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UnttwRw Oovijt+swtlt. lortower gad Fender covenant and agree ss follows:
>a ltgt•af,t et hlttelMal tttM Irtlatwl. Borrower :hall promptly pay when des the pratcipal of and interest oa the
iadebtedetess widenoed by the NotR, prepayaeeat and late charges as provided in the Note, gad the principal of and 1nbtleet
oa wl? Futttte Advances secured by this Mortgage.
lttr.is fler Tao<ee gad btsttratrtw Sbbject to applicable law or to a written waiver by Lender, Borrower shag pay
to Lender oa the day monthly iastalhtrena of principal snd interest ire payable under the Note. until the Note is paid in full.
a sum (Mroin "Fuads'~ equal to oro-twelfth oI the yearly taxca and a:xssmata which may strain priority over this
Mortgage. and ground testa oa the Property. if any, plus one-twelRh of yeartli~ pteeaium ittsutlreterta for hazard insurance,
plus ottatwelfth of yearly premitrm installments for mortgage inutrartce. if aby. all as tettsortably estimated initially and tr~om
time to tams by Lender oa the bass of sssessments and hills and reasonable estimates thereof.
The Funds shall be held in an irtslitution the deposits or accounts of tArhich are insured or guaranteed by a Federd of
stab agency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments.
iawranos premiums and ground rents. Lender may not charge for ro holding and applying the Frmds. analyzing said account.
or verityiagaad compiling said assessments and bills. unless Leader pays Borrower interest on the Funds and appliabk taw
permits Leader to matte such a cltuge. Borrower and Lender may agree in writing at the time of execution of the
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement a 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
shop give to Borrower. without charge, an annwl accounting of the Funds showing credits and debits to the Funds and the
putpoee far which each debit to the Funds was made. 'flre Funds arc pledged as additional security [or the sums secured
by this Mortgage. ,
If the atnourtt o[ thts' Funds hdd by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes. assessments. iratrrance premiums and ground rents. shall exceed the arrrount required to pay said taxes. '
aeab, iasuraaoe premiuts and ground rents as they fall due, such excess shall be, at Borrowers option. either
promptly repaid to Borrower oa credited to Borrower on monthly installments. of Funds. If the amount of the Funds
held by Leader :hall not be su~cieat to pay taxes. aeaeurrtertts. insurance premiums and ground rents s: they [aN due,
Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is rnaikd ~ ~ .
by Leader to Hot7ower.tequesting payment .thereof. .
Upon payment in full of all sums secured by this Mortgage, Lenckr shall promptly refund to Borrower any Funds
held by Leader. I[ under paragraph 18 hereof she Property is sold or the Property rs 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 time of application as a credit against the sums t+ecur~od by this Mortgage.
3. ApplicatiM of I•a0raret.Ir. Unless applicable law provides otherwise. all payments received by Leader under the
Nob sod paragraphs 1 and 2 hereof shall be applied by Lender first in payment o[ amounts payable to Lender by Borrower •
under paragraph 2 hereof. they to interest payable oa the Note, then to the principal of the 'Note. and then to interest and
priaapal on any Future Advances.
d. Charged iseos. 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, if sny. in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due. diroctly to the
payee thereof. Borrower shall promptly furnish to Lender all rwtices of amounts due under this paragraph. and in the event
Borrower shall make payment directly. Borrower shall promptly famish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be
required to discharge any such lien so bng as Borrower shall agree in writing to the payment of the 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 Property or any part thereof.
S. >Elarard lowrraaee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, 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 tequirc that the amount of
such rnverage exceed that amount of coverage required to pay the sums secured'~y this Mortgage. ,
'Ibe inwrance carrier providing the insurance shall be chosen by Borrower subject to approval by.Lender, provided,
thst such approval shall not be unreasonably withheld. All premiums on insurance policies shill be paid in the rnanne~
provided under paragraph 2 hereof or, if not paid in such. manner, by Borrower making payment, when due, directly to the
insurance carrier.
-All iruurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause 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 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 security of this Mortgage is
rest thereby impaired. If such restoration or repair is not economically feasible or i[ the security of this Mortgage would
t be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from 'the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized 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 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 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 ttte sale
or acquisition shall pass to Lender to the extent of the sums scoured by this Mortgage immediately prior to such sale or
acquisition.
6. )rtreaervatioo 'oil Maioteoaace of Property; Leaseholds; Condominiums; Planned Udt Devdoproeats. Borrower
shall keep the Property in good repair and shall not comrpit yvaste 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
3 or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium 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 incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part ftereof.
! 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects 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 tender at tender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's 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 effect until such time as the requiremem for such insurance terminates in accordance with Borrowers and
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