HomeMy WebLinkAbout0208 UNIT+OU?! COVENANTS. lbtrower and Lender covenant and afro us foibws:
I.. ><a~eat eI hlnelMl oral Itrleresl. Borrower shall promptly pay when due the principal of and interep on the
indebtedne:a evidetroed by the Note, prepayment and late charges as provided in the Nae, and the principal of and interest
on any Rotate Advances secural by this Mottjage.
2. )Rttwda tK Taaa aN Irtwraaa~e. S~rbjecl to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest ire payable under the Note. until the Note is paid in full.
• sum (herein "Funds' et;ual to one-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgsge, and groutrd rents on the Property. if any. plus one-twelfth of yearly premium installments for hoard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, it any. all as reasonably estimated initially and fium
time to tune by Leader on the.basis of assessments and hills and reasonable estimates thereof.
The Funds shalt be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal otr
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments.
insurance premiums and ground rents. lender may not charge for so holding aril applying the Ftrndc, analyzing said 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
MoAga=e that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
requira ouch 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 Funds and the
purpose for which each debit to the Funds was made. The Funds arc pkdgod as additional security for the sums secured
by this Moragage.
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, assessmenu. insurance prcmiurns and ground rents, shall exceed the amount required to pay said taxes.
assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower or crodited to Borrower on monthly installments of Funds. If the amount of the Furls
held by Lender shall ant be sttt6cieat to pay taxes, assessments. insurance premiums and ground rents as they fall due,
Borrower shall pay to Leader any :mount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requestin8 payment thereof.
Upon payment is full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 her+cof the Property is sold or the Property rs otherwise acquired by Lender. Lender
shall apply. rro later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Lender at the tune of application a: a credit against the sums secured by this Mortgage.
3. A~plicatiotr of paytaeNs, Unless applicable law provides otherwise, all payments received by Lender under the
Note aad 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 interat payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances.
1. Charges; 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
providod 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 is 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 lien or forfeiture of the Property or any part therr~of.
S. Harvard Iawcarree. 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
acrd 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,
tbat 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
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Ltnder and shall include a stindard 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 [.ender. Lender may make proof of loss if 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 restoratron or repair is economically feasible and tht security of ,this Mortgage is
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 secured 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
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 in 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. if under paragraph f 8 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 tlx: sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such safe or
acquisition.
6. Presenation and Maintenance of Property; l.easehulds; Condominiums; Planned Unlt Developments. Borrower
shelf keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage ix on a leasehold. !f 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 together whh 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
mere a part hereof.
7, Protection of Lerrde~s Security. !f Born~..er tads to perform the covenants and agreements contained in this r
Mortgage, or if any action ur proceeding rs armmenced which materially affects Lender's interest in the .Property,
including, but not limited to. eminent domain, incolvcnc~, code enforcement, or arrangements or proceedings invoh•ing a
bankrupt or decedent. then Lender at Lender i option, upon notice to Borrower, may 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
rcasnnahle attorney's fees end entry upon the Property to make repairs. If l_cnder reytrircd mortgage insurance as a
condition of making the loan ,tuueJ by ihis Mortgage. Borroxcr shat! pay the premiums required to maintain such
insurance in effect until arch time as the requirement for wch insurance Iermrnates in accordance with Borrower's and
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