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UN~FO~tM COVEN~N7s. Bo~rowe~ and l.ende~ cuvenant and agrre as foUuws:
1. ts,~rmeet of P~iacipd and laleresl. H~~rruwet ~hall promptl~ p~y Nhrn due th~ principal of and intrrest un the
~adebtedness evidenced by the Note, prepaymr~t and latr ch;~rgr. a. proviJcd ~n thr No~c. and thc principal of and interest
on auy Future Advances seturcd by th~s Mortgagc.
2. Fbads tar Tua sad Inwrsace. Subject to appii~a~lr law ~.r a M•~it~cn w•aive~ by l.end~r, Borrower shall pay
to [.ende~ on the day monthly installments of principal and intrrr.~ .uc payablr unJer thr Note, until the Note is paid i~ tull.
a sum (herein "Funds") equal to one-tNalfth of Ihc yrarl~ anJ azccsmicnte wh~ch may attain priority over thic
Mortgage, snd g~ound rents on the Pmperty, if any, plus onc-~wcl(th of yearly prcm~um installments for hazard insu~ance.
ptus one-twelfth af yearly premium installments (or m~~r~gagc rosurancc. i( any, all a~ reasonably cstima~ed ini~ially and trom
timt to time by I_ender on the basis of asscs~mcnts and hills and rra~rna6lr estimatts thcreof.
The Funds shalt be held in an inslituti~~n ~hr depo~~t. c.r accuunts ot whech are insured or guaranteed hy a Federal or
stata ageney (including Lender if Lender is tiuch an institu~ion?. I.eoder ~halt appl}• the Fundc to {~ay ~aid taxes, assessments,
insupnce prcmiums and ground ro~ts 1 ender may no~ cha~ge tor ~o holding and applying Ihe Fundc. analyring zaid account.
or verifying and compiting said assessments and bili~, unless I.ender ~ys Borrower intcrest an the Funds and applicable !~w
permits Lender to make such a charge. Horruwer and Lender may agree in writing at Ihe time o( execution o[ this
Mortgage that interest on Ihe Funds shall hc paiJ to 13orruwer, and unless such agreemcnt ~s maJe ~~r applirable law
requires such i~terest to be paid. Le~der shall not hr reyuired to pay Borrawer any interest or earniog~ on the Fu~ds. Lender
shall givt to Borrower, without chargo, an annual accuunting of the Funds show~ng credits and debi~s to the Funds and the
purpose for which eaeh debit to the Funds wa~ madc. The Funds are pledg~d as additi~~n:il securit}• fo~ the suma ~ecured
by this Mortgage.
If the amount ot the Funds held by Lencier, together with the futurc monthty inst•rltments of Fimds payablc prior to
ttrc due data of taxes, assessments, insurance premiunis ~nd ground ~ent~, shall exceeci the amount reyuired to pa}~ ~aid taxes,
asstsstnents, insurance premiums and ground rents as they fall due, such excecs shall be, at Borrower's oplinn, ei~her ,
protnptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of thc i•unds
held by Lender shall not be suf~cieat to pay taxes, assessments, insur•rnce premiums and ground rents as they fall dus.
Bort~ower shall pay to Lender any amoun! neces~ary to make up ~he deficieacy within 30 da~s from the date notice is mailed
by Lende~ to Borrower requesting paymcnt ~hercof.
~ Upcx~ payment in full of all sums secured by this Mortgage, t_ender shall p~omptly refund to Borrower any Funds
held by [.ender. If under paragraph 18 hereof the Property i~ sold or thc Property is othenvise acquired by I_ender, l.cnder
shal! apply. no later Ihan immediately prior to Ihe sale of the Property or its acquisition hy I_ender, any Funds helJ by
Lender at the time of application as a crcdit against the sums secured by th~s Mortgage.
3. Applicstioa of Payments. Unless applicable law provides otherwise, all payments received by i.ender unJer the
Note and paragraphs 1 and 2 hereof shall be appGed by I_endcr first in payment of amounts payablc to 1_cnder b~• BorruKer
under paragraph 2 hereof, then to interest pa~•able on the Note, the~ to thc principal of thc Note, and then to interest and
principal on a~y Future Advances.
