HomeMy WebLinkAbout0023 Untpaw CoveN~rm. Bormwer and Leude~ covenant and s~ree u follows:
ti I~weN o~ M~CINI a¦~ iNered. Bo~rowet shall prompdy pay when due the pri~cipal of an~ intercst on the
indebtednas evidenad by the Note. P~epayment aad late charges ac provided in the Note. and the principd o[ and interat
oa anr Futuro Adv~nces securdd by this Mortptt.
RrNt Mr Tua a~i Iwnree. Subject to applica~k law or ~o a writteo waive~ by l.endet. Borro~wtr shall paY
to Le~der on the day mo~thly installments of principal and intcrc~~ ~rc payal~k undet the Note. until the Not~e is paid in full.
s sum (herein "Funds") eqwt to one-twelfth af the yea~l~ ~a~c. anJ assessments which may attai~ priority ove~ this
Morisa~e. snd ~round tents on the Property. if any, plus one-tweltth of yearly premium installmsnts foc huard inwrance.
plus o~e-twelfth of yearly prcmium installments for mongage insurancc. i~ any, all as reuonably estima~ed initially and trom
time to time by Lender on the buis o( asseccmcnts and hills and reasonabk estimata thercot.
The Funds shall be held in an institution the depa~~~ or accounts of which arc insurtd or guaraoteed by a Federal ot
:tate agency (includiog Lender if Lcnde~ is such an institution). 1_ender shall apply the Funds to pay said taxa. asseuments.
insurance premiuihs and ground rcnts. I.ender may not charge for u+ holding and applyinj the F~~ndc, analyzing said account,
or verifyin~ aod compilina said uxssments and bills, unless Lender pays Bortower interat on the Funds and applieable law
permits Lender to make such a charge. Borrowe~ and Lender may agree in writing at the time of ezccution ot this
Mort~aje tbat interat on the Funds shall be paid to Borrower, a~d unless such ~areement is made or applicable law
requira such interest to be paid. Lender shall not be rcquired to pay Borrower any intercst or earnings on the Funds. Lender
shaQ ~ive to Bonower~ without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for whi~h each debit to the Funds was madc. The Funds arc pledged u additional securi~y for the sums xcured
by this Mortpae.
If the amount ot the Funds held by Lender, toge~her with 1he future monthly installments of Funds payable prior to
tbe due data of ~axa, assessments. i~uurance premiums and ground rents, shall exceed the amount required to pay said taxa.
ass~ments. insurance prcmiums and ground rents u they (all due, such excess shall be, at Borrower s option, either
pranptly repaid to Borrower or credi~ed to Borrowe~ on monthly installments of Funds. If the amount of the Funds
held by Lender shal! not be sul6cieat to pay taxes, sssessments, insurance prcmiums and ground rents as they fall due.
9orro~rer shall pay to Lender any amount nececsary to make up the deficiency within 30 days from ~he date notice is mailed
by Lender to Borrower requesting payment thereof.
Upori payment in full of dl sums secured by this Mortgage, t_ender shall promptly refund to Borrower any Funds
held by L,ender. If under pusgraph 18 hercof the Property i~ sold or the Property ~s otherwise acquired by Lender, ~Lender
s6a11 apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held bv
L.eader at the time of application as a credit against the sums xcured by this Mongage_
3. Appiic~tim ot Paymewt~. Unless applicable law providu otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by l.enJer first in payment ot amounts payable to Lender by Borrower
under paragraph 2 hercoi. tben to interest payabk on the No~e, then to th~ principal of the Note, and then to interest and
principal on any Future Advanas.
4. C6srEes; Litas. Borrowe~ shall pay all taxes, assessments and other charges, 6nts and impositions attributable to
the Property which may atttin a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provid~d under paragraph 2 hereof or, ~f not paid in such manner, by Borrower making payment, whee due, dircctly to the
payee thereof. Borrower shall promptly (urn~sh to Lender all notices of amounts due under this paragraph, aad in the event
Borrower shall make payment directly. Borrowcr shall promptly turnisA to Lender receipts evideacing such- paymenis.
Bonower shall promptly discharge any lien which has prionty over this Mortgage: provided, that Borrower shall not be
rcqu~red to d~xharge any such lien so long as Borrower shall ag~ee in writing to the paymcnt of the obligati~n secured by
such lien in a manner acceptable to Lender, or shall in gcx~d faith rontest ss~ch lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the entorcement of the lien or torfeiture of the Property or any pan thereof.
