HomeMy WebLinkAbout1042 I.INttrattM Covenxrtrs. Borrower ind Lender covenant and agree as follows:
1. hyftewt of hiwclrwl ass lwtcred. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Nott. prepayment and late charges ac provided in the Note, and the principal of and interest
on any Future Advances scoured by this Mortgage.
2. RwwBs tot Ttt:ea ttM lttswrswce. Subject to applicable law ar to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and intrrcct are payable under the Note, until the Note is paid in full, •
a sum (herein "Funds") equal to one-twelfth of the yearly tams and assessments which may attain priority over this
Mortgage. and ground rents; on the Property, if any, plus one-twelfth of yearly premi?tm installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, ail as reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the depoxits or accounts of which are insured or guaranteed by a Federal otr
state agency (including Lender if Lender is such an institution). 1-ender shall apply the Funds to pay said taxes, assessments.
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said account,
or verifying and compiling said assessments and hills, unless Lender pays Borrower interest on the Funds and applicable law
permits Linder to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, Leader shall not be required to pay Borrower any interest or earnings on the Futtds. 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 as additional security for the sums secured
by this Mortgage.
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, assessments, insurance premiums.and ground rents, shall exceed the amount required to pay said taxes,
assesunonts, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
heW by Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground cress as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is.mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secutted by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall 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 as a credit against the sums secured by this Mortgage.
3. Appticatioe of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs I 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.
Charges; Liens. Borrower shall pay all tares, ascescmrnts and other charges. fines and impcxitions 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 nut paid in such manner, by Borrower making payment, when dire, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and to 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 sa long as &xrowyr shall ague in ..riling to shy payment of the obligation secured by
such ben in a manner acceptable to Lender, or shall in g~xxl fahh contest such lien hy, or defend enforcement of such lien in,
legal prviceedmgc which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
S. Hazsrd Insurance. Borrower shall kcep the impnwementc 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 fur such periods ac Lender may require; provided, that 1_rndrr shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured ~by this Mortgage.
Tht insurance carrier providing the insurance shall be chosen by $orrower subject to approval by Lender, provided,
that such approval shall not be unreasonahty withheld. All premium. on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, rf not par•i in such manner, by Borrower making payment, when due, directly to the
insurance career.
All insurance puhcies and renewals theetat shall tx in farm acceptably to Lender and shall include a standard mortgage
clause in favor of and m form acceptable ro Lender. Lrndrr shall have the right to bald the policies and renewals thereof,
and Borrower shat) promptly furnish to (.coder all renewrl notices and a!1 receipts of paid premiums. In the event of loss.
Borrower shall g,vr pr,~mpt notice to the rnsurance earner and Lrndrr. t-ender may make prcx,f of loss if not made promptly
by Borrower.
Unless Lender and Burrower othenc,se agree in wrong, inwrance prcxerdc shall be applied to restoration or repair of
the Property damagyd. provided such re,toratrun err repair rs e~anumically feasibly and the security of This Mortgage is
not thereby irnpauyd It such rrstur.,t,on or repair is nut ccunomically feasible ur 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 It the Property ,s abandoned by Harrower. ar rt Borrawcr fails to respond to Lender within 30 days from the
date notice is marled by Lender to Burrower that the insurance carnyr offers to settle a claim for rnsurance benefits, Lender
is authorized to collect and apply the inwrancr proceeds at Lender's uphun either to restoration or repau of the Pmpem
ur to the sum. secured by this Mortgage
Unless Lrndrr .end Borrower otherwise agree ,n writing. any such application of prc><:eeds to principal shall eat extend
or pestpuny the due date of the mnnthl? installments referred to in paragraphs t and 2 hereof or change the amount of
such rnslallmenb. If under paragraph I Zf hereof shy Property rs acquired by Lender, all right, Utle and interest of Borrower _
in and to any hrwran~e policies and in and to the proceeds thereat resulting from damage to the Property prior to the sale
or acywsition shall pass to l.ynder to the estcnt of shy wins srcuryd by thu :lfortgagc immediately prior to such sale or
acquisition.
6. Preservation and Maintenance of Property; Leaseholds; ('ondominiums; Planned Unit De~~elopmenls. Borrower
shall keep the Property in goad repair and shall eat comrpit.ysaste or permit impairment or deterioration of the Property
and shall comply with the proviso>ns of any lease rt chi, tlurtgage n tin a leasehold. !f this Mortgage is on a trait in a
condominium or a planned amt development, Burrower shall pertarm all tit Borrower's obligations under the declaration
or covenants cre.itrng or governing the ccmdomuuum ur planned oral deveiupment, the by-laws and regulations of the
condominium or planned unit des•ylopment. and ranstiurent drxuments. If a condominium or planned unit drvelapmynt
rider is executed by &ttruwer and recorded t~rgythcr .+,th this Mortgage, the covenants and agreements of such rider
shall be ,ncorlx,rated ,eta and shell ariirnd and supplement shy cucenams and agreements of th,s Mortgage as if the rider
were a part hereof.
7, Protection of benders Securfly. If Hr~rr.~ssyr f,uis to perform the covenanh an,l agreements contained in this
Mortgage, or if any arnun or prrtieydrnf: .,~mn,rneed s.hr~h matynalh aftectc I ender"s ;merest in the Pmperty.-
rnciud,ng, liar nut hm,ted tu, cm,nent doni.un. ii,s~nc~nrc. r,KIC rnlur~ement. ar :ur,ingenrents or proceedings invvls~ing a
bankrupt ar de~rdrnt. then I ender at i ender's option. ulxm rn,trce to Harn,wyr. max make such appearances, dnhune such
sums :,rid take such :,coon .,s is necessary t~~ protect I ynder~c ,nteryst. including. but eat lim,tal ta. disbursement of
reawnahir secrecy's tees and entry upon the Pn~prrts to make repairs. If t"ender reyi,irrd mortgage insurance as a
eondrt,on niakn,g the loan secured by this M~,ne.,~c. Birrr,~wcr shall Pay the premuum requrrrd to maintain such
uaurancr in rtfe.t anal such rime as the nyurrrnrrnt fin such imutance terminates rn ac:ardance with Borrower's and
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