4. Charses; Lk~. Borrower shall pay all taxes, atsessmcnts and othcr charges, fines and imposiUOns attributable to
the Propeny which may attain a priority over this Mortgage, and leuehold payments or ground rents, if any, in the manner
pmv+dod uttder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thettof. Borrower shall promptly furnish to Lender all not~ces of amou~ts due under this paragraph, and in the cvent
Borrower shall make payment directly, Borrower ahall promptly furnish to L.ender receipts evidencing such payments.
Borrower shali promptiy discharge any lien which has prionty over this Mortgage; provided, that Borrower shall not be
rtquired ta dixharge any such lien so long as Borrower shall agree in writ~ng to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in g«xi faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the iien or forferture of the Property or any part thereof.
S. Hazard Insunace. Borrower shalt keep the improvcments now• existing or herea[ter erected on the Property insured
against loss by 6re, hazards included within the term "cxtended coverage", and such other hazards as I_ender may require
aad in such amounts and (or such periods as 1_ender may require; pravideJ, that I_ender shall not require that the amount of
such cov~rage eaceed that amount of coverage required to pay the sums secured ~by this Mortaage. -
"ILe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
that such approval sball not be unreasonably withheld. All prcmiums on insurance policies shall be paid in the manner
providod under paragraph 2 hereof or, ~f not paid in such manner, by Borrower making payment, when due, directly to the
inwrance cazrier.
Ali insurance policies and reneu•a!s thereof sha!! be in form acceptable to Lender and shall include a~tandard mortgage
clauu 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 Lender all renewal notices and all receipts of paid premiums. In the event of Ioss,
Borrower shall give prompt notice to the insurance carrier and t_ender. Lender may make praof of loss if not t~~ade promptly
by Borrower.
Unless Lender and Borrower otherwise agree in w~riting, insurance proceeds shaU be applied to restoration or repair of
the Property damaged, provicied such mst~rat~on or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is ncit ecvnomically feasibl~ or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applieJ to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Propcn~~ is abandoned by Horrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is maifed by I.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, LenJer
is authorized to coltect and apply the insurance proceeds at !_ender's option either !o restoration or repair of the Propert~~
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly instaliments refcrred in paragrapM I and 2 hercof or change the amount of
such instaitmeots. If uader paragraph 18 hereof the Property is acyuireJ by L,ender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceecis thereot resulting from damage to t6e Propeny prior to th~ sale
or acquisition shall pass to l.ender to the extent of the sums secured by this Mortgage immediate{y prior to such sale or
acquisition.
6. Presena4ion and ~taintenance of Propert~; Le~sehulds; Condominiums; Planoed Unit Developments. Borrow~cr
shall keep the Property in good repair and shall not comrpit waste or permit impairment or deterioration of the Property
and shall comply with the provisions ot any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower ~hall prrform all of Borrower's obligations under the declaratiun
or coveoants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent doc:uments. If a condominium or planned unit deveiopment
ridor is executed by Borrower and recorded tvgether with ~his Mortgage, the covenants and agreements of such rider
shall be incorporated into and sball amend anJ supp(cment the covenants and agreements of this Mortgage as if the rider
wcrc a part hereof.
9. Proteetioo of Leader's Secur~ty. If Borrower fails to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding is commence~ wh~ch materially afiects LenJer's interest in the Property,
including. but not limited to, eminent domain, insolvency, code enforcement, or arrangements or pnxeedings invoh•~ng a
bankrupt or decedent, then Lender at Lender's oPtion, upart notice to Borrow-er, may make such appearances, disburse such
sums and take auch xtion as is necessar}~ to protect Lender's ~nterest, including, but not limited to, disbursement of
reasonable attomey's tets and enlry upon thc Propcr~y lo make rcpairs. If I.ender rcyuired mortgage iosurance as a
condition of making the loan secured by this Mortgage, B~rmwer shall pay the premiums required to maintain such
insuranee in effect until such tim~ as the reyuiremenl for ~uch ~nsurance terminates ~n accordance with Borrower s and
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