HomeMy WebLinkAbout0329 Utt[>*oEtx Covtartet+ira. Borrower sad Leader covenant and agree as foQowa:
1. lt~ytsteot o[ 1 atstl LNarat. Borrower shall promPtlY (uY when due the principal of and interest on the
indebtedness evideaoed by the Note, propaymeat sad late charges as provided in the Note, and the principal of sad interest
on any Futuro Advances secured by this Mortgage.
3. Ftiaas for 1'uea aai Itt+arawce. Stibject to applicable law of to a_writtea waiver by Lender, Borrmver shall pay
to Leader on the day tnonthiy iastalltnenta of principal and interest aro payable under the Note. until the Note is paid is tuQ,
a sum (heroin "Fuads'~ equal to oae•twelfth of the yearly taxes and ssseasntents which may attain priority over Wu
Mortgage. and ground rca4 on the Property. if any. plus one•twelfth of yearly premium installments for hautd it>:urattce,
pine one-twelfth of yearly promium installments for mortgage insurance. if eny, all as roasonably estimated initially and from
time to time by Leader on the basis of assessments and bills and reasonable estimates thereof.
'lire fitnds shall be held is an institution the deposits or accounts of which aro insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay acid taxes, assessments.
insurance premiums sad 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 Borrower interat on the Funds sad 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 agreement is made or applicable law
requires such interat 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 showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged az additional security for the sums secured
by this Mortgage.
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.
auessments, insurance premiums and ground rents az they fall due: such excess shall be. at Borrowers option. either
promptly repaid to Borrower or credited to Harrower on monthly installments of Funds. If the amount of the Funds
held by Lender shag not be suf8cieat 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 mail
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. If unifier paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
shall apply, no 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 az a credit against the sums secured by this Mortgage.
3. Applics~tion of Payments. Unless applicable law provides otherwise, ail payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph Z hereof. then to interest payable on the Note, then to the principal of the Note. and then to interat and
principal on any Future Advances.
4. Charges; Liens. 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, 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
pays thereof. Borrower shall promptly furnish fo 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 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 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 prevent the enforcement of the lien or forfeiture of the Property or any part thereof. ,
S. Aazard Insnraace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in wch amounts and for such periods az 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 by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
West 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.
i All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
i 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 sad Borrower otherwise agree in writing, insurance procceds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically [eazible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if the suurity of this Mortgage would ;
be impaired, We 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 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 We Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agrce 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
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 We extent of the sums secured by Wis Mortgage immediately prior to such sale or
acquisition. -
6. Preservation sad Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall kcep the Property in 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 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 documents. 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 az if the rider
were a part hereof.
7. Protectbe of Leader'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 We 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, may make such appearances, disburse such
sums and take such action az is necessary to protect Lender's interest. including, but not limited to. disbursement of
reasonab{e attorney's fees and entry upon the Property to make repairs: If Le..er required mortgage insurance az 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 az the requirement for such insurance terminates in accordance with Borrower's and
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