HomeMy WebLinkAbout2445UNt~on~t Covan~rm. Bor[oMrer and Lender oov~nant and atroe u follows:
1. ~rwpM ef hMciMl a~i 1den~1. Borrower shall Mompdy pay when due the principal of and intc-est on the
indebtednat avideticed by the Note. prep~-yment and late cha~gec ac ptovided in Ihe Note. and the principal ot and intercs~
vn soy Future Advu~ces securod by this Mortsa~e.
2. lh~~i tor T~ a~i I~n~es. Subject to applicahk law ar to a written waiver by l.ender. Borro~rc~ sha~~ P~y
to Lender o~ 1he dsy monthly instsllments of principal and intcrest ~rc payable uoder the Note. uotil the Note is paid in full.
a sum (Aerein "Funds'~ eqwl to a~e-tweltth ot the yea~l~~ tax~~ aml assessments which may attain prioriry over this
Mort~aje. and ~cound rent~ oe the Prope~ty. if any, plus one-twelfth ot yearly prcmium installments for huard insu~ance.
plus one-twelfth of yea~ly premium installments (or mortgsge insurancc, it any, all as rcuo~ably estimated initially and trom
time to time by Lender on the buis o( asxssmcn~s and hills and rcasonabk atimata thereof.
'Ibe Funds shall be held in an institution the deposia or •rccounts of which arc insured or gusnnteod by a Federal or
state aaency (includins Lender it Lcnder is such an institutionl. I.ender shall aPp1Y Ihe Funds to paY said taxa. assessments.
in=uranoe ~tmiums and ~ound reots. l_ende~ may not charae tor se+ holding snd applying the Fonds. analyting caid accouot.
or veriEyint and comqling said assessments and bilh, u~kss Lender pvys Borrower interat on the Funds and applicable law
pernuts Lender to make such a charge. Borrowe~ and Lende~ may agroe in writing at the time ot ezecwion ot this
Mortpse that interat on the Funds shall be paid to llorrowe~. aad unless such ag~eement is made or applicable law
requira such interat to be paid. Lender shall not he rcquircd to pay Borrower any intercst or earnings on ihe Funds. Lender
sbal) sive to Borrower. without charge, an annual accounting of tht Funds showing credits and debits to the Funds and the
purpoae for which ach debit to the Funds wu made. The Funds are pledged u additional security for the sums secured
by tlus Mort~e.
If the amount of the Fuads held by Lender, together with the future monthly installments of Funds payable prior to
tbe due data of taxa. icsasme~ts. insurance premiums and g~ound rcnts, shall exceed the amount rcquircd to pay said taxes,
ssse~anents. insunnce prcmiums and gcound rcnts as they fall due, such excess shall be, at Borrower s opt~on, either
prwnptly repaid to Bormwer or ccedited to Borrower on monthly installmcnts of Funds. If the amount ot the Funds
6eld by Leoder shall not be wKicient to pay taxa. aaessments, insurance ptemiums and ground reots u they tall due,
Borm~ve~ shall piy to I.ender any amount necasary to make up the deficiency within 30 days from th~ date notice is mail~d
by Lender to Borrower requating paymem thereof.
Upoa payment ia fuU of all sutns socurcd by this Mortgage, l.ender shall promptly retund to Borrower any Funds
held by Leoder. If under puagraph 18 hereof the Property i~ sold or the Property ~s otherwise acquircd by Lender, I.ender
s6d1 apply. no later than immodiately prior to the sale of the Property or its acquisition by t_ender. any Funds held bv
I.ender at the time of application as s credit against the sums securcd by this Mortgage.
3. A~licatio~ ot Paymeas. Unless applicable law provida otherwise. all payments received by Lender under the
Note aod paragraphs 1 and 2 hereof shall be applied by Lender first in payment o[ amounts payabl~ to Lender by Borrower
under parsgraph 2 hereof. then to interat payabk on the No~e, then to the principal of the Note, and ~hen to interest and
principal on any Future Advanoes.
I. Crar~a; Lkns. Borrower shall pay all taaes. assessments and o~hcr charges, fines and impositions attributable to
tbe property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, i( not paid in such manner, by Borrower making payment, when due, directly to the
payae thereof. Bormwer shall promptly furn~sh to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnisb to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has pnonty over ~hic Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agrre in vrnt~ng to ~he payment of the obligatiun secured by
such lien in a manner acceptabk to Lender, or shall ~n good faith contes~ such lien by, or defenJ enforcement of such lien in,
legal proceed~ngs which operate to prevent the enforcement of tf-e lien or [orfe~ture of the Property or any part thereof.
