HomeMy WebLinkAbout0877 UntPOtw CoveN~rrss. Borrower and Lender covenant and agree u follows:
1. Paywtwt of PrioclMl anti INerest. Borrower shall promptly pay when due the principal of and interest on the
indebtednea evidertoed by the Note. prepayment and late chargte ac providt:d in the Note, and the principal o[ and interest
on any Future Advances secured by this Mortgage.
Ftwis tint Tara sai inwnoee. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interact rrc payable under the Note, until the Note is paid in full,
a sum (herein "Funds") egwl to one-twelfth of the year)} raze. and assessments which may attain priority over this
Mortgage. and ground rent: on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to time by Lender on the buffs of assessments and hills 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). 1_ender shall apply the Funds to pay said taxes, assessments.
insurance premiums 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 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 o[ this
Mortgage that interat on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires 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 annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds wu made. The Funds are plodged as 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,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's optron, 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 sut!'icient to pay taxes, assessments, insurance premiums and ground rents as they tall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
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 under paragraph 18 hereof the Property is sold or the Propeny rs 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 as a credit against the sums secured by this Mortgage.
3. Appiicatioa of Payments. Unless applicable law provides otherwise, all 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 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.
1. Charges; Liters. 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 rn such manner, 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, and in the event
Borrower shalt 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 confect such lien hy, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the Iran or forfeiture of the Property or any part thereof.
S. Hazard insurance. Borrower shall keep the rmpruvements now existing or hereafter erected on the Property insured
against loss by fire: hazards included withrn 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 the amount of
j such coverage exceed that amount of coverage required to pay the Sums secured Eby 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
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
i insurance carrier.
All insurance policies and renewals thereof shall tx in form acceptable to Lender and shall include a standard mortgage
clause in favor. of and in form acceptable to Lender. 1_ender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notrces and all receipts of paid premiums. In the event of loss.
Borrower shall gtve prompt notice to the insurance earner and Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwrse agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoratrun or repair rs economically feasible and the security of this Mortgage is
not thereby imparted. If such restoration or repatr 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 rs mailed b}• 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 Mortgage.
Unless Lender and Borrower otherwise agree in venting, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraph. 1 and 2 hereof or change the amount of
such installments. It under paragraph I8 hereof the Property is acywred by Lender, all right, title and interest of Borr~~wer
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 Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenance of Property: Leaseholds: Condominiums; Planned Unit Ikvelnpmentc. Rormwer
shall keep the Property in good repair and shall not commit yyaste or permit impairment or deterioration of the Property
x; and shall comply with the provisions of any lease if thn Mongagc is tin a leasehold. if this Mortgage is on a trait in a
condominium or a planned unit development, Borrower .hall perform all of Borrower's obligations under the declarahun
or covenants creating or governing the condomrnum or planned unit development, the by-laws and regulations of the
condominium or planned unit development. and constituent dtxuments. If a condominium or planned unit development
~ rider rs exec:uted by Borrower and recorded together with thn hortgage. the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage ac if the rider
were a part hereof.
~ 7. Protection of Lender's Security. if Borrower tails to prrform the covenants and agreements contained in this
~ Mortgage. or if any action ur prcxeeding rs commenced whrch materially affects Lender's Interest in the Property.
includmg. but riot limited to. cmrncnt domain. insolyenr~, axle enforcement, or arrangements or proceedings invohrng a
hanknrpt or decedent, then lender at Lender's opUOn, upon notice to Borrower, may make such appearances, dishurse such
sums and take such action as is necessary to protect Lender's interest. including. but not limited to. disbursement of
reasonahle anomey's tees and entry upon the property to make repairs. If I.rnder required mortgage insurance as a
condiUun ~~f ntaktng the loan secured by thn MortEat~e. Bormwer shall pay the prcmiunx required to maintain such
insurance in rtfe~t until such time as the rcyuiren?ent for `uch insurance termniates tiff ar:ordance with Borrower's and
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