HomeMy WebLinkAbout0940 UN~r~oat?t CovEtv.~Nrs. Borrower and l.ender covenan~ and agree as foliows:
1. Paymeat of Principal aod laterest. HOffON~er shall pn~mptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, ptepayment and latc chargcs as proviJed in thc Nate, and the principal of and interest
on any Future Adva~ces securcd by this Mortgage.
2. Ftiads fo~ Taxes aad Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to I.ender on thc day monthly installments of principal and intcrest are payable under thc Notc. u~til the.Note is paid in full,
a sum (hercin "Funcis") equal to onc-twelfth of the yearly taxes and assessments which may attain priority over this .
Mortgage, anci ground rents on the Property, if any, plus one-tK~elfth of yearly premium installments for hazard insurance.
plus one-twel[th of yearly premium installments far mortgage insurance, if any. all as reasonably estimated initiaUy and trom
timc to time by Lender on the basis of assessments and hills and reasonable estimates thercof. ;
77~e Funds shall be held in an i~stitution the deposits or accaunts of which are insured or guaranteed by a Federal or +
state agency (including I.ender if Lender is such an institution). l.ender shall apply the Funds to pay said taxes, assessments,
insurance premiums a~d ground rents. l.ender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on th~ Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, Lende~ shall not be required ta pay Borrower any interest or eamings 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 plodged az additional socurity for the sums secured
by this Mortgage.
If the amount of the Funds held by I.ender, together with the future monthly installnients of Funds payable prior to
the due dates of ta~ces, assessments, insu~ance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower
s option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lende~ shall not be sufficient to pay taxes. assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower r~questing payment thereof:
Upon payment in futl of all sums secured by this Mortgage, t_ender shall promptly refund to Borrow~er any Funds
held by Lender. If under paragraph I8 hereof the Propeny is sold or thc Property is otherwise acquired by Lender. Lender
shall apply. no later than immediately prior to thc sale of thc Properiy or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Applicatioa of Paymeats. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I_cnder first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. Charges; Lie~. Borrower shall pay all laxes, assessments and othcr charges, fines and impositions attributable to
the Property which may attain a priority over this 1liortgage, and leasehold payments or gr+ound rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due; directly to the i
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event 3
Borrower shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing such payments. ~
Borrower shall promptly discharge any lien which has priority over this MoRgage; provided, that Borrower shall not be
required to discharge any such lien so long as Bor~ower 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 preve~t the en(orcement of the lien or forfeiture of the Property or any parl thereof.
5. Hazard Insurance. Borrow~er shall keep the improvcmcnts now• existing or hereafter erccted on the Property insured
against loss by fire, hazards included within the term "eatended 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 require that the amoont of
such coverage exceed that amount of co~~erage required to pay the sums secured by this Mortgage.
' The 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 Borrower making payment, when due, directly to the
~ insurance carrier.
` All 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,
~ 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
t by Borrower.
~ Unless [.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
~ the Property Jamaged, provicied such restoration or repair is economically feasible and 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
E be impaired, the insurance proceeds shall be applied [o the sums secured by this Mortgage, with the excess, if any, paid
~ to Borrower. If the Propert}• is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
; date notice is mailed by l,ender to Borrower that the insurance carrier ofTers to settle a elaim for insurance benefits, Lender
~ is authorized. to collect and apply the insurance proeeeds 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 prineipal 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 l.ender, all right, tiUe 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 the sale
~ or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ acquisition.
~ 6. Fresen•ation and Maintenance of Property; Leaseholds; Condominiums; Plsmned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or detenoration 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, Borrow•er shall perform all of Borrower's obligations under the declaratiun
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planced unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Morigage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants anJ agreements of this Mortgage as if the rider
were a part hereof. -
7. Protection of Leode~s Security. If Borrower fails to perform the covenants and agreements contained in this r
~ Mortgage, or if any action or proceeding is commenceJ which materially aftects Lender's interest in the Property. -
s including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
- bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
Y 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. lf Lender requircd 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 requirement for such insurance terminates in accordance with Borrower s and s
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