HomeMy WebLinkAbout2948UNtt=oRM CoveK~-Nrs. Borrower and lender covenant and agree as follows:
1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges as p«tvided rn the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by !.ender, BOROWCf shall pay
to Ixnder 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 tree yearly tares 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 hazard insurance,
plus one-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 bills 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). 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 Funds, analyzing said account.
or verif)•ing and compiling sail assessments anJ bills, unless Lender pa}s Borrower interest un 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
reytures such interest to be paid, Lender shall not be reyuired to p:+}• Burrower 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
propose for which each debit to the f=unds was made. The Funds arc pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together Kith the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as the)' fall due, such excess shall be, at Borrower's opuon, either
promptly repaid to Borrower or credited to Borrower on monthly imtallments of Funds_ I(.the amount of the Funds
held by Lender shall not be sufficient to pay lases, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to 1_ender an}• amount necessary to make up the deficiency within 30 days from the date notice is mailed
by 1_eader to Borrower requesting payment thereof.
Upon payment m full of all sums secured by this Mortgage. 1 ender shall pntmptl)• refund to Borrower any Funds
held by !.ender. If under paragraph IK hereof the Propert} rs sold or the Propert} n otherwise acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of the Property ur its acquisition by Lender, any Funds held by
Lender at the time of application as a credit aga+mt the sunx secured by this Mortgage.
3. Application of Payments. -Unless apphcable law pnwides otherwise, all p:+yments received by 1 ender under the
Note and paragraphs I and 2 hereof shall rte applred by I ender first m payment of amounts payable to Lender h}• Borrower
under paragraph 2 hereof. then to rnterest payable on the \ute, then to the principal of the Note, and then to interest and
princrpal on an}• Future Advances.
4. Charges; Liens. Borrower ,hall pap all t,+xe,, assessments and other charges. fines and rmposiuons attnbut:+hle to
the Propert}' which may attain a priority over this Mortgage. and IeasehoW payments ur ground rents, if any, in the manner
provided under paragraph 2 hereof or. rf nut paid rn such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall prompt!} 'urnish to lender all notices of amounts due under this paragraph, and in the event
Borrower shall make pa}•ment duectl, . 3nrower shall promptly htrmsh to Lender receipts evidencing such pa}•menis.
Borrower shall prompt!}' discharge and _.. which has poorer}• user this Mortgage: provided, that Borrower shall not be
regwred to discharge any wch lien so 4,:•r as Burrower shall agree in writing to the payment of the ohhgatiun secured by
wch lien rn a manner acceptable to Lender, or ,hall in gird faith contest such lien hy, or Defend enforcement of such lien in,
legal pn-ecedmgs which operate t ~ prevent the enforcement of the lien or fur(erture of the Property or-an}• part thereof:
S. Hatard Insurance. Borrower shall keep the rmpn-vemenh now misting or hereafter erected on the Property insured
against ions by fire. hazards included within the term "extended coverage", and such other hazards ac Lender may require
and rn such amounts and for arch periods as Lcndcr may reywre; provided, that t_cnder shall not require that the amount of
such coverage exceed that amount of coverage regwred to pay the soot, secured by this Mortgage.
The insurance carrier n:oviding the insurance shall be chosen by Borrower subject to approval h}' Lcndcr, provided,
that such approval shall nu: he unrea,onahly withheld. All premiums on insurance policies shall he paid ut the manner
p«n~rded under paragraph '_ ::er.u( ur..rf nut paid in wch manner, by Borrower making payment, when due, ehrectly to the
insurance carrier.
All insurance policies and renewals thereof shall he in form accept,+Me to Lender and tihall utclude a standard mortgage
clauie rn favor of and in form acecplahle to Lcndcr. Lcndcr shall have the right to hold the policies :+nd renewals thereof,
and $orruwer shall prompt!}• furmsh t~ Lender all renewal nuuees and ail receipts of paid premium,. In the event of loss,
Burrower sh:ell give prompt notice t+~ the inwranee career and I.ender_ Lender eta} make p«u~t of loss rf nut made promptly
by Burrower.
Unless 1_endcr and Borrower rnherwrse agree in writing, inwrancc pnkeeds shall be applied to restoration or repair of
the Property damaged, provided wch restoration ur repair rs +:conumieally feasible and the security of this Mortgage is
not thereb)• impaired. If such resturauon or repair is acii eeonomirdh• feasible or rf the security of this Mortgage would
be rmparred, the insurance proceeds shall be applied to the wins secured h~ this Mortgage. with the excess, if any, paid
to Borrower. If the Property n abandoned h} Borrower, or it Borrower fails w respond to Lender within 30 da}'s from the
date notice rs marled h}• Lender to Borrower that the insurance earner otfen to settle a claim for rnsurance benefits, Lender
rs authori-zed to collect and app!} the insurance proceeds at Lender's option either to restoration ar repair ut the Property
or to the sums secured b)• this Mortgage.
Unless Lender and Borrower otherwise agree m writing, any such application of prixeeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acyurred by I~nder, all right, title and interest of Borrower
rn and to an} rnsurance policies and in and to the p« xeeds thereof rewlung 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 [o wch sale or
acquisition.
6. Precenation and Maintenance of Propert}; Leaseholds; ('ondominiums; Planned Unit Developments. Borrower
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 rs un a leasehold. If this Mortgage is un a unit in a
condominium or a planned unU development, Borrower shall perform all of Borrower's oblrgaUOns under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laxs and regulations of the
condominium or planned unit development, and constituent documents. 1(a condominium or planned Wort development
rider is executed by Borrower and recorded together with the Mortgage, the rnvenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of the Mortgage as rf the rider
were a part hereof. _
7. Protection of Lender's Security. If Borrower lads to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding n commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings. involving a
bankrupt or 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 protect Lender's interest, including, but not limited to. disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. If Lender reyuired mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shell pay the premiums required to maintain such
insurance in effect until such time as the requirement for such rnsurance terminates in accordance w+th Borrower's and
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