HomeMy WebLinkAbout0541 I.INIPOttM CovFNANTS. Borrower and Lender covenant and agree as follows:
1. Payment o[ Priaclpal and latetest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
or? any Future Advances secured by this Mortgage.
2. Foods [or Taxes and Iasunace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
a stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of }'early premium installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initial)}• and from
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
The 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 app)}• the Funds to pa}• said taxes, assessments,
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, anal},zing said account,
or verifying and compiling said 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
1~tortgage that interest on the Funds shall be paid to Borrower, and unless s;tch agreement is made or applicable law
requires such interest to be paid. Lender shall not be required to pa}• Borrower an}• interest or earnings nn 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. 'Ilte Funds are pledged as additional securit}• 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 requtred 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 Lender 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 deficienc}• within 30 da}•s from the date notice is mailed
by Lender to Borrower requesting payment thereof-
Upon payment in full of all sums secured by this Mortgage. 1_ender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is wld or the Property is otherwise acgrtired by Lender, Lender
shall apply, no later than immediately prior to the sale of the Propert}• or its acquisition h}• Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Aortgage.
3. Application of Payments. Unless applicable law, provides otherwise, all payments received by lender under the
Note and paragraphs I and 2 hereof shall be applied by I_cnder first in pa}•ment of amounts payable to Lender h}• 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; Liens. Borrower shall pay all !axes, 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 an}•, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, b}• Borrower 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 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 pa}•ment of the obligation secured b}•
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 Iten or forfeiture of the Property or any part thereof.
S. Hazard Insurance. 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 such amounts and for such periods as lender may require: provided, that Lender shall not reyuirc that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'Rte 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.
j 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 prompt)}• furnish to Lender all renewal notices and all receipts of paid premium.. 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 prompt)}
E 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 applied to the sums secured b}• 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 3Q days from the
Jate notice is mailed b}• Lender to Borrower that the insurance carrier often to scale a claim for insurance benefits, Lender
u authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
w or to the sums secured by this Mortgage.
f 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 momhly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph IS hereof the Property is acywred 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 the extent of the sums secured b}• this ~fortgagc immediately prior to such sale or
acquisition.
6. Preservation and Staintenance of Property; Leaseholds; Condominiums; Planned Unit Developmrnts. Borrower
shall keep 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 obGgat~ons under the declaration
or covenants creating or governing the condominium or planned amt development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit deveompment
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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 rider
were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding is commenced which materiall}• affects Lender's interest in the Property,,
including, but nut 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 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. If Lender required mortgage insurance as a
condition of making the loan secured b}- this Mortgage. Bormwer shall pay the premiums required to maintain such
insurance in effect until such time as the reyuirement for such insurance terminates in accordance with Borrower's and
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