HomeMy WebLinkAbout0188 UNlil!'O~Iy CoveNANTS. Borrowu and bender covenant and agree u folk>.rrs:
1. llgmest of lrlnclNl rtN 1tt+teral. Borrower shall promptly pay when due the principal of and interest on the
itrdebtedne:s evideaoed by the Note. prepayrrtent and late charges ac provided in the Note, and the principal of and inter+at
oa say Future Advances sectrr+ed by this Mortgage.
2. !`i tee 71a:as ttttatl Irawraace. Subject to applicable law .~r to a written waiver by Lender. Borrower shall pay
to Linder on the day monthly installments o[ principal and interest ~rc payable under the Note. until the Note is paid in full,
a auto (herein "Funds' egwl to one-twelfth of the yearly tax~Y anJ assessments which may attain priority over this
Mortgage, and ground t+errta on the Property, it any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all u reasonably estimated initially and from
tints to time by Lender on the buffs of assesssments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are irrsured or gwranteed by a Federal of
state agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments.
insttranoe premiums and ground rents. 1_ender may not charge for sn holding and applying the Funds. analyzing said account,
or verifying_and compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
pet!tnia 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
require 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 annwl 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 arc pledged as additional security for the sums secured
by the Motrtgage.
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, auessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assaaments, insurance premiums and ground rents u 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
bdd by Lender shall not be wf6cieot to pay taxes, assessments, insurance premiums and ground rents u they fall due,
Borrower shall pay to Lender any amount netxssary to make up the deficiency within 30 days from the date notice is mailed
by Deader to Borrower requesting payment thereof.
Upon payment in full of all rums secured by this Mortgage, tender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 heroof 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
Lander at the time of application u a credit against the sums secured by this Mortgage.
3. Appl3catfow of ltryoeMs. Unless applicable law provides otherwise, all payments received by Lender under the
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 Advaacet.
4. Crarges; Lkas. 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 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 Iren or forfeiture of the Property or any part thereof.
S. Hazard Insurartee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extends) coverage", and such other hazards as 1_ender may require
wd in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by 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 to the
i
IDSUr~iCe Carrlef.
All insurancx 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. tender may make proof of loss it 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
1 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 secure) 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
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
s is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Properts-
1 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
~ or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. I[ under paragraph 18 hereof the Property ~s acyuued by Lender, all right, title and interest of Borrower
in and to any.hrsurance 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. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not comrpit ysaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
F 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 shall amend and supplement the covenants anJ agreements of this Mortgage as if the rifer
were a part hereof.
~ 7. Protection of Lender's Security. If Borrower talk m perform the covenants anJ agreements contained in this '
Mortgage, or if any action or proceeding commcnce.l which materiall} affects 1_enJer's interest in the Properh•.
including, but not limited to. eminent domain. insolvency. ccxle enforcement. or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower. ma} make such appearances, disburse such
sums and take such action as is necessary t~• protect lender's imerest. ~ including. but not limited to. disbursement of
reasonable attorney's fees and entry upon the Propcrt}• to make repairs. If Lender reyuireJ mortgage insurance as a
condition of making the loan Secure) h}• this Mortgage. B~~rmwer shall pay the premiums require) to maintain such
- insurance in rflect until such time as the reyuuemcm for wch tnsuranco terminates m accordance with Borrower's anJ
nR n7~ a tntn