HomeMy WebLinkAbout0656 Unt~otw Covtarrsrtrs. Borrower and Lender covenant and agree as follows: .
1. lgttseat M hiaeiwl ant ltulenst. Borrower shall promptly pay when due the principal of and interest oa the
indebtedness evidenced by the Note, prepayment and late charges ac provided in the Note, and the principal of aril interest
as gay Ptxure Advances secured by this Mortgage.
1 >ltiti tK Tatter ttwti I>.aartraw. Slrbject to applicable law .x to a written waiver by Lender, Borrower shall pay
to Leader on the day monthly installments of principal and intarect are payable under the Note. until the Note is paid in full,
a aura (herein "Fuads'7 egtul to one-twelfth of the yearly- faze. and assessments which may attain priority over this
Mortgage. and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard inwrarnce.
plus oae-twelfth ot.yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to time by Letrder on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which arc insured or guannteed by a Fedenl of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments,
iasutanoe premiums and ground rents. I.endetr may not charge for so holding and applying the Funds. analyzing said account,
or verifying aril compling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
petnnitx Lender to make such a charge. Borrower gad [.ender 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
requira 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 annwl accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. 7?re Funds arc plodgod u additional security for the sums secured
by this Mortgage.
1t the amount of the Furls hill by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, auessmeats, irrwrance premiums and ground ants, shall exceed the amount required to pay said lazes.
asseasdsents, itt~sunnce premiums gad ground renu as they tall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or txodited to Borrower on monthly installments of Funds. If the amount of the Funds
6dd by Leader drill cot be witcieat to pay toes, assessments, insurance premiums and ground rents as they fall due.
Borrower shall pay to Leader gay amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requiting payment thereof.
Upoa payweat is full of aU sums secured by this Mortgage, Lender siraii prompay refund io no<rv:a: airy Ftrrd;
held by Leader. It under paragraph l8 hereof the Property u sold or the Property rs otherwise acquired by Lender. Lender
shall apply, rro later thaw immediately prior to the sale of the Property or its acquisition by Lender. any Funds held br
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Alllkatiaa d Il'rq>tse¦b. Unless appliabk law provides otherwise, all payments received by Lender under the
Note gad paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
trader paragraph 2 hereof. then to interest payable on the Nae, then to the principal of the Note. and then to interest and
principal on any Future Advances,
1. Chsrges; Lilacs. Borrower shall pay all razes, 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 puagraph 2 hereof or, if not paid in such mariner, by Borrower making payment. when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, gad in the event
Borrower shall make payarent directly. Borrower shall promptly furnish to Lender receipts estideacing such paymenu.
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 io,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hmrd lastrraaee. Borrower shall leap the improvements now existing or hereafter erected on the Property itrsurod
against loss by 6rc, hazards included within the term "extended coveragt", and such other hazards as Lender may require
gad 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 by this Mortgage.
'ILe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Len4er, provided.
that such approval shall not be unreasonably withheld. All premiums on insurance policies shill be paid in the manner
provided wader puagraph 2 hereof or, if not paid in such manner. by Borrower making payrneat. when due, directly to the
imutYnce 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 kiss 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 Properly damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. I[ 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 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 Mortgagt.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shat) not extend
or postpone the due date of the monthly inuallments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph t8 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 Properly prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
S. Presetvatioa gad Maiateaaace of Property; Leaseholds; Condominiums; Phoned Unit Developmeats. Borrower
shall keep the Property in good repair and shall not comrpit 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 unlit 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 u if the rider
were a part hereof.
7. Protection of LeadePs Security. If Borrower fails t~ 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 enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then Ixnder at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary tv protect Lender's interest, incl~iding, but not limited io, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. 1f Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums requited to maintain such
• insurance in ~(iect until such time as the requirement for such insurance terminates in accordance. with Borrower's and
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