funds are plc~igcd as additional security for ~he sums secured
by this Mortgage.
lf the amount of the Funds held by Lencicr, togethe~ with the futurc man~hly installments uf Fund~ payablc prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pa) said taxes,
asseuments. insurance premiums and ground rents as they fall due, such cxccs~c shall be, at Borrower's aption, cither
promptly repaid to Borrower or credited to Borrower on monthly ~ns~allmcnts of Funds. If the amoun~ af thc Funds
held by [.ender shall not be sufficient ta pay taxes, assessments, insurance premiums and ground rents ac they fall due,
Borrower shall pay to Lender any amaunt necessan~ to make up ~he deficiency within 30 da~s from ~he date m~ti~e is mailed
by Lender to Borrower requesting paymcnt thereof.
Upon payment in full of all sums se~:ured by this Mortgage, t.ender shatl prompdy rcfund to Bor~o~~cr" an~~ Funds
held by l.enckr. lf under paragraph I8 hereof the Property is sold or the Property is otherwise acqwmd by I.cnder, Lender
shall apply, no later than immediatcly prior to the sale of the Property or its acquisition by I.ender, any Fundc held bt•
l.ender at the time of appiication as a credit against the sums secured by this ~lortgagr. ~
3. App~cation oE Paymeals. Unless applicabte law pmvides otherw•ise. all payments received by l.ender undcr the
Note and paragraphs 1 and 2 hereof shall be applied by Lcnder first in p~yment of amounts payable to LcnJer b~• Borr~~wer
under paragraph 2 hereof, then to intcrest payable on thc Note, then to thc principal of thc Note, and-thcn to interest and
principal on any Future Advances.
4. Charges; Liens. Borrow~er shall pay all ta~es, asscssmcnts and othcr charges_ fincs and imEwsitions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided unckr paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, Jirectly to the
payce thereof. Borrower shall promptly furnish to Lender all noticcs of amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrow•er shall promptly furnish to l.ender rereipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mongage: provided, that Borrower shall not be
required to discharge any 5uch lien so long as BorroN~er shall agree in writ~ng to the payment o( the obligatiun secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or Jefend enforcement of such lien in,
legal proceedings which operate to prevent the enforceme~t of 1he lien or [orfeiture of the Property or any part thereof.
5. Huatrd Insurance. Borrower shall keep the improvements noa• existing or hereafter errc~ed on the Pmperty insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as l.ender may reyuire
and in such amounts and for such periods as Lcnder may require; provideJ, that LenJer shall not require that the amount ot
' such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
F The insurance carrier providing the insuram-e shall be chosen by Bonower. subject to approval by Lender, provided.
~ that such approval shall not be unreasonabl~ withheld. All premiums on insurance policies sfiall be paid in the manner
E provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
~ All insuranre policies anJ renewals thereof shal! be in form acceptable to LenJer and shall include a standard mostgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renew~als thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums_ ln the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender. Lendcr may make prcx~f of loss if not made promptlp .
by Borrower. -
Unless Lender and Borroa~er otherw•ix: agree in a•riting, insurance proceeds shall be applied to restoration or repair of
the Propeny Jamaged, proviJeei such restoration or repair is economically feasible and the security of this Mortgage ic
not thereby impaired. If such restoraUon or repair is not cconomically feasible or if the security of this Mortgage wou1J
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage, with the excess, if an~•, paid
to Borrower. If the Property is abandoned hy Borrower, or il Borrower fails to respond to Lender within 30 days from the
date notice is mailed bv Lender to Borrower that the insutance carrier of~ers to setUe a claim for insurance benefits, l.ender
is authorized to collect and appl~• the insurance proceeds at Lender's option either to resroration or repair of the Pmpem~
or to the sums secured by this Mortgage.
Unless I~nder and Borrow•er othen+ise agree in writing, anp such aPplication of prckeeds to principal shall not e~tend
or postpone the due date of thc manthly installments rcferred to in paragraph~ 1 and 2 hercof or changc the amount of
such installments. !f under paragraph 18 hereof the Property is acyu~red by l.endcr, all right, title and interest of Borrowcr
in and to an}• insurance policies and in and t~ the proceeds thereof r~ulting from damage to the Property prior to tl~~ s:~le
or acquisition shall pass to l.ender to the extent of the sums sex:ured by this Mortgage immediately prior to such sale or
~ acquisition.
6. PreservAtion wd Altintenance of Properiy; Leasehulds; Condominiums; Planned Unit Developments. BorroKCr
shall keep the Property in good repair and shaU not comrpit waste or permit impairment or deterioration of the Propcrty
and shall comply with the provisions of any lease if this Mortgage is on a Ieasehold. 1! this Mortgage is on a unit in a
conciominium or a planned unit development, Borrower shall perform ail of Borrowers obligations under the declaration
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$ or covenants creating or governing the condomioium or planned unit development, the by-laws and regulateonc of the
~ condominium or planned unit development, and constituent documems. If a condominium or planned unit de~•elopment ;
~ rider is executed by Borrowec and recorded together with this Martgage, the covenants and agreements of such rider
~ shall be incorporated into and shall amend and supplcment the covenants and agreemcnts of this Mortgage as if the riJ~r :
;
~ were a part hereof. ~
~ 7. Protectioo of Lender's Security. Ii 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.
iacluding, but not limited to, eminent domain, insolvency, code enforcemenl, or arrangements or proceedings involving a }
~ bankrupt or decedent, then i~nder at Lender's option~ upon notice to Borcower, map make such appearances, disburse such ~
~ sumt and take such action as is necessary to protect l.ender
s interest, including, but not iimited to, disbursement of ~
~ reasonable attomey's fees and entry upon the Property to makc repairs. {f I~nckr required mortgage insurance as a
condition of making the loan secureJ by this Mortgage, Borrower shall pay the premiums required to maintain such
~ insutance in effat until such time as the requirement for such insurance terminates in accordance with Borrower s and
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