HomeMy WebLinkAbout0864 Uttpwn~r Covet+et~m, Bormwer and Lrnder covenant and a~roe u follows:
~q.~e.~ .t rewe+~.t t.~ew. e«~o~r ~n~n ~om~is wr when due the p~incipal ot and iMereit oe the
indebtedneW evidee~oed bq tbe Note. prepayment aed late chargec a.~ {+rovided in the Note. and tha principal ot and iote~at
oa soy Future Advsnces secured by this Mortaa~e-
2. l~~it fir Taans a~i l~c~e. Subject to spplicabk law ~x to a written waiver by Lende~. Horto~we~ sh+~~ PaI?
to Lee~der on the dsy monthly iastallmeots of principal aod iotc~cct ~rc ~paYaMe unde~ the Note. until the Note is paid in tull.
s sum (herein ••Fuad~'q eqwl to one-twdtth of the yea~l~• ~az~~ and assasments which may anain priority ove~ this
Matsa~e, ar~d ~round rena on ~be Propeny. if aey. F+lus one-twelfth ot yeatly~ premium installmentf tor huard inwnnct.
plut ooe-twelfth oE yesrly ptemium iastallments tor.mortaage inu~rancc, if say. sll ss ressonably estimated initially and t~n
time W time by Lender oa the bssis ot ass~ssmcnts and hills aod rcasonabk atimata thaeot.
'~e Fu~ds shall be held in an instituticu~ the depos~u or accounts of which are insured or Nara~tced bY • Fed~ral ot
ttate ajency (includin~ Lender if Lcnder is such ao ins~itutionl. I.ender shall apply the Funds to pay uid tua. assasme~ts.
~ inwra~oe premiums and ~ound rcnts. I_ender may not charge ior so holdin~ and applyinj the Fnndc. analyzing said account,
or verifyins_and comqliaa said assessments and bilk, unkss Lendet pays Borrowe~ interat on the Funds and applicable law
permits Le~der to make such a charge. Borrowu and Lender may agree in writing at the time ot exe~ution ot this
Mortpse tMt iaterat on the Fw~ds shall be paid to Bonower. a~d ualess suc6 asroement is made or applicabk law
requires such iaterest to be paid. Lender shall not be rcquircd to pay Borrower any interest or earnings on the Funds. Ler~der
s1W1 pve to Bo~rower~ without charge, an an~ual accounting of ~he Funds showins credits and debits to the Funds and the
pucpc~se for which each debit to the Funds wu made. The Funds arc plodged u additional security for the sums secured
by t6is Mortpse.
If tbe anwunt ot the Fuods held by l.ender, together with the tuturc monthly insullments of Funds payabk prior to
t6e due data of tua. assasmeots, iraurance premiums and grouod rents. shall exceed the amount requircd to pay said taxa.
sts~nents. insuranoe premiums and ground ~u u they fall due, such excess shall be. at Borrower s op~ion, either
promQtly repaid to Borrower or c~odited to Borrower on monthly insullments of Funds. If the amouot ot the Funds
~ bdd by Leodcr shall not be wKiciwt to pay tua. asxsunenu, insurance premiums and around rcnts ss they fall due,
Horm~ver shall pay to Leader any amount neassary to make up the deficie~cy within 30 days (rom the date notice is maikd
by I.ender to Borrower requating payment thereof.
Upon payment ia full of dl :ums-~cured by this Mongage, l.ender shall p~omptly refund to Borrower any Funds
held by Lender. If uoder puasraph 18 hereof the Property ia sold or the Property ~s othenvise acquircd by Lender, Lender
:6aU apply, no later than immcdiately prior to the sale of the Propecty or its acquisition by L.ende~. any Funds held bv
I.ender st the time of applicatan as s credit agsinst the sums secured by this Mortgage.
3. A~plicatio~ of Pa~!~eNs. Unless applicabk law provida othervvise. all payments rcceived by Lender uoder the
Note and patagnphs 1 and 2 hereof shall be applied by Lcnder first in payment of amounts payable to Lender by Borrower
under patagraph 2 heroof. t6ea to interest payabk on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advaoces.
