HomeMy WebLinkAbout1042 , • ~ 1 • . ' ~ ..i ~ ~
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UNtFCUtt?t CoveN~NTS. Bomower and Lalder covenant and agree as follows:
1. la~eN ot Princ~i ~ l~t~rat. Borrower shalt promptly pay when due the principal of and interest on the
indebtedna~ evidenced by the Note. prepayment aad lata charges u provided in the Note. and the principal of interest
on any Futuro Advances secured by this Mortgsse.
2. F1u~ds tor '!'u~s aai lswea~ca Sbbject to applicable law or to a written waiver by I.ender. Borrowe~ sha11 pay
to Lender oe ~he day monthly iestallmants of principal and interest arc payable unde~ the Note. until the Note is paid in fufl.
s tum (herein "Funds'~ equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortasge. and ground rents on ihe Properry, if aay. plu3 oao-twelfth of yearly premium installments for hazard ir?surance. ~
plus one-twelfth of yearly premium installmenta for mortgage in:urance, if any. all as reasonably estimated initially and from
time to time by Lender on the basis of asseasments and bilis and reasonabk estimates thereof.
The Funda s6a11 be held ia a4 inatitution tt~e depoaits or accounu of wbich an insurod or guarantood by a Federal or
state agency (including Lender if I.ender is such an iostitution). Lender ahsll apply the Funds to pay aaid tues~ auessments.
auurance premiums and gc~ow~d re~ts. Lender may not charge for so holding and applying the Funds, analyzing uid account, ~
or verifying and compiling said assessments and bills, unless Lender pays Horrower interest on the Funds and applicable law
permits Lendec ~to maka such a charge. Borrowe~ and L.enckr may agree in writing at the time of eacxution of this
Mo~tgage that inter4st on ~the Funds shall be paid to Borrower. and unless soc~ agrcement is made or applicable law
requires such interat to be paid. Lender shall not be roquired to pay Bonower any mterest or earnings on the Funds. Lender
shall give to Borrower. without charge, an aanual accounting of the Funds showing credits and debits to the Funds and the ~
purpoae for which each debit to the Fuads was made. The Funds are pledged as additional security for the sums secured
by ihis Mortgage. . ;
If the amount of the Funaa he{d by Lender. together with the future monthly installments of Funds payable prior to ;
the due.dates of taxes, assessments, insurance premiums and ground re~ts. shall excecd the amount required to pay said taxes. ;
assesuaents, iasurance premiums and grour~d rents as they fall due. such excess shall be. at Borrower's option, either
promptly repaid to Bormwer or credited to Bormwer oa moathly installments of Funds. If the amount of the Funds =
held by I.ender shdl not be sufficient to pay taues. asse.csmenta. 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 mailod
by I.ender to Bonower requating payment tt~ereof. -
Upon payment ia futl of all aums aecured by this Mortgage, l.ender shall promptly refund to Borrower any Funds ~
held by Lende~. If uader paragraph 18 hereof the Pmpe~ty is sold or the Property is otherwisc acquired by Lender, Le~der
shall apply, no later than immediately prior to the sale of the Property or its acquisition by l.ender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. AppUc~ioo of P~ymeats. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs 1 and 2 heteof shall be applied by Lender first 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 Note. and then to interest and
principal on any Future Advances.
4. C6arge~ Lkas. Borrower shall pay all taxes, assessments and other charges, fi~s and impcuitions attributable to
the Property which msy 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. direcdy to the
payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the eveat
Borrower shall make payment directly. Borrower shall promp!ly furnish to l.ender receipts e~idencing such payments.
Borrower shall pmmptly dis~harge any lien which has priority over this Mortgage; provided, that Bortower shall not be
rcquired to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner aeeeptable 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 Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erec~ed on the Property insured
. • against loss by 8re, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may require; provided. that Lender shall not require that tt~e amount of
such coverage excced that amount of coverage required to pay the sums secured by this Morigage.
T6e insurance carrier providing the insurance shall be'chosen by Bonower subject to approval by Lender. providod,
t6at auch approval. shall not be. unreasonably withheld. All premiums on insurance policies shall be paid in the manner
; providod uader paragraph 2 hereaf or, if not paid in such manner, by Borrower making payment, when due. directly to the
' insurance carrier.
; All insurance policies and renewals thereof shail be in form acceptable to Lenckr and shall include a standard mortgage
~ clause in favor of and in form acceptable to [.ender. Lender shall have ihe 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 if not made promptly
` by Borrower.
~ Unless Lender and Borrower otherwise 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 secutity of this MoRgage is
~ not thereby impaircd. If such restoration or repair is not economically feasible or if the security of this Mortgage would
~ ba impaired, the insurancx proceeds shall be applied to the surns secured by this Mortgage, with the excess. if any, paid
~ to Borrower. If the Pcoperty is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by I.ender to Borrower that the insurance carrier ofters to settle a claim for insurance benefits, Lender
is authorizod to collcet and apply the insurance proceeds at Lender's option eit6er to restoration or repair of the Properiy
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 installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragrap6 18. 6ereof the Property is acquired by Lender, all right, tide and interest of Borrower
~ in aud to any insurapce policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preaervatbn and rfaintenaace of Property; Leaseholds; Condomiaiums; Plnnned Uolt Developmeots. Borrower
~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shaU comply with the provisions of any lease if this Mortgage is on a leasehold. lf this Mortgage is on a unit in a
? condominium or a planned unit development, Borrower shall pertorm all of Borrower's obligadons under the declaration
~ or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
~ condomininm or planoed unit development, and constituent documents. If a condominium or planned unit devdopment
~ rider is executed by Bonower and recorded together with this Mortgage, the covenants and agreements of such rider
~ shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
~ were a part hereof.
~ 7. Protection of Leader's Security. if Borrower fails to perform the covenants and agreements contained in this
~ Mortgage, or if a~y action or proceeding is commenced which materially affccts Lender's interest in the Property.
~ including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving 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 L,ender s interest, including, but not limited to, disbursement of •
reasonable -attomoy'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~at until such time as the req~~irement for such insurance terminates in accordance with Borrower's aad
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