HomeMy WebLinkAbout1647 i'\IFOR~r f..0\•ENANTS. BOITUw•eI allll Ll'lldcr lotcll.+ll[ :Uld .+~reC JS follows:
1. Payment of Principal and Interco. Borrower shall pron+htl} pay schrn due the principal of and iote•re•,t un the
indebtedness es•idenced by the Note, prepayment and lau• ch:ugrs as procidcYi iu thc• \utc, and the principal of .oaf inter,
ea on any Future Advances secured b}• this Mortgage.
2. Funds [or Taxa sad Insurance. Subject to applicable law or to a written w•aiyer by l.e•uder, Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Notr, until the ~otr is paid in
full, a sum (herein "Fw+ds') equal to out-twelfth n[ tht' yearly taxes and :+ssc•ssnu•uts which may attain priority ucrr this !
Mortgage. and ground rents on the I'ruprrty, i[ any, plus one-twelfth of },early premium installments for hazard insurance,
plus one-twelfth of yearly premium installment, for mortgage insurance, if any, all as rc•asu+rably estimated iuitialh and from
time to time by Lender on the basis of assessments and bills and reasonable rstintatcs thereof.
1'he Funds shall be held in an institution the deposits or accounts of which are inutred or guarantcc•d by a FcYleral or
state agent}, (including Lender i[ Lender is such au institution). Lender shall apph• the Funds to 1>ay s-+ict taxes, assessment+,
insurance premiums and ground rents. Lender may not charge for so holding and appl}iug the Funds. anah•ring k-+id ac-
count, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and ap•
plicable law permits Leader to make such a charge. Borrower and Lender may agree in writing at the time of execution o[
this Mortgage that interest on the Funds shall he 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 Mortgage.
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 exceccl the amount required to pa}• said
taffies. assessments, insurance premiums and ground rents as the}• tall due, such excess shall be, at Borrower's option, either
prompt}, repaid to Borrower or credited to Borrower on monthh• installments of Funds. If the amount of the Funds held
by Lender shall not be sufficient to pay taxes, assessments, insurance premiutrrs and ground rents as they fall due, Borrower
shall pa}• to Lender any arrtount necessary to make up the deficiency within 30 da}•s from the date notice•is mailed by Lender -
to Borrower requesting pa}•ment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall prompth• refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property i. otherwise acquired by l.cnder, Lender
shall apply, no later ehan immediatel}• prior to the sale of the Property or its acquisition by Ixnder, any Funds held b}'
Lender at the time of application as a credit against the sums secured bs• this Mortgage.
3. Application of Payments. _ Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts 1>ayab(r to l.cnder by Borrower
under paragraph 2 hereof, then to interc,t payable on the Note, then to the principal o[ the Note, and thou to interest and
principal on any Future Advances.
9. Chargex; Liens Borrower shall pa}• all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Jortgage, and leasehold payments or ground rents, i[ :+us•. in the man-
ner provided w+der paragraph 2 hereof or. if not paid in such manner. by Borrower making pa~~ment, when due. directly to
the, payee thereof. Borrower shall prompth- furnish to Lender all notices of amounts clue under this paragraph. and in the
event Borrower shall make pa}•ment directh•, Borrower shall prompth• furnish to Lender receipts ecidenciug such payments.
Borrower shall promptly discharge any lien which has priorit}• Dyer this Mortgage; provided. that Borrower shall not be re-
quired 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 gc,cxi faith contest such lien h}•. or defend enforcement u( 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. Harard Insurance. Borrower shall keep the improvements now, existing or hereafter erected on the Property, in-
sured against loss by [ire, haaards included within the term "extended coverage", and such other harards as fender may re•
quire and in such amounts and for such periods as Lender may require; provided. that Lender shall not require that the
amowtt'o( such coverage exceed that 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 appmca! bs• Lender, provided,
that such approval shall not be unreau,nably withheld. :111 premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when clue, directly to
the insurance carrier.
.III insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mort-
~ gage clause in favor of and in form acceptable to Lender. Lender shall hate 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
F of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make prcx,f of loss if not made
promptly b}• Borrower.
~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible anti the security of this Mortgage is not
thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be im-
i paired, the insurance proceeds shall be applied. to the sums secured by this Mortgage. with the excess, if an~•, paid to Bor-
rower. I[ the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the date
~ notice is mailed bs• Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is
authorired to collect and apph• the insurance proceeds at Lender's option either to restoration or repair of the Property or
to the sums secured bs• this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of prcxeedc 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. 1t under paragraph 18 hereof the Property is acquired be Lender. all right. title and interest of Borrower in
f and to am- 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 bs• this Mortgage immediatek prior to such sale or
n acquisition.
- 6. Preservation and '.1[aintenance o[ Property; Leaseholds: Condominiums: Planned L'nit Developments. Borrower
- shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Propert}•
and shall comply with the provisions of any lease it this Mortgage is on a leasehold. It this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's 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-
:2 corporated into and shall amend and supplement the cotenants and agreements of this 5ortgage as i( the rider were a part ,
i
hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
5ortgage, or it any action or proceeding is commenced which materially affects Lender's interest in the Property, including,
but not limited to, eminent domain, inu,kency, code enforcement, or arrangements ur proceedings invoking 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.e•nder's interest, including, but nut limited to, disbursement of reasonable
attorney's fees and entry upon the Propert}• to make repairs. It Lender required mortgage insurance as a condition of
making the loan secured bs• this Mortgage, Borrower shall pay the. premiums required to maintain such insurance in e6
feet until such time as the requirement (or such insurance terminates in accordance with Borrower's and Lender's written
3U~ ~4 v~~c 16~