HomeMy WebLinkAbout2085UN~FOttt-t Cov~N~NTS. Borrowe~ a~d l.ender covenant and agree as follaws:
1. Paymeot of P~iacipN sod latenst. Borrower shall p~omptly pay when due the principal o( and i~terest on the
indebtedneu evidenced by the Note, prepaymenl and late charges as provickd ~n the Note, and the principal of and in~erest
on any Future Advances se.:ured by this Mortgage.
2. Fuadt for '1'ua and lasuraace. Subject to applicable law or to a written waiver by l.ender, Borrower shall pay
to [,ender on ~he day monlhly i~stallments of principal and intcrec~ are payable unJer the Note, until the Note is paid in full,
a sum (herein "Funds") equal lo one-twelfth a( the yearly ~axes ancl assessments which may at~ain priority over thix
Mortgage, anJ g~ound rents on the Property, if any, plus one-twelfth at yearly premium inslallments for hazard insura~ce,
plus one-twelfth of yearly premium installments tor mortgage insurance, if any, all as reasonably eslimateJ i~itially and trom
time to time by I.cndcr on thc basis of assessmentS and hills and ~ea~onable ectimates thereot.
The Funds shall t-e held in an institution the deposits or accaunts o( which are insured or guaranteed by a Federal or
state agency (including Lender if I.ender is such an ins~itutian). l.ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. I.ender ma~~ not charge tor ~o holding and applying the FunJs, anal~~zing said account,
or verifying and compiling said asse~smenls and bills, unless l.e~der p:~y~ Born~wer interest ~~n the Funds and applicable law
permits Lender to make such a charge. E3orrower and I.ender may agrec in writing at ~he time o[ executian ot this
Mortgage that intcrest on ~he FunJs ~hall he paid lo Borrower, and unlcss such agreement is made or applicablc law
reyuira such interest to be paid, l.ender shall not he reyuireJ to pay Borrower any in~cresl ar earningti on the Funds. Lcndcr
shall give to Borrower, wilhout charge, an annual accounting of the runJs showing rredits and debils ta the Funds anJ the
purpose for which each debit to the I'unds was made. The F;und~ arc pledged ati additional security for the sums secured
by this Mortgage. '.
If the amount of the Funds held by I.enJer, logcthcr wi~h thc tuwrc monlhly inctallmcnls of Funds payablr prior to
the due dates of taxa, assessments, insurance premiums anJ ground rents, shaU exceed the •rmount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excecs shall be, at Rorrower's option, erther
prompdy repaid to Borrower or credited to $orrower on man~hly im~allments of Funds. If thc amount of the Funds
held by Lender shall not be suflicie~t to pay taxes, assessmen~s, imurance premium~ and ground rentc as ~hcy fall due,
Borrower shall pay to I_ender any amount neressary to makc up the dcficiency within 30 days trom thc datc notice is mailcd
by Lender to Borrower requesting ~-ayment ~hereof.
Upon payment in full of all sums sec:ured by this Mortgagc. I cndcr shall promptly rcfund to Borr<~w•er any FunJs
held by I_enJer. If under paragraph 1R hcreof thc Propcny is.tiotd or ~hc Properly is olhen+~ice acy~nred by LcnJcr, Lcnder
shall apply, no later than immediately prior to the sale of thc Pro}perty or its acquisitian hy I.ender, any I=unJs helJ by
Lender at the time of application as a credi~ against the sum~ secured by this Mortgage_
3. Application ot Payments. Unless applicahlc lav-• providcs othcrwicc, all paymcn~s rcccivrd by Lcnder unJcr the
Note and paragraphs 1 and 2 hereof shall be applicd by LcnJer first in paymcnt u( amounts payablc tu l.cndcr by Borruw~er
under paragraph 2 hereof, then to interes~ payablc on the Nwc, then to thc principal of the Nmc, and then to interest and
principal on any Futurc Advances.
4. Cha~es; Lkns. Borrowcr shall pay all taxc~, a~kc~mcMs and othcr chargcc. fines and ~m~x~sitions attributahle to
the Property which may attain a priority over this A1ortgage, and IeaseholJ payments or ground rents, if any, in the manner
provided under paragraph 2 hereo( or, i( not paid in such manner, by Borrowe~ making payment, when due, directly t~ the
payee thcreof. Borrower shall promp~ly (u~nish to I_enJcr all notices of amounts due under this paragraph, and in the event
Barrow~r shall make pa~meni dire~Uy, Borrower tihall prompdy furnish to Lender receipts evidenc~ng such paymentc.
Borrower shall promp~ly discharge any lien Khich has pnonty over thi~ Morlgage; provided, ~hat Borrower shall not be
required to d~scharge any such lien so long as Borrower sh•rll ag~ec in writing to the payment o( the obGgation secured by
such lien in a manner acceptable ~o (.ender, or shall in gcxxl faith conte~t such lien by, or defend enforeement of such lien in,
legal proceedingc which operate to prevent the enforcement of the I~en or tor(eiture of the Property or any part thereof.
S. Naiard Insurance. Bonower shall keep the ~mprovements now existing or hercafter erected on the Property insured
against loss b~ 6re, hazards included within the term "extended coverage", and such other hazards as I.ender may re~~uire
and in such amounts and for such periods as Lender may reyuire; provideJ, that L~nder chall not reyuire that ~he amount of
such rnverage exceed that amount of coverage reqwred to pa}• ~he sum~ secured by ~his Mongage.
"fhe insurance carrier providing Ihe insurance shall he che~sen by Borrower siibject to approva) by Lender, provided,
that such approval shall not be unreasonably withheld. All premium~ on insur•rnce policies shall be paiJ in the manner
provided under paragraph 2 hereo( or, if not paid in such manner, by Borrower makmg payment, when due, directly to ihe
insurance carrier.
All insurance Eiolicie~ and renew~als therei