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UHtFO~tst CovFN~N~s. Borrower ~nd I.enJe~ cuvenan~ and ag~~Y a~ tollows:
1, hy~aeat ot Ptladpl ~nd laleresl, Borrowr~ ~h~ll prumptl~ pay whcn duc thc principal o( and interest on the
indebtedness evidenced by the Note, prepayment and late ch:~rg~. a. pruvided ~n ~he Note, and fhe principal of and intercst
on any Futuro Advances securcd by this MOf1~JSC.
2. Fa~ tor Tua aad lawnace. Subjcct to appli~:?hlc l:,u ~?r to •r u•ritten waiver by I.ender, Borrower shall pay
to Lender on the day monthly inttallments of principal anJ ~ni~~~c.t ,~rr psyahlc undcr ~hc Nae, until Ihe Note is paid in tull.
a:um (herein "Funds") equal to onatwel(~h ot the yea~h ta~c. anJ ac~essmentc w•hich may attai~ pn~~rity over th~s
Martgage, a~d grou~d rents on the Property, it any. plus onc-ta•rl(ih c~f yea~ly premium instaUmenls for hazard insurance,
plus one-twelfth of yearly premium insl~llmen?s for mortgage in~~~rance. ~f aay, all ac rcasc~nably estima~ed initially and from
time to time by Lendcr on thc basis of acscs.~ncnts and hills and rea~unablc estimates thercot.
The Funds shall be held in an instituti~~n th~ dep~xit, or accc~unts ot which are insured ar guaranteed by a Federal or
state agency (inctuding Lende~ if Lcnder is such an institution). I_ender ~hal! apply ~he Funds to pay said taxes, assessments.
insuisnce prcmiums and ground rcnts. 1 ender map not charge tor so holding and applying Ihe F~mdc, an~ly7ing ~aid aCCOUnt,
or verifying and compiling said assessments and billa, unless I_ender pays Borrower interest on the Funds and appticabte law
permits Lender to make such a charge. Bor~ower and I.ender may agree in writ+ng ai thc time of e~ecution of this
Martgage ihat ioteres! on the Funds shal! be paid to E3orn~wer, and unless such agreement is made or applicable law
rcquires such interest to be paid. Lender shall no~ he required to pay Barrower any ioterest or ear~in~ on the Funds. 1_ende~
shall give to Borrower, without charge, an annual accounting of the Funds showing creciits and debits to rhe Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged a~ additional securit}• for ~he sums secured
by [h;s Mongagc.
If the amount of the Fundt held by Lender, together with the iuturc monthly in~tallments of Funds payable prior to
the due dates of taxes, assescments. insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes,
assessments, insurance prtmiums and ground rents as ~hey taU due, such exce+s shall be, at liorrower's option, either
pranptly rcpaid to Borrower or credited to Sorrower on monthly installments of Funds. If the amount o( thc i unds .
held by L.ender shall not be sufC~cient to pay taxes, assessments, insur•rnce prcmiums and ground rents as they falt due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days trom ~he date notice is mailed
by Ltrder to Borrower nquesting payment ~hereof.
Upon paytaent in full of all sums securcd by this Martgage, l.ender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Propeny i~ sold or the Property is otherwise acquired by l.ender, !_ender
shalt apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fundx held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. ApplkaRioa oE Paymeots. Unless applicable law provides otherwise, all payments received by l.ender under the
Note ar~d paragraphs 1 and 2 hereof shalt be applied by I.ender first in payment of amounts payabte to I_ender by 8orrower
under pacagtaph 2 hercof. then to interest payable on the Note, then to the principal of the Note, anJ thcn to interest and
principal on any Future Advances.
1• C6ar~es; Liens. Borrower shall pay all taxes, assessmcnts and other charges. 6nes and impositions attributahle to
t6~ 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 makiag payment, when due, dirocdy to tho
payoe lhereof. Borrower sha11 promptly furnish to Lender ail notices of amounts due under this paraaraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furni~h to l.ender receipt: evidencing such payments.
Botrower shall premptly discharge any lien which has priority over this Mortgage; provjded, that Borrower shall not be
t+equired to discharge any such lien so lang as Borrower shall 3gree in writing to the payment of ihe 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,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Properly or any part thereof.
S• Hazard Ins~rawce. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured
againat loss by fine, hazards inciuded within the term "exter~ded caverage", and such other hazards as I_ender may require
and in such amounts and for such periods as Lender may require; provided, that Lender shall not r~quire that the amount of
such coverage excced that amount of coverage required to pay the sums secured by this Mortgage.
"ILe insurance carrier providing thc insurance shall be chosen by Borrower subject to apptova! by Lender, provided,
that wch approval shall not be unreasonably wethheld. 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 making payment, when due, directly to the
insurance carrier.
All insurance policies and ret~ewats thereof shait be in form acceptabte to Lender and shal! include a standard mortgage
dause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to l.ender all renewal ~otices and all receipts of paid premi~ms. In the e~ent of loss,
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof ot loss if not made promptty
by Borrower.
Ualess Lender and Borrower othervvise agree in writing, insurance proceecls shall be applied to restoration or repair of
the Propetty datnaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not Ihereby impaired. If such restoration or repair is not economical(y feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be aQplied to the sums secureJ by this Mortgage, with the excess, if any, paid
to Borrower. If the Propeny is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by L.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
is aut6oriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propem•
or to the sums secured by this Mortgage.
Unless I.ender and Borrower otherwise agree in writing, any~ such application af pro~:eeds to principal shall not extend
or postpone the doe date of the monthly installments rcfcrrcd to in paragraph~ I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by L.ender, all right~ title and interest of Borrower
in aad to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to th~ sale
or acquisition shal{ pass to Lender to the eztent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Nlaintenance oE Properly: Leueholds; Condominiums; Planned Unit Deve[opments. Borrow•cr
shalt keep the Properiy in good repair and shal! not comrpit waste or permit impairment or deterioration of the Property
aad shall comply with the provisions of any lease if this Mor~gage i~ on a leasehold. If this Mortgage is on a unit in a
condominium or a pfanned unit devtlopment, Borrower shall perform all of Borrower s obligations under the declaration
or coveoants creating or governing the condominium or planned unit development, the bylaws and regulations of the
condominium or ptanaed unit dtvelopment, and consiituent documems. Jf a condomJnium or planned unit devclopment
rider is executed by Borrower and recorded toge~her with this Mongage, the covenants and agreements of such riJer
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mongage as ef the rider
were a part hercof.
7. Profection of Leoder's Security. If BorroK•er tailc to perform the covenants and agreements contained in this
Mortgage, oc if any action or proceeding is commenced which materially afiects i_enJer's interest in the Propeny,
including, but not limited to. eminent domain, insolvency, code enforcement, or arrangements or proceedings invoh•ing a
bankrupt or decedent, then l.ender at Lender s option, upon notice to Borrower, may make such appearances, disburse such
sutns and take auch setion as it ceccssary to pratect Lender's interest, including, but noi limited to, disbursement of
reawnable attomey's fas and entry upon the Property to make rcpairs. If I.cndcr reyuired martgage insurance as a
condition of making the loan secured by this Mortgage. Bormwer shall pay the premiums required to maintain such
inswance in efftct until such time as the reyuirement for such msurance terminates m accordanee with Bormwer's and
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