HomeMy WebLinkAbout1381 UNITOtta[ COVENANTS. Botmwer and Lender covenant and agree as follows:
4 I!~weat aS hiaefpl tttatt lateral. Borrower shall promptly pay when due the principal of and interact on the
indt:Medness evidenced by the Note, prepayment and late charges ac provided in the Note, and the principal of and interest j
oft any Fwurc Advances secured by this Mortgage. `
2. lhsni for Tasea ant Itwrasce. Subject to applicable law or to a written waiver by Lender. Bottrawer shall pay !
to Lender on the day monthly installments of principal and interest ere payable under the Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the yearl~~ tax~~ and assessments which may attain priority over this
Mortgage, and ground rents oa the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus otte-twel[th of yearly premium installments for mortgage instrrancc, if any. all as reasonably estimated initially and from ~
time to tune by Lender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay :aid taxes, assessments.
irauranca 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 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
Mortgage that interest on the Funds 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 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 pledged as additional security for the sums secured
by this Mortgage.
If the amount o[ the Fund: 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.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
praaptly repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds
bdd by Lender shall not be wfficieat to pay taxes. assessments, insurance premiums and ground rents as they fall due.
Botiomer 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 requesting payr»ent 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 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
Lander at the time of application as a credit against the sums secured by this Mortgage.
3. AppBcatioa of Paymettrts. Unless applicable law provides otherwise. all payments received by Lender under the
Note wad 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.
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
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, wad 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 bf 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 thereof.
S. Hnrrard Insurance. 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 ac 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 Eby 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 unrcasonahly 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
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 lender. Lender may make proof of loss if not made promptly
E by Borrower. .
Unless Lender and Borrower otherwise agree rn w•rrtrng, insurance proceeds shall be applied to restoration or repair of
! the Property damaged, provided such restoration or repair rs economically feasible and the security of this Mortgage is
not thereby impaired. ti stxh restoratwn or repair is not rcunumicatly 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. If the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the
I date notice is mailed by lender to Borrower that the insurance carrier otTers to settle a claim for insurance benefits, Lender
is authorized to collect and appl}• the insurance proceeds at Lender's option either to restoration or repair of the Propert~•
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree rn writing. any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs I 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 interes! 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. Presen•ation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
shall kcep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall comp)}• with the provisions of any lease rf thn Mortgage rs on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligaUOns under the declaration y
or cov-nattis Crv_ariQg nr g„vern~np th~• condominium or planned unit development: the by-laws and re¢ulations of the ~
condominium or planned unit development. and constituent dcxumrnts: If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated torn and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
.
7. Protection of Lenders Security. If Borrower fark to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is armmenced which materially affects Lender's interest in the Property.
including, but nut limited to, eminent domain. insulvenc}. code enforcement, or arrangements or proceedings invoking a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, ma} make such appearances, disburse such
sums and take such action as rs necessary to protect Lender's interest. including. but not limited to, disbursement of
reasonable attorney's fees and entry ulxm the Property to make repairs. 1( I.cnder required mortgage insurance as a
condition of making the loan secured h}• this MurtEaQC. Borrrwer shall pay the premiums required to maintain such
insurance in effect until such trine as the requirement for arch insurance terminates rn accordance with Borrowers and