HomeMy WebLinkAbout2345UN~FORat Cov~N~NTS. Borrower and l.ende~ cavenant and agroe as follows:
1. Payment ot P~incipal and latenst. Bor~uwe~ shall promptiy pay when due the principal ot and interest an the
indebtedneu evidenced by the Note, prepayme~t and late charges as provided in the Note, and ~he principal of and intercst
on aoy Futu~e Advances ucured by thic Mortgage.
_. ~nds ~or Tues s~d Insuraace. Sut,ject to applicabie law ar to s written waiver by Lender. Borrower shall pay
to I.tnder on Ihe day monthly installments of principal a~d interest arc payable under the Note, u~til thc Note is paid in (ull,
a sum (herein "Funds") equ~l to ooe-twelfth ot the ycarly taxes and asussments which may attain priority over this
Mortgagc, and ground rents on the Property, if any, plus one-tweltth of yearly premium installments for hazard insurance,
pius one-twel[th of yea~ly premium installments for mortgage insurance, if any, all as reasanably estimated initially and trom
time to time by Lende~ on the basis of asxssmen~t and bills and reasonabte atimates thereof•
The Funds shall be he1J in an institution ~he deposits or accounts ~t which are i~sured or guaranteed by a Federal or
state agency (includi~g l.ender i[ [_ender is such aa i~stitution). I.ender shall apply the Funds to pay said taxes, assessments,
~nsurance premiums and ground rents. I.ender may nat cha~ge far ~o holding and applying the Funds, analyzing said accaunt,
ur verifyi~g and compiling said assessments and bills, unless I_ender pa)~s Borrower interest on the Funds and applicabte law
permits L.e~de~ to make such a charge. Borrower and t.ender may agree in writing at ~he Iime of execution of tfiis
~iortgage that ioterest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
reyuires such interest to be paid. l.ender shall not he rcquired ta pay Borrower ~ny interest or earnings on the fiunds. 1_ender
~hall give to Borrower, v-•ithout charge, an annual accuunting of ~he Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds wa~ made. The Funds are ple~lged as additional xcurity for the sums secured
by this Afortgage.
If the amount of the Funds held by I_ender, ~ogcther wi~h ~hc tuture monthly inct:~llments of Funds payable prior to
thr due dates ~~f taxes, assessments, insu~ance premiums anJ ground rents, shall exceed the amount reyuired to pay said taxes,
asseumentc, insurance premiums and gmund rents as they fall due, such excecc shall be, at Borrower s option, ei~her
prompUy repaid to Barrower or credited to Bormwer on monthly inct:~llmcnts of Funds. If the amount of the F~nds
held by Le~dcr shall not be sufficient to pay taxcs, assecsmcnts, insurancc prem~umc and ground rents as they fall duc,
Borrower shall pay to Lender any amount necessary ~o make up the deficienry within 30 da?•s froni ~he date notice is mailed
by Leader to Borrawer requesting paymcnt ~hercaf.
Upon payme~t in ful) of all sums secured by thic Mor~gagc. Lcndcr shall promptly refund to Bormv-er any Funds
held hy Lcnder. If under paragraph Itt hcreof the Propen~ ~~ .~~Id or ~hc Propcrt}~ ~s otherwicc arqu~red by I.ertder, l.ender
shall apply, no later than immediatcly prinr to the .ale of. thr Proixrty ur its acqwsnian b~• l.ender. any fiunds heW by
Lender at the time ot application as a creJit aba~nst the sum~ secured by ~his ~fortgage.
3. Application ot Payments. Unle~s applicaMe law~ proviJes othetwi~c, all paymeots receivcd by t.ender un~lc~ the
tiutc and paragraphc 1 and 2 hereof shall be appheJ b~• I.cnJcr fint ~o pa~mcn~ ~~f amounls payahtc to LenJer by Horrow~er
undcr paragraph 2 hereof, then to intcrest payabtc on thr tiutr, then ti~ thr principal of the Notc, anJ ~hrn t~~ interest anJ
pnnc~pa! on an}• Future Ad-ances.
4. CharRes; Liens. BorroNCr ~hall pay all tarc~, a,ccs~mcMs and othcr chargr~_ fineti anJ imFxnilinns allributahle ta
~he Property a•hich may auai~ a prioriry over this ~tortgage, and Ieasehotd paymcnts ~,r ground rents, if any, in the maoner
provided under paragraph 2 hereof or. ~f not paid m such m~n~cr, b~• Borrowcr making paymen~, when due, direc0y to the
payee thercof. 8orrower shall prompdy furn~sh to Len~er all not~ces of amounts due under this paragraph, and in the event
Borrower shall make payment direc~h•, Borrower shall pramptly (urnitih to Lenckr re~eipts e~~idencmg such payments.
