HomeMy WebLinkAbout2538I.INIFQRM COVENANTS. Borrower and !.ender covenant and agree as follows:
1. Perinea! oft Pdnclpd turd laterest. Borrower 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 interest
on any Future Advances secured by this Mortgage.
2. Funds for T~aes attd lnsuraace. Subject to applicable law or to a written waiver by tender, Borrower shall pay
to Lender on the day monthly installments of principal and interest are payable under the Note, until the Notc 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 )•early premium installments for haiard insurance,
plus one-twelfth of yearly premium installments [or 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 deposits or accounts of which are insured or guaranteed by a Federal or
state agency !including Lender if Lender is such an institution). !.ender shall appl)• the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may not charge for so holding andepplying the Funds, anal)•zing said account,
or verifying and compiling said assessments and bills, unless lender pa)•s 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. 1_cnder shall not he required to pay Burrower any interest or earnings on the Funds. !.ender
shall give to Borrower, without charge, an annual accounting of the f=unds showing credits and debits'to the Funds and the
purpose fur which each debit to the Fonda was made. The 1=urufa 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 payeblc prior to
the due dates of taxes, assessments, insurance premiums and ground rent+, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's opuun, either
promptly repaid to Borrower or credited to Borrower on monthly in+lallments of Funds. if the amount of the Funds
held by (.ender shall not be sufficient to pay taxes, assessments, in+urance premiums and ground rents as they fall due,
Borrower shall pay to !.ender any amount necessary to melee up the deficiency within 30 days from the date notice is mailed
by Lender to Burrower requesting payment thereof.
Upon payment rn full of all sums secured by this Mortgage. I ender shall promptly refund to Burrower any Funds
held by !.ender. if under paragraph IK hereof the Propen} r+ u+ld or the Prupert} rs uthcrwi+c acyurred by Lender, Lender
shall apply, no later than rmmediately prior to the ,ale of the-Property ur its acquisrtion by Lender, any Funds held by
Lender at the treat' c'f application as a credit agarmt the sum, +ecured b} thr+ Mortgage.
3. Application of Payments. Unless applrcable law provides utherwi+e. all payments received by Lender under the
Note and paragraphs 1 and 2 hereof sh.+Il be applied h}• 1 ender fir+t m pe}merit of amounts payable to I.cnder h)• Burrower
under paragraph ~ hereof, then to interest payable on the tiute. then to the principal of the Notc, and then u~ interest and
pnncrpal on an)• Future Advances.
4. Charges; Lkns. Burrower ,hall pay all tese+. a++es,merits and other charge.. fine, and rmlxniUunc attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments ur ground rents, ~f any, in the manner
provrded under paragraph 2 hereof ur. if not part m such manner. by Borrower making payment, when due, directly to the
payee thereof. Borrower shall prompt)}• furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment drrecti~. Borrower shall promptly turni+h to Lender receipts evidencing such payments.
Burrower shall promptly discharge any ~ ~,bleb has pnunt}• +i+er thi+ Mortgage; provided. that Burrower shall nut be
regwred to drscharge any wch lien +v '. •at es Burrower shall agree in writing Iu the payment of the oblrgatiun secured by
such lien rn a manner acceptable to Lender, or .hall in ga-d faith conte+t such lien hy, ur defend enforcement of such lien in,
Icgal pmccedrng+ which operate to pre+ent the enforcement ut the Iron or furferture of the Properly ur any part thereof.
S. Hazard Insurance Borrower ,hall Deep the rmprosement+ now rsi+ung ur hereafter erected on the Prulxrty inurred
against loss h}• fire, hazards included within the term "cuended coverage", and such other hazards as Lender may require
and rn such amounts and fur +uch pcncxl+ a+ Lcndcr may require; provided, that lender shall not require that the amount of
such coverage exceed that amours of cucerage required to pa}• the wm+ +ecured h}• thrs Mortgage
The insurance carrier providing nc~ insurance ,hall be chu+en by Burrower subject to approval by 1_ender; provided,
that such approval ,hall nos be unreeu+nably withheld. All premnrm+ on insurance pulicres shall he paid rn the manner
provrded under paragraph '_ hereof ur. rf nut paid in such manner, h) Borrower makrng payment, when due, drrectly to the
insurance carrier.
All insurance pa~hcie+ and renewals thereof shall tx in form accept,rblc to Lender and sh:dl include a standard mortgage
clause rn favor of and in form acceptable to Lender. Lender .hall have the right to hold the policies and renewah thereof,
and Burrower shat! promptly furnish to !.ender all renewal notrce+ and all receipts of paid premium. In the event of toss.
Borrower shall gh•e prompt notice to the imurancc earner end Lender. Lender mry maAc prcx.t ut loss rf nut made promptly
by Burrower.
Unless Lender and Burrower utherwr+e agree in writing, inwrancc pnxccds shall be applied to restoration ur repair of
the Property damaged, provided such restoratwn or reparr rs ecunomirally feasible and the security of this Mortgage is
nut thereby imparted. If such re+torahon or reparr is not econumicallp feasible or rf the secunt)• of this Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any, peed
to Burrower. If the Property is abandoned by Burrower, or rt Borrower fails to respond to Lender within 30 daps from the
date notice is mailed by Lender to Borrower that the insurance earner offers su settle a claim fur insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's uptian either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lcndcr and Borrower otherwise agree rn writing. any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraph, I and 2 hereof or change the amount of
such installmenu. if under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Burrower
in and to any imurance policies and in and to the proxeeds thereof resuhing from Damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presenation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Burrower
shall keep the Property in good repair and shall not commit waste ur permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage a on a leasehold. If this Mortgage is on a unit in a
condominium ur a planned unit development, Borrower shall perform all of Borrower's obligations under the declaraUun
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 rinit 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 it the rider
were a part hereof.
7. Protection of Lender's Security. If Burrower farts to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
including, but nut Irmited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon notice to Burrower, may make such appearances, Disburse 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 Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Burrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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