HomeMy WebLinkAbout2374 Unttrotut Coverients. Borrower and lender covenant and agree ss follows:
1.. tst>.seat a< I!'riaciNl astti ItNereat. Borrower shall promptly pay when due the principal of and interest on the
indabtednas evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal o[ and interest
oa say Future Advances secured by this Mortgage.
FtstNs tar Taaaa ari Lartmee. Subject to applicable law ar to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and intcrest arc payable under the Note. until the Note is paid in full,
a sum (herein "Funds' equal to one-twelfth of the yearly tax~~. and assessments which inay attain priority over this
Mortgage. and ground rents on the Property, if any, plus one•twelfth of yearly premium itutallments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as rcasonabiy estimated initially and from
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
'ILe Funds shall beheld in an institution the deposits or accounts of wrhich are inwred or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments,
inst:raace premiums and ground rents. lender may not charge for so holding and applying the Fends. 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 of this
Mortgage that intcrcst on the Funds shall be paid to Borrower. and unless such agreement a made or applicable law
require such interest to be paid. Lender shall not be required to pay Borrower any intcrcst 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 as additional sceurity for the sums secured
by this Mortgage.
lE the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due data of taxes, assessments, ir~sttnnce 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 Borrowers option, either
pr+ompUy repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
field by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due, '
Bormaer 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 stxuttd by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. If under parsgnph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall apply, rte 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 sa:ured by this Mortgage.
3. AppBcatio~ of Psy>serab. Unless applicable law provides otherwise, all payments received by Lender under the
Note sad paragraphs 1 sad 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.
I. Charges; Lktas. 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, J 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
payee ther+oof. 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 payment of the obligation secured by
suc6lien 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 [or[eiture of the Property or any part thereof.
S. Hazard Inwraace. 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
sad in such amounts and for such periods as Lender may require; provided, that Lender shall not rcyuire that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'Ilre 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
inwrance carrier.
E 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 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 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 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
I 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 Propert~•
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 monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. It under paragraph 18 hereof the Property is acquired by Lender, all tight, title and interest of Borrower
in arrd 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 L,cnder 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 Developments. Borrower
shall keep the Property in good repair and shall not comtpit 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. 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
nder 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 bender's Security. If Borrower fads 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 the Property.
including. but not limited to. eminent domain. insolvency, cxrde enforcement. or arrangements or proceedings invols•ing a
bankrupt or decedent, then Lender at Lender's option, upon noose to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest. including. but not iimrted to, disbursement of
reasonable attorney's fees and entry ulxm the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this ;11~~rtgage. BormHCr shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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