HomeMy WebLinkAbout1112UN~FORt-t CoveN~NTS. Borrower and Lcnder cc~ven~~~ and ag~ee as tollows:
1. Paymeat oI P~iacipal sod laterest. Born~wer shall promp~ly pay M~hen duc the principal of and interest un the
inckbtedness evidenceci by the Note. prepayme~t and late charges as provided in the Note, and the principal of aod i~terest
on a~y Future Advances secured by this Mortgage.
2. Fnads for Tua aad lusunnce. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lendcr on ~he day monthly installments of principal an~ interest are payable u~der Ihe Note. until the Note is paid in full,
a sum (hercin "Funds") equal to o~e-twelfth of Ihc ycarly taxcs and assusments which may attain priority over this
Mortgage. and ground rents on the Poc-perty, if any, plus one-Iwelfth of yearly prcmium installments for ha7.~rd i~surance.
plus one-twclfth of yearly premium installments tor mortgagc insurance, if any. all as roasonably estimated initially and from
time to timc by Le~der on the basis of assessments and bills aod reasonable estimates thereof.
'll~e Fu~ds 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 inslitution). 1_ender shall apply the Funds to pay said taxa. assessments.
insurance premiums and ground rents. I_ender may not charge for so holding and applying Ihe Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless I_ender pays Borrower interest on the Funds and applicable law
permits I.ender to make such a charge_ Borrowcr and Lcnder may agree in writing at the time of execulion ot ihis
Mortgage that interat on the Fu~ds sha{I be paid to Borrower. and unless such agreement is made or applicable law
requires sucS interest to be paid. Lender shall not Ae required ta pay Bo~rower a~y interest or earnings on the Funds. l~nder
shall give to Borrower, without eharge, a~ annual accounting of the Funcls showing credits and debits to the Funds and the
purpoae for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
If the amount of tt~e Funds held by Lemier, together with the future monthly installmcnts of Ft~~Js payable prior to
the due dates of taxes. assessme~ts. insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assessme~ts, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower s option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of thc Funds
held by Lender shall not be suf$cient to pay taxes. assessments, insurancc premiums and ground rents u thcy fall due,
Borrower shatl pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by l.ender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgagc, l.ender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is othenvise acquired by Lender, Lender
shall apply. no later than immediatety prior 1o the sate af the Pr~Fxrty or its acquisition by LenJtr, any Funds held by
Lender at the time of application as a credit against the sums securod by this Mortgage.
3. Applkatioa of Payments. Unless applicabk law provi~es otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by t_ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. t6en to interest payablc on the Note, then to thc principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arges; Lkas. Borrow~er shall pay all taxe~s, assessments and other charges, 6nes and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, in the manner
provided under paragraph 2 her~eof or, if not paid in such manner, by Borrower making payment, when due, diroctly to the
payee 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 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
such lien in a manner acceptable to Lender. or shal) in good 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. Hazard t~vrance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
againat loss by fir~e, hazards included within the term "extended coverage", and such other hazards as Lender may rcquire
and in such amounts and for such periods az Lender 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 insuraace carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
that such approval sha11 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.
Al) insurance policies and renewals thereof shall be in form acceptable to Lenekr and shall include a stanJard 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 notices and all receipts of paid premiums. In the eveni of loss.
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loas if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or rcpair of
the Property damaged, provickd such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. It such restoration or repair is not economically fcasible or i( the socurity 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 Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by I.ender to Borrower that the insurance carrier offers to setUe a claim for insurance benefits, I.ender
is authoriud to collect and apply t6e insurance proceeds at Lender's option either to restoration or repair of tt~e Property
or to the sums securod by this Mortgage.
Unless l.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or pcutpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change Ihe amount of
such installments. If undtr puagraph 18 t~eroof the Property is acquired by L.ender, all right, title and interest of Borrower
in aod to any insurance policies and in and to the proceeds thercof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the eztent of the sunu secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenaoct of Property; Leaseholds; Condominiums; Planned Unit Devebpmeots. 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. If this Mortgage is on a ~nit 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
condominium or planoed unit deve~opment, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage. the covenants and agrcements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as i[ the rider
were a part heroof.
7. PrMectioa of Leader's Securify. If Borrower fails 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 not limited to. eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then Lender at Leader'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 attorney's tees and entry upon the Property to make repairs. If Lender required m~rtgage 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 ~ insurance terminates in accordance with Borrower s and
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