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Utvtrostlw OorraHanrs. Borrower and Lender covenant and agree ss follows:
1x lgmeat et ><sittt~ai ttM Ltstereat. Borrower shall promptly pay when due the principal of and interest on the
ittdebtedtreas evidenced by the Note, prepaymt;nt and late clwrges as provided in the Note, and the principal of and interest
as any Ftttere Advance secured by this Mortgage. ~ '
>!`is tK 7lattsa rtstti Irtstrtrce. Subject to applicable law tx to a written waiver by Lender, Borrower Shan pay
ro Lender on the day tnorttltly irrstalldtents of principal and interest arc. parible under the Note. until the Note is paid in full.
t sum (harefa "Funds' equal to one-twelfth of the yearly tax~~ and ast~essntents which may attain priority over this
Mortgage, and gr~otrrtd rents oa t6a Property, if any. plus one-twelfth of yearly premium installments for hazard insurance.
plus ooe-twel[th of yearly premium installments for morigage insurance, it any. all ss reasonably estimated initially and from
tuna to time by Lender on the basis of assessments and hills and reasonable estimates thercot.
The Furls shall be held in an institution the deposiu or acco;rnts of which are insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). lender shall apply tllC Funds to pay said taxes. assessments,
insuratsoa ptremrLms and ground rents. lender may not charge form holding and applying the Funds. analyzing said account,
or verifying_attd compiling said assessments and bilk. unless Lender pays Borrower interest on the Funds and applicable law
petrnits Lender;a make such a charge. Borrower and Lender tnay agree in writing at the tirrte of execution of This
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
requires such intereu to bt paid, Lender shall not be required to pay 8ortrnver any interest or grnings on the Funds. Lender
sbaU pve 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 mane. The Funds are pledged as additional security for the sums secured
by this Mortgage.
Tf the arrtount of the Funds heW by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes. a:sasmatts, irtwrance premiums and ground rents, shall exceed the amount required to pay said taxes.
att:raiments. irt:unnoe premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrowu ob monthly imtallments of Funds. If the amount of the Funds
6dd by Lender sbaU not be wiBcient to pay taxes. assessments. insurance premiums and ground rents as 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 Leader to Borrower requesting payment thereof.
Upon payment in fuU of aU soma secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
heW by Fender. If under paragraph 18 hereof the Property is soW or the Property u otherwise acquired by Lender. Lender
s6aU apply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
I.ooder ai the time of appliation as a credit against the sums secured by this Mortgage.
3. Alr~ikattiort of lgmes+ts. 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; I.iets. 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 eveot
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 bng as Borrower shall agree in writing io 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 iq
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. ~ Hazard Iswrawce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
agairut loos by fire, hazards included within the term "extended coverage", and such other hoards as Lender may_ require
aad-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 iawrartce 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
~j insurance carrier.
All insurance 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 renews! 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 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
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 [ails 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 t8 hereof the ProFeriy 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. Prcservaiion and ,~faiatenance of Property; Leaseholds;. Condominiums; Planned UNt Devtbpmeats. Borrower
shall keep the Properiy in good repair and shall not commit yvaste or permit impairment or deterioration of the Properiy
and shall comply with the provisions of any lease if this Mortgage ~s on a leasehold. !t this Mortgage is on a unit in a
k 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
i 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 and agreements of this Mortgage as if the rider
were a part hereof.
Protection of Lender's Security. if Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain. insolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then Lender at Lender's 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
reasonable attorney's fees and entry upon the Property to make repairs. If I~nder required morigage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for .uch insurance terminates in accordance with Borrowers and
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