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UNtposw ~:OVBNAtiTlt. 8orrawer and Lende? covenant and agree u follows:
1. tst>~t of h1ae1N1 tttatl iNecest. Borrower shall promptly pay when due the principal of and interest on the
indeMedness evidenced by the Note. Prepayment and late charges ac provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Ihstsi totr Tsutaa atti Irtwcratce. Subject to applicable law ur to a written waiver by Lender, Borrower sh:Il pay
to Lender on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-twettth of the yearly taxc. and assessments which may attain priority over this
Mortgage, and ground cents on the Property, it any, plus one-twelfth of yearly premium installments for hazard insurance.
plus otte-twelfth of yearly premium installments for mortgage insurance, it any, all as reasonably estimated initially and from
time to tithe by Lender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be hsld in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency tincltrding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments.
insurance premiums.nd ground rents. 1 ender may not charge for so holding and applying the Frrrtdc. 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 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 this Mortgage.
If the amount of the Funds held 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.
assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either
pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. I[ the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall 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 rc[rrnd to Borrower any Funds
held by Lender. It under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by lender, any Funds held by
Lender at the tune of application as a credit against the sums secured by this Mortgage.
3. A~piicstioe of Psgttnests. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by tender 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 Nae, and then to interest and
principal on any Future Advances.
4. Charges; Liens. 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 IeaseholJ payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, i( not paid in such manner, by Burrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnrsh to Lender all noticrs 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 prrorrty over this Mortgage: provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in venting tr the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in guexf 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. Hazard lneuirnuice. Borrower shall keep the impn,vemenis 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 reyuire
and in such amounts anJ for such ptriods as lender may reyuire; 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.
~ 'Ilie 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 shaft 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
i
s insurance carrier.
All insurance policies anJ renewals therrot shall he in form acceptable to Lender anJ shall include a standard mortgage
` clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
~ and Borrower shall 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 earner and Lender. Lender may make pruc+f of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in venting, inwrance proceeds shall be applied to restoration or repair of
the Property damage), provided such restoranon or repair is economically feasible and the security of this Mortgage is
~ not thereby impaired. If such restoration or repair is nut economically feasible or it the security of this Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secure) by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by Burrower, or it Burrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance earner offers to settle a claim for insurance benefits, Ixnder
is authorized to collect anJ apply the imurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secure) by this Mortgage.
, Unless Lender and Burrower otherwise agree in venting, any such application of proceeds Io principal shall not extend
or postpone the Jue date of the monthly nistallments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph I8 hereof the Proterty rs acywred h~ Lender, all right, title and interest of Borrower
in and to any insurance policies and m and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shat! pass to Lender to the extent of the sums secure) by this Mortgage immediately prior to such sale or
acquisition.
j 6. Preservation and Maintenance of Property: t_casehulds; -Condominiums; Planned Unit Devtbpments. Borrower
shall keep the Property in ga+d repair and shall not comrpit yeaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is tin a leasehold. If this Mortgage is on a unit in a
condominwm or a planned unit Development. Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condaminii?m or planned unit development, the by-laws and regulations of the
~ condominium or planned unit develoi,mem. and constituent Jcxumrnts. If a condominium or planned snit development
F rifer rs executed by Borrower and recorJed together with thn Mortgage, the covenants and agreements of such rider
shall be incorporated mta and shall amend anJ supplement the covenants and agreements of this Mortgage as if the rider
~ were a part tereof.
! 7. Protection of Lender's Security. If Burrower t:tits to perform the covenants anJ agreements contained in this
f Mortgage, ur if any action ur proceeding is commenced which materially affects Lender's interest in the Properly.
including. but not limited tu. eminent domain. nxolvency, axle enforcement. ur arrangements or proceedings involving a
bankrupt or decedent. then Lender at I.enJer's option, upcm notice to Burrower, may make such appearances, disburse such
sums and take such action as is necessan• ro protect Lender's interest. including. but nut IimrteJ to. Disbursement of
reasonable attorney's fees and entry u~c?n the Property to make repairs. 1( Lender required mortgage insurance as a
condition of making the loan secure.) by this Mortgage. Borrrwer shalt pay the premnutn require) to maintain such
inwrance in effect until wch time as the requirement fur wch in;uran:e terminates m .iccordanee with Burrawcr's and
.
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