HomeMy WebLinkAbout1186.~ i~;~~ •;~k`,
UntFOR~-t Cov~N~NTS. Borrower and l.c~de~ covcnant and agrce as follows:
l. Pay.rent of Pd~clpal Aad lateresf. Bormwer shall promptly pay w~hen due thc principal of and intcrest on thc
indebtedness evidenced by the Note. prepayment and late chargrs as provided in the Note, a~d the principal of a~d interest
on a~y Future Adva~cec secured by thic Mortgage.
2. Fnads for Tua and Insur~nce. Subject to applicablc law or to a written waivcr by I.endcr. Borrowe~ shaU pay
to I.ende~ o~ thc day monlhly installments of principal and intcrest arc payable unde~ the Nate, until the Notc is paid in full,
a sum (herein "Funds") cgual ta ane•twelfth ot thc ycarly taxes and ascessments which may attain priority ovcr this
Mortgage, and ground re~ts on the Property. if any, plus onc-twclith of yearly pren~ium installmcnts for hazard insurance.
plus one-tweltth of yearly premium installments for mongagc insura~ce, if any, all as rcasonably estimated initially and from
time to time by I_endcr on thc hasis af asscssmcnts and bills and reasanable estimates thereof.
"Ihe Fu~ds shall be held in an institutian the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if I_ender is such an instilution). I.ender shall apply the Funds to pay said taxes, assessments.
insurance prcmiun~s and ground rents. I.ender ma~• not charge fo~ so holding and applying ~he FunJs, analyzing said account,
or verifying a~d compiling said assessments and hills, unlesa l_ender pays Bonower interest un the FunJs and applicable law
permits I_endcr to make such a chargc. Borrower and t.cnder may agrce in wnting at thc time of execution oI this
1lartgage that inierest an the FunJs shall he paid to Borrower, and unless such agreement is made or appiicable law
rcquires such interesl to be paid. l.ender shall not be rcquireJ to pa~~ Borrawer :my interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual arcounting of the Funds showing credits and debits to the Funds and the
purpose far which each debit to the Funds was maJe. The Funds are pleciged as addilional security for the sums secured
by this Mortgage.
If the amount of the Funds hcld by l.cnder, togc~her w•ith thc future monthly inst~llmcnts af Funds payable prior to
thc due dates of laxes, assessments, insurance premiums and ground rents, shall cxrceci thc amount reyuircd to pay said taxes,
assessments, insurance premiumc and ground rents as thcy (all due, such excess shall be, al 13arrower s option, either
promptly repaid to Borrower or crcdited to Borrower on monthly installments of Funds. If thc amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they [all due,
Borrower shall pay to Lender any amount ntteuary to make up the drficienc~• within 30 Ja~~s irom the date notice is mailed
by Lender to Borrower rcqucsting paymcnt thereof.
Upon payment in full of all sun-s se~:ured by this Mor~gagc, I.cnder shall promptly refund to Borrower any Funds
held by I.enJer. If under paragraph 18 hereof thc Propcn}• is u~ld or ~hc Pro~+erty is othenvisc acquircd by 1_endcr, 1_ender
shall apply, no latcr than immediatrly prior to thc ~ale of thc Propcny or its acquisition by I.cnder, any Funds held by
Lender at the time of application as a creJit against ~he sumti se~:ured by thii Atortgage.
3. Application of Payments. Unless applicable law provides olherwise, all payments received by I_ender under the
Note and paragraphs 1 and 2 hereo( shall bc; applied by I.cnJcr first in payment of amounts payahle to Lender by Borrower
under paragraph 2 hercof, then to interest payable on the Notc, then to the principal of the Note, anJ then ta interest and
principal on any Futurc Advanccs.
4. Chary;es; Liens. Borruwcr ~hall pay all taxeti, ai~~smcnts and othcr charges. fincs anJ im~~sitions attributable to
the Propert~• w•hich may a~tain a priority over this Mortgage, and ieaseholJ paymcnts or ground rents, if any, in thc manner
provided unJer paragraph 2 hereof or. i( not paid in ~uch manner, by Borrower making payment, when due, Jirectly to the
payee thercot. Borrower shall promp~ly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrow•er shall make payment direcU~•. Borrower shall prompdy (urnish to IxnJer receipts evidencing such payments.
BorroWCr shall promptly dischargc any lien which has priority over this Mortgage: provided. that Borrowcr ~hall not be
rcquired to discharge any such lien so long as Borrow•er xhall agree in writ~ng to the pa~•ment of the obligation eecured by
~uch lien in a manner aceep~able ~o Lender, or shall in.g~xxl faith cantr~t such lien hy, or defenJ enforcement of such lien in,
legal pr~xcedings w•hich operatc to prevent thc ent~~rcemcnt of ~hc lirn or for(citure of the Propcrty or an~• part thcreof.
