HomeMy WebLinkAbout0583 UNQ1'OR/~/ CovENAtiTS. Borrower and Lender covenant and agree as tolk~trs:
4 ~ M hitteipal ttrsi Wend. Borrower shall promptly pay when due the principal of and interest on the
ittdebtedttess evidenced by the Note. propayment and late charges ac provided in the Note, at~d the principal of atd interest
on aoy Future Advances secured by this Mortgage.
t )Prds for Ttrea erne Inarariee. Subject to applicable law err to a written waiver by Lender. Borrower shall pay
to Lander on the day rnont;hly installments of prittripal and intcrcN arc payable under the Note, until the Note is paid in full,
a sum (herein "Funds' equal to one-twelfth of the yearly tax~~ and assessments which may attain prioriry over this
Mortgage, and ground rents on the Property, if any. plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and tr+om
time to time by Lender on the basis of asse~ments 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 said taxes, assisments.
insurance premiums and ground rents. Lender may not charge for sty holding and applying the Futrds. 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 tha
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 Fonds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing crediu and debits to the Funds and the
purpose for which each debit to the Funds was made. Tha Funds are pledged as additional security for the sums secured
by shier Mortgage.
If the amount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the doer dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assesarrents, insurance premiums and ground rents as 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
bead by Lander shall not be sut5cieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necesary to make up fire deficiency within 30 days from the date notice is mailed
by Lender to Borrower requiting payment thereof.
Upon payment in full of all sotto secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property i~ sold or the Property rs otherwise acquired by Lender, Lender
sbaU 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. Appiicatioa of PayaseoLs. Unless applicable law provide 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 Advancers.
4. Charges; Liem. 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 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 Mongage; 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 pan thereof.
S. Hazard Insrrrawce. 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
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.
The 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 politics 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
i clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shale 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
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 of this Mortgage would
be impaired. the insurance procceds shall be applied to the sums secured by this Mongage, 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
date notice is marled 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. It under paragraph 18 hereof the Property is acquired h} Lender, all right, title and interest of Borrower
in and to any Insurance policies and in and to the proceeds thereof resuitmg 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 and hfaiotenance of Property: Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if thn Mortgage is on a leasehold. If this Mortgage is on a unit in a
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 with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend anJ supplrmcnt the covenants and agreements of this Mortgage as if the rifer
~ were a pan hereof.
7. Protection of Lender's Security. If Borrower fads tc. perform the covenants and agreements contained in this
Mortgage, or if any action sir prorceJmg is commence) which materially affects Lender's interest in the Property,
~ including, but not limited to, eminent domain. im~dvency. c~xle enforcement, or arrangements or proceedings invoh•ing a
bankrupt or decedent. then 1_ender at Lender's option. upe?n notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessar}• to protect Lender's interest. including. but not limited to. disbursement of
reasonable attorney's fees and entry upon the Propert}• to make repairs. If Lender reyuircJ mortgage insurance as a
condition v( making the loan secured by this Mongage. B„rn:wer sh.rll pay the premiums require) to maintain such
inuurance in effect until such time as the requirement for such msurance term~natrs in accordance with Borrower's and
s~~32~ P~~E 583