HomeMy WebLinkAbout0924 , ~ N
i .
UN[eouM CovEH~N7~s.. Borrowe~ and I_enJer covenant a~d agree as foll~~ws:
1. r.yanen~ of Priacipal asd laeres~. Eic~rrower sh~lt p~omptty pay v?hen due the princip;~l of and interest un the
indebtedness evidenccd by the Notc, prepaymeot and lale charges as proviJed in thc Nole, and 1he principal of and i~ten;st
on my Future Advancts secured by this Mortgage.
2. Fbads [or Tusa and Imuraace, Subject to applicable law or ta a written waiver by l.ender, Borrower shall pay
to l.ender o~ the day monthly instalime~ts oE principal and interect are payabk undcr thc Natc, until the Nate is paid in full,
a tum (~ercin "Funch") equal to one-twelfth of ~he yearly taxes and ~ssessments which may at:ain prioriry over this
Morigage, and grouad re~ts on the P~+operty, if any, plus onc-twcltth of yearly prcmium installmcnts for hazard insurance,
plus oao-twel[th of yearly prcmium installments fo~ mortgage insurance. if any, all as reasonably cstimated inilially and frum
time to time by I.ender oa the basis ot assessments and bills and reasonablc estimates thereof.
'I~e Funds shal! be held in an institutian the depasits or accounts of which are insurcYf or guaranteed by a Federal or
state age~cy (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and graund r,.nts. I_ende~ may nM charge (or sn holding and appl}.ing Ihe F~inds. analyzing ~aid account,
ar verifying and compiling said assessments and bills, unless I.ender pa}~s Bonower inlerest on the Funds and applicable law
permits l.ender to make such a charge. Bc~rrower and I.ender may agree in writing at thr time ot execution of this
Mortgage tbat interest o~ the Funds shall be paid to Borrower, and unless such agreement is made or applicable faw
rcquires such interat to be paid. I_ender shall not be required to pay Borrower any intcrest or earnin~,~ on the Fands_ I.cnder
shall give to Borrower, withoui charge, an annual accounling of Ihe Funds showing crrciits and debits to the Funds a~d the
purpose for which each debit to the Funds was made. 'The Funds are ploclged as additional security for the sums secured
by this Mortgagc.
If tt~e amount of the Funds held by LenJer, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and grcwnd rents, shall exceecllhe •rmount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at BorroW~er's option, either
pranptly repaid to Borrower or credited to Borrow~r on monthly installmcnts o[ Funds. If the amount of thc ~unds
held by Lepder shatl not be suf~cient to pay tares, assessments, insurancc premiums and ground rents as the~~ fall due,
Borrower sball pay to Lender any amount necessary to make up the de6ciency within 30 days from the date notice is mailed
by Lender to Borrower r+equesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, t_ender shatt promptly reFund to 8orrow~c~ any Funds ~
held by l.ender. I! under pazagraph 18 hereof the Property ia sold or thc Property is otherwisc acquired by Lcnder, t.cnder
shall apply, no later than immediately prior to the salc ot thc Property or its acquisition hy I.endcr, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mongage. .
3. Application of Payments. Unless applicable law proviJes otherwise, all payments reccived by I_ender unJer the
Note and paragraphs 1 and 2 hereof shal! be applied by l.cnder 6rst irr payment ot amounts payable to Lcndcr by Borrower
u~der paragraph 2 hereof. tt~e~ to inlerest payable on the Note, then to the principal ot the Note, and thcn to interest and
principal on any Future Advances.
4. C6arsa; Liens, Borrower shall pay all taxes, asseSSments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due ander this paragraph, aod in the event
Borrower shall make payment directly. Borrower shall promptly furnish to l.ender receipts evidencing such payments.
Borrower shal! promptly discharge ar~y lien which has priority over this Mortgage: provided, that Borrower shall not be
required to discharge any 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 Lender, or shall in good faith contcst such lien by, or defend enforcement of such lien in,
[egal proceedings which operate to prevent the enforeement of the fien or forfeiture of the Property or any part thereof_
S. Hazard lasurance. Borrower shall kcep the improvements now~ existing or hercaftcr erected on the Pmperty insu~ed
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 requirc; providecl, that Leneier shall not requirc that the amount of
. such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage_
'Ihe iusurar~ce carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval sha11 not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower malcing payment, when due, directly to the
insurance cartier. . .
AU insurance policies aad renewals lhereof shaU be in form accep~able to LenJer and shall iriclude a stanJard mortgage
cUuse in favor of and in form acceptable to l.ender. C.ender shall 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 evcnt of loss,
Borrower shalt give prompt notice to the insurance carrier and l.ender. Leader may make proof of loss if not made promptly
by $orrower.
Unless Lender and Borrower otherwise agrce in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, proviJed such restoration or repair is economicaily feasibte and the security of this Mortgage is
not thtreby impaired_ If such restoration or repair es not economically fcasible or if 1he security of this Mortgage would
be impaired, the insurance proceecls shall be npplieJ to the sums secureJ by this Mortgage, with the excess, if any, paid'
to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the
date nouce is mailed by L.ender to Borrower that the insurance carrier o(iers to settle a claim far insurance benefits, Lender
is authorizod to collect and apply the insurance proceeds at Lender's option either lo restoration or repair of the Property
or to the surru secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing. any such applicatian of proc.'eeds to principal shall not extend
or postpone the due date of the monthty instatlments refcrred to in paragraphs I and 2 hercof or change the amount of
such installments. If untkr pazagraph IS hereof the Property is acquired by L.ender, all right, title and interest of Borrower
in aod to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to I.ender to the extent of the sums secured by this Mortgage immediately prior to such saie or
acquisition.
6. Prestrvatios 9nd Mr+ia~enance of Property; l.eace6dds; Condominiumr Planned Unit Devdopments. $orrower
shal! kcep the Property in good repair and shall not com~pit waste or perntit impairment or deterioration of the Property
and shall comply with the provisioos of any lease if this Morigage is on a Ieasehold. this Mortgage is on a unit in a
condominium or a planned unit development. Borrower shatt pcrform all of Borrower's obligations under the dcxlaration
or covtaants creating or governing the condominium or planned unit development, the by-Iaws and regulations of the
eondominiutn or planned unit development, and constituent cbewnents_ lf a conclominium or planned unit Jevelopment
rider is exocuted by Borrower and recorded together with this Mortgage, the covenants and agreements oi such rider ;
s6all be incorporated ioto and s6all amend and suppiement the covenants and agrcements of this Mortgage as if ihe rider
were a pari herea~f.
7. hvtMio~ of Le~ders Secarit~. If Borrower fails to perform the covenants and agreements contained in this
Morigage, or if any action or proceeding is commenced which mate~ally afiocts I.ende~'s interest in the Property,
includ'u~g. but not limited to. emiaent domain, insolvency, code enforcement, or arrangements or proceedings involving a
b~nkrupt or decodent. tben Lender at l~eadePs option, upon notice to Borrower. may make such appearanccs~ disburx such
sums aod tske such action as is nece.csary to protect l.encier
s interest, including, but not limited to. disbursement of
rqwoabk attocney's leas and entry upon the Propeny to make repairs. I( Lcnder requircd morigage insurance as a
coaditioa of malcing the ban sxured by this Mortgage. $orrowcr ahall pay thc premiums required ta maintain s~tch
inswanoe in e~oct until such time as the requ"uement for such insurance terminates in accordance with Borrower s and
~ F'~~`x2~5 912 ~
::s
~