HomeMy WebLinkAbout1371 , t '••i',
UN~FCUtr?t CoveN~N'rs. Borrower and l.ender covenant ar?d agre~ u follows:
1. Psymeat ot hinciqil asii Ltend. Borrower shall promptly pay when due the principal of and interest on the
indebtednaa evideacsd by the Note. prepsymeat aad late charges as provided in the Note, and the principat of and interest
o~ ~ny Futucti Advaaces secured by this Mortgage.
2. Fwad~ tor T~a asd lawe+wce. Stibject to appiicable law or to a written waiver by Leader. Borrower shall pay
to Lender on the day monthly installments of principal and interest ace payable undc~ the Notc, u~til tt?~ Note is paid in full,
a tum (herein "Funds") equal to one•twelfth of the yeatiy taxes and assessments which may attaia priority over this
Mort~age. aad ground nnts on tbe Prapaty. if any. pl~u oao-twelfth of yeuly prcmium installments for hazard insurance,
plus one-twelfth of yearly premium iastallments for mortgage iosurance, if any. all as nasonably estimated initially and fmm
time to time by Lender on the basis of assessme~ts and bills a~d reasonable atimates thereof.
'Il~e Funds shall be held in an institution the deposits or accounts of which arc insured or gwra~teed by s Foderal or
state aaency (inciuding Lender if Lender is such an institution). Lender shali apply 1he Funds to pay said iaxes, assessments.
insuranca premiums and ground rents. Lender may not charge tor so holding and applying the Funds, analysi~g said account,
or verifying a~d compiling aaid asseuments and bills, unkxs Leader pays Borrower interat 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 be paid to Borrower, and unless such agrcement is made or applicable law
requires such inlerest to be paid. Lender shall not be required to pay Borrower any interest or eamiogs on the Fu~ds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for wbich each debit to the Funds was made. The Funds are pledged as additional security for the sums socured
by this Morigage. ~
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assatsments, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower s option, either ~
promptly repaid to Bormwer or credited to Borrower on monthly installments of Funds. If the amount of ihe Funds
held by Lender shall not be sul6cient 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 I.ender to Bonower requesting payment thereof_
Upon payment in ful! of all sums secur~d by this Mortgage, l.ender shall promptly refund to Borrower any Funds
held by Lender. If undtr paragraph 18 hereof the Propeny is sold or the Property i~ oth~rwix acquired ,4y Lender. Lender
shall apply, no later than immediately prior to the sale of the Property or its acqt~sition by L.ender, any Funds held by
I.ender at the time of application as a credit against the sums secured by this Mortgage. ~
3. Applic~ion of P~meats. Unless applicable law provides otherwise, all payments received-4ht~I.Onde,r under the
Note and paragraPhs 1 and 2 hereof shall be applied by 1_ender first in payinent ot amounts payable i~?.j.ender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the pcincipal of the Nqte,. and tlien'to i~1t+~rest and
principal on any Future Advances. ~ ~
4. Charges; Lkus. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to r
the property which may attain a priority over this Mortgage, and leaseho
l d payments or grou n
d r
ent s. if an
y, in the manner
pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the
payce thereof. Bonower shall promptly fumish to Lender all notices of amounts due under this paragraph, and in the eveat
Borrower shalt make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promQtly discharge any lien which has 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 ihe obligation secured by
such lien in a manner acceptable to l.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
kgal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements novr existing or hereafter erected on the Property insured
againat 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 tbe amount of ~
; such coverage ezceed that amount of coverage 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
~ providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. direcUy 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 acceptabte 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 oE 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 v?riting, 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 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
date notice is mailed by Lender to Borrower that the insurance carrier ofters to settle a claim for insurance benefits, Lender
is authoriud to collect and apply the insurance proceeds at Lender's option eitt~er to restoration or repair of the Properiy
or to the sums secured by this Mortgage.
Unless L.ender 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 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, title and interest of Borrower -
in and to any insurance policies and in and to the proceeds thereof resulting from damage to t6e Property prior to the sale
or acquisition shaU pass to I.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. _
6. PreservaNon and Maintenance of Property; Leaseholds; Condominiums; Planned Uoit Devebpments. Borrower
~ shall keep the Property io good repair and shall not commit waste 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 perfortti 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 planued unit development, and constituent documents. If a condominium or planned unit development
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~ rider ~s eaecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shail amend and supplement the covenants and agreements of this Mortgage as if the rider
~ were a put hereof.
~ 7. Protection of I.ender's Security. If Borrower fails to perform the covenants and agreements contained in this
~ 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 e~forcement, 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
sums and~ take such action as is necessary to protect i.ender s interest. including. but not limited to, disbursement of
reasonable attorney's fecs and entry upon the Property to make repairs. If Lender required mortgage insurancx as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required -to maintain such
insurance in etiect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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