HomeMy WebLinkAbout2590 ~.r
! .
UNttaw Covea+etvn. Borrower and Lender covenant and agree ss follows:
)a ligweat e1 >rriac4al aril IMenat. Borrower shall promptly pay when due rite principal of turd interest on the
indebtedness evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of and intertxt
on soy Futtrr+e Advancq sectrt+ed by this Mortgage.
2. 1PrNii ffir Tortes trrttl lananaee. Subject to applicable law .~r to a written waiver by Lender, Borrower shall pay
to Lender on the dtty monthly itstallments of principal and intcrcct are payable under the Note. until the Note is paid in full.
a sum (Itere1n "Fttnds'~ equal to one-twelfth of the yearly taxt.~ and assessments which may attain priority over this
Mortgage. and ground rents on the Property. it any, plus one-twelfth of yearly premium installments for hazard insurance.
plus oae-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from
time to time by Leader ort the basis of assessments and t+ths ono rcasonaoie estimates inersoi.
The Funds shall be held in an institution the deposiq or •rccounts of which arc ittwred or gwranteed by a Federal or
state agency (including Lender it Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments,
insurance premiutrts and grouttd rents. lender may not charge for ro 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
pcrmiq Lender to make such a charge. Borrower and Lender may agree in writing at the time o[ execution of this
Mortgsge that interest on the Furtds 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 grnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which qCh debit to the Funds was made. The Funds arc pledged as additional security [or the sums secured
by this Mortgage.
If the amount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxq. assessments, insurance premiums and ground rents, shall exceed the atttount required to pay said taxes.
assessments, insurance premiums and ground rents as 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
hdd by Lender shall not be wllicieat to pay taxes. assessments, insurance premiums and ground rents ss they fall due.
Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower regttestin8 payment tbercof.
Upon payment in full of all wtns secured by this Mortgage, ).ender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply, tto 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 a: a credit against the sums secured by this Mortgage.
3. A~licatioa off Ptgttaettrfs. 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 Advances. '
C6artes; Lktrs. 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 Iten which has pnonty over this ivlortgage; provided, that i3orruwer snail rriri 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 goof 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. Hazard lawtrawce. 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 such other hazards. as Lender may require
and 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~rtot paid in such manner, by Borrower making payment, when due. directly to the
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
I clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
5 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
by Borrower.
Unless Lender and Borrower otherwrse agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or reparr is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is nut 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. !f 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
t is authorized to collect and apply the insurance procceds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Ixnder and Borrower otherwise agree in waling, 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. If under paragraph 18 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
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Trrservatioa and ltaiatenance of Property: Leaseholds; Condominiums: Planned Unit Developments. Borrower
shall kcep 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 is un 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 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 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 ur proceeding iti commenced which materially affects Lender's interest in the Property,
`s including. but not limned to, eminent domain. inu~lvenc~. code enforcement. or arrangements or proceedings involving a
~ bankrupt or decedent. then Lender at !_ender's~optiun, upon notice to Borrower, may make such appearances, dishurse such
sums and take such action as is necessary to protect Lender's interest, including. but not limned to, disbursement of
reasonable attorney's fees and emry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Burrower shall pay the premiums required to maintain such
insurance in ellect until such time as the requirement for such insurance terminates m accordance with Borrower's and
~ r .
2579
ornr. • PeliF