HomeMy WebLinkAbout2541U[viFORM CovtN~tvTS. Bormwer and I.ende~ c~~~•enan~ and :l~fCt JS fOUOWS:
1. Paymept of P~i~cipal aad Inlerest. Borrower shall promptly pay Nhen due thc principal a( a~d interest on the
indcbtedness cvidenced by thc Notc, prcpayment and late ch•rrgec as provided in the Nota, and the principal of and intercsl
on a~~y Future Advances secured by this Mortgage.
2. Fnads tor Tues and lasunace. Subject to applicable law or to a written waive~ by ~ender, Borrowe~ shall pay
to l.cnde~ on ~he day monlhly installmems of principal and inte~ec~ arc payable under 1he Note, until the Note is paid in tull.
a sum (herein "Funds") equal to onc-tweltth of ~he yea~ly ~axec anJ asussmcnfs which may attain priority aver this
Morlgage, and ground rents on thc Pooperty. if any, plus ane-twelflh ot ycarly premium instaUments for hazard iosurance,
plus one-twelith of yearly premium installments iar mortgage insurance, if any, all as reasonably estimated initiaUy and trom
time to time by I.ender on thc basis ot assessments and bills a~d reasonable estimata thereof.
71~e Funds shall t+e held in an institution the deposits o~ accaunts ot which are insured or guaranteed by a Federal or
state agency lincluding Lender if I_ender is such an institution). 1_ender shall apply Ihe Funds to pay said taxa. assessments,
insurance premiums and g~ound rents. I_ender may not charge tar so holding and applying the Funds, analyzi~g said account,
or verifying and compiling said assessments and bills, unless l.ender pays Bor~ower interest on the fiunds and applicable law
permits I_ender to make such a charge. Barrowtr and l.ender may agree in writing at ~he time of execution of this
Mortgage that interest an the Funds shall t~e paid to Borrawer, and unless such agrcement is made or applicable law
requires such interest to be paid. ~ender shall not he required ta pay Borrawer any interest or earnings on the Funds. l.ender
shall give to Barrower, without charge, an annual accoun~ing of the FunJs showing credits and debils to the Funds and the
purpose for which each debit to the Funds was maJe. The Funds are pledged as aJditional security for the sums secured
by this Mortgage. .
If the amount of the Funds held by Le~Jer, together v-•ith ~he (uture monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required ta pay said taxes,
assessments, insurance premiums and ground rents ac they fall due, such e!ccess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amuunt of the Funds
held by Le~der shall not be suflicient to pay taxes, assessments, insurance premiums anJ ground rents as they fall due.
Borrower shall pay to Lender any amount necessary to make up the deficiency within ;0 days trom the date n.~tice is mailcd
by Lender to Borrower requesting payment thereot.
Upon payment in full of all sums secured by this Mor~gage, l.ender shall promptly refund to Borrov-er any Funds
held by l.ender. If under paragraph 18 hereo( the Property is sold or ~he Property is othervvise acquired by I.ender, I_ender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by I_ender, any Funds held by
Lende~ at the time of application as a crcdit against the sums secured by~ th~s Mortgage.
3. Application of Payments. Unless applicable law proviJes otherwise, all payments received by t.ender under the
Note and paragraphs 1 and 2 hereof shall bc applied by 1_ender 6rst in payment of amounts payable to I_cnder by Borrower
under paragraph 2 hereof, then to interest payable on the Note, thcn ~o thc principal of the Note, and thcn to interest and
principal on any Future Advances.
4. Clwrges; Lk~. Borrower shall pay all taxec, astcssmcnts and o~hcr charges, fines aoJ im~xxitions attributahle to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided unJer paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof_ Borrower shall promFtly furnish to LenJer all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower chall promptly furnish to I_ender receipts evidencmg such pa)'ments.
Borrower shall promptly discharge any lien which has priority aver this Mortgage: provided, that Borrower ~hall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obliga~ion secured by
such lien in a manner acceptable to Lender, or shall in gcxxl fai~h rontest such lien by, or defenJ enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forteiture of the Property or any part thereof.
