HomeMy WebLinkAbout1711~ ,
~f~
t; ~ ~ 1f~
UN~Fau-t Covetv~HTS. BoROwer and LenJer covenan~ and ag~ee as tollows:
1. Pa~aeat ot P~iacipal a~d lale~st. f3o~rower shall p~omptly pay when duc the principal of and iote~eu on the
indebtedness evidrnceJ by the Note. prepayment and late charges as provi~kd in the Noie. and ~he principal of and interest
on any Future Adva~ces secured by this Mor~gage.
2. Feads tor Tues aad laarance. Subject to applicabk law or to a written waiver by l.ender. Borrovve~ shall pay
to l,ende~ on the day monthly installments of principal and intercst are payable unde~ the Note, until the Nate is paid in [ull.
a sum (hercin "Funds") cqual to one-twcltth of the yearly taxes and assessments which may attain priority over this
Mortgagc, and ground rcnts on the~ Pt+opcrty. if any, plus one-twel(th ot ~early prcmium iostallments [or hazard insurance.
plus or~e-tw•elfth of ~carly premium i~stallments for mortgage insurance, if any. all as reasonably es~imated initially and from
timc to time by Lender on the !-asis ot asscssmcnts and bills and rtaso~abk atimata thereof. -
'il~e Funds shall be held in an iastitution the deposits or accounu of which are insurtd or guaranteed by a Federal or
state agency (including l.e~der if Lernier is such a~ institu~ion). I.ender shall apply the Funds to ~y said taxa. assessments.
insurance premiums and ground rents. I_ender may not charge for so holding and applying the FunJs, analyzing said account,
or verifying and compiling said assessments and bills, unless t_e~ier pays Bonower interat on the Funds and applicable law
permits Le~der to make such a charge. Borrower and I.ender may agrce in writing at the time of execution of this
Mortgage that interest on the FunJs shall t~e paid to Borrower, ancl unless such agreement is maJe or applicable law
requires such interest to bc paid. l~nder shall not be requirrd 1o p:+y Iic~rrawer any i~terest or earnings nn the Funds. I.emler
shall give to Borrower, without charge, an annual acawnting of the Funcls showing credits and debits to the Funds and the
purpose for which each debit ta ~he Funds was made. The Funds are pledged as additional security for the sums securcd
by this Alortgage.
If the amount of the Funds held b~ LenJcr, together v-ith the (uture monthly installments of Funds payable prior to
the due dates of taxes, asscssrnents, iruurance premiums and ground rents, shall excced thc amount reyuired to pay said taxa,
asxssments, insurance premiums and ground rentc as ~hey (all due, si~ch excess shall be, at BorroNer's option, either
promptly repaid to Borrower or credited to Bc-rrow•er on mon~hly installme~ts of Funds. !f the amount of the Funds
held by Lender shall not be su~cient to pay taxes, assessments, insur•rnce premiums anJ ground rents as they [all due.
Borrower shall pay to Lender any amount necessar~• to make up the defirienc}• within 30 da)~s from the date notice is mailed
by Leader to Borrower requesting paymcnt thercot.
Upon payment in full of all sums secured by this Mortgagc. I.cndcr shall promptl~~ refund to Borrow~er any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or thc Propcny is otherwisc acquired by Lender. I_ende~
shal! apply. no later than immediately prior to thc sale of thc Propcny or its acquisition by Lender, any Funds held by
Lender at the time of application as a crcJit against the sume secured b?~ th~s ~tortgage.
3. Application of Paymeats. Unless applicable lav-• pn-viJes o~henvise, all payments recei~•ed by Lender unJer the
Note and paragrapht I•rnd 2 hereof shall be appl~ed by 1_enJcr fir~t in pay~ment of amounts pay~ahle ta Lencier by Borrower
undcr paragraph 2 hercof, then to interctit payable on the Notc, thcn to thc principal of the Nwc, and thcn to interest and
principal on any Future Advances.
4. Charges; Lieas. Borrow~cr shall pay all tazet, asscstmcnts and o~her chargcs. fines •rnd im~xnitions auribwable to
the Property M~hich may attain a priority over this Aiort~age, and leaschold pay~mcnts ar ground rents, if any, in the manner
provided un~ier paragraph 2 hereof or, i[ not paid in such manner, by Borrow•er making pa~•ment, w•hen due. Jirectly ta the
payee thereoi. Borrower shall proq~ptly (urnish to LenJer all notices of amounts Jue under this paragraph, and in the event
Borrow~er shall make payment dir~tly. Borrawer shall promptlp furni~h to Lender receip~s e~idencing such payments.
Borrow~er shall promp0y discharge any lien v-hich has priority ovcr this Mortgage; proviJed, that Borrower thall not be
required to discharge an~ such lien so long as Borrov-~er shall-agree in writ~ng to the pa~~ment of the obliga~ian secured by
such lien in a manner acceptabM to Lender, or shall in goal fai~h conte~~ such lien hy. or defenJ en(orcement of such lien in,
legal proceedingc w~hich operate to prevent the enforcement of the l~en or forfeiwre of the Propertp ~r •rny part there~f.
S. Hazard Insurance. Borrow•cr shall kcep Ihe ~mpro.ements now c~isting on c~rcaftcr ercc~ed on the Propcrty insured
against loss h~• fire. hazards includcd Mi~hin tlx~ term "rctcndcJ coverage". anJ such other hazardc as t.cndcr ma} require
~nd in such amounts and for su:h periocis ~s I.er-der ma~• reyuire; pro~~ideJ, that l_rnd~r shall not reyuirc that the amount of
such coverage e~cecd that amount of coverage required to pa~~ ~hc ~um. x~ured b~• th~s ~tor~gagc.
The insurance carrier providing the insurance shall be chvsen by BorroKCr subject to approval b~• [_ender, provided,
that such appro~al ~hall not be unreasonably withhcld. r~ll prcmium~ on insurance policies chall ~x paid in the manner
provided under paragraph 2 hereot or. i[ not paid in si~ch manner, b~• &~rrov-er mak~ng payment. Nhen due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptablc to ixn.ler anJ shall inrlude a stanJard mortg•rge
clause in favor of and in form acceptable tu Lcnder_ Lender tihall ha~e the right to hold the poliries and reneWals there~f.
and Borruw~er shall prompUp [urnish to Lencier all rrnew•al notices and all receipts of paid premiumc_ In the e~•ent of loss.
Borrower shall gi~•e prompt notice ta th~ inwrance carner and Lender. LenJrr ma~~ make pra,f of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherv-~se agree in wrihng. insurance proceeds shall be applied to restoration or repair of
the Property damageJ, proviJed such re~tura~~un or repair is e~:onomi~ally feasible and the sccurity of this Mortgage is
not thereb~~ impaired. I( such restorrtion or repair is n.~t rwnomicrll~~ fcasiblc or if the security of this ~lortgagc w•ould
be impaired. the insurance pnx;eeds shall be applied t~~ the sums secureJ bp this Mortgage, w•i~h the e~cess, if any, paid
to Borrower_ If the Propert~• is abandoned b~• F3ormwer. or if Bormwer fails to respond to [_ender within 30 days from the
date notice is mailed b~• Lender to Borrow•er thrt the insurance carrier oRers to settle a claim for insurance benefits, I~nder
i~ authorizecf to collect and apply the insurance proceeds at LenJer's option either to restoration or repair of the Property
or to the sum~ ucureel by this Mortgage.
Unless I~ncler and Borrower othen+ise agree in u•nting, any such application of proceeds to prmcipal shall not extend
or postpone the due Jate of the munthh• installmentc re(errcd to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph t8 hereof the Propert~~ is acyuired b~ l.ender, all right. titk and interest of Borrrnver
in and to an~• insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition sh:+ll pass to l.cnder io thc e~tent of the sums secured by this ~lortg•rgc immediately prior to such sale or
acquisition.
6. Presenation aod ~laintenance of Propert~: Leaseholds; Condominiums; Planned linit ikrebpmenls. Borrower
shall kcep thc Property in good repair and shall not commit waste or permit impairment or deterioration af the Property
and shall comply w~ith thc provisions of any Itase if this ~fortg•rgc ~s on r leasehold_ If this Mortgage is on a unit in a
conJominiom or a planned unit de~•elopmen~. Borrower shaU perform all of Borrower's obbgations under the declaration
or covenants creating or governing the condominium ~r planned unil development, the by-laws and regulationc of the
conJominium or planned unit cievelopment, and constituent documents_ If a condominium or planned unit de~•elopment
riJer ~s executed by Borrower •rnd recordeJ togtther w~th ~his Mortgage, the covenants and agrcements o( such nder
shall be incorporated mto and shall amend and supplcment the co~•enants and agreements of this Mortgage as i( the riJer
µere a part hereof.
7. Prolection of I,ender's Security. If Borrowes fails to perfarm the covenants anJ agreements contained in this
~tortgage. or if any act~on or procceding ic commenceJ which materially alTccts t_enJer's interest in the Property.
including. biat not limited to. eminent domain. insol~~ency, caie entorcement, ar arrangements or proceedings invol~•ing a
bankrupt or decrdent. ~hen I.ender at Leoder ~ option, upon nwice to Borrower, ma~• make such appearances. Jistwrse such
sums and take such actiun a~s is neces.ary to proseet I.ender's mterest. including. but not limited to. disbursement of
rtasonaMe a~~omey's (res and entry upon the Property to make rcpairs. If I.cnder required mongage insurance as -r
condiuon of mal:ing the loan secureJ b~~ this `tortgage. B~.rrower shaJl pa)• the premiums required ta mainta~n such
insurance in efTect intil ~uch time as the reyuirement for ~uch msur~nce tertr~nates ~n accordance w~ith Borrrw•er s ~nd
8~ 345 p~i7~9
~