HomeMy WebLinkAbout0719 Urt~FORt~ CovEtv~Nrs. Borrower and l.ender coveo~n~ and agrrr as follows:
l. Paymeat of P~inctpai aad laterest. 8orruH~er shall promptly pay w•hen due the principal of and interest on the
indebtedness evidenced by the Note, prepayment a~J late chargcs as provided in the Note, and the principal of and interest
on any Future Ad~•ances sccured by this Mortgage.
2. I~luads tor T~a and lasurnace. Subject to appiicabie iaw or to a written waiver by Lender. Borrower shall pay ~
to l.cnder on the day monthly +nstallments of principa! and interest arc payable undcr the Note, uMil the Note is paid io [ull, ,
a aum (hercin "Funds") cqual to one-twelfth of the yea~ly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Pr+operty. if aoy, plus one-~welfth of ycarly premium instailments for hazacd i~surance,
plus one-twel[th of yearly premium installments for mortgage insurance, if any, all as rcasonably estimated initially and from
timc to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
. The Funds shaU be held in an institution the depcuits or accounts of which are insured or guaranteed by a Federal or
state agency (includi~g Lender if Lender is such an institutian). t.ender shall apply the ~unds to pay said taxes, assessments. .
insurance premiums and ground rents. [.ender may- not charge far so holding and applying the Funds, analyzing said account.
or verify+ng artd compiling said assessments and bills, unless Lender pays Borrower interest an tht Funds and applicable law
permits Lender to make such a charge. Borrower and l.ender may agree in writing at the time of executio~ of this
Mongage that interest an the Funds shall t~e paid t~ Borrower, and untess .such agreement is made or applicable law
requires such i~terest to be paid. Lender shall not be requircci to pay Borrower any interest or earnings on the Funds. Lender ~
shal! give to Burrower, without charge, an annual accounting of ~he Funds shawing credits and debits to the Funds and the
purpose tor which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Fiinds held by Lender, togethcr with ~he futurc monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assessments, insurance premiums and ground ~ents as they fall due, such excess shali be, at Borrower s op~ion, either
promptl~~ repaid to Borrower or credited to Borroacr o~ monthly installments of Funds. If Ihe amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums apd ground rents as they fall due,
Borrower shall pay to Lender any amount necessarp to make up the deficiency within 30 days from the date notice is maited =
by Lender to Borrower rcquesting payment thercof. .
Upon payment in full of all sums secured by this Mortgagc, I.ender shall promptly refund to Borrower any Funds
held hy Lender. If under paragraph 18 hereof thc Propcny is sold ur the Property is otherwise acquired by l.ender, Lender ?
shall apply, no later than immediately prior to thc salc of thc Propcrty or its acquisition by I_ender, any Funds hetd by - ?
Lender at the time of application as a credit against the sums secured by this Mortgage. . ~
3. App[ication of Payme~ts. Unless applicable law provides olherH•ise, aU payments received by Lender under the .
Note and paragraphs 1 and 2 hereof shall be applicd by I.cnder first in pa}~ment of amounts pa}~able to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note. then to the principal oi the Note, and then to interest and ~
principal on any Future Advances.
4. C6arges; Lkns. Borraw~er shall pay alt taxcs, asussmcnis and ~lher charges, fines and impositions attributable to
the Property which may attain a priority over this Alortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hercoi or, if not paid in such manner, by Borrower making payment, when due, airectly to the
payee thercof. Borrower shall promptly furnish to Lender all notices of amounts duc under this paragraph, aad in ihe event
Borrower sfiall make payment directl~•. BorroK•er shall promptly furnish to Lender receipts evidencing such payments.
8orrower shall prompdy discharge any lien w•hich has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agrez in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, `
(egal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. f
5. Hazard Insurance. Borrow•er shall keep the improvcments nou~ existing ar hereafter ei~tcd sn tl:e Property insured
against loss by fire, hazards included within 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 amoont of
such coverage exceed that amount of co~~erage requ+red to pay the sums secured by this ~4ortgage_
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 under paragraph 2 hereof or, i[ not paid in such manner, by Borrower making payment, when due, direcdy to the
insurance carrier.
Ap insurance policies and renew•a~s thereof shall be in form acceptable to Lender and shall include a standard mortgage .
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold ti~e policies and renewals ihereof,
and Borrow-er shall prompd~~ furnish to Lender alf rcncv?•al notices and all receipts of paid premiums. In the cvcnt of loss,
Borrower shail gi~•e prompt not+ce to the insuraore carrier :~nd Lender. Lender ma~• make proof of loss if not made promptly
by Borrower. :
Unless Lender and Borrower otherwise agree in w~riting, insurance proceeds shali be applied to restoration or repair of ;
the Property damaged, proviJed such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is nut economically feasible or if the security of this Mortgage would "
be impaired. the insurance proceeds shall be applied to the s~ms secureJ by this Mortgage, with the excess, if any, paid
to Borrower. If the Properq• is abandoned h~~ Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed bp Lender to Bormwer that the insurance carrier ofFers to settle a claim for insurance benefits, L.ender
is authorized to collect and apply [he 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 otherv?~ise agree in writing, an~ such application of proceeds to principal shall not extend
or postpone the due dare of the monthl}~ installments referred to in paragraphs 1 and 2 hcrcof or change the amount of
such installments, if under paragraph 18 hereof the Property is acyuired by Lxnder, all right, title and interest of Borrower
in and to any insurance policies and in and to the procceds thereof resulting from damage to the Propeny prior to the sale
or acyuisition shall pass to Lender to the extent of the sums sccured by this I?lortgage immediately prior to s~ch sale or
acquisition.
6. Presen~ation aad 1laintenance of Properi~: Leaseholds; Condominiums; Planned Unit Developments. Borrower ~
I shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property ~
and shall comply with thc provisions of any lease if this Afortgagc is on a leaschold. If this Mortgage is on a unit in a
condominium or a pfanned unit development, Borrowcr shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the bylaws and regolations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit Jevelopment
rider is executed by Borrower and recorded together w•ith this Mortgage, the co~~enants aod agreements of such rider
shall be incorporated into and shatl amend and supplement the co~~enants ansi agreements of this Mortgage as i[ the rider
were a part hereof.
7. Protection of I.ender's Security. If Borrower fails to pertorm the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s commenced which materially aRects Lender's inierest in the Property,
including. but not limited to, eminent domain. insolvency~, code e~torcement, ar arrangements or proceedings involving a
bankrupt or dececlent, ~hen lxnder at Lender's option, upon notice to Borrower, may make such appearances, disburse such ~
sums and take such action as is necessary to protect Lender s interest, including, but not limited to, disbursement of '
reasonable attorney's fces and entry upon thc Propcriy to make repairs. If Lcndcr required mortgage ensurance as a ~
condition of making thc toan secured by this 1?fortgagc. Borrowcr shall pay thc premiums required to maintain such ;
insurance in efiect unti! such time as the requirement for such insurance terminates in ateordance with Borrower s and
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