HomeMy WebLinkAbout0279 t ~ S
UHtrosw Covet+aNrs, Borrower and l.,ender covenant and agree u follows: •
~ of llMne4a1 aril iNeraf. Borrower shall promptly pay when due the principal of :red interest on the
indebtedttea evidertoed by the Note. Prepayment and late charges as provided in the Note, and the principal oI and interest
on any Future Advances secured by this Mortgage.
Z. IItinis tort Ta:aa anti lasaraace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payabk under the Note, until the Note is paid in full,
a sum (herein '•Funds'q egwl to one-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage. and ground rents on the Property. if any, plus one-twelfth of yearly premium installments for hazard inwrattce.
plus one-twelfth of yearly premium installments for mortgage insurance, if any. al(u reasonably estimated initially and [t+o[n
time to time by Lander on the buts of assessments and hills and rcasonabk estimates thereof.
7Le Funds shall be held in :n institution the deposits oratxounts of which are insured or gwranteed by a Federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, sssesstnents.
insurance premiums and ground rents. lender may not charge for w holding and applying the Frrnds. analyzing said account,
or verifying and compiling said assessments and bilk, 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 exaution of this
Mortgage that interest on the Funds shall be paid to Borrower, and uakss such agreement is made or applicabk law
regttira 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 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 are pledged u additional security tot the sums secured
by this Mortgage.
if the amount of the Funds held by Lender, together with the future monthly installments of Funds payabk prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
a:spss~nts, insurance premiums and ground rents u 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
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrowrer shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Let#r to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly rtfund to 8orrowtr any Funds
held by Lender. If under paragraph !8 herwf the Property is sold or the Property rs otherwise acquired by Lender, Lender
sball apply, no later than immediately -prior to the sale of the Property or its acquisition by Lender, any Funds held by
lender at the time of application u a credit against the sums secured by this Mortgage.
3. Applicatiaa of Pa~yateats. Unless applicable law provides otherwise, sit 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.
4. Charges, Liens. 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
pmvidad under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dce, directly to the
payee ther+wf. 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 Leader, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proccedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extendeJ 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.
'I7te 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
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clauu 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. (n the event of loss,
Borrower shall give prompt notice to the insurance carrier and tender. Lender may make proof of loss if not madt 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 restoratron or repair is not economically feasible or if the security oT this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the txctss, 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 optiun either to restoration or repair of the Propem•
or to the sums secured by this Mortgage.
Unless Lender and $orrower 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 t and 2 hereof or change the amount of
such installments. If under paragraph Ig hereof the Property is acyuired by Lender, a!I nght, title and interest of Borrower
in and to any Rrsurance 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 sad ~faiotenance of Property; Leaseholds; Condominiums; Planned Unit Derebpmtnts. Borrower
shall keep the Property in good repair and shall not commit ,yvaste or permit impairment or deterioration of the Property
and shall compl~~ with the provisions of any lease it thu ~turtgage is on a leasehold. Ii this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrowers obiigatians under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws ar;S regulations of the
condominium or planned unit development, and constituent da:uments. If a condominium or planned umt development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporate) into and shall amend anJ supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of bender's Security. If Burrower faik to perform the covenants and agreements contained in this
:Mortgage. or if any action ur proceeding is commenced which materially affects l_enJer's interest in the Property,
including, but nut limited to, eminent domain, insolvency. cede enforcement, or arrangements or proceedings invols•ing a
bankrupt or decedent. then Lender at Le~~der's optiun, 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 ices and entry upon the Property to make repairs, if [.ender reyuireJ mortgage insurance as a
condition of making the loan secure) by this Mortgage. Borrower shall pay the premiums require) to maintain such
insurance in effect until Such time as the requirement for wch insurance terminates m accordance with Borrower's and
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