Borrov-er shall promptly discharge any I~en Nhi~h has pnonty ~~.~er thic Aturtgage: proviJed, that Sorrower chall not be
reqwred to discharge any cuch lien so long as 8orrower shall agrrr in Hri~ing to the payme~t of the obliga~ion secured by
wch lien ~n a manner arcepiable to Lender, or shall in go~xi faith conte~t ~uch lien F-y, or defenJ enforcement of such lien in,
legal prcx:eed~ngc N•hich operate to prevent the enforccment o( thc I~cn or forfeiturc of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the ~mpro~ement~ no~ e~icUng ~.r herea(ter erected on the Properry intured
against loss h}' fire. haza:ds incluJed within the term "ratendeJ rover:+ge", and such rnher hazardc ac Lender may reyuire
and ~n such amounts and for wch periocis as Lender may reyuirr, pmvideJ, that Lender shall not require that the am~~unt of
wch cuverage etceed that amount ~~f co.erage required tii pa~~ the ~umt ~ecured hy this Mortgage.
The insurance rarrier providing the insurance ~hall be chosen by Borrower subject to approval by !_ender, provided.
that wch approval ~hall not be unreasonahly ;xithheld. All prrmiumc on insur~nce pc~licies chall t-e paid ~n the manner
provided under paragraph 2 hereot or. if not paid in such manner, by B~~rrower mak~ng payment, when due, directly to the
~nsurance carrier.
All insurance polirieti and renewals thereof shal! tx in form xcepr.~ble to Len~}er and shall ,nclude ~ uandard mortgage
clause in favc.r of and in form arceptable to Lender. l.rnder +hal) h~ve ~he right ta hold the poliri~s and renewal~ thereof,
~nd Borrower ~hall promptl~• furoish t~ Lender aU reneual nouces and all receipts of paid premium~. In the e.ent of loss,
Borrower tihal! gi~•e prompt notice to the inwrance carner and Lender. Lendrr ma~ make prcx~t of loss if not made p~omptly
b}• Borrower.
Unless l.ender and Borrower othcrw~i+c agrec in v-ritmg, imurance pnxecds shall bc applied to restoration or repai~ of
the Property Jamaged, prov~ded such retitorat~on c~r repair is economicall~~ feasihle and tiic security of this Mortgage is
nat thereby impaired. I[ such restoration or repair is n~t «onomirally fcas~htc or ~f the security of this Mortgage would
be impaired, the ~nsurance proceeds shall be applieJ to the sums secured by~ this Mortgage, w~th the excess, if any, paid
to Borrower. If the Propert~ is abanJoned h} Bormwer, ur if Bormwer fail~ to respond to I_ender within 30 days from the
Jate notice is mailed by Lender to Borrower that the insurance carrier ofier~ tu setUe a claim for ~nsurance benefits, i.ender
iti authorized tn collect and apply the insurance prceeeds at Lender's optiun either to restoration or :epair of the Pmperty
or to the sum~ sccured by this Mortgage.
Unless Lender and Borrower otherwise agree m writing, an}~ such application of proceeds to pnncipa) shall not extend
or postpone the due date of the mon~hl}• installments referred to in paragraphs I anJ 2 hereof or change the amount af
such installments. If under paragraph 18 hereof the Property ~s acyu~red h~• Lender, all right, litle and interest of Borrower
m and t~ any insurance policies and in and to the proceeds thereof resulting from damage to the Propeny prior to the sale
or acquisition shall pass to-Lender to the extent of the sums secured hy ~his Atortgage immediately prior to such sale or
acquisition.
6. Preser~alion aud 1laiotenance of Propert~; [.easehotds; ('ondominiums; Planned I,`nit Dtvelopmenls. Borrower
shall keep the Propeny in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shal! comply with the provisions o( any lease if this Mortgage iti on a Icaschold. If this Mortgagc is on a unit in a
condominwm or a planned unit devclopment, Borrow•cr shall perform all of Borrower's obbgadons under the declarauon
or covenants creating or govermng the condominium ar ptanned arnit development, the by-laws and regulations ef the
condominium or pianned unit development, and constituent Jocuments. If a condominium or planned unit de~•elopment
rider is executed by Borrower and recorded together with tha Mnrtgage, the covenants and agreements of such nder
shall be incorporated into and shall amend and supplement the co~~enanls and agreements of this Mor~gage as if the tider
were a part hereof.
7. Protection of I.ender's Secority. If Borrower fails to per(o~m the covenants and agreements contained in this
Mortgage, or if any act~on or proceeding ~s commenced v-•h~ch ma~erially afiects I.ender's interest in the Propeny.
including, but not limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings invol~~ing a
bankrupt or decedent, then Lender at l.ender's option, upon notice to Borrower, may make such appearances, dis6uru such
sums and take such action as is necessary to protect Lender s~nterest, incluJing. but not limited to, disbursement of
reuonable attorney's fees and entry upon the Property to make repairs. I( l,ender required mortgage insurance as a
condition of making the loan secured by ~his Mortgage, Borrower shall pay the prcmiums requi~eJ to maintain such
insurance in effect until such time as the requirement for such insurance terminates m accordance with Borrower s and
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