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Ut+trqw Cov~~nts. Bottower aod L,eader covec~ant and a~~a u tollows:
3. iiq~est ot lA~e}~I a~i IMe~eM. Borrower shall promptiy pay wheo due the priocipal ot and intercst on the
indebtedness evideoood by the Note. Ptepayment aod late charcec ac ~uovided in Ihe Note. and the principal ot and intercsl
aa ~ny Futut~e Advances secured by this Montaje.
2. lh~~i tK T~~s a~i I~wraee. Subject to applica~k law or to a written waive~ by Lender. Borrower shall paY
to Lender oo Ihe day monthly installments of principal aod intcrcc~ rrc payahk under the Note. u~til the Note is paid in tull.
s surn (herein "Fw~ds'~ ~qw1 to ono-twdtth ot the yea~ly taa~~ anJ ~nls which may attain priority over this
Mort~aje. and ~round re~a on ~be Pmpeny. it aey, plus one•twelt~h of yearly premium installments for haurd insurance.
plus or~twelfth of yearly premium inslallments for monga~e insunnce, if sny, all u reuanably estimated initially and tran
time to time by Lender on the buis of assescmcnts and hills and rca~onabk atimata thercof.
The Funds shall be held in an institution the depos~a or accounts of ~rhich are insured or guaranteod by a Federal ot
state asency (includin6 Lende~ if Lcnde~ is such an ins~itution). I.eadtr shall apply Ihe Funds to pay said laxa. uxumeets.
i~unnce premiums and ground rcnts. 1_eode~ may not charge for sn holdina and ap{+lying the Fundc. a~alyzin~ caid account.
or vtri[yins snd compiling said assessments and bilh, unless Leoder pays Borrower interest o~ the Funds and applicable law
petmits Lender to malce such a charge. Borrower and Lender may agrce in writing at the time o( execWion ot ihis
Mortp~e that interost oo the Funds shall be paid to Bo~rower, and unkss such agrceme~t is made or applicable law
roquira such interat to be paid. l.e~der shall not be required to pay Borrower any interest or earnings on the Funds. Lende~
s6a11 pve to Borrower, without charge, an annual accounting ot the Funds showing credits and debits to the Funds and the
purpose for which eaeh dtbit to the Funds was made. The Funds are plodged u additional securily tor ~he sums socured
by tl~is Mortpae.
If tNe amount ot the Funds held by Lender, together with the tuture monthly installments of Funds payabk prior to
t6e due data of taxa. assessments. imunnce premiums and ground rcnts, shall exceed the amount required to pay said taxa.
a:seuments. insunnce prcmiums and ground re~ts u they tall due, such excess shall be, at Borrower s option, either
pmmptly repaid to Bor[ower or crodited to Borrowe~ on monthly ins~allments of Funds. I[ the amount ot the Funds
heW by I.ender shaU not be wf6cieat to pay taaa. assessments, insurance prtmiums and ground rents as they fall due.
Home~ver shall pay to Leader any amouat necasary to make up the de6ciency within 30 days trom the date notice is mailed
by Lender to Horrower ~quatina paYment theroof.
Upoa pay~nent in full of all sums securod by this Mortgage, l.ender shall promptly rcfund to Borrower any Funds
held by Lender. If under puagrsph 18 hereof the Property ia sold or the Property ~s othervvise acquired by Lender, Lender
shall apply. no later than immediately prior to the sak of the Property or i~s acquisition by Lender, any Funds held bv
I.eoder at the time of application as a crcdit against the sums securcd by this Mongage.
3. AppUc~tio~ oE Pqmeafs. Unless app!icable law provides othenvise, all payments receivod by Lender under the
Note aad paragnphs 1 aad 2 hercof shall be applied by l.enJer first in payment of amounts payable to l.ender by Borrower
under puagraph 2 heroof, then to interest payablo on the Notc, thcn to the principal of the Note, and then to interest and
principal on any Future Advanoes.
4. Cbutes; Lkas. Borrower shall pay all ~azes, assessmcnts and othcr charges. fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hercof or, if not pa,d in such manner, by Borrower making payment, when due, directly to the
payee theroof. Bonower shall promptly furn~sh to LenJer all notices of amounts due under this paragraph, aod in the tvent
Borrower shall make payment directly. Rorrower shall promptly fumish to Lender receip~s evidencing such payments.
Bonower shall promptly discharge any lien which has pnority over th~s Mongage: provided, Ihat Borrower shall not be
rcquired to discharge any such lien so long as Borrowe~ shall ag~ee in wnting to the payment ot the obligatiun securcd by
such lien in a manner acceptaWe to Lender, or shall i~ gc~d faith contes~ such lien hy, or Jefend enforcement of such lien in.
kgal proceedings which operate to prevent the enforcement of the I~en or for(e~ture of the Property or any part thercof.
