HomeMy WebLinkAbout1701 UNt~M COVaruttra. Btxr+owet and lertdcr covenant and agra ss follows:
l~aot of atsi 1ttMerat. Borrower shall promptly pay when due the principal of and interest on the
utdt:btednea eviderroed by the Note. prepayment and late charges ac provided in the Note, and the principsl o[ and interest
an any Future Advances sttcwtad by this Mortgage.
1 lrtwds ~ Tattea Lwratrt~s. Subject to ttpplicahk law or to a written waiver by Lender. Borrower shell pay
to Lender on the day monthly installments of principal and intarest arc payabk under the Note, until the Note is paid in full,
a sum (herein "Funds' equal to orte-twelfth of the yearl)~ taxi. and assessments which may attain priority over this
Mortgage. and g~ rents on the properly, if any. plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance. it any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and rcawnabk estimates thereof.
'Ibe Funds shall be held in an institution the deposiu or accounts of which arc insured or guaranteed by a Federal or
state trgettcy (including Lender if Lender is such an institution). Lender shall apply the Funds to pay uid taxes. assessments.
inwtanoe premiums and ground rents. lender may not charge for sc+ holding and applying the Funds, analyzing said account.
or verifying and compiling utd assessments and bills, unless Lender pays Borrower interest on the 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. 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 shown addi~tiort 1 secub y fort the sums secured
purpose for which each debit to the Funds was made. The Funds arc pledged
by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payabk prior to
the due dates of taxes. atoasments, insurance premiums and ground rents, shall exceed the amount required to pay uid taxes,
assepments, insurance premiums and ground rents u they fall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the 1^unds
held by Lender shall not be wt6cieat 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 requesting payment thereof.
Upon payment in fuU of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by bender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall apply. rte later than immediately prior to the sale of the Property 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. A of lr4ynretrt>:. Unless applicable law provides otherwise, all payments received by Lender under the
Note and p~arBag~ I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to interest payabk on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances.
1. Charges; Utas. 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, tf any. in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by $orrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which hu priority over this Mortgage; 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 g«?d faith contest such lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the ben or [orfeiture of the Property or any part thereof.
~ S. Illaurd irrwrarree. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
R agairnt loss by fire, hazards included within the term "extended 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 amount of
such coverage exceed that amount of coverage required to pay the sums secured Eby this Mortgage.
'Ilse 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
inwrance 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
by Borrower. _
~ Unless Lender and Borrower otherwise agree in wasting, insurance proceeds shall be applied to restoration or repair of
i 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 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
j date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds 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 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 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
j in and to any Insurance 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 extent of the sums secured by this Mortgage immediately prior to such sale or
j acquisition.
E 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
shalt keep the Property in good repair and shall not comruit yvaste or permit impairment or deterioration 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, 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
condominium or planned unit development, and constituent d«:uments. 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 rifer
were a part hereof.
7. Protection of Lender's Security. If Borrower faik t.• perform the covenants and agreements contained in this
E Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property.
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, ma}' make such appearances, dishurse such
wins 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 repaus. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
iruurance in eBect until such time as the requirement for such insurance terminates ~n accordance with Borrowers and
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