HomeMy WebLinkAbout1686r ~ ~ ; ~ ~
UNtFURIIt CoYENANT$. BOffOWer and lender a~vcttant and agree as follows:
1. Payment of Principal and latetrest. Harrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and intertist
on any Future Advances secured by this Mortgage.
2. Runds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the yearly taxes 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,
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonabl}• estitttated initially and from
time to lime by Lender on the basis of assessments and bills and n:awnablc estimates thereof.
The Funds shall he held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
.nsurance premiums and ground rents. Lender may not charge for so holding and applying the Funds,enalyzing 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 ).ender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, Lender :.hall not be reyuin~l to pay Burrower an}• interest or earnings an 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 f=unds are pletlgcd as additional x~:urit}• 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, asxssments, insurance premiums and ground rents, shall exc~Krd the amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
prompt)}• repaid to Borrower or credited to Borrower un monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, imurancc premiums and ground rents as they fall due,
Borrower shall pap to 1_ender any amount necessar}• to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thcrcol.
Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
held by Lcndcr. If under paragraph IR hereof the Property is sold or the Propcrt}' is otherw•isc acquired by Lender, Lender
shall apply, no later than immediate)}• prior to the sale of the Property or its acquisition h}• !.ender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicahle law provides othensise, all payments received by Lender under the
Note and paragraphs I 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 t~i,Qtc; 11nd then to intcrest and
principal un an}• Future Advances. •"
4. Charges; Liens. Bormwcr shall pay all taxes, assessments and other charges. tints anJ iml+usitions attnbutahle to
the Propert}• 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. it 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 Jue under this paragraph, and in the event
Borrower shall make payment directly, Born+wer shall promptly furnish to Lender receiph evidencing such payments.
Borrower shall promptl}• discharge any lien which has pnority over this Mortgage: provided. th:+t Borrower shall not be
reyuired to discharge any such lien w long as Borrower shall agree in writing to the payment of the ohhgatian secured by
wch lien in a manner acceptable to Lender, or shall in g~xxl faith contest such lien hy, or defend enforcement of such lien in,
Icgal pn+ccedings which operate to prevent the enforcement of the hen or forfe+ture of the Pmpert}• or am~ part thereof.
5. Hazard Insurance. Borrower shall keep the improvement. nrnv rxiwng or hereafter erected on the Pn+perty insured
against loss by fire. hazards included within the term "extended crn•er+ge'~. and such other hazards as Lender ma}• require
and in such am.+unts and for such periods as 1_ender may require: provided. that t_cndrr shall not require that the amount of
such cos•eragr exceed that amount of coverage reyuired a+ pay the sums secured hs thn \tortgagc.
The insurance carrier providing the insurance :hall Fx~ chosen M• Burrower suhiect to approval h}• 1_ender, provided,
that such approval shall not tx unreau+nahly withheld. :111 premi!ms on insur:utce policies shall he paid in the manner
provided under paragraph 2 hereof ur. if not paid in such manner, by Borrower making payment, when due. directly to the
insurance carrier.
All insurance policies and renewals thereof shall t+e in form :+cceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lcndcr shell hate the right to hold the policies and renewals thereof,
and Borrower sh:dl prompth• furnish to Lender all renewal notices and alt receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and 1_ender. Lcndcr ma}• make pna+f of loss if not made promptly
h}• Born+wer.
Unless Lcndcr and Borrower otherwise agree in wnhng, inwrancc proceeds shall be applied to restoration or repair of
the Property Damaged, provided such restoration or repair is economically feasihlc and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economicall}• feasihle or tf the securit}• of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums xcured by this Mortgage. with the excess, if any, paid
to Borrower. If the Property is ahandoncd M Borrower. or if Bormw•cr fain to respond to Lender within 30 days from the
date notice is mailed by Lender a+ Borrower that the insurance carrier otters to settle a claim for imurancc benefits, Lender
is authorized to collect andappiy the insurance proceeds at Lender's option either to restoration or repair of the Property
ur to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree m writing, an}• such application of pnx:eeds to principal shall not extend
or postpone the due date of the monthh~ installments referred to in paragraphs 1 and "' hereof or change the amount of
such installments. If under paragraph l8 hereof the Property is acquired by bender. alt right, title and interest of Borrower
in and to am insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lcndcr to the extent of the sums secure) by thts Mortgage immediately prior to wch sale or
acquisition.
6. Presen~alion and Maintenance of Property; Leaseholds; ('ondominiums; Planned Unit Uecelopments. Borrower
shall keep the Property in good repair and shall not commit waste ur permit impairment or deterioration of the Properq•
and shall comply with the provisions of any lease if this Mortgage is on a leaxhold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
ur covenants creating or governing the condominium or planned unit development. the by-laws and regulations of the
condominium ur planned unit development. and constituent documents. If a condominium or planned unit development
nder is executed h}' Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and wpplement the covenants and agreements of this Mortgage as if the rider
were :- part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage. ur if any action or proceeding n commenced which materiall}• afTects lender's interest in the Property,
including. but not limited to. eminent domain. insohency, code enforcement. or arrangements or proceedings involving a
bankrupt ur decedent. then Lender at Lender's option. upon notice to Borrower, ma} make such appearances, disburse such
sums and take such action as is necessary to pmteet Lender's intcrest. including, but not limited to, disbursement of
reasonable attorney's fees and entry upon the Pmpcrn• to make repairs. If I_cnder reyuired mortgage inwrancc as a
condition of making the loan xcured h}• this )tortgagc. Borrower shall pay the premiurru required to maintain such
insurance in effect until such time as the rcyuirement for ouch insurance h_rmin;tes in accordance with Borrower's and
80~ 3~'~ PdGE~ '~
::.~:~= rt