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Utttroatr Oovttti~uns, Bor:vwes sad Legrder covenant and agra ss [otbars:
~ [~me.t of hi~e4a1 ttttM ItMn~eM. Bexrower shall promaly pay when due the principal of and iatetrwt oa the
irrdebtedrrtas evideaged by the Note, prepayment and late charges as ptavidod in the Nae, std the pritcipal of and interest
as tray Ftxw+e Advattoes secured by tbis Mort
jase.
3. >lrt!¦eie Ewe Ttozsa tend iawracw Strbjed to ttpplicabk law or to a written wtriva' bI? It.ender. dorro~wer sbttp pay
to Lander on the day monthly installments of principal and ituerest arc payable order the Note. until the Note is paid is full.
a aunt (hs~ "Funds'ti aqua! to ono-twedith of the yaariy ta>,~~ and assasarenb which may attain priority over Ibis
Mortgage. and groutrd ceab op the Property. it any. plus oac-twelfth of yemrlli premium ieataJlarara Eex hatmrd itrsruance.
plus aoatvrdtth of yearly premium itutalltnenls sex mortgage inurrancc, it any, all a: rwsonaMy estimated initially and frog
tithe to time by Larder oa the basis of assessments and hills and reawnabk estimates thtxeof.
The Funds shall be bdd in as institution the deposits or accounts of which arc itrstped a guaranteed by a Federal err
state agency (including Larder i[ Fender is such an institution). Leader shall apply the Funds b pay said tattea, assessmenb.
insrrrattex premiums and groutd retrts, lender tray not charge for so he>fding and applying the Funds. atutyzitrg said aecorrtrl.
or vaitying_snd oompling said assessments and bills, ualexs leader pays Borrower interest oa the Frrtds and applicable law
permits Leander to make such a charge. Borrower std Lsttder may agree in writing u the tune of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreanart is made or applicable law
requires strdr interest to be paid. Lender shalt not be required to pay Borrower any interest or arnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing creedib and debits to the Funds wad the
propose for ~rhich each debit to the Funds was rrtade. The Funds are pledged as additional security for the sums secured
by tha Mortgage.
iE the amount o[ the Funds held by Leader, te~etlrcr with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments. insNtranex prcmiutns and ground rents, shall exoeod the amount required to pay said taxes.
assestnoeats, imurattoe pretniutns and ground reau as they fall. due, such excess shag be. at Borrower's option. either
promptly repaid to Borrower or croditeed to Borrrwer oti tnonthty installment of Ftmds. If the amount of the Funds
held by Larder shall not be ttttl'6cieat to pay taxes, rwessttrarts, insurance praniums and ground rents as they fall due,
Borrower trhall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed+
by Lender tD Borrower ragttesting payment thereof. t
Upon paytaaKat in furl of all twins securod by this Mortgage, ruder steal! promptly nfutd to Borrower any Funds
tte:lt! by Ltndrr. If strmer paragraph IS het+ec+t the Property is add or the Property rs otherwise acquired by Lender. Larder
shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lexrder. any Funds held by
Linder at the time of appliation as a credit against the sums secured _by this Mortgage.
3. A~lkatiM eft lrprmetW. Unless appfiabk law provides otherwise, .all payments received by Lender under the
Note wad paragraphs 1 and 2 hettof shall be applied by Lender first in payarent of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable oa the Note, then to the principal of the Note. and then to interest and
priudpal on any Future Advances.
t, Crar~r Ilietrs. Borrower shall pay ail eaxcs. asscssrrtents asti oth~-r chscbes. ft:ses and itrtpr_xiti(~ns attributable to }
the Property which tnay attain a priority over this Mortgage, and leasehold payments or ground rents, it any. in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payrrtent, whtxr due, directly to the
payee thereof. Borrower shall promptly furtush to Lender all notices of attaounts due order this paragraph. and in the eveat
Borrower shall make payment dirextly, Borrower shall prompty furnish to Lender rexeipts 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 brig as Borrower shall agree in writing to the payment of the obligation secured by _
suet lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend arfortxtrrent of such liar in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property ex any part thereof.
S. Harar+d Iastrratree. Borrower shag keep the improvements now existing a hereafter erected oa the Property iowted
against loss by fire, hazards included within the term "extended coverage", and such other hazards u Lender may require
and in such amounts and for such periods as Lender may require; provided, that Lender shaft rat require that the amaent of
such coverage exceed that amount of rnverage required to pay the st+ms secured by this Mextgage.
- 'lire ittwrarte:e carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided.
that wch approval shall not be unreasonably withheld. All premiutru on insurance pdiciex shall be paid in the manner
provided under paragraph 2 hereof or, if rat paid in such manner, by Borrower making payment, whrn due, directly to the
inwrance carrier_
A!1 inwrance 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 Let+der_ Lender shall have the rigbt to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender alT renewal notices and ati receipts of paid premiums. in the eve:at of loss.
Borrower shall give prompt notice to the insurance carrier and Ler+~r. Lender may make proof of bas if trot made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restontion or repair of
the Property damaged, provided such restontion or repair is economically fwsibk and the security of this Mortgage is
twt 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 sexurexl by this Mortgage, with the excess. if any. paid
to Borrower. If the Property n 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 ittsurancc carrier offers to settle a claim for i»wnnoe benefits, Lender
is authoritod to collect and apply tlx insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
i:nlt=s Lensier a^d 1orrower otherwi~ agre'e' in writing. way such application of proceeds to principal shall trot extend
or postpone: the due date o[ the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount bf
such installments. If under paragraph I8 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 rextrldag from damage to the Property prior to thy: 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. irrscrvatie?n wad tila~iatessance of Property; Leasehdels; Cotdomisitrw~ Pisrraed U~id Dtrelopuerrts. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage +s 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 creat+og 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 rogether w+th this Mortgage, the covenants and agtrertxnts of such rider
shall be incorporated into and shall amend and supplement the covenants and agreYrnents of this Mortgage as if the rider
were: a part hereof.
7. Protection of I.etdeYs Secrrrlty. I( Borrower fails t~ perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding n commenced which materially affects Lender's interest in the Property,
including. but not hm+ted to. eminent domain. iou~lvency. code enforcement. or arrangements or proceedings invoh•ing a
bankrupt or decedent, then 1_ender at Lender's option, upon notice to Borrower. ma} make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. It Lender required mortgage insurance as a
cond+uon of making the loan secured by thn Mortgage. &~rrowcr shall pay the premiums required to maintain such
irourance in r(fect until such dine as the rcyuirement for tiuch insurance terminates in accordance with Borrowers and
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