S. Hazard Insu~anee. Borrower shall keep the improvements now existing or hereafter erec~ed on the Property insured
against loss by firc, hazards inc(uckd within the term "extenckd coverage", and such other hazards as Lender may require
and ~n such amounts and for such periods as I_ender may require; provided, that Lender shall not rcquire that ~he amount of
such coverage exceed that amount of caverage requ~red t~ pay the .sums secured ~by this Mor~gage.
The ~nsurance 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 shatl be paid in the manner
provided under paragraph 2 hereof. or, ~f not paid in such manner, by Borrower making payment, when due, directly to the
insurance carr~er.
~ All insurance policies and renewals therro( shall be in form acceptable to Lender and shall include a standard mortgage
E clauu in favor of and in form acceptable to Lender. Lender shall have the right to hold the policiu and renewals thereof,
~ and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid prcmiums. In the event of loss,
Borrower shall g~ve prompt notice ro the insurance carner and Lender. Lender may make proof of loss if not made prompdy
'i by Borrower.
! Unless Lender and Borrower otherw~se agree in writing, insurance procceds shall be applied to restoration or repair of
; the Property damaged, provided such restora~~on or repair ~s economically feasible and the security of this Mortgage is
not ~hercby impaired. If such restorat~on or repair is not economically feasible or i( the sccurity of this Mortgage would
~ be impaired, the insurance proceeJs shall be applied to the sums secureJ by this Mortgage, with the excess, if any, paid
~ to Borrower. If the Propert}• is abandoncd hy Borrower, or it Borrower fails to respond to Lender within 30 days from the
~ date nohce ~s maded by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, l.ender
~ ~s authoriud to collect and apply the ~nsurance proceeds at l.ender's option e~ther to restoration or repa~r ot the Propert~•
~ or to the surtu secured by this Mortgage.
~ Unless Lender and Borrower otherw~x ~gree m wnt~ng, any such application of prcxeeds to principal shall not extend
~ or postpone the due Jate o( ~he monthly instaltmcnts rcferred a~ in paragraphti I and 2 hereof or change the amount of
~ such installments. It under paragraph I8 hereof the ProFerty is acyuired by Lender, all right, title and interest of Borrower ~
t in and to any Insurance policies and in and to thr procceds thereof resulung from damage to the Property prior to th~ sale
= or acquisiUOn shal! pass to Lender to the exrent of the sums ~ecured by this htortgage immediately prior to such sale or
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~ acquisition.
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~ 6. Presen~al~on and Maintenance of Property; Leasehulds; Condominiums; Planned Unit Devebpments. Borrow~cr
5 shall keep the Property in good repair and shall not comroit yvaste or permit impairment or deterioration of the Property
_ and shal) comply~ wi~h the provisions of any lea~e i( thi~ Mortgage i~ un a leaschold. If this Mortgage is on a unit in a
~ condomin~um ar a planned unit devclopment, Borrower shall perform all o( Borrower's obhgations under the declarahon
or covenants creating or govern~ng the condominium or planned unit develupment, the by-laws and regulations of the
cond~mimum or planned unit development. and constituent documents. I( a conJominium or planned unit development
nJer is execu~ed by Borrower and recorded togeiher w~th this Mortgage, the covenants and agreements of such rider
shall be incorporated ~nto and shall amend anJ wpplement the covenams and agreements of this Mortgage as if the riJer
w•ere a part hereof.
7. Prottction o( I,enders Securfty. If B~~rr~~wer fadti a~ ~xrf~~rm the covenan~i and agreements contained in this
~ Mortgage, or if any action ur proceeding rummenced which m:~~erially afTrctc I.ender's interesl in the Property,
~ indud~ng, but n~~t limited to. em~nent domain, im~~l~enc~. axlr cnfarremcnt. ~~r arrangements <~r proceedings invohing a
~ bankrupt or deirden~, then Lender at 1_ender', ~~pi~on, u~m nc.t~ce ~o Borrow•er. ma~ make such appearances, d~sburse such
= sums and take such acuon a~ is neceti~ary tu protert Lender's mterest. ~ncluding. but not lim~ted to, disbursement of
~ reasonable auomcy's tccc and eniry u~m thc Propcrt}~ ~o makc rcpairti. If Lcndcr rryuireJ mortgage insurance as a
; condition of rnaking thc loan ~ecured b}• th~ti Murtg.~gc. B~,rruwcr sh.,ll pay thc premiwns requireJ to maintain such
1 insurancc in rlTcct until ~uch umc JS ~hc rcyuirrmcm i<~r wch insurancc tcrminatr, in :~ccordancc with Borrowcr's and
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