S. Huard Iss~~ance. Borrower shall keep the improvements now~ existing or hereafter erected on the Property insurod
against loss by fire, hazards incluckd with~n the term "ex~ended coverage", and such o~her hazards u Lender may require
and in such amounts and for such pcriods as Lender may requirc; provided, that I_enckr shall not rcquirc that the amount ot
such coverage exceed that amount of~coverage required to pay the s~~ms secured ~by this Mortgage.
"I1~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, providod,
that such approval shall not be unreasonably withheld. All prem~umc on insurance polic~es shall be paid in the manner
provided under paragraph 2 hereof or, ~f not pai~ in such manner, by Borrower making payment, when due, dirccdy to the
inwrance carrier.
All insurance pol~cies and renewals therrof shall be in form acceptable to Lender and shall include a standard mortgage
clauu in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
and Borrower shall promptly furmsh to Lender all renewal no~~ces and all receipts of paid premiums. In ihe event of loss.
Borrower shall grve prompt notice to ~he ~nsurance carner and t.ender. l_ender may make proof of loss if not made promptly
by Borrower.
Uoless Lender and Borrower other.+~ix agree in writing, insurance proceeds shali be applied to restoration or ropair of
the Property damaged, proviJed such restora~ion or repatr ~s economically feasible and the security of this Mortgage is
not thereby impa~rcd. If such restoration or repair is not rconom~cally (easible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mo[tgage, with the eacess, if any, paid
to Borrower. lf the Property is abandoned by Borrower, or it Borrower fads to respond to t_ender within 30 days from the
date notice is mailed by [.ender to Borrower that the insurance carrier ofiers to se~tle a claim for insurance benefits, Lender
is aut6oriud to collect and apply the insurance proceeds at Lender's option either to restoration or repa~r of the Propertv
or to the sums secured by this Mortgage.
Unless Lende~ and Burrower otherwise agree in wnt~ng, any~ such application of proceeds to principa) shall not extend
or postpone lhe due date of the mon~hlv installmentc rcferred to in paragraph~ I and 2 hereof or change the amount of
sucb insWllments. It under paragraph 18 hereo( the ProFerty n acywred b~ Lencler, ali nght, tiUe and interat of Borrower
~n ~od to any ihsurance policies and in and to the proc:eecis thereof resulnng from damage to the Properry prior to th~ sale
or acquisition shall pus to l.ender to the extent of the sums ~ecured by th~s Atortgage immediately prior to such sale or
acquisition.
6. Preservalioa and ~laintenance of Property; Leasehulds; Condominiums; Planned linit Developments. [iorrower
shall keep the Property in good repair and shall not comrpit ytiaste or permit impairment or deterioration of the Property
aod shall compl~• with the ptovis~ons of any lease ~t this Murtgage i~ on a leasch~~ld. If this Mortgage is on a unit in a
condominwm or a planned unrt development. Borrow•er ~hall per(orm all ot Borrower's obligatio~s under the declaratiun
or coveoants creatmg or governing tht condommium or planned unit development. 1he by-laws and regulations of the
condominium or planned unit development. and constituent dcxumem~. If a condominium or planned unit development
rider ~s executed by Borrower and recorded together w~th thi~ Mortgage, the covenants and agreements of such nder
shall be incorporated into and shail amend anJ supplement the covenants and agreements of th~s Mortgage as if the rider
werc a part F~ereof.
7. PrWect'an of I.ender's 5ecurity. If Borrower (ad~ t~• perf~rm the covenants and agreements contained m ihis
Mortgage, or if any action or proceed~ng i~ c~-mmcncr:! whi~h mr~erialh~ a(Tectc I.ender's imerest in the Pmperty,
mclud~ng. but not limited to. eminent domam. ince.lvency, a~cic enforrement. ~~r :~rrangem~nts or prcxeedings invoh•ing a
bankrupt or decedent. the~ LenJer at I.ender', nption, upon no~ice to Borrower, ma} make such appearances, dishurse such
sums and ~ake such acuon ac ~s necescar}• tu p~otect I.ender's mterest, includinR. but not limited ro, disbursement of
rcasonable attome}'s tees and an~ry u~~n the Proper~y~ tc, maAe re~air~. I( I.ender reyuired mortgage incurance as a
condrtion of makmg thc loan ~ccured by ~his ~1~~rtgagr. B~.rrr.wcr sh.dl pay~ ~hc prcmiwns requireJ to maintam such
insurance in efiect unt~l tiuch time a~ ~he reyuirement for wch mcuran;e serminatrs in :ucordanee vvuh Borrawer's and
BQ~JK~~~ P~GE~~~,?