S. Hazard insurance. Borrower shall keep the improvcments now existing or herca(ter erccted on the Pr.~perty insured
against loss by fire, hazar~s included within the term "ertendeJ coverage", anJ such other hazards ac I_ender may require
and in such amounts and [or such periods as Lender may reyuire: provided, that Lender shall not reyuire that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
"ilie insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender: provided,
that such approval shall not be unreasonahly withheld. All premiums on insurance policies shall be paid ~n the manner
provided under paragraph 2 hereof or, if not paid in such manner, by B~~rrower making payment, when due, dircctly to ihe
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptab:e Io Lender and shall inclode a ttandard mongage
clause in favor of and in form acceptable fo Lender. !_ender shall ha~•e the right to hold the policies and renev-•als thereof,
and Borrower shall promptly furnish to Lender all renewal notices anJ all receipts of paid premiums. ln the event of loss,
Borrower shall give prompt notice to ~he insurance carrier :~nd l.ender. !_ender may make pr.x-( o( loss if not made promptly
by Borrower_
Unless Lender and Borrower otherw~se agree in writing, inwrance proceeds shall be applied lo restoration or repair of
the Property damaged, proviJed such restoration or repair is econamirall~~ feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not rcon<~mically feasible or i( the security~ of this Mortgage would
be impaired, the insurance proceeds shall be applieJ to the sums secureJ by this Mortgage, wi~h the excess, if any, paid
to Borrower. I( the Propert~ is abandoned by Borrower, or it Borrowcr [ails ta respond to I.ender within 30 days (rom ihe
date notice is mailed by Lender to Borrower that Ihe insurance carrier olTers to se~tle a cfaim for insurance henefits. 1_ender
is authorized to collect and apply the insurance proceeds at l.enJer's option either to res~oration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree m w~nting, any such application of proceeds to principal shall not exte~d
or postpone ~he~due date of the monthl} inslallments re(erred to in paragraphs 1 and 2 hercof or change thc amount of
suc#~ installments. If under paragraph 18 her~of the Propert}~ is acyuireJ b~~ I.ender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereot resulting from Jamage to the Property prior to the sale
or acyuisition shall pass to Lender to ihe extent of the sums secured by~ this 1lfortgage immediatel}• prior to ~uch sale or
acquisition.
6. Presen~alion aod M1taintenance of Propert}: l.easeholds; Condominiums; Planned Unit Ik~•elopments. Borrow•er
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Propert~~
and shall comply with thc provisions of any lease if thi~ Mortgage is un a Icasehold. If thic Mortgage is on a unit in a
condominium or a planned unit Jevelopment, Borrow•er shall pertarm all of Borrower's obLgations under the declaration
or covenants creating or governing the condommium or planned unit development, Ihe by-laws and regulations of the
conJominium or planned unit development. •rnd constituent Jocument~. I( a conJominium or planned umt de.•elopment
nder is executed by Borrower and recorded toge~her w~th thi~ Mortgage, the covenants and agreements ~f such rider
shall be incorporated into and shall amend and supplement the covenants anJ agreements of this Mortgage as i( the riJcr
v-•ere a part hereof.
7. Profection of Lende~s Security. If Borrower fail~ to perform the covenants anJ agreements contained in this
Mortgage, or i[ any action or proceeding is commenced which materially aBects Lender's interest in the Property.
including, but not limited to, eminent domain, insol~~ency, ccxle enf„rrement, or arrangements or proceedinFs invol~ing a
bankrupt or decedent, then l.ender at I.ender's option, upon notice to Borrower, ma}~ make such appearances, dishurse such
sums and take such action as is necessary to pro~ect l.ender's imeresl, incluJing, but not limited to. Jisbursement of
reasonahle attomey's fces and entry u{pon the Proper~y to make repairs. It Lender required mortgage insurance as a
condii+on of making the loan secured b~~ this Mongage. Borrower shall pay the premiums requireJ to maintain such
insurance in efiect until such time as ~he reyuirement (or such msurance terminates in aceordance w~ith Borrower's and
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