HomeMy WebLinkAbout2113UH~FOftat CovEN~NTS. Borrowe~ and Lender covenant and agree rs follows:
1. *iy111tp1 O~ PfI11CIwI SOd IA1tftS~. 8arrowcr shal) promptly pay whcn due the priocipal of and interest ao the
indebtedness evide~ceJ by the Note, prepayment and late cfiarges as provided in the Note, aod the principal ot and intercs~
on a~y Future Advances secured by ~his Mortgage.
Z. Fuads tor Tues and Insuraace. Subject to applicable law or to a written waiver by 1_ender, Barrower shall pay
to l.cndc~ on the day monthly installments ot principal and interest are payable u~der the Note, until the Note is paid in tull,
a sum (herein "Funds") equal to one-tv-eifth of the yearly taxes and asussments which may 'attain pnorily over this
Mortgage, anJ ground rents on thc Prope~ty, i[ any, plus onc-tvrelfth of yearly premium installments (or hazard insura~ce,
plus one-twel(th of yearly premium ~installments for mortgage insurance, if any, all as reasonably estimated initially and trom
time to time by l.eoder on the basis of asussments and hills a~d reasonable es~imates thcrcof.
'Il~e Funds shall t~e held i~ an inst~tution ~ht depasits or actounts of whicfi are insured ar guarantecd by a Fede~al or
state agency (including Lender if Lender is such an ins~itution)_ I.ender shall apply the Funds to Qay said taxes, assessments,
insurance premiums and ground ren~s. 1_ender may not charge for ~o holding and applying the FunJs, anal}•zing said accaunt,
or verifying and compiling said assessments and bills, unlesc t_ender pa~~~ Borrower interest o~ the Funds and applicable law
permits I_ender to make such a cha~ge. B~irrower and l.ender may agrce in writing at the time ot execution ot this
Mortgage thal interest on the Funds shall he paid ta Borrower, and unless such agreement is made o~ applicable law
reyuires such interest to he paid, I_ende~ shall ~ot he requircd to ~-a~~ Borrovver any interest or earning~ ~~n the Funds. I.ender
shall give to Borrower, without chargt, an annual accaunling of the FunJs showing credits and debits to Ihe Funds and the
purpose for which each debit to the Nunds was mad~. The Funds are pleciged as addidonat security tor the sums secured
by thi~ Mortgage.
!f the amounl af the Funds held by I_enJer, together with the future monthly ins~allmcnts of Funds payable prior to
the due dates o[ taxes, asscssments, insurance premiums and graund ~ents, shall exceed the amount reyuircd to pa~• said taxes,
asseuments, insurance premiums and ground rents as they lall due, tuch exce~c shall be, at Borrower's optio~, either
promptly repaid to Borrov-er or credited to Borrower on monthly installments of Funds. If the amount o( thc Funds
held by Lender sha11 not be sufficitnt to pay taxes, assessmen~s. inwran~c prem~ums -rnd ground rents as ~hey fall due,
Borrowe~ shall pay to 1_ender any amount necessa~y to make up the deficirncy within 30 days from the date notice is mailed
by l.ender to Borrower requesting payment thercof.
Upon payment in tul) of all sums secured b}' thic Mor~gage. Lcnder shall promplly rctunJ to Borrower any FunJs
held hy [.e~der. lf unde~ paragraph Itt hcrcuf ~he Propcny ~~ iotd or Ihc Property is otherwi~c acq~nrcd by 1_ender, l.ender
shall apply, no later than immediatcl~~ prior ~o thc tialc nf thc Pro~xrty or its acyuisit~an hy l.eader, any F'unds held by
Lender at the hme of application as a creJit aga~nu the sum~ secured b~• ~h~~ Mortgage_
3. Application of Payments. Untetis applicablc law• pro~•iJcs olhcrNitie, all paymcnts rcccivEd by I_cnder unJcr the
Notc a~d paragraphc 1 and 2 hercot sha!{ be appl~cd by f.endcr fint m p~yment c~f am~~un~s pay~abie to l.enJer by Borrov-•er
under paragraph 2 hereof, then to intr~est payabk ~~n the !~io1e, lhcn ta thr p~incipal of the Note, and thcn tv interest aad
pnncipal on any Fwurc Advances.
d. Charges; Liens. BorroNer ~h~ll pay all ~a~c~. a.+cc~mcnts ~nd other ch~rge~. finec anJ imFxnitiuns a~tributahle to
[he Propert~~ vehich may attain a prioriry rner this ~iortgage, and leacehold pa~'mcnts or ground rents, it any, in the manner
provided under par~graph 2 hereof or. if not paid in such manner, b}• Borrowe~ maki~g payment, when due, direcNy to 1ht
payee thercof. Borrower shall promp~l~ furnish to Lender all nohces of amounts due imder this paragraph, and in the event
8orrower shali make payment directl}. Rorrowrr +hall promptly furnish to l.rnder rereipts evidencmg such pa~meMs.