S. Hazard Insurance. Borro~+~er shall kecp the ~mprovcmcnl. nou c~isting c~n c~rcaftc~ crected on the Pruperry insured
against locs hy fire. hazards inrludec! veithin the term "~xtendeJ coverage". anJ such other ha-tards ac Lendcr may reyuire
.-nd ~n such amounts anJ for such pcriods at I_cndcr ma~• rryuirc; pravidcd. that I_cndcr ~hall not rcyuirc that ~he amount of
cuch co~•cragr exrced that amount of coveragc required to pa}• ~hc wms sccu~ed by this :~tor~gage.
'Ihe insurance carrier providing the insurance shall be choxn b~~ Borrovrer subject to approval b}• Lender, provided.
that such appro~al ~hall nat bc unrcawnahly withhcld. ~VI prrmium. un insurancc policics shall tx~ paid in thc manner
provided unJer p•rragraph 2 hercof ur, if not paid in such manner, by Bormveer making payment, when due, dirccdy to the
insurance carrier.
All insurance policies and renewals there~f shall tx in form acceptablc to Lcnder and shall inrlude a~tanJard mortgage
clause in favor of and in form acceptable to Lender. Lender tihall hare the right to hold the poli~ics and renew~als thereof,
anJ Borrower shall promptl~~ furnish to Lendrr all renewal notices anJ all receipts of paid premiumc. In the event of ioss,
Borrower shall give prompt notice to the in~ur~nce carner and Lender. LenJcr may make prcx~t of loss i[ not made prompU}'
by Borrower.
Unless Lender and Borrow•er othcnvix agrce in writing, insur~nce pnx:ccJs shall be applied to restoration or repair of
the Property JamageJ, provided such restorauc-n or repair ~s economically feasible and the security of this Mortgage is
not ~hereby impa~red. If such restoration or repair is n~~t ~conumically f~asihle or it the security of this Dtortgage woutd
be impaired. the insurance proceeds shall be applieJ to the sums secured by this Mortgage, v-~ith Ihe excess. if any, paid
to Borrowcr. If thc Pro~ert~• is abanJoned h~ Bormwcr. or if Bormwer fails to res~nd to I.ender within 30 days from ihe
date notice is mailed by l.ender to Borrow~er that ~he insurance carrier ofTers to settle a claim for insurance henefits, Lender
~~ authorized to collect and apply the insurance proceeds at I_ender's option either to restoration or repair of the Property
ur to thc sums ~ccured by this Mortgagc.
Unlcss Lender and Borrower otherwix agree in writing, an~~ si~ch applica~ion of pn-ceeds to pnncipal shall not extend
or postpone the due date of ~he monthh• inst•rlimentc rcferred to in paragraphs I and 2 hercof or change Ihe amount of
such installments. If unJer paragraph l8 hereof the Propert~~ is acyuired by I.enJer, all righl, title and interest of Borrower
in and to an~ insurance policies anJ in and to 1hr pr~eeds thereot resul~ing from dan:age to the Properly prior to the sale
or acyui~ition shall pass to Lender to the e~tenl of thC ~ums secured by th~s Atortgage immeJia~ely prior to such sale or
acyuisitiun.
6. Presenalion and ~taiatenance of Propert~; Leaseholds: ('ondominiums; Planned Unit De~•elopments. Borrow~er
shall kccp the Property in good repair and shall not commit wastc or permit impairment or deterioration of the Properry
and shall comply with thc provisiuns of any lease ~f this Mortgage ~s un a Ic~sehold. lf this Mortgage is on a unit in a
condominium or •r planned unit Je~•elopmcnt. Borrov--er shall perform all ot Borrow•er's obbgations under the declaration
ur covenants crcating or governing thr cond«minium or planned unit development, the by-laws and regulation~ of the
conJominium or planneJ unit development, anJ constituent documents. If a condominium or planned unit devclopment
nJer iti rxecuted by Borrower and recorded tugether w•~th this Mortgage, the covenants and agrerments of such rider
~h•rll be incorporated into •rnd shall amend and supplement the covenants •rnd agreements of this Mortgage as if the rider
Hcrc a part hereof.
7. Protection of Ixnders Security. If B~rr~~w•er fails to per(orm the covenants anJ agreements contained in this
l~i~xtgage, or it any~ action .~r proceed~ng is cummenced which materially atTects I.ender's interest in the Property.
including. but n~~t limited to. eminent domain, in.~~l~~ency, code en(orremen~, or arrangements or pmceedings invol~~ing a
bankrupt or decrdent, then Lender at Lender'x option, upon notice to Borrower, ma}~ make such appearances, disburse such
sums and takr such activn ac is nece~sary to proteet Lender's interest, including. but not limrted to, di~bursement of
reasonable attorney's fecs and entry upon ~he Propert}~ to make repairc. If I.cnder rcyuired mortgage imurance as a
cunJit~on of making thc loan sccured b~• thi. Mortgagc. B~~rrowcr shall pay thc prcmiums rcquireJ to maintain such
insurrnee in elTect uMi! ~uch time as ihe reyuirement for such msurance terminates m accordance w~ith Borrow•er's and
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