HomeMy WebLinkAbout1086UN~FORi-t CoveN~Nrs. Borrowcr and l.enJcr covena~u anJ ugree as follows:
l. Paymeat of Prlaclpal aud Interest. Borrawer shall promp~ly pay when due the principal ot and interest un the
indebtedness evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and iotercst
on any Future Advances securecl by this Mortgage.
2. Ftinds tor Taxa and lawnace. Subject to applicable law or to a written waiver by l.ender. Borrower shall pay
to I.endcr on the day monthly installmen~s of principal and interest arc payable under the Note. until the Note is paid in full,
a sum (herein "Funds") equal to onc-tweltth of ~he yearly taxcs a~d assessments which may attain priority over this
Mortgage. anJ g~ound renta o~ the Pt+operty. if any, plus one-twelfth of yearly premium installments for hazard insurance,
plus one-twelfth af yearly premium installments far mortgage insurance, if any, all as reasonably estimated initially and from
timc to time by Lender on the basis of assessmcnts and hills and reasonable cstimates thcrcof.
'll~e Funds shall be held in an institution the depasits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if I.ender is such an institution). 1_ender shall apply 1he Fu~ds to pay said taxes, assessments,
insurance premiums and ground rents. I_ender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender ta make such a charge, Borrower and Lender may a~ree 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 suc:~ interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. L.ender
shall give to Borrower, without charge, an annual accounting of ~he Funds showing credits and debits to the Funds and the
purpose for which eaeh debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with the tuture monthly installments of Funds payable prior to
the due dates of taxes. assessments, insurance premiums and ground rents, shall excced the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s optian. either
promptly repaid to Borrower or credited to Borrower on monthly installmcnts of Funds. If the amount of the Funds
held by Lender shall not be suffcieat to pay taxes, assessments, insurancc premiums and grou~d rents as they fall due,
Borrower shall pay to Leuder any amount necessary to make up !he 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 Mortgage, t_ender shall promptly refund to Borrower any Funds
held by l.enckr. If under paragraph 18 hereof the Property is sotd or th!' ~epe.r.~j~ is otherwisc acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of the !'roperty b~,its acquisition by I.ender, any Funds held by
Lender at the time of application as a crcdit against the sums securecl by this Mortgage.
3. Application of Payments. Unless applicable law proviJes otherwise, all payments received by Lender under 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 payable on the Note, then to the principal of the NWe, and then to interest and
principal on any Futune Advances.
4. Charges; Lkos. Borrow~er shall pay all taxes, assessments and other charges. 6nes and impositions attributable to
the Property which may attain a priority over this Morigage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, diroctly to the
payee thereof. Borrower shall promptly furnish to Lencier all,notices of amounts due under this paragraph, aod ia the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender 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
suc6lien in a manner acceptable to Lender. or shall in goai faith contest such lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hszard Insuraace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire. hazards included within the term "extended coverage", and such other hazards as [.ender may requirc
and in such amounts and for such periods as Lendcr may require; 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.
The 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 not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender 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 furnish to Leoder all renewal notices anJ all rcceipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proc~f of loss if not made promptly
by Borrower.
Untess Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged. provickd such restoration or repair is economically feasible and the security oE this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage 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 Pr~operty is abandoned by Borrower, or if Borrower fails to respond to Lender wilhin 30 days from the
date notice is mailed by L.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at l.ender's option either to restoration or repair of the Properiy
or to the sums secured by this Mortgage.
Unless I.ender and Borrower otherwise agree in writing, any such applicatio~ of proceeds 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 I8 heroof the Propeny is acquireci by l.ender, all right. titk and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resul~ing 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 sak or
acquisition.
6. Prrservatbn and hlnintenance of Properiy; Leaseholds; Condominiums; Planned Uait Ikvelopmenfs. 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 leasehold. !f this Mortgage is on a unit in a
condominium or a.planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit developrnent, and constituent Jocumen~s. If a condominium or planned unit development
rickr is executed by Bonower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend anJ supplement the covenants and agreements of this Mortgage as if ihe rider
were a part hereof.
7. Protectioa of Leoder's Secu~ity. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects 1_ender's interest in the Property.
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. ~hen Lender at Lender'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, disburaement of
reasonable attomey's (ees and en~ry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the toan secured by this Mortgage. Borrower shall pay the premiums requireet to maintain such
insurance in eHect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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