1. Clu~es; t3eat. 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 kasehold payments or ground rents. if any. in the manner
provided under paragraph 2 hereof or, if not paid in such man~er, by Borrower making payment, when due. direcdy to the
payee the~eof. Borrower shall promptly furnish to Lencier all notices of amounts due under this paragnph, and in the event
Bormwer shall make payment directly, Borrower shal! promptly fumish to Lender receipts evideecing such payments.
Borrower shall promptly discharge any lien which hu priority over this Mortgage: provided, that Borrower shall not be
~oquirod to discharge any such licn so long u Borrower shall agree in writing to the payment of the obligation secured by
sucb 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 opetate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard lnwra~ce. Borrower shall kcep the improvements nov?• existing or. hereafter erected on tho Property insured
against loss by firc, haurds included within tht term "extended coverage", and such other hazards as Lender may requirc
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 uims secored by this Mortaage.
i The insurance carricr providing the insurance shall be chosen by Bonower subject to approval by Lender. provided,
; that such approval shall not be unrcasonably withheld. All premiums on insurance policia sha11 be paid in the manner
i provided under paragraph 2 hereof or, if not pai~ in such manner, by Borrower making payment, wh~n due, dircctly to the
~ insurance curier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
S clause in favor of and in form uceptable to l.ender. Lender shall have the right to hold the policia and renewals thereof,
~ and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
~ Borcower shall grve prompt notice to the insurance carrier and Lender. Lender may make proof of Mss if not made promptly
~ by Borrower.
Unkss Lender and Borrower otherwise agree in writing, insurance procceds shall ~ applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
~ not thereby impaired. If such restoration or repair is not cconomically feasible or if the security of this Mortgage would
be impaired, the insurance procceds shall be applied to the sums secured by this Mortgage, with the excess, if any. paid
to Borrower. If the Propeny is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is ma~led by Lender to Borrower that the insurance carrier oBers to settle a claim for insurance benefits, Lender
is authoriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propertv
R or to the sums ucured by this Mortgage.
~ Unless Lender and Borrower otherwisc agree in writing, any such applica~ion o( proceeds to principal shall not extend
or postpone ~he due date of the monthly installments referred to in paragraphc I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Pro f,erty is acquired by Lender, all right, title and interest of Borrower
in and to any tnsurance policies and in and to the proceeds thereof resulting from damage to the Property prior to th~ sale
or acquisition shall pass to Lender to the eYtent of the sums secured by this Mortgage immediately prior to such sale or
~ acquisition.
~ 6. hesenatioa aod Maintenance of Property; Leasehulds; Condominiums; Planned Uait Devebpments. Borrower
shall keep ihe Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Propeny
~ and shall comply~ with the provisions of any lease if th~s Mortgage ~s on a leaschold. If this Mortgage is on a unit in a
~ condominium or a planned unit development, Borrower shall pcrform all of Borrower s obligations under the declaration
~ or coveoants creating or govermng the condominium or planned unit development, the by-laws and regulations of the
~ condominium or planned unit development, and constituent Jocumen~s. !f a condominium or planned unit development
~ rider is executed by Borrower and recorded ~ogether K~~h thic Mortgage, the covenants and agrcements of such riJer
shall be incorporateJ into and shall amend and s~pplcment the covenants and agreements of this Mortgage as if the riJer
~ were a part hereof.
7. Protection of Leode~'s Securfty. 1( Borrower fa~ls perfnrm the covenants and agreements contained in this
~ Mortgage, ur if any acUOn ur proceeding is commence~l which materiaUy~ afTects I.enJer's interest in the Property.
including, but not lim~ted to, eminent domam. ins~.lvency, rode enforcement. or arrangements or proceedings invoh•ing a
~ bankrupt or decedent, then I.ender at Lender ~ option, u~x?o notice to Borrow•er, ma~ make such appearances, disburse such
~ sums and ~ake such action as ~s nececsar~• tu pra~ect Lender's mterest. incluJing. but not limited to. disbursement of
~ reasonable auomey's (ces and en~ry uEx~n ~hc Proper~y to make repairc. I( Lcnder rcyuircJ mortgage inwrance as a
~ condition of making the loan cecureJ by~ this Mortgage. Bi~rraverr shall pay lh~ premiums reqwred to maintain such
~ insurance in rfkct unt~l wch time as the reyuirement for .uch msurance tecminatr~ in :~ecordance wi~h Borrower's anJ
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