HomeMy WebLinkAbout0931 UrttFattit CoveN~[vrs: Bortower and LcnJe~ c~wenant ani! agr~~e a~ Inlluws~
1. P~ymeat ot Principal aad laferesf. Hiur~wcr .h:~li ~+rrmrtly pay whcn duc thc princi~+al ~~t and intcicst on Ihc
iadebledness evidcnctd by thc Not~. prcpayme~t and latc chargc. a. rruvided in thc Note, and the principal of and ~nteres~
on any Futurc Advances secured by this Marlgage.
2. F~ads tor Ta~ces and I~raace. Subject to appli~:,t•1~ la~ ~~r a written waiver by l.ender. Borrower shall pay
to L.ender on the day monthly installments of principa! anJ mtrr~+~ .~ir p.?yabic undcr thc Note, until the Natc is paid in [ull.
a sum (herein "Funds") equal to on~-twclfth o( the ycarl~ t~~~. anJ •rs~:ssmentc which may attai~ priority over thic
Mortgage, and ground rents on the P~+operty, if any, pluz or?r_tw•clhh ~~I yca~ly premium instaltments far hazard insur:~nce,
plus one-twelfth uf yearly prcmium installmcnts f~r mortgagc insurancc, +f any, al! as reasonak~ly estimated initially and from
tirtte to time by !_tnder on !hc basis ot a~sessmcnts ahd hitls and r~a~unable eslimates thereot.
The Fu~ds shalt be held in an inslitu~~on ttx: de~x~u~ or :~~cuunts of which are insured or guaranteed by a Federal or
stAte agency (including Lender if Lender i. ~uch an in~tiwtion 1. I.ender ~hall apply Ihc Funds to p:iy said ~a~es, ascessmcnls,
insurance premiums and ground reats. I ender mat• charge to~ u~ holding and applying thc F~~ndc. •rnalyzing said arc:~unt,
or verifying and compiling said assessments and hilh, unless 1_ender pays Borrower interest on the Funds and applicable I:rv?•
permits Lender ta make such a charge. Borrower and I.enJe~ may agree in writing at the lime u( e~~tiutic~n uf this
Mortgage that interat on the Fu~ds ~hall tx paid to Borrower, and unless such agreement is made ~~r applicable law
requires sucA interest to be paid, I.ender shall n.~~ Fx> rrywred to pay Borrower an}• interest or earnin~,~s on thc Pu~d.. I.c~ider
shall give to Borrower, without charge, an annual accounting o( the f~unJs showing ciedits and debits to th~ Fund~ and the
purpcue far which each debit to the Funds wa~ mada The Funds are pled~Y! as additionai securit}' fer the sunu secured
by this Mortgage. _
If the amount of the Funds held by Lendcr, together with the fuwre monthly installments of FunJs payable prior ta
the due dates of taxes, assessments, insurance premiunu and graund rcnts, shall exceed the amount reyuired to pa~~ said taxes,
assesstnents, insurance premiums and ground re~ts as they fall ciue, such exces~s shal) be, at Borrawer's optinn, either
promptly repaid to Borrower or credited to Borrower on man~hly installmcnts of Funds. If thc amount of thc Funds
held by Lender shall not be suf6cient to pay taxes, assessments, insurance premiums and ground rents as ~hcy fall due,
Borrower shall pay to Lender any amount necessar~• to make up Ihe deficiency within 30 day~s from the date notice is mailed
by Lender to Borrower requesting paymcnt ther~rof.
Upon payment in ful! of all sums sec:ured by this INortgage, l.ender shall prompUy refund to Borrow•er any Funcis
held by l.ender. lf under paragraph 18 hereof the Property i~ sold or thc Propcrty is otherwisc acquired by Lendcr, Lcndcr
shall apply. no later than imtnediatcly prior tb the sale of the Property or its acquisition hy I_ender, any Funds held by
Lender at the time~of appiication as a credit against the sums secured by this blortgage.
3. Apptic~ion of Paymeats. Unless applicable law proviJes otherwise, all payments received by I.ender unJer ihe
Note and paragraphs l and 2 hereof shall bc applied by l.endcr first in pa~•ment of amounts payable to Lcnder by BorroH•e~
under paragraph 2 hereoi, then to interest payable on the Note, thcn to thc principal of the Note, and then to interest and
principal on any Future Advances. '
4. C6arges; I.ieos. Borrower shall pay a~A taxes, assessmcnts and other charges. fines a~J impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground 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 thereof. Borrower shall promptly fumish to Lender ali notiees o! amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shaU promptly furnish to l.ender receipts evidencing such payments.