Borrovver shall prompUy Jischarge an~ ~:~•. Hhich has pnonty ~~ver thi~ Mongage: provided. ~hat Borrower shati not be
reqwred to d~scharge an~• such lien k~ i„rg as Borrow~r shall agrer in Nrihng to ~he pa~~ment of the ohligation secured 6y
wch lien in a manner acceptable to Lender, or tihall in gootl faith conle~l such lien by. or Jefend enforcement of such lien in,
legal pr~eed~ngt wfiich operale to pre.en~ the cni~~rcemen~ ot the 6cn or for(ciwre of Ihe Property or an~• part thereof.
S. Huard Insurance. BorroNer shall keep the ~mpro~•~mensti now c~icting or hercafter erected on the Property insured
against loss b~~ fire. haza:ds included within the term "r~tended coverage", aad such other hazards ac Lcnder may reguire
anJ ~n such amounts anJ for ~uch ~xrioJc a~ Lender may reyuire: pr~.videJ, Ihat Lender shall not reyuirc that the amount of
such coverage exceed that am~~unt ~~f co.•erage required t~~ pay the vim. tiecured hy ~his l~iortgage.
The insurance carrier providing tM: insurance shall be chosen b} Borrowet subject to approval by I.ender; provided,
that such approval tihall not be unrra+onahl}° withheld. All premium< <~n insurance policies shall t-e paid in the manner
pro~~ded under paragraph _ hercof ur, if not pa~d in such manner, b}• B~~rrower making payment, when due, directly to the
insurance carrier.
All insurance policie~ and reneKals thereof chal! tk in form areeptable ta I.ender ~nd shall ~nclude a~tandard mortgage
rlause m favor o! and in form acceptahle t~- I.~nder. Lender ~hall h~~e thr right t~~ hoW ~he policies and renewalc thereof.
and BorroKCr ~hall prompd~• furnish to Lendcr all renev-al notices anJ •rll receipts of paid premium~. In Ihe erent of loss.
Borrow•er ~h~14 g~ce prompt notice to the insurance carner .~nd I.ender. 1.enJrr ma}• make prcx~f of loss if not made prompUy
by Borrower.
Unless Lender and Borrow•er otherwi~e agrce in wnt~ng. inwrance prckeeJc shall be applied to restoration or repair of
the Property JamageJ, provided euch reuorat~on or repair a economically feasible and the securily of this Mortgage is
not the~eby impaired. I[ such reitorat~on or repair is not economicaily featihle or ~f the security of ~his Mortgage would
be impaired, the insurance proceeds shall be applieJ to the sums secured b~• thic Mongage. ~•~th the exceu, if a~y, pa~d
to Borrower. If ~he Property~ is ahandoned b} Borrnwcr, or it Borrower (ails to respond to l.ender within 30 days (rom Ihe
date notiee is mailed by Lender ~0 8orrower that the insurance carrier o(ierc to settle a claim for insurance benefits, I.ender
ii authorited to collect and apPly the insurance proceeds at I.ender's op-ion eifher to restoration or repair of the Property
or to the sums secured by this ;~lortgage.
Unless Lender and Borrower otherwiu agree in wnting, any such application of proceeds to pnncipal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hercof or change the amount of
such installments. If under paragraph 18 hereof the Property ic acywred b}~ Lender, all right, tiQe and interest of Borrower
in and to-any insurance policies and in and to ~he prcx:eeds thereot resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the eatent of the sums secured by this ;~tortgage immediately prior to such sale or
acquisition.
6. Preser~~lion and ~taiotenance of Propedy; l.eaSeholds: Condominiums; Planned Unit IhveioPmeMs. Borrower
shall keep the •Property in good repair and shall not commit Naste or permit impairment or deterioration of the Properry
and shall comply with the provisions of any lease it this Mor~gage i+ on a Icasehold. If this Mortgage is on a~mit in a
condominium or a planned un~t developmem, Borrower shall perform all of Borrower s obligations under the declaration
or covenants creating or governing the condominium or planned unit develapment, the by-laws and regulationc of the
condomimum or planoed unit development, and constituent Jocuments. I( a condominium or planned umt de~•elopment
nder is executed by Borrower and recorded toge~her with th~s Mortgage, the covenants and agreemeMs o( ~uch rider
shall be ~ncorporated into and shall amend and supplement the co~enams and agreements of this Mortgage as if the rider
were a part hereof.
'7. Protection of I.ender's Security. If Barrow•er faik ~o perform the covenan~s anJ agreements co~tained in Ihis
Mor~gage, ot if any action or proceedmg is commenced which materially afTecls I.ender's interest in the Property.
includ+ng, but not limited to, eminent domain, inso{vency, code enforcement, or arrangemems or proceedings involving a
bankrupt or decedent, then l.ender at Lender's option, upon notice to Bar~ower, map make such appearances, disburse such
sums and take such ac~ion as is necessary to protect l.ender's interest, ~ncluding. but not limited to, disbursement of
reasonable a~tomey's fees and entry upon the Proper~y to make rcpairs. I( Lcnder required mortgage insurance as a
condition of making the loan secured by this Mortgage. Barrower shall pay ~fie premiums required to maintain such
insurance in effect un~il such time as the rcquirement for such insurance terminates in accordance with Borrower s and
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