HomeMy WebLinkAbout1064 Urttpotw CoveNewrs. Borrower and Leader covenant and agree u follows:
1. lhtyweN of hfielMl tttatt 1tNend. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note. prepayment and late charges as provided in the Note. and the principal of and interest
oa say Future Advances sxured by this Mortgage.
2. Fttittii Mfr TazN std Lwranee. Sltbjett to applicabk law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and intarcct arc payahk under the Note, until the Note is paid in full,
a Bath (herein "Fonds") equal to one-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly prcmitrm installments for hazard insurance.
plus otte-twelfth of yearly prcmittm installments for mortgage insrirancc, if any, all u 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 of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
itaurance premiums and ground rents. lender may not charge for sn holding and applying the Frtnds. analyzing said account,
or verifying and compiling said assessments and bills, unless Lender {ays 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 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
sha0 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,
atseaatents, insurance premiums and ground rents as they tall 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
heW by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower;hall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower regtxsting 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 Property rs dherwise acquired by Lender, Lender
shall apply.-no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds heid by
Lender at the tithe of application as a credit against the sums secured by this Mortgage.
3. Application of Payments Unless applicable law provides otherwise, all payments received by Lender undeer the
Note and paragraphs l and 2 heteof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
rutder 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; Lieps. 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 in such manner, by Borrower making payment, when due, directly to the '
payee thereof. Borrower shall promptly f~.~rn:sh 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
such lien in a manner acceptable to Lender, or shall in good faith confect 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. Hitwrd lawcawee. 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
and in such amor;.-.u auv ias: a.;~ : ~.:.,`.w,a 6i ~cauci iuoj i~yui,~; Y,-v:iv~.v, :tint i_'ut~.° `u":: Bv, rcy:::rc that the amount of
such coverage exceed that amount of coverage required to pay the sums secured Eby thisJMortgage.
'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
j provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
j insurance carrier.
j All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
E clause in favor of and in form acceptable to Ixnder. 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
F 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
I not thereby impaired. It such restoration or repair is not economically feasible or it the security of this Mortgage would
be impaired. the insurance proceeds shall be applied to the Bruns 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 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 Properts•
or to the sums secured by this Mortgage.
Unless Lcrder and Borrower othen+ise agree m writing, any such application of proceeds to principal shall not extend
I or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
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such installments. If under paragraph IS 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 Property prior to the sale
d 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: ('ondominiums; Planned Unit tJevebpments. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
~ attd shall comply with the provisions of any lease i( this Mortgage is on a leasehold. If this Mortgage is on a unit in a
i condominium or a planned amt development, Borrower shall perform all of Borrower's obligations under the declaration
f 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 drxuments. It a condominium or planned unit development
rider is executed by Borrower and recorded a~gether with this Mortgage. the covenants and agreements of such rider
shall be Incorporated into and shall emend and supplement the cosenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of bender's Security. If Br~rmwer fads d~ perform the covenants and agreements contained in Chic
Mortgage, or if any action ur proceeding is cummeneed which materially affecK Lender's interest in the Property.
including. but nut limited to. eminent domain. msohency. code enforcement. or arrangements or proceedings mvolsing a _
bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, ma) 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
reasonable attorney's ices and entry upim the Property to make repairs. If Lender reyuircd mortgage insurance as a
condition tit making the loan secured by this M~irtgage. Borrower shall pay the premi?uns required to maintain such
insurance tiff elfect until such time as tlx: requirement for such msurance terminates in accordance with Borrower's and
• ~U~K 321 Pa~E 1Q63