HomeMy WebLinkAbout2734 UNttrotw CovBNANTa. Borrower and lender covenant and agree u follows:
t. Itiytwetat of IltriaciNl trtsi IakreN. Borrower shall promptly pay when due the principal of and interest on the
ittdt~tedncst evidenced by the Note. prepaymeni and talc charges ac provided in the Note, and the principal o[ and interest
on any Future Advances secured by this Mortgage.
Ftiai floc Tuna trrtl iwrartce. Subject to applicahk law ..r to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payahk under the Note. until the Mote is paid '':n full,
a awn (herein "Fund:'q equal to er:e-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage. and ground rend 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, al! u reasonably estimated initially and fcant
time to time by Lender on the buffs of assessments and hills and reasonable estimates thereof.
'Ibe Funds shall be held in an institution the deposits or •rccounts of which are insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). lender shall apply tht 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 uid assessments and bills, unless Lender pays Borrower intertst on the Funds and applicable law
permiu Lender to make such a charge. Borrower and [.ender may agree in writing at the time of execution of this
Mortgage drat interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
r+equices 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 pledged u 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, insuratwe premiums and ground rents as they fall due, such excess shall be, at Borrowers 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 strf6cieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
t , ~sn .1_... •k. dab..,Mir~. ie Ta~l!`[t
Borrower shall pay to Lender any amount necessary to make up the u~::..:~.~y .y:::::::.::: .
by Lender to Borrower requesting payment thereof.
Upar payment in full of al! 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 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
Leader at the time of application as a credit against the sums secured by this Mortgage.
3. ApNicatioa of Paymea>!s. Unless applicable law provides otherwise, all payments received by Lender under she
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.
4. Charges; Liens. Borrower shall pay a!I 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, whin 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 t~ ).ender 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 procerdings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hiuard Irimtrswce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by Ere, 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 the amount o[
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'Ilse 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.
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 shalt 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 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 tbis 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 it Borrower fails to respond to 1_ender 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 Mortgage.
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 18 hereof the ProE.erty is acquired by Lender, all right, title and interest of Borrower
in and to any Risurance 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. Presen•ation and 1laintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
shall keep the Property in good repair and shall not comrvit waste or permit impairment or deterioration of the Properly
and shall comply with the provisions of any lease if thu Mortgage is on a leasehold. 1f 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 shalt amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof. _
7. Protection of benders Security. If Borrower fads ti. perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materiaNy affects Lender's interest in the Property,
indudmg, but nor limned to, eminent domain. insohenc~. code enforcement. or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upe~n 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 limned to, disbursement of
reasonable attorney's fees and entry upon the Propcrt!• to make repairs. 1f Lender required mortgage insurance as a
condition of making the loan secured by this titurtgage. born~Ner shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for wch insurance terminates in accordance with Borrower's and
~~{!K f,1~ PAGE ~ /