HomeMy WebLinkAbout1070 UNtPOtlli CoveNAN'rs. Borrower altd Lender covenant and agree u follows:
ll. T~yweat of lrrirrelNl ttri ItNerest. 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 Notes and the principal of and interest
on soy Future Advances secured by this Mortgage.
2. Rtttssri let Tazea sssi Irtarra¦ee. Subject to applicabk law ~x to a written waiver by Lender. Borrower shill Pay
to Lender on the day monthly inuallments of principal and intcrect ere payabk under the Note. until the Note is paid in full,
a sum (herein "Funds'q equal to one-twelfth of the yearly rase. and assessments which may attain priority over this
Mortgage. and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard inwrartce.
plus one-twelfth of yearly premium installments for mortgage insurance. if any, all u ressonably estimated initially and from
time to time by Lender on the buffs of assessments and hills and reasonabk estimates thereof.
The Funds shall be held in an institution the deposits orrccounts of whi'ch' ate insured of guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to ply uid taxes. assessments.
insurance premiums and ground rents. lender may not charge for sa holding and applying the Funds. analyzing uid 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 interss~-sn 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 Furtds and the
purpose for which each debit to the Funds wu made. The Funds are pledged u additional security for the suttts secured
by this Mortgage.
If the amount o[ the Funds held by Lender, together with the future monthly installments of Funds payabk prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance prcmitims and ground rents u 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 sufficient to pay taxes, assessments, insurance premiums and ground rents u they fall 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 [.ender. If under paragraph 18 hereof the Property is sold or the Property 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 tittne of application as a credit against the sums secured by this Mortgage.
3. A~plicatioa of I?ayme~ts. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs I and 2 hereof shall be applied by [.ender 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. Charles; Liens. 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 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 payrmnt of the obligation secured by
such lion 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 I+en or forfeiture of the Property or any part thereof.
S. Nanrd Inwnwee. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and cuch other hazards as Lender may require
and +n such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
i 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 t.o the
~ insurance carrier.
All insurance policies and renewals therm( 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 1_ender all renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shill give prompt notice to the inwrance career and Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower othervvrse agree in wrrt+ng, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoratran or repair is economically feasible and the security of this Mortgage is
not thereby imparred. 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 Propert}• is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice rc mailed by lxnder 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 rn 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. If under paragraph 18 hereof the Property is acyurred by Lender, all right, title and interest of Borrower
in and to am' insurance policies and in and to the prcx:eeds 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 :ftrrintenance of Property: I,easehulds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit K•acte or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if th+s Mortgage rs on a leasehold. If 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 condomrni+rm or planned unit development, the by-laws and regulations of the
condominium or planned unit developmem.:,nd constituent d+xuments. I(a condominium or planned unit development
rider +s executed by Borrower and recorded together with thrs Mortgage, the covenants and agreements of such rider
shall be rncorporate<I rnto and shall amend and supplement the covenants anJ agreements of this Mortgage as if the rider
were a part hereof. `
7. Protection of bender's Security. If Bnm.wer fads m perform the covenants and agreements contained in this
Mortgage, or if any action or proceedrng r. ~ ummenced which materially affects Lender's interest in the Property.
includrng. but not Irmrted to. eminent domain. rnu•hency. code enforcement. or arrangements or proceedings involving a
banknrpt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances. dishurse such
sums and take such action as +s necessary t~~ protect l.ender'c interest, includrng. but not limned to, disbursement of
reasonahte auurney's Ices and emry ufxa+ the Property to make rcpaus. If Lender rcyuircd mortgage insurance as a
condrtiun making the loan secured by this :1lortg:+Fe. Born~wer shall pay the premiums regwred to maintain such
insurance in ellect until such time as the requirement for such rmurance terminates rn accordance wrlh BOrfOwl'f S and
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