HomeMy WebLinkAbout1675 3;;
UntEOaw Covet+ar+n. Borrowu and Lende? covenant and agree as follows:
4 TBytweN et hiutlMl tni INersst. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidetwed by the Note, prepayment and late charges ac provided in the Note, and the principal of and interest
on tvy Future Advances secured by this Mortgage.
L Ftrstls tK Tatra a~tl Itwertret. Subject to applicable law ur to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and tntctcct arc payable under the Note, until the Note is paid in full.
a sum (herein "Funds'ti equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage. and ground rents on tlx Property, if any. plus one-twelfth of yearly premium installments for hoard insurance,
plus one-twelfth o[ yearly premium installments for mortgage insurance. it any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reawnabk estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which arc 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.
insurance premiums and ground rents. 1 ender may not charge for so holding and applying the Frrrtdc, analyzing said account.
or verifying and compiling said assessments and hills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Bortowtr and Lender may agree in writing at the time of execution o[ 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 o[ 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, shat! exceed the amount required to pay said taxes,
asseuments, insurattee premiums and ground rents as they fall due, such excess shall be, at Borrowers option, caber
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be wtticieat 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 Borrowu requesting payment thereof.
Upon payment in full of all sums secured 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 Property is 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 time of application as a credit against the sums secured by this Mortgage.
3. A~ticatitts of hyttseists. Unless applicable law provides otherwise, all payments received by t_cnder under the
Note and paragnphs 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; Lkas. Borrower shall pay alf 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, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, b}• Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notrces of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to !.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shad not be
required to discharge any such lien so long as Borrower shall agree in wrung to the payment of the obligation secured by
such lien in a manner acceptable to Lender, ur shall m good faith contest such lien hy. or defend enforcement of such lien in,
legal procceding~ which operate to prevent the enforcement of the lien or [orfeuure of the Property or any part thereof.
S. Hazard Insttrawce. Borrower shall kelp the improvements now existing or hereafter erected tin the Property insured
against loss by fire, hoards included within the term "extendeJ coverage". and such other hazards as Lender may reywre
'i and in such amounts and for such periods as Lender may reyuirc: provided, that Lender shalt not require that the amount of
such coverage exceed that amount of coverage required to pay the some secured ~by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
~I 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, d not paid in such manner, by Burrower making payment, when {foe, directly to the
f inwrance carrier.
t All insurance policres 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 hold the policies and renewals thereof,
~ and Borrower sh-sll promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of to+s.
i Borrower shall give prompt notice to the insurance career and I_ender_ 1_ender ma}• make pra~f of loss if not made promptly
~ by Borrower.
Unless Lender and Borrower otherwise agree in writing. insurance proceeds shalt be applied to restoration or repair of
the Property damaged, pruvukd such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoratr..n or repair is nut economically feasible or if the security of this Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secured by thrs Mortgage. with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrower. ur it Burrower tails to respond to 1_ender within 30 days from the
date nonce n mailed by Ixnder to Borrower that the insurance career offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at 1_cnder's opnun either to restoration or repair of the Pmperte
or to the sums secured by this Mortgage.
Unless Lender and Burrower otherwise agree in wrung, an} such application of proceeds to principal shall not extend
? or postpone the due date of the monthly installments referred tx. in paragraphs I and 2 hereof or change the amount of
such installments. ff under paragraph 18 hereof the Proferty n acywred h} Lender, all right, title and interest of Borrows
in and to any Aiwrance policies and in and to the proceeds thereof resulting from Damage to the Property prior to the sale
or acgttisiUon shall pass to Lender to the extent u[ the sums secured by this !1lurtgage immediately prior to such sale or
{ acquisition.
a 6. Prcsenation and Maintenance of Property: 1_easehulds: ('ondominiums; Planned Unit Developments. Borrower
j
shall keep the Property in good repair and shall not comrpit y?aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage tin a leasehold. 1( this Mortgage is on a unit in a
condominium or a planned amt des~elopment. Borrower shall perform all of Borrower's obligations under the dt:claran.?n
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development.:,nd constituent ducumrnis. If a condominium or planned unit Development
rider is executed by Borrower and recorded n?gether with this tilnrtgage. 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 n.fer
were a part tereof_
7. Protection of !.enders Security. If &•rr~~wer fails tr perf??rm the covenants and agreements contained in this
Mortgage. or if any action ??r proceeding is u?mmenced v?hicn matenalh aBects Lender's interest in the Property.
including. but n.?t limned tu, eminent domain. n:Whency. c?x1e enforcement. or arrangemenK,ur prcxeedings invoking a
bankrupt or decedent. then Lender at Lender's option, ulwn nonce to Borrower. ma} make +!rch 5p~euances, disburse such
sums and take such action as is necessary to protect Lender's interest. including. but not limned to. disbursement of
reasonable attorney's fees and entry ulx?n the Propcrt} to make rcpain. If Lender reyiiired mortgage insurance as a
condinun of making the loan secure.! h} the Mortgage. Burrr...cr shill pap the premiums required to maiiita~n such
insurance in effect until uich time as the requirement fur such insurance terminates in accordance with Borrower's and
i