HomeMy WebLinkAbout0434 l(KWOtuz Covct.at~rrs. Borrower and Lender covenant and agree u follows:
1. Payment of Priadpal and Interest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, pnpaymette attd late charges as provided in the Note, and the principal o[ and inter-
eat on any Future Advances secured by this Aortgage.
Y. 1•titnt4 for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installmenu of ptittcipal and interest are payable under the Note. until the Note is paid in
full. a sum (herein "Funds") equal to one•tweltth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Property, iE any. plus one-twelfth of yearly premium installments for hazard insurance.
plus onatwelfth of yearly premium installments for mortgage insurance. if any, all u reasonably estimated initially and tram
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
The Funds shall be held in an institution the deposiu or accounts o[ which are insured or guaranteed by a Federal or
.state agency (including Lender i[ Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments.
inwnnce premiums and ground rents. Lender may not charge for so holding and applying -the Funds, analyzing said ac-
count, or verifying and compiling said assessments and bills, unless Lendtr pays Borrower interest on the Funds and ap•
plirable law perntiu Lender to make such a charge. Borrower and Lender may agree in writing at the time o[ execution of
this Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this 1lfottgage.
if the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall 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 Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held
by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due. Borrower
shall•pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Linder.
to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this 1lfortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the eime of application as a credit against the sums secured by this Mortgage.
3. Applicatiat of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs t and 2 hereof shall be applied by Lender fiat in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Noce, and then to interest and
principal on any Future Advances.
4. Charges; 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, i[ any, itt the man-
IiEt pra~~idcd under paragraph ~ hereof or, if not paid in such manner, h. Rormtver making payment. when due. directly to
the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the
event Borrower shall make payment directly, Borrower shall promptl}• furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be m
quired to discharge any such lien so long as Borrower shall agree itt writing to the pa}•ment of the obligation secured by such
lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend ett[orcemettt of such lien in, le-
gal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property in-
sured against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may re-
quire and in such amounts and for wch periods:as Lender may require; provided, that Lender shall not require that the
'i amount of such coverage exceed chat amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval b}• 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, i[ not paid in such manner, by 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 mort-
gage clause ip 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 loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss i[ not made
promptly by Borrower.
Unless Lender and Borrower othtrwise 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. I[ such restoration or repair is not economically feasible o- if the security of this Mortgage would be im-
paired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, i( any, paid to Bor-
rower. If the Property is abandoned by Borrower, ar if Borrower fails to respond to Lender within 30 days from the date
notice is mailed by Lender co Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender is
authorised to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or
to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any wch application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred a. in paragraphs I and 2 hereof or change the amount of such
installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title 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 Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenance o[ 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 provisions of 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 shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condo-
minium or planned unit development, and constituent documents. If a condominium or planned unit development rider is
executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be in-
corporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part
hereof.
7. Protection of Lender's Securiq. If Borrower tails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lenders interest in the Property, including,
but not limited to, eminent domain, insoh•ency, code enforcement, or arrangements or proceedings invoh•ing a bankrupt
or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums
and take such action as is necessary to protect Lenders interest, including, but not limited to. disbursement of reasonable
attorney's fees and entry upon the Property to make repairs. if Lender required mortgage insurance as a condition of
making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in ef-
fect until such time as the requirement for such inwrance terminates in accordance with Borrower's and Lender's written
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