Borrowtr shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower sfiall not be
required to discharge any such lien so long :~s Borrower shall agree~ io w•riting lo the payment of the obligation secured by
suc6lien in a manner acceptable to i.ender, or shall in good faith rontest such lien by, or defenJ enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of ~he lien or forfeiture of the Property or any part thereof.
S. Huard Insurance. Borrower shatl keep the improvements now• existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other 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 ot
such coverage exceed tha! amount of coverage required to pa~~ the sums secured by this Mortgage_
'll~e insurance carrier providing thc insurance shall be chosen by Borrower subject to approval by Lender, provided.
that such approval shall not be unreasonably withheld. All premiums on insurance poticies shall be paid in the manne:
provided under paragraph 2 hereof or, if not'paid in such manner, by Borrower making payment, when due, directly to thc
insurance carrier.
All insurance policies and renewals thereof shall be in forn~ accepiable to l.ender and shall include a standar~d morigage
clause in favor of and in furm acceptable to l.ender. [_ender shail have the right to hold the policies and renew~als thereof.
and Borrower shatl prompdy furnish to Leader all renewal notices and all receipts of paid premiums. ln the event of loss,
Borrower shaU give prompt noticc to the insorance carricr and Lender. LEnder may make proof of loss if not made promptly
by Borrower.
Unless 1-ender and Borrower otherw~iu, agree in writing, insurance_proceeds shall be applied to restoration or repair o(
the Property damaged, provided such restorat~on or repair is economically feasible and the security of this Mortgage it
not lhereby impaired. If su.h restoration or repair is not cconomically feasihle or it the security of this Mortgage w~•uW
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage, with the excess, if an}•, pa~d
to Borrower_ If the Propert}' is abandoned by Borrower, or if Borrower fails to res~nd to 1_ender within 30 days frum the _
date notice is mailed by Lender to $orrower that the insurance carrier olTers to sctUe a claim for insurance benefits, I.cr.dr:
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of -the Pr~pert~:
or to the sums secured by this Mortgage. ' .
Unless Lender and Borrower otherwise agree in writing, an~• such :~pplica~ion ~~f pra:eeds to principal shall nat c~trt~d
or postpone thc duc date oi the monthly installmcnts referred to in paragraph. 1 and ~ hercof or change thc amount uf
such installments. If under paragraph 18 hereof the Property is acyuired h} l.ender, all right, title and interest of (3orr~~w~r
in aod ro any insurance policies and in and to the proceeds tfiereof resultmg from damage to the Property prior to thc ~:,ic
or acquisition shall pass to Lender to the extent of the sums secured by this 1~lortgage immediately prior to such sale or
acquisition. -
6. Praenation and ~taintenance of Propert3•; Leaseholds; Condominiums; Pianned Unit Devebpments. Borro~.cr
shall keep the Property in good repair and shall not com~oit waste or permit impairment or deterioration of the Property '
and shall comply with the provisions of any lease if this Mortgagc iti on a Icasehold. lf this Mortgage is on a unit in a i
condominium or a planned'unit develapment, Borrow•er ~hall perform all of Borrower s obligations .under the declaratiun
or covenants creating or governing the condominium er planned unit development, the by-laws and tegulation~ of the
condominium or planned unit development, and constituent documents. If a condominium or pianned unit deveiopment
rider ic executed by Borrawer and recorded together with this Mortgage, the covenants and agreements of such ri~f:r
shal! be incorQorated into and shall amend and supplcment thc covcnants and agrcements of this Mortgage as if the ri~ler
were a part hereof.
7. Protectioo of Leoder's Security. If Borrower fails to pcrtorm the covenants and agreements contained in this ,
Mortgage, or if any action or proceeding •ic commenced which materially afTects [_enJer's interest in ihe Propert~•.
including, but not limited to, eminent domaen, inu?lvency, code enforcement, or arrangemen~s or proceedings invol~•ing a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums aad take such action as is necessary to pratect l,ender s interest, including. bot not limited to, disbursement ot
reasonable attomey's fecs and en~ry upon the Property to makc repairs. 1! Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Born~wer shatl pay the premiums requireJ to maintain such
insuranee in efiect until such time as ihe rcquirement for such ins~rance terminates in accordance wi~h Borrower s and :
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