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Utttloltnl Oovtuestets. Borrower sad Lender covatant and agree as follows:
i igatesrt ent Mtteyssl assi hlaseet. Borrovrsr shall promptly par when dus the principal of sad interest on the
ittdebtedrteas evidenced by the Note, prepaymesrtt and late charges as provided in the Note, and the prhtcipal of and interest
era any Future Advsaas tseetrrod by this Mastgage. ,
lrnis Ibr 71a~sa ani Irtetrsattte. Subject to applicable law ar to a written waiver by Fender. Borrower ahaB pay
to Lender oa the day monthly instalUrtents d principal snd intereu uc payable under the Note. until the Note is paW m full.
a sum (her'ain "Fua~'~ equal to erne-twelfth of the yearly tax~~ and awawnwtts which may attain priority over this
Morlsage, and ground rents on the Property. it any. plus one-twelfth d yeasrlli~ preanium iastallrrtents for harard intwraace.
plus one-twelfth of yearly premium installments for mottgaie insurance, it any. all ss reasonably estimated initially and from
time to time by Lewder oa the basis of assessments and hills and reasonable extimatet theteot.
7Ue Funds shall be held in an institution the deposits or accounts d which arc insured or guaranteed by a Federal of
stars sgertcy (iachding Leader i! Lender is such an institution). Leeder:ltall apply the Funds to pay said taxes, sssesatnteat:.
iawraace premiums and ground rents. lender may red charge for so holding and applying the Feuds, analyzing said account.
or vexifyiag_aad compiling said assessments and bills, unless Leader pays Borrower interest on the Furls. and appliabk law
permits Lender to make such • charge. Borrower sad lender may agree in writing ai the time of execution of this
Mortgage that iatexext on the Fund: shall be paid to Borrower. and unless such agreement k made or applicable law
roquira such interest to be paid, Lender shall not be required to pay Borrower any interest or arnings on rite Fund:. Lender
shall pve to Borrower, without charge, an annual aooounting d the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds arc pledgesd as additional security for the wms sxured
by this Mortgage. .
If the amount o[ the Funds held by lender, together with the future monthly installments of Funds payable prior to
the dues data oaf lessen, anessrnteots, inwrance premiums and ground rents, shall exceed the amount r+equiral to pay said taxes.
aattapaenta, iasuraaoe pcemiiuau sad ground rents as they fall due, such excess shall be. at Borrower's option. either
promptly repaid to Borrower a credited to Borrower on monthllr installments d Funds. if the amount tithe -Fund:
held by Leader-dull not be sutlideot to pay taxes. asatxsments. insurance premiums and ground rents as they fall due,
Borrower shalt pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is msilod
by Leader to Borrower requesting payment theresof.
Upon payment is full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hexed the Property is soW or the Property a otherwise acquired by Lender, Lender
shall apply. no latex than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Leader at the time of application ss a credit against the sums secured by this Mortgye. , 4
3. A~i[cadort d layare:Ms. Unless applicable law provides otherwise, all paymt;ats receivesd by Lender under the
Notes sad paragraphs 1 sad 2 hereof shall be a~lied by Lender first in payment of amounts payable to Lender by Borrower
render paragraph 2 hereof. rhea to interest payable on the Note, then to the principal of the Note, sad then to interest and
principal on any Future: Advances.
t. Ciarge~ Ues>s. 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 any. is the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender ell notices of amounts.due under this paragraph, sad is the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgsge; provided, that Borrower shall not be
required 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 acceptable to Lender. or shall in good faith contest such lien by, or defend gtforcement of :uch lint iq
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Ilanrd Iwraacr. Borrower shall keep the improvements now existing or hereafter erected oa the Property insured
agaimt loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may requiro
and_ in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the wms secured by this Mortgage.
'ibe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by 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, if not paid in such manner. by Borrowex making payment. when due. directly to the
inwraaee carrier.
AO insurance 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,
sad 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 ratoration or repair is economically feasible and the security of this Mortgage is
rat thereby impaired. If such rextoration or repair is not economically feasible or if the security of this Mortgage would
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 [.ender to Borrower thaf.the insurance carrier offers to settle a claim for insutaace benefits, Lender
is authorized to collect and apply the insurance procxtds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
t 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 I and 2 hereof or change the amount of
~ such installments. If under paragraph t8 hereof the ProE,erty is acquired by Lender, all right, title atd interext of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to tM: sale
or acqukitioa shall pau to Lender to the extent of the sums secured by this Mortgage immediately prior to such sak or
acquisition.
f. lrcaervatloa and Maintenance of Properly; Lewseholds; Condominiums; Planned Unit 1Devdopateats. Borrower
shall keep the Property is good repair and shall not commit yvaste or permit impairment or deterioration of the Property
~ sad 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 devNopment, the by-laws and regulations of the
s 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 hereof.
7. Protextioa of Lender's Secarfty. If Borrower fails to perform the covenants anD agreements contained in this
Mortgage, or if any action or proceeding is commence) which materially affects Lender's interest in the Property,
i including, but not limited to. eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then I~nder 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 Pecs and entry upon the Property to make repairs. If Lender reyuired mortgage insurance as a
condition of making the loan xcureJ by this Mortgage, Borrower shall pay the premiums requireD to maintain such
insurance in effut until such time as the reyuircment for wch insurance terminates in accordance with Borrowers and
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