HomeMy WebLinkAbout0230 ' - + J
UNtTaw COVENANTS. Borrower and Lender covenant and agree as follows:
1. h~twetit of PrrrelNl tttrad IMeraN. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evjdettaed by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. 1Frai ter Tara sail Irtaraaee. Subject to applicable law +.r to a written waiver by Lender Borrower shall pay
to Lender on the day monthly installments of principal and intcrcct arc payable under the Note, until the Note is paid in full,
a sum (herein "Funds'? oqual to one-twelfth of the yearl~~ talc. and assessments which may attain priority over this
• Mortgage. and ground rents on the Properly, if any, plus one-twelfth of yearly premium installments for hazard inwrance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as rcssonably 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 deposits or accounts of which are insured or guaranteed by a Federal or
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 Frrndc. 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 rho Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds w:u 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 data of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
aasear7lenis, insurance premiums and ground rents as they salt due, such excess shall be, at Borrower's option, either
pranptly 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,
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 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
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 as a credit against the sums secured by this •IY}prtgage. ,
3. Appiicatlon of Payments. 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 'Noie, and then to interest and
principal on any Future Advances.
1. Charges; Liens. Borrower shall pay aH 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
pays thetteof. 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 bt
required to discharge any such lien so long as Borrower shall agree in w•rihng to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in g+xxl faith contest such lien by, or Defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the Iren or forfeuure of the Property or any part thereof.
S. Hazard Insurance. Borrower shall kcep the rmprovemenu 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 1_ender may require
and rn such amounts and for such periods as Lender may reyuire; provided, that Lender shall not reyuire 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 policies shall be paid in the manner
provided under paragraph 2 hereof or, rf not paid in such manner, by Borrower making payment, when due, directly to the
insurance career.
All insurance fx~licies and renewals thereof shall In in fornt acceptable to Lender and shall include a standard mortgage
i clause in favor of and in form acceptable to Lender. 1_ender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furorsh to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
$ Borrower shall grye prompt nonce to the insurance earner and 1_ender. I_ertder may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherw,sr agree in wetrng, inwrance proceeds shall be applied to restoration or repair of
the Property damaged, provided such rrstorahun or repair rs economically feasible and the security of this Mortgage it
not thereby impaired. If such restur.+tion or repair is nut rcunomically feasible or ii 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 ahandoned by Borrower, or ii Borrower fails to respond to 1_ender within 30 days from the
date notice rc mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
$ is authorized to collet: and apply the insurance pntceeds at Lender's option either to restoration or repair of the Property
or to itte sums secured by this Mortgage.
~ Unless Lender and Borrower otherwise agree m waling, any such application of pr<x:eeds to principal shall not extend
s 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 I8 hereof the Property is acywred by Lender, all right, title and interest of Borrower
in and to any Rtsurancc policies and in and to the proceeds thereof resulting from damage to the Property prior to lhr sale
or acquisition shall pass to lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acgwsition.
a 6. Presenation sad Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Properiy in g~x~d repair and shall not ~omroirKastc or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease rf this Murt~,age r, tin a leasehold. If this Mortgage is on a unit in a
condominium ur a planned unit development, Borrower shall perform all of Borrower's obLgations under the declaration
3 or covenants creating or governing the conduminurm or planned unit development, the by-laws and regulations of the
condominium or planned unit development. and constituent ducumenrs. 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 and sripplrmrnt the covenants anJ agreements of this Mortgage as if the rider
were a part hereof.
' 7. Protection of Ixnders Security. I( Borrower fart. to perform the covenants and agreements contained in this
a Mortgage. ur if any action ur prucraiing is ~ummrncr.l sshich m:+trrially slicers Lenrkr's interest in the Properly,
including. but nut limited to, rmrnent dum:nn. in.ulsencs. iudr enforcement. or arrangrmrntc or pn+ceedings invulsing a
hankn+pi or decrdrnt. then I ender at Lender's opuan. up:m nonce to Borruwcr, may make such appearances, dishurse such
sums and lake such action a. is necessary to protect Lender's rnterest, including. but not limned to, disbursement of
reasonahlr atiorny's fors and entry upon the Propert~• to make repairs. If Lender rryuired mortgage insurance as a
cundrtion :~t making the loan secured by the Mortgage. &rrrrwcr sh.+Il pay the prcmnum required to maintain such
~ insurance ui effect until wch time as the reyuuemrnt for wch insurance terminates tit accardancr with Borrasyrr's and
~G01~(JJ~ P6GE ~rW
s
_ _