HomeMy WebLinkAbout1390 Unttrotw CoveHant's. Borrower and Lender covenant and agree u follows:
1. lt~ytwewt of lriaelMl mai IMerat. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, Prepayment and laic charges ac provided in the Note, and the principal of and interest
on any Future Advsnces secured by this Mortgage.
2. Fwi for Tara curl Iaaaruee. Subject to applicable law or to a written waiver by Lender. Borrower shall psy
to Lender on the day monthly installments of principal and interest ere payable under the Note. until the Note is paid in full,
a sum (herein "Ftmdt'~ equal to one-twelfth of the yearly talc. and assessments which may attain priority over this
Mortgage. and ground rents on the Property, if any. plus one-twelfth of yearly premium installments for hazard insurance.
plusone-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably 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 deposes or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender i[ Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments.
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said account.
or verifying and compiling aid 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 additions! 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 prcmiurns and ground rents, shall exceed the amount required to pay said taxes, '
assesanents, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
promptly repair( to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be suKiciwt to pay taxes. assessments, insurance premiums and ground rents u 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 Eul! of all sums secured by this Mortgage, (.ender shall promptly refund to Borrower any Funds
held by Leader. if under puagraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, 1_ender
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 time of application u a credit against the sums secured by this Mortgage.
3. Application off Paymetds. 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 Note, 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 leasehold payments or groans 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 thertmf. Borrower shall promptly furnish to Lender all notices of am~trnts 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 chic 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 shat! rn gaud laith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the I+en or forfeiture of the Property or any part thereof.
S. Hazard Inetrrawce. Borrower shall keep the +mprovements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "eitended coverage". and such other hazards as Lender may require
and 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 cams secured by th+s 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,'if not paij in such manner, by Borrower making payment, when due, directly to the
insurance curler.
All insurance pol+c~es and renewals tberrot shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor n( 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 shat! give prompt notice to the insurance career and tender. Lender may make proof of loss if not made promptly
by Borrower.
e Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
~ the Property damaged, provrded such restoration or repa+r a economically feasible and the security of this Mortgage +s
i 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 secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by Burrower, or it Borrower fads to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier oBers to settle a claim for insurance benefits, Lender
is autborited to collect and apply the insurance proceeds at Lender's option either to restoration or repaer of the Property
or to the sums secured by this Mortgage.
~ ldnless Lender and Burrower utherwiu agree in waling, any such application of proceeds to principal shall not extend
or postpone the due date of the m+-richly installments referred to in paragraphs 1 and 2 hereof cr change the amount of
such installments. It under paragraph 18 hereo[ the ProFerty is acquired by Lender, all right. title and interest of Borrower
in and to am• thsurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acgtusttion shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ acquisition.
6. Preservation and ~taintenancc of Property; Leaseholds; ('ondominiums; Pfanned Udt Devebpments. Borrower
shall keep the Property in good repair and shall not commit yvaste ur permit impairment or deterioration of the Property
and shat! comply with the provisions of any lease if this Mortgage n un a leasehold. 1f this Mortgage is on a unit in a
condominium or a planned unit develupmcnt, Borrower shall perform all of Borrowers obligations under the declarahun
$ or covenants creating or governing tbe condominium or planned amt development. the by-laws and regulations of the
condominium or planned unit develupmcnt, and constituent dcxuments It 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.
's 7. Protection of Lenders Security. If Harrower fails to perform the covenants and agreements contained in this
# Moagage. or if any active ar proceeding n cummrn:ed which materially affects Lernler's interest in the Property.
including. but nut hm+ted to. eminent domain. msaivenc)', axle cn(orcement. ar arrangements ur proceedings mvols-ing a
bankrupt or decedent. then Lender at Lender's option, upon notict: to Borrower, ma} make such appearances. dishurse such
sums and take such action- es is necessan h. protect Lender'{ interest. including. but not limited tu. disbursement u!
reasonable attorney ; fees and entry upon the Property to make repairs. If tender required mortgage insurance as a
corxfitiun of making the loan tecured by th+? Martg:+ge. Barr+:wer shall pay the premiums required to maintain such
insurance in effect until such time as the reyinrcment far such in~uran;e tcrmmates m accordance whh Borrower's and
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x 3~3 Pa~E 1389
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