HomeMy WebLinkAbout0497 s.~ ~ •l ~~1
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UNttroa~ Oov>eneem. Borrower and Lender covenant and agree s: follows:
ta3ntteat N h~iaelpal tttN ItNerest. Borrower :hall promptly pay when due the principal of and interest on the
indebtedtKet evidertotd by the Nde. prapaymatt and late charges as provided in the Nde. and the ptincipsl o[ tnrtd interest
oa gay Future Advattccs secured by this Mortgage. ;
t ltitatit ftir'1ltatea earl taatirwce. Subject to ttpplicabk law asr to a written waiver by tender, Borrower shall pay
to Lcatkt ors the day monthly installments of principal and interest arc payable under the Note. until the Nora is pall in full.
a sure (hsrein "Fuadt'~ equal to orta-twelfth of the yrcarly~ tax~~ and assessments which may attain priority over this
Mtxtaaae, and around rents oa tlta Property. it any, plus one-twelfth of yearly premium installments for hazard insurance,
plot one•twelfth of yearly premium installments for mortgage instrrartct:, if any. all as reasonably estimated initially and from
time to lima by Leader oa the basis of assessments and hills and reasonable estimates thereof.
11te Furls shall be held in an institution the deposib 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. assessments,
imutatooe premiums and ground rents. lender may not charge for :n billing and applying the Frtnds, analyzing said account,
or vt:rifyina_artd 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 the
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to ba 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 are pledged as additional security for the sums secured
by the Mortgage.
U the amount of the Funds heW 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.
at+seamenes, 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 fronds
hail by Leader shall not be wf6cieat to pay taxes. assessments, insurance premiums and ground rents as they tall due,
Borrower tthall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requiting payment thereof. '
Upon payment is full of all suraa secured by this Mortgage, 1_ender shall promptly refund to Borrower any Fund:
heW by Lauder. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
shall apply, no later Phan imtediately prior to the sale of the Property or its acquisition by Lender, any Funds held br
Lander at the tune of application as a credit against the sums secured by this Mortgage.
3. A~licatiott o[ Pgymeab. Unless applicable law provides otherwise, all payments received by Lender under the
Nora gad 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.
4. Glitters; Lkos. 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, i[ 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, gad 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 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 c+f such lien in,
legal proceedings which operate to prevent tht enforcement of the Iren or [orfeiture of the Property or any pan thereof.
S. Hszsrd lasarawce. Borrower shall keep the improvements now existing ar 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
gad in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not require that the amount of
such rnverage 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 shill be paid in the manner
providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance curler.
All insurance policies and renewals thereof shalt be in form acceptable to Lender and shall include a standard mortgage
clause in favor of -and in form acceptable to Ltnder. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notrces 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 rrstoratrun or repair is economically feasible and the security of this Mortgage is
not thereby impairrd. 1f such restoration or repair is not economically feasible 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 fails 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 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 Propene
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 t 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 and to any Insurance policies and in and to the proceeds thereof resulting from damage to the Properly 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. -Prsserratioo and Maintenance of Property: Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not comroil yvaste or permit impairment or deterioration of the Properly
and shall comply with the provisions of any lease it thu Mortgage rs on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shalt perform all of Borrower's obligations under the declaration
or covenants creating or guvernrng the condomrnium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. !f a condominium or planned unit development
rider rs executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement thr covenants anJ agreements of this Mortgage as if the rider '
were a part hereof. -
7. Protection of Leaders Security. If Borrower faik to perform the covenants and agreements contained in this
Mortgage, or if any action or procreding rs aimmencrd which materially affects Lender's interest in the Property,
including, but not Gm~ted to, eminent domain. insi.lvency-. axle enforcement. orarrangemrnts or proceedings involving a
bankrupt or decedent. then !.ender at Lender's option, upon notice to Borrower, map make such appearances, disburse such
sums and Take such action as is necessary to protect Lender's mtrrest, including, but not limited to, disbursement of
reasonable attorney's fees and entry upon thr Property to make repairs. I( Lender required mortgage insurance as a
condition of making the loan secured by this MonRage. Barntwer shall pay the premiums required to maintain such
insurance in effect until such time as the reyuirement .for such insurance trrminates in accordance with Borrower's and
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