HomeMy WebLinkAbout1674 i
UN~FQRM COVENANTS. Horrower and l.ender covenant and a~rce as follows:
l. _l~ned oE Pri~clpl a~d lnferat. Borrower shall promptly pay when due the pri~cipal of and interest on the
indebtednet: evideaced by the Note. prepayment a~d late charges as provided in the Note, and the principal of and intercst
on my Futuro Advances secured by this Mortgage.
2. lhrsds tor Tuea aad Iawnoce. Subject to appiicabie law or to a written waiver by Lender. Bortower shall pay
to Lender on the day monthly instaliments of pri~cipal and interest are payable under the Note, u~til the Note is paid i~ full,
a:um (herein "Fun~'~ equal to one-twelfth of Ihe yea~ly taxes and assessments which may attain priority over this
Mortgsge. and grout~d rents on the Property. if any, plus one-tweltth of yearly premium installments for hazard insurance,
, plus one-twelfth of yearly premium installments for mongage insurance, if any, all as reasonably estimated initially and fmm
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
'Ibe Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments.
~ insurance prcmiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills. unless Lender pays Bonower inte~at 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 interat on the Funds shall ~e paid to Borrower, and unless such agreement is made or applicable law
rcquires such interest to be paid. Lender shall not be rcquired to pay Borrower any interest or earnings on the Funds. I.ender
shall give to Borrower, wEthout charge, an annual accounting of the Funds showing credits and debits to the Funds and ihe
purpcue for which eaeh debit to the Funds was made. The Fu~ds are pledged as additional security for the sums securcd
by this Mortgage.
If the amount of the Funds held by Lender, tagether with the futurc monthly installments of Funds payable prior to
the due data of taxes. asxssments, insura~ce premiums and ground rents, shall exceed the amount required to pay said taxes.
sssessments. 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 Lender shall not be suflicient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount naessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting paymcnt thereof.
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly ref~md to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or thc Property is otherwise acquired by Lender. Lender
s6a11 apply. no later than immediately prior to the sale of the Property or its acquisition by I_ender, any Funds held by
Lender at the t:me of application as a credit against the sums secured by this Mortgage.
3. Applicatioa of Payments. Unless applicable law proviJes otherwise. all payments received by Lender unJer the
Note and paragraphs 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lender by Borrower
under puagraph 2 hercof, 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. C6ar~es; Lkas. Borrower shall pay all taxes, assessments and other charges, flnes and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided u~der paragraph 2 hereof or, if not paid in such manner, by Borrower making payinent. when due, diroctly to the
payce the[eof. Borrower shall promptly furnish to Lender al! notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall promptly fumish to l.ender receipts evidencing such payments. .
Borrower shall promptly dixharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so fong as Borrower shall agree in writing to the payment of thc obligation secured by
such lien in a manner acceptable to Lxnder, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings whieh operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
' S. Hazud Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by 6re, hazards included within the term "extended coverage", and such other hazards as l.ender may require
't aad in such amounts and for such periods as Lender may reyuire; provided. that Lender shall not require that the amount of -
~ such coverage excced that amount of coverage required to pay the sums secured by this Mortgage.
! "I1~e 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 Borcower making payment. when due, directly to the
insurance catrier.
~ Alt 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 prumptly 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 writing, insurance proceeds shall be 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 economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be a~plied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. I[ the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days [rom the
date notice is mailed by Lender to Borrower that ihe insurance carrier ofTers to setUe 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 Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such applica~ion 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 acyuired by L.ender, all right, title 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 Mortgagc immediately prior to such sale or
acquisition.
~ 6. Presen~ation and Maintenance of Property; Leaseholds: Condominiums; Planned Uuit Developments. Borrow•er
1 shall keep the Property in good repair and shall not commit waste or permit impairment or etenorat~on of the Property
~ and shall comply with the provisions of any lease it this hiortgage is on a leaschold. lf 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 devclopment, the by-laws and regulations of the ;
3 condominium or planned unit development, and constiwent documents. If a condominium ot planned unit de~•elopment
~ nder is executed by Borrower and recorded together vvith 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 rider
were a part hereof.
F 7. Protection of Lende~'s Security. If Borrower fails to perform the covenan~s and agreements contained in this
~
~ Mortgage, or if any action or proceeding is commenceJ w~hich materially affects Lender's interest in the Property,
~ including. but not limited [o, eminent domain, insolve~~cy, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. ~hen Lender at Lender's option, upon netice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
reasonable attomey's tees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
~ condition of making the loan secured by this Mortgage. Borcow•er shall pay the premiums required to maintain such
~ insurance in eRect until such time as the requirement for such msurance terminates in accordance with Borrower's and
~
& ~
]f!~II Y ~
~ ` k 31i 1 '
A.._