HomeMy WebLinkAbout0378 Ut+trast>.t Covaruwrs. Borrower and Leader covenant and agrer as follows:
f. lhgtwestt of hiteiNl arts IttNeres/. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of aril interest
oa say Futuro Advances secured by tha Mortg-eye.
2. llrsttsi ter 7Lsaa smi Irtsrssst¦ee. Subject to applicahk law it to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest arc. payabk 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 may attain priority over this
Mortgage. and ground rents on tha Property. if any. plus one-twelfth of yearly premium installments for hanrd iruurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from
6me to time by Leader on the basis of assessments and hills and reasonabk estimates thereof.
'ILe Funds shall be held in an institution the deposits or accounts of which are insured or gwranteed by a Federal of
state sgeney (including bander if Lender is such an institution). Lender shall apply the Funds to pay uid taxes. assessments.
imuranoe 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 of this
Mortgage that interest on the lh~tnds 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 aceountirg 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 security for the sums secured
by this Mortgage.
Tf the amount of the Funds held by Lender, together with the futuis monthly installments of Funds payable prior to
the dots dates of taxes, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
aawmeats, 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 installment: of Funds. If the amount of the Funds
bdd by header spell not be sufficient to pay taxes, asseament:, insurance premiums and ground rents ss they fall due,
Borrowwrer shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower tequestiag payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall prom~r refund to Borrower any Funds
Geld by Lender. If under paragraph 18 hereof the Property is sold or the Property ~ otherwise scquired by Lender. Lender
ahaD 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 steered by this Mortgage.
3. A~licatiaa eft lgmeab. Unless spplicable law provides otherwise, all payments received by Lender under the
Note soil paragraphs 1 sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borcower
under paragraph 2 hereof. then to interest payable oa the Note, then to the principal of the Note. and then to interest and
principal oo any Future Advances.
1. Crarge~r, I.ieas. 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 puagraph 2 hereof or, if not paid in such manner, by Borcower making payment. when due. directly to the
payee thereof. Borrows shall promptly furnish to Lender all notices of amounts due under this paragrsph, soil 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 Borcower 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 proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hared Irrwsarn~e. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by Ere, hazards incllyded wiWin the term "extended coverage". and such other hazards as Lender may require
~I sad in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such rnverage exceed that amount of coverage required to pay the sums secured Eby this Mortgage.
The insurancx carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
j that such approval shall not be unreawnably withheld. All premiums on insurance policies shill 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
j 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 shall have the right to hold the policies and renewals thereof,
~ sad Borcower shall promptly furoish 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 Borcower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economicatly 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 it Borrower fails to respond to Leader 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 m writing, any such application of proceeds to principal shall not extend
t or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in sad 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. Prrservation sad Mainteaaace of Property; Leaseholds; Condominiums; Planned Unit Developmeab. Borrower
" shall keep the Property is good repair and shall not commit yvaste or permit impairment or deterioration of the Property
sad 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 Borrowers 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 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 materially affects Lender's interest in the Property,
S includmg, 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 to protect Lender's interest, including, but not limited tot disbursement of
reasonable attorney's tees and entry upon the Property to make repairs- !f 1_ender required mortgage insurance as a
condition of making the loan secure) by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement (or such insurance termsnates in accordance with Borrowers and