HomeMy WebLinkAbout0370UNItoRAt CovFN~NTS. Borrower anJ l.cndcr a~venant and agree a~ fallaws:
1. Paymeat of Priacipal aad lateresl. Barmwer shall promptly pay when due the principal of and interest un the
indebtedness evidenceJ by the Notc. p~epayment and late charges a~ provided in the No1e, and the principal of and interes~
0o any Future Adva~ces secured by this Mortgage.
2. FWads for Tiu[es ar~d Iasurtiace. Subject to applicablc law or to a written waiver by 1_ender. Borrowcr shall pay
to I.encier on Ihe day. monthly installments of pri~cipal an~ interect are payable unde~ the Note. until the Note is paid in full,
a sum (herein "Fu~ds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Morigage, and grouod rents on the Property, if any, plus o~e-twclfth of yearly premium installments for hazard i~surance,
plus one-twelfth of yearly premium installments tor mortgage insurance, if any, all as reasonably estimated initially and from
time to time by Lender o~ the hasis of assessmcnts and bills and reasonablc cs~imatcs thcreof.
The Funds shall be held in aa institution the depasits or accounts of which are insured or guaranteed by a Federal or
state agency (including Le~der if l.ender is such an institution). l.ender shall apply the Funds to pay said taxes. assessments.
insurance premiums and ground rents. I_ender may not charge for sc~ holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless 1_ender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and l.ender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall t~e paid to Borrower, and unless such agreement is made or applicable law
requires sucti interest to be paid. Lender shall not he reyuired ta pay Borrower any interest or eamings on the Funds. 1_ender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to ihe Funds a~d the
purpose for which eaeh debit ta the Funds was made. The Funds are pleciged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lencier, together with the future monthly installments of Funds payable prior to
the due dates of taxes. assessments, insurance premiums and ground reots, shall exceed the amount reyuired to pay said taxes,
assessments, insura~ce premiwns and ground rents as they fall due, such exces.s, shall be, at Borrower s option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. !f the amount of the Funds
held by L.ender shall not be suft'icitnt to pay taxes, assessments, insurance premiums anJ ground rents as they fall due.
Bonower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mar~gage. I_ender shall promptly refund to Borrower any Funds
held by l.ender. If under paragraph 18 hereof ~he Propcrty is seld or thc Property is otherwise acquired by [_ender, Lender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Leader at the time o[ application as a credit agai~st the sums secured by this Mortgage.
3. Apptication of Payments. Unless applicable law• provides otherwise, all payments received by l.ender unJer the
Note and paragraphs 1 and 2 hereof shall be applied by I_cnder first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payablc on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arges; Lkns. Borrower sh~ll pay all taxcs, s~scscmcnts and othcr 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 ihe manner
provided unckr paragraph 2 hereo[ or, if nat paid in such manner, by Borrower making payment, when due, dirxtly to the
payce thereof. Borrower shall promptly furnish to Lender all_notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contect such lien by. or defend enfor~cement of such lien in.
legal proceedings which operate to prevent the enforcement of the lien ar forfeiture of ihe Propeny or any part thereof.
S. Hanrd Insurance. Borrower shall keep the improvements now existing or hereafter erect~d on the Property insured
against loss by fire, hazards included within Ihe term "extended coverage", and such other hazards as Lender may require
anJ in such amounts and for such periods as Lender may reyuirc; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'Ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. 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 noi paid in such manner. by Borrower making payment, when due. directly to the
insuranc~ carrier.
All insurance policies and renewals thereot shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to l.ender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal no~ices and all receipts o[ paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and Ixnder. LenJer may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Morigage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower_ If the Property is abandoned by Borrower, or if Borrower [ails to respond to Lender within 30 days from the
Jate notice is mailed by l.ender to Borrower that the insurance carrier offets to settle a claim for insurance benefits, Lender
is authorizod to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage_
Unless L.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by l.ender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to ihe sale
or acyuisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenaace of Properiy; Leaseholds; Condominiums; Planned Uuit Developments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leasehuld. 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
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
conJominium or planned unit development, and constituent documents. If a condominium or planned unit Jevelopment
rider is executed by Borrower and recorded together with this Mortgage. the covenants and agreemenis of such rider
shall be incorporated into and shall amenJ and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. If Borrower tails to perform the covenants and agreements contained in this
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 Lender at Lender's op~ion, upon notice to Borrower, ma}~ make such appearances, disburse such
sums and take sueh action as is necessary to protect Lender s interest, including. but not limited to, disbursement of
reuonable attomey's fees and en~ry upon the Property to make repairs. If L.ender reqoired mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums requireJ to maintain such
insurance in eRect until such time as the reyuirement for such insurance terminates in accordance with Borrower s and
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