HomeMy WebLinkAbout1728,. - ~
!. • . ..
UN~FOxtN CoveN.~[v7~s. Borrower and I.cnJer cavenant anJ agrce as follaws:
l. Paymeat ot Princlpal ~wd laterest. Borrow•er shall promptly pay when due the principal of and interest on the
indcbtedness evidenccd hy thc Note. prepaymem and late chargcs as proviJed in thc Notc, and Ihe principal of and intcrcst
on any Future Advances securcd by this Mortgage.
2. Fnads tor Tua and lnau~ace. Subject to applicable law or to a written waiver by I.ender. BoROwe~ shall pay
to l.ender on ~he day monthly ins~allmcnts of principal and ~nterest are payable under the Note, unti) the Note is paid in full,
a sum (herein "Funds") equa) to one-twelfth af the yea~ly taxex and ascessmcnts which may attain priority ovcr ~his
Mortgagc, anJ ground rents an the Property, if any, plus ane-twclf~h of yearly premium i~stallments for hazard insurance,
plus one-tw•clfth af yearly premiurr~ inslallments for mortgage insurancc, if a~y. all as reasonably estimated initially anJ (rom
time to limc by Le~der on thc hasis of asscssments •rnd hills and reasonable cstimates thereof.
'il~e Funds shall be held in an institulion the dep.nits or accounts of which are insured or guaranteec! by a Federal or
state agency (ir~cluding Lender if I_ender is such an institution). I.ender shall apply Ihe Funds to pay said taxes. auessments,
insurancc pmmiums and ground rent~. 1_cnder may not chargc (or sa holding and applying thc Funds, analyzing said account,
or verifying and compiling said assessments and bills, u~less I.ender pays Borrawer interest on the FunJs ~nd applicable law
permits Lender to make such a charge. Borrower and LenJer may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Bormwer, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be requi~eJ to pay Borrawcr any interest or earnin~ ~n the Funds. LcnJer
shall give to Borrower, without charge, ~n a~nual accounting of the Funds shawing creJils anJ debits to the Funds and the
purpose for which each debit to ~he Funds was made. The I~unds arc pledged as additional security f~r ~he sums secured
by this Mortgage.
lf the amount of thc Funds hcld by LenJcr, together with thc futurc monthly installmcnts of Funds payablc prior to
the due dates of taxes, assessments, insurance prcmiunu and ground rents, shall exceed the amount reyuired to pay said taxes.
assessments, insurance premiums and gmund re~ts a~ thcy fall duc, such excess ~hall be, at Borrower s option, either
promptl? repaid to Borrower or crcdited to Bormw•er on mon~hly installmcnts of Funds. If the amount of thc Funds
held by Lender shall not be suf6cient to pay taxes, assessments, imurance premiums anJ ground rents as they fall due,
Borrower shall pay to Lender any amount necessan• to make up the dcficicncy within 30 da~~s from the date notice is mailed
by Lender to Borrower requcsting paymcnt ~hcrcof.
Upon payment in full of all sums secured by this Morlgage, Lender shall prompUy rcfund to Borrower any Funds
held by Lcnder. If under paragraph 1S hcreof thc Propcrt~• is u~ld or ~hc Propcrty is othenvisc acquircd by I.endcr, Lender
shall apply, no later than immediately prior to thc ~ale af thr Propc:rty or its acquisition by I_cndcr, any Funds held by
Lender at the time uf application as a credit against the sums securcd by this Mortgage.
3. Applicalion of Paymeats. Unless applicable law• provides MherN~ise, all payments received by I_ender under the
Note and paragraphs I and 2 hereof shali be applied bp Lender fint in p~ymem o( amounts payable to Lender by Borrow~er
under paragraph 2 hercof, then to interest payable vn the Nute, thcn ta the principal of the Note, and then to interest anJ
principal on any Futurc Advances.
4. Charges; Lkns. Borrowcr ~hall pay all taxcs~ askscments and othcr chargcx. fincs and impusitions attributable to
the Properi~~ which may attain a priority over this Mortgage, and (easeholJ paymcnts or ground rents, if any, in the manner
provided under paragraph 2 hcreof or, if not paid in such manner, by Borrowcr making payment, when duc, directly to ihe
payee thercof. Borrower shall promptl~~ furnish to (_endcr all notices of amounts due under this paragraph, and in the event
Borrow•er shall make pa~•ment d~rectly, Borro~rr shall promptly furnish to I.ender receipts evidencing such paymeuts.
BorroKer shall promptly Jischarge any lien which has priority o.•er this Mortgage; proviJcJ, that Borrower shall not be
rcquired to dixharge an~• such licn w long as Borrower shall agree in writing to the pa~~ment oi the obligation secured by
such lien in a manner acceptable to Lender, or ~hall in ga~J faith ronte+t surh lien by, or JefenJ enforcement o( such lien in,
Icgal proccedingc which operate to prevent thc cnfurccmcnt of ~hc Gen or furfeiturc of the Propcrt~~ or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvrmcnts now c~ititing or herraftrr crccled on the Pr~~pcrty insurecl
against loss hy fire, hazards incluJed within ihe term "~~tended cover:~ge". anJ cuch Mhcr hatard~ ac Lcnder may reyuire
:+nJ in surh amounts anJ fur surh periocis ac l_ender m-ry reyuirc; provided, that Lrnder ,hall not reyuirc that the amount of
such ancragc cxcecd that amount vf covcragc rcyuircd to pa~~ thr wm, tirrurcd h~• ~his ~torlgagc.
