HomeMy WebLinkAbout1441 .ut+t>rouw Govat+ants. llorrower and Leader covenant and agree as follows:
hp~twaat et hlrtdgal tta>i Iateraatl. ~OrroM?er shall promptly wr when due the principal of and interest on the
ittdebtedness evidertoed by the Note, prepayment std bee charges as provided in the Note. and the principal of and interest
ea any Fttttrrc Advaatxs securod by the Mortgsge.
t Fttatlls ftir'11a:ee ant Iawrastte. Stirbjea to applicable law or to a written waiver by Lender. Borrower shall pay
to Leader on the day monthly installments of principal and interest are payable under the Note. until the Note is paid in full,
a stem (Ittrein "Fttnds'9 equal to otte•twdtth of the yearl~~ taxs~. and assessrrtcnts which may attain priority over this
Mortgage. and ground rents oa tbs Pt+openy. ii any. plus ottc-twelfth of yearly-premium instdlments [or hazard inwrartce,
plus otte-twelfth o[ yearly premium installments for mortgage insurance. it any, all as reasonably estimated initially and front
dnte to time by Lender on the bssa of assessments and hilh and reasonable estimates thereof.
The Funds shall be held in an institutidn the deposia a accounts of which arc insured or gwranteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments.
iawranoe premiums and ground rents. Lender may not charge for w holding and applying the Futtds. 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 o[ execution of this
Mortgage that interest on the Funds shall be paid to Borrower. and uaku such agreement is made or applicable law
rcquirtts such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
sbaq give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which attb debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
ZI Lbe t:mourtt o[ the Fua~ ttrld by l=nder. together with the futur~a mor?thly installments of Funds psyabk prior to
the due dates of taxes. assessments. inwrance premiums and ground rents, shall exceed the amount required to pay said taxes.
aaaaaeats. iawraeoe premium: sad ground rents as they fall due. such excess shall be. at Borrowers option. either
prouptly repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the funds
bead by Leader shall not be wfRaeat to pay taxes. assessment:. insurance premiums and ground rents ss they fall due.
Borro~trer shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof. .
Upon payment is full of all sums stxured by this Mortgage, Lender shall promptly refund to Borrower any Fund:
bdd by Lender. If under paragraph 18 hereof the Property a sold or the Property a otherwise acquired by Lender. Lender
shall apply. rte late tttaa immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Lender at the tithe of application as a credit against the sums sceured by this Mortgage.
3. ARlkatiaa et Unless applicable law provides otherwise, all payments received by Lender under the
Note std 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. Crargefi Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
ttfe Properly 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, sad is the~eveat
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrows shall promptly discharge any lien which has priority over this Mortgage: provided. that Borrower shall not be
required to discharge any such lien so bng as Borrower shall agree in writing to the payment of the obligation secured by ~
such lien in a manner at:ceptabk 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. Hasard Iwrartce. Botrovver shall keep the improvements now existing or.hereatter erected on the Property insured
against lass by Ere, hazards included within the term "extended coverage", and such other hazards as Lender may require
sad 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 sceured Eby this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided. ~
tbst such approval shall not be unreasonably withheld. All premiums on insurance policies shat) 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
iawrance 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 Bold the policies and renewals thereof,
i sad Borrower shalt promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
~ Borrower shall give prompt novice 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 restoration or repair is not economically feasible or it the security of this Mortgage would
i besmpaired, 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
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 Property
or to t)x wms secured by this Mortgage.
Unless )..ender 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. If under paragraph f 8 hereof ttte Property is acquired by Lender. all right, tick and interest of Borrower !
in and to any huurance policies and in and to the proceeds thereof resulting from damage to the Property prior to rho sale
or acquisition shall pus to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ acquisition.
f. Rreaervatioe and Maiateaance of Properly; Leaseholds; Condominiums; !Planned Utsit 1DtvelopmetNs. Borrower
shall keep the Property is 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 Mortgage is on a leasehold. -If this Mortgage is on a unit in a
coodaninrum 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 and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. If Borrower fads to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced whtch 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, dishurse such
sums and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney's tees and entry upon the Property to make repairs. if I_cnder required mortgage insurance as a
condition of making the loan secure) by this Mortgage. Borrc:wer- shall pay the premiums required to maintain such
insurance in effect until such time as the rcyuiremem for wch insurance terminates in accordance with Borrowers and 1
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