S. Huard Insurance. Borrower shall keep the improvements now existing or hereatter erected on th~ Property insured
against loss by 6re, hazards included within the term "eztended coverage", and such other hazards as Lender may reyuire
and in such amounts and for such periods as Lender may requirc; provided, that Lender shall not rcquire that the amount of
such coverage exceed that amount of coverag~ required to pay the sums securcd ~by th~s Mort6age.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that wch approval sha11 not be unreasonably withheld_ All premium~ on insurance policies shatl be paid in the manner
provided under paragraph 2 hereof or, if not pai~ in such manner, by Borrower mak~ng payment, when due, ditectly to the
insurance carrier.
All insurance pol~cies and renewats thereof shall be in form acceptable to LenJer and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall prompUy [urmsh to Lender all renew•rl notices and all receipts o( paid prcmiumc. In the event of loss,
Borrower shall grve prompt notice to the insarance carner and Lender. Lender may make pr«~f of loss if not made promptly
by Borrower.
~ Unless Lender and Borrovver otherw~sc agree in w~iting, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such reatoration or repair is economically feasible and the security of this Mortgage ~s
not thereby impaired. If such restorat~on or repair is nat econo~nically (easibte ~r it the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Morigage, with the excess, i[ any, paid
tn Borrower. If the Property is abandoned by Horrower, or it Borrower fads tc. respond to Lender within 30 days from the
date notice ~s maded by Lender to Borrower that the insurance ~arrier ofiers to settle a claim for insurance benefits, 1_eader
is authoriud tv collect and apply the irssurance proceeds at I_ender's option either to restoration or repa~r of the Propertv
or to tt~e sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in wnting, any such application of proceeds to pnn~ipal shall not extend
or postpone thp due date of the monthly installmcntt rc(erred to in paragraphti I anJ 2 hereof or change the amount o(
suc6 installmeuts. If under paragraph 18 hereof the ProE,erty is acyu~red by l.ender, all right, title and interest ot Borrower
in aod to any Insurance policies and in and to the proceeds thereof resulung from Jamage to the Propeny prior to th.: sale
or acquisitian shall pass to l.ender to the extent of the wms secured hy th~s Mortgage immediately prior to such sale or
acquisition.
6. Preaervation aad ~taintcn~nce ot Property; Leaseholds; Condominiums; Planned Uuit Developments. Borro~cr
shall keep the Property in guod repair and shall not comroit y~'aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease ~t th~s Mortgage is on a leasehold. It this Mortgage is on a ~mit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declarahun
or coveoants creating or govermng the condomimum or planned umt devel~pment, the by-laws and regulationc of the
condominium or planned unit develo~,ment. and constituent da:umen~~. If a conJominium or planned unit devel~pment
rider ~s executed by Borrower and recorded t~zge~her with ~hic Mortgage. the covenants and agreements of such nder
shall bt incorporated ~nto and shall amend and supplcment the co~enants and agreements ot this Mortgage as i( the ri.icr
were a part fereof.
7. ProttNion ot i.ende~'s Secu~fty. I( Borr~v-er (a~l. t~~ ~rf~~rm the covenants and agreements rnntained in thic
Mortgage, or if any action ur proceedmg ~s a~mmrnceJ v-hich materially afierts I.ender's inlerest in the Proper~y.
includmg, but not I~mrted to, emincnt domain, in~lvency. a~de cn(arcement. or arrangementc or pmceedings ~mol.mg a
bankrup~ or decedem. then Lender at LenJer'~ option, upon notice to Borrow•er, ma~ make such appearances, duhurse ~uch
~ sums ~nd t~ke such ac~ion ac ~s neceetiar}~ to pmtect l.ender's interest, includmg. but not lim~ted to. d~sbursement ot
reawnable a~tomey's fce~ and entry u~m ~he Propcrt~• ~o makt repein. It 1_ender rcyuircJ mortgage incurance ati a
condit~on ot makmg the loan cecureJ by thi~ At~~rtg~ge. B~.rn:NCr sh.dl pa~~ thr premiums reqoireJ to mai~ita~n wch
~nsurance in rlted until tiuch t~me as the reyuirement for wch imuran;c term~nate~ ~n :~ccordance ahh Borr~~wer'c :mJ
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