HomeMy WebLinkAbout0886 UNtF~at?~ CovEr.~nrs. Borrowcr and Len~er cuvrn:+nt :tnd ag~ee :~s follaws:
l. PaYflltp! O~ P~QCIpaI sAd IOltflil. Borrower shall prumptly pay v?•hen due the principal o( and interest on the
indebtedness evidenced by the Note, prepayment and late charges as proviJed in the Note, and the pri~cipal ot and interest
on any Future Advances secured by this Mortgage. .
2. Ftiads ~o~ Tues and la:uraoce. Subject to applicable law~ or to a written waiver by Lender, Borrower shall pay
to l.ender on ~he day monthly installments of principal and intcrest are paya~ie unci~~ the Note. until the Note is paid in full, ~
a anm (herein "Funds") equal to one-twel[th of the yeariy tatec and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
Y!~±s one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to time by l.ender on the basis of assessments and bills a~d reasonablc estimates thereof.
'Il~e Funds shall be held in an institution the deposits or accounts af which are insured or guaranteed by a Federal or
state agenc)• lincluding Lender if Lender is such an institution). I.ender sh~ll apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may not rharge for so holJing and applying the Funds, analyzing said account,
ur v~rifying and compiling said assessments and bills, uoless Ler.der fiorrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
`lortgage that interest on the Funcis shall be paid to Borr~wer, and unless such agreement is made or applicable law
requira such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall gi~e to Borrower, without charge, an annual accounting of the Funds ~how•ing credits and debits to the Funds and the
purpose for which each debil to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with ~hc future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rent~, shaU exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option. either
promptly repaid to BorroN•er or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be suR'icient to pay taxes, assessments, insurance premiums anJ ground rents as they fall due,
Borrower shal! ~~y ~n Lender an~~ amount necessary to make up the deficiency within 30 day~s from the date notice is mailed
by Lender to Borrower requesting pay~e~r thereof.
Upon payment in full of all sums secured by this Mortgagc. Lcndcr shall prompdy refund to Barrower any Funds
held by I.ender. If under paragraph llt hereof the Property is sold or thc Propert~~ is othen~•ice acquired by Lender, 1_ender
shall apply, no later than immediately prior to the sale of the Property or its acquisition hp I_ender, any Funds held by
Lender at the time of application as a credit against the sums secured b}~ this :~iortgage.
. 3. Application of Pa)meots. Unless applicable law pro~~ides othcrHise. sll payments rereived by Lender under the
Note and paragraph~ 1 and 2 hereof shall bc applicd by Lendcr first in pa}ment ot amounts payable to Lcnder by Borrower
under paragraph 2 hereof, then to interest pa~~ablc on the Note, thcn to thc principal of the Note, and then to interest and
principal on any Future Advances.
4. Charges; Liens. Borrower shall pay all ~axec, asscssmcnts and othcr 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
provided under paragraph 2 hereof or, if not paid in such manner, b}• Borrower making payment, when due, directly to the
payee there~f. Borrower shall promptly furnish t~ Lender all noticcs of amounts due under this paragraph, and in the event
Borrow~er shall make payment directly, Borrov?~er shall promptly furnish to Lender receipts evidencing such payments.
Borrow~er shall ptomptly discharge any lien w~hich has priority o~•er this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shatl agree in W riting to the payment of the obligation secure~ by
such lien in a manner acceptable to Lender, or shall in gc~d faith cantest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvcments now~ existing on c~reafter erected on the Property insured
against loss by fire, hazards included within the term "cxtended cov~rage". and such other hazards as Lender may require
and in such amounts :uid for such periocls as Lender ma)~ reyuire: pr~,videJ, that I.enJer shall not require that the amount of
such coverage exceed that amount of rn~erage required to pay the sums secured by th~s Mortgage.
The insurance carrier providing the insurance shall be chosen b)• 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, if not paid in such manner, b~~ Borrower making payment, when due, directly to the
insurance carrier.
; All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
~ dause in favor of and in form acceptable to Lender. Lender shall have the right to hold the pc~licies and renew~als thereof,
and Borrow•er shall promptly furnish to Lender all renew~al notices and all receipts of paid premiums. In the event of loss.
~ Borrower shall gi~~e prompt notice to the insurance rarrier and Lender. Lender ma~• make proof of loss, if not made proMptly
~ by Borrower.
~ Unless ~ender and Borrua~er otherw~ise agree in writing, insurance proceeds shall be applied to restoration or repair of
" the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
' not thereby impaired. ]f such restoration or repair is not economically feasible or if the securit}• of this Mortgage would
s be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. w•ith the excess, if any, paid
; to Borrower. If the Propert~- is abandoned by Borrower, or if Bormwer fails to respond to Lender within 30 days from the
` date notice is mailed by Lender to Borrower that the insurance carrier oflers to setNe a claim for insurance benefits, i.ender
~ is authorized to collect and apply t6e insurance proceeds at l_ender's option either to restoration or repair of the Property
~ or to the sums secured by this Niortgage.
i Unless Lender and Borrower otherwise agree in w•riting, an} such application of proceeds to principal shall not ertend
~ or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
~ such installments. If under paragraph 18 hereof the Property is acquired b~• Lender. all right, tide and interest of Borrower
in and 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 Lender to the extent of the sums secured by this Atortgage immediately prior to such sale or
~ acquisition.
~ 6. Presenalion and ~1ainlenance of Property; Leaseholds: Condominiums; Planned Unit Developments. Borrower
' shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provis~ons of any lease if th~s Mortgage is an a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit de~~elopment. Borrower shall perform all of Borrower's obligations under the declaration
= or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
~ condominium or planoed unit Jevelopment, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together w~th this Mortgage, the covenants and agreements of such rider
shall be incorporated ~nto and shall amend anu supplement the co~enants and agreements of this Mortgage as if the rider
wcre a part hereof.
7. Prolection of Lenders Security. If Borrower fails to perform the covenants and agreements contained . in this
biortgage. or if any action or proceeding is commenced w•hich materiall}~ affects l.ender's interest in the Propert}~.
? including, but not limited to. eminent domain, insolvenc~~. code enforcement, or arrangements or proceedings ~involving a
~ bankrupt or deceJent. then Lender at Lender's option, upon notice to Borrower, ma~ make such appearances, disburse such
~ sums and take such action as is necessar}~ to protect Lender's interest, including. but not limited to, disbursement of
reasonable attomey's tecs and entry upon thc Properry ta make rcpairs. If Lender required mortgage insurance as a
; condrtion of making the loan secured b~ this Mortgage. Borrowrr shall pay the premiums required to maintain such
' insurance in efiect until such time as the requircinent for such insurance terminates in accordance with Borrower s and
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