'The imuranre carrier providing thc inwrance shall be che~xn by Borrowrr suhject to appro~~al hy Lender, provided.
that such approval shall not bc unrcasonabl~• withhcld. All prcmiumc on insur•rncc policies shall tk paid in thc manner
provided under paragraph 2 herco( ur, if not paid in such manncr, by Borrower makmg payment, whcn due, directly to the
insuratxe carrier.
Al) insurance policies and renewals thercof shall tx in fo~m acceptable to LenJer anJ shall include a stanJard mortgage
clause in fav~ir of and in form acceptahle to I.enJer. !_ender shall have the right to hold the poliries and renewals thereof,
and Borrow~er shall promptly furnish to Lender all renewa) no~ices anJ all rcceipts of paid premiumc. In the event of loss,
Borrower ~hall gi~•e prompt noticc tu the insurance carner ~nJ l.ender. 1_endcr ma~• make proof of loss if not made prompU~•
b~• Borrower.
Unless Lender anJ Borrower otheraik: agree in writing, insursnce proceeJs shall be applied to resturation or repair of
the Propert~~ ~IamageJ, prrniJed such restoralion or repair is economically fcasible and the security of this Mortgage is
not ~hereby impaired. I( wch restor~tion or repair is n~-t economiwlly feacible or if the seeurity of this Mortgage would
be impaired, the insurance proceeJs shall be ~pplieJ to the sums sec~ireJ by this Mortgage, with the excess, if any, paid
to Borrowrr. If the Propert~• is abandc.ncd b~~ Bormw~cr, or if Bormwer fails ta respnnd ro 1_endcr within 30 da~~s from the
date notice is mailed by Lender to Borrower that ~he insurance c~rrier ofiers ~o settle a claim for insurance benefits, 1_ender
is authori7xd to collec~ and appl~• the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums ~ecured by this Mortgage.
Unlesc Lender and Borrow~er atherwi~e agree in writing, anp such application of proceeds to principal shall nM extend
or postpone ~he duc date of ~he mcimhly in~tallments referred t~ in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragrrph l8 hereof the Property i~ acyuired b~~ Lender, all right, title an~ interest of Borrower
in ~nd to an~ insurance•policies and in anJ to the proceeds thereof resulting from damage to the Property prior to the sale
or acyuiaition shall pass to Lender to the extent of the ~ums secured b~~ this Atortgage immediately prior !o such sale or
acyuisition.
6. Preser~alion and ~taiotenance of Properl}; Leasehulds; ('ondominiums; Planned Unit [k~•elopments. Borrow•cr
shall krcp the Propeny in good repair and shall not commit waste or permit impairment or detcrioration of the Property~
and shall comply w~ith 1hc provisions of any lease if this Mortgage is on a Ieasehold. If this Mortgage is on a anit in a
condominium or a planncd uni~ Jc~•clopmcnt, Borrower shall perform all of Borrower's obligations under the declaration
ur covenants creating or governing the condominium or planned unit development, the by-laws and rcgulationc of the
conJominium or planneJ unit development, anJ constituent documenls. lf a condaminium or planned unit development
riJer is executed by Borrower and rccordeJ ~oge~her wi~h this Mortgage, the covenams and agreements o( such nder
shall be incor~rated mto and shall amend and supplement the co~e~ants and agreemeMS of this I-iortgage as i( thc rider
Ncrc a part hereof.
7. Proleclion of I.enders Security. If Borro~•er fails ~o perform the covenants anJ agreements contained in this
Mortgage, or if any ac~ion or proceeJing ~s commeneed which materially afTects I.enJer's interest in the Property,
includmg, but n~~t hmited lo. em~nent domain. in•oh•enc~~, axle enf~~rcement. or arrangements or proceedings invoh•ing a
bankrupt or der~dent, then Lender a~ I.ender's option, upon notice to Borrower, ma~~ make such appearances, disburse such
sums and take such ac~iun as is necestiary t~- proteet Lender's interest, ~nclud~ng. but not limrted to, dicbursement of
rcasonahle attomey's (ccs and emry upon the Propcr~y to make rcpairs. If Lendcr requircd mortgage insurance ac a
condrtion o( mak~ng thc loan sccured b~• this Aturtgagc. Barn~wrr sh~ll pay thc premiums ,rcqwrcJ to maintain surh
insurance in efTect until such time as ~he reyuireme~t for ,uch msurance terminates ~n accordaeet a•ith'Borruwers and
s~K 345 ~aGE i 7~'~
~