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Uwtrostw Covtu+strn. borrower and Leader rwversant and agree as fdbws:
1? 1ti0'ttMtd et hiaeflai anti IaMtteal. Borrower shsU prompt) pay when due the principal of sad iataeit oa the
iadpbedttess evidenced by the Note. prepaynrptt and late charges as provided in the Notts, and the principal of sad
oa any Futttro Advstroa attcttred ~ this iNortga~e.
• t !`tis hr 7Lasas ttratl I¦wraaea Sltbject to applicable law a a s written waiver by lender. Hortower tthaA pay
to Lender on the day t»oathly installments o[ principal and interest ate payable under the Note. until the Note is paid in full.
s twat (harcitt "Ftrrtda'~ equal to one-twelfth of the yariy tu~~. and ustxstaata which easy attain priority over this
Mortgage, sad gtotrd rata oa the Property. if any, plus sere-twdtth of yearly prettaitaa itastaWaents for hazard irnuraace.
plea ooo-twelfth o[ yearly premium atstallments for mortgage insurance. it argr, all as reasonably estimated initially and from
titre to time by Ltmder oa the basis of assessments and hills and reawnabk atimata thereof.
The Fonda :hail be held in an ittstitutian the deposits or accounts of which are inwr+ed or gwraateed by a Federal or
state agency (including Lender if Lender is such an institution). bender shall apply the Funds to pay said taxes. assessatatls,
insutattce premiums and ground rents. Lender may not charge for so holding and applying the Funds. anatyzini said aecourtt,
or verifying.artd compiling said assessmrnts and bills, unless Leader pays Borrower interest oa the Funds and applicable law
pt:rtnits Lender to make wch a charge. Borrower and !.coder may agree in writing at the time of execution of this
Mortpge that interest on the Funds :bail be paid to Borrower, and udas rods agreaaatt is made or appticabk law
requires such inter+at to be paid. Lender shall not bt required to pay Borrower any interest or arnings on the Funds. Lender
shall give to Borrower, without charge. an snow! aooounting of the Funds showing credits and debits to the Fut+ds and the
purpose for which tads debit to the Funds was made. 7be Funds arc pledged as additional security for the wins secured
by this Mortgage.
tf the tirrtottnt of the Fonda htld by Lender, together with the future tnatthly installments of Funds payable prior to
the dot: data of toes. assessments. irtauranoc premiums and ground tents, shall exceed the amount required to pay said taxes.
aaattmeats, insurance ptemiurns and ground rents as they fall due, such excess shall be, at Borrower's opion, either
promptly repaid to Borrower a credited to Borrower oa monthly installments of Funds. If the amount of the Funds
btdd by Leader shall not be sufScieat to pay taxes, asst:mrrerrts. insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount rttsxssary to make up the deficiency within 30 days from the date notice is rrraikd
by Leader to.Borrower requesting payment thereof.
Upon payment in full of aB sums axurcd 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 Propeny rs otherwise acquired by Lender. Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Leader, say Funds held by
Lender u the time of application as a credit against the: sums :seated by this Mortgage.
3. ApNlcatioa of lsyreats. Unless applicable law provides otherwise, all payttaents received by Lender under the
Note and paragraphs 1 sad 2 hereof shall be applied by Lender fast is 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 Noel. and then to interest and
principal on any Future Advances.
d. Cram Lieas, Borrower shall pay all taxes. assessments and other charges. fines and' impositions attributable to
the Property which may attain a prion`ty over this Mortgage, and leasehold payments or ground rents, if any, io the manner
provided under puagraph 2 hereof or. i[ not paid in such manner, by Borrower making payment. when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender aU notices of amounts due under this paragraph, and is the event
Borrower shall make payment directly, Borrower shall promply furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which hu priority over this Mortgage: provided, that Borrower shag not be
required to discharge any such lien so bog u 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 iq
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part theroof.
S. Hazard Iaosrasee. Borrower shall keep the improvements now• existing or hereafter erected on the Property inwred
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 u 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 ~y this Mortgage.
j 'Ihe 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 prcmiurns on insurance policies :hail be paid in the manner
provided under paragraph 2 hereof or, if rtes paid in such manner, by Borrower making payment, when due, directly to the
inwrance 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. Ltnder shall have the right to hold the pdicies and renewals thereof,
and Borrower shall pranptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
~ Borrower shall give promp notice to the insurance carrier and Lender. Lender may make proof of bas if not made promply
by Borrower. -
E ~ 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 restoration or repair is not economically feuibk or 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 if Borrower faih 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 clailrt for inwranee benefits, lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or reps: 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 etstallments 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 interest of Borrower
~ in sad to any Insurance politics and in and to flee proceeds thereof resulting from damage to the Property prior-to flee sale
~ or acquisition shall pass to Lender to the extent of the sums secured by this 1lfortgage immediately prior to such sale or •
3 acquisition.
6. Treservatbo and Maintea>irtce of Property; Leaseholds; Coadomioirrras; Plaaaed Utah perelopateals. Borrower
t shall keep the Property in good repair and shall not comrpit yvute or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this tifortgagc is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform ail of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit devebpment, flee by-laws and rcgulatioru 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 agreertoeots of such rider
shall be incorporated into and :hail amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
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'r 7. Protection of Lenders Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commence) which materially affects Lender's interest in the Property.
including, but not limited to, eminent domain. insolvency, code enforcement. or arrangements or proceedings involving a
' bankrupt or decedent. then Lender at Lender's option, 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
t reasonable attorney's tees and entry upon the Property to make repairs. if Lender required mortgage inwrance u a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insuranct in effect until such time as the requirement for such insurance terminates m accordance with Borrowers and
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