HomeMy WebLinkAbout0243UN~FOat-t CoveN~N~rs. Borrowe~ and l.ender cavenant and ag~ee as tollows:
1. Paymeat ot P~iacipal and taterat. Borruwer shali promptly pay when due the principal of and i~tercst on the
indebtedneu evidenced by thc Notc. prepayment a~d late chargcs as provided in the Note, and the principal of and i~terest
on any Futuoe Advances secured by Ihis Mortgage.
Z. F~uds tor Tues snd Iawnace. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to l.ender on ~he day monthly i~stallmcnts of principal and interest arc payable unde~ the Note, until Ihe Note is paid in full,
a sum (herein "Fu~cis") equal to one-Iwelfth o( the yearly taxes and assessments which may atlain priority over this
Morlgage, and g~ound rents on thc Property. if any, plus one-twelf~h of yearly premium i~stallments for hazard insura~ce,
plus one-twelfth of yearly premium installments tor mortgagc iosurancc, if any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments a~d bills and reasonable estimates thereaf.
'il~e Fu~ds shall be held in an institution the deposits or accaunts af which are insured or guaranteecl by a Federal or
state agency (including Lender if L.ender is such an institution). I.ender shall apply the Funds to pay said taxes. assessments,
irtsurance premiums and ground rents. l.ender may not charge for so holding and applying the FunJs, analyzing said account,
or verifving and compiling said assessments and bills, unless Le~der pays Borrowe~ interest on the FunJs and applicable law
permits Lender to make such a charge. Borrowet a~d I.ender may agrce in writi~g at ~he time ot execution of ihis
Mortgage that interest on the Funds ~hall t~e paid to Borrower, and unless such agreement is made or applicable law
requires such inte~est to be paid, Lender shall nat be required ta pay Borrower any interest or earnings on the Funds. I~nder
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 plecfged as additional security for the sums secured
by this Mortgage.
If the amount of the Fu~ds held by Lender, tagether with ~hc tuturc monthly installments ot FunJs payablc prior to
the due data of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as ~hey fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installmems of Funds. If the amount of thc Funds
held by Lender shall not be sutTicient to pay taxes, asscssmcnts, insurance premiums anJ ground rents as thcy fall due,
Borrower shall pay to Lender any amount necessary to ntake up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mongage, I_endcr shs!! promptly refund to Borrower any Funds
held by [.enJer. If under paragraph 18 hercof thc Property is u~ld or thc Property is othervvisc acquired by t_ender, LenJer
shall apply, no later than immediatcly prior to the sale of thc Property or its acquisition b~ I_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. Unlecs applicahle law pravides otherwise, all payments received by I.ender under the
Note and paragraphs 1 and 2 hereof shall be applicd by l.ender first in payment of amounts payable to Ler~skr hy Borrower
under paragraph 2 hereof, then to interes~ payablc on ~hc No~c, then to thc principal of the Notc, and then to inte~est and
principal on any Future Adva~ces.
4. Charges; Liens. Borrower shall pay all t:+xcc, assescmcnts and othcr charges, fines anJ impositions rttributable to
the Property which may attain a priority over this Mortgagc, and Ieasehold payments or ground rents, if any, in the manner
provickd under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, Jirectly to the
payee thcrcof. Borrowtr shall promptly furnish to t_enJer all notices o[ amounts duc under this paragraph, and in the event
Borrower shall make payment direc~ly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Morlgage: provided, shat Borrower shall not be
required to discharge any such lien so long as Borrower shal{ agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender. or shall in good faith conteti~ such lien by, or ciefenJ enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or (orteiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements now cxisting or hercaiter crccted on the Property i~sured
against loss by 6re, hazards included wi~hin the term "ratended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may rcyuire; provided, that Lender shall not require that the amount of
such coverage ecceed that amount of coverage required to pay the sums cecured by this Mortgage.
"Il~e insurance carrier providing the insur•rnce shall be chosen by Borrower subject to approval by LenJer, 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 paid in such manner, by Berrower making payment, when due, directly to ihe
insurance carrier.
All insurance policies and renew•als thereof shall be in form acceptable to Lenekr and shall include a stanJard 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 shall promptly fornish to Lender all renewal notices and all receipts o[ paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier •rnd Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrow•er otherv~•ise agree in w•riting, insurance proceeJs shall be applied to restoration or repair of
the Property damaged, proviJed such rcstoration or repair is economically feasible and the security of this Mortgage is
not Ihereby impaired. If such restoration or repair is not economically feasiMe or if the security of this Morigage would
be impaired, the insurance proceeds shall be applied ta the sums secured by this Mortgage. vvith the excess, if any, paid
to Borrower. If the Property is abandoncd bp Borrower, or it Borrower fails to respond to I_ender within 30 days from ihe
date notice i~ mailed by Lender to Borrower lhat ~he insurance carrier ofTers to settle a claim for insurance benefits, Lender
is authorized lo collect and apply the insurance proceeds at t.cnder's option either to restoration or repair of the Property
or to the sums secured by this Morigage.
Unless Lender and Borrower othervrise agree in writing, any such application of pra:eeds to principal shall not ertend
or postpone the due date of the monthly ins~allments referred to in paragraphs 1 and 2 hercof or change the amount of
such installments. If under paragraph 18 hereof the Property is acyuired by Lender, all right. title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereo[ resulting from damage to the Property prior to the sale
or acyuisition shall pass to Lender to the extent of the sums secured by this 1-lortgage immediately prior to such sale or
acquisition.
6. Presen~ation and l~taintenance of Properl~; Ixaseholds; Condominiums; Planned Unit Devebpmenls. Borrower
shall Iceep the Property in good repair and shall not commit waste or permit impairment or deteriora~ion of the Property
and shall comply with the provisions of any lease if this Mortgagc is on a Icasehold. If this Mortgage is on a unit in a
condominium or a planned unit developmem, Borrower shall perform all of Borrower s obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
conJominium or planned unit developr+~ent, and constituent Jocuments. If a conJominium or planned unit Jevelopment
rider is executed by Bonower and recorded toge~her with this Mortgage, the covenants and agreements o( such rider
shall be incorporated into and shall amend and supplement the covenants and agreements o! this Mortgage as if the rider
were a pati hereof.
7. Protection of Leodt~s Security. If Borrower fails to perform the covenants and agreements contained in ihis
Mortgage, or if any action or proceeding is commenced which materially afiects 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 I.ender at l.ender s option, upon notice to Borrower, 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 attomey's fees and en~ry upon the Property to make repairs. If i.endcr required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insuranre terminates in accordance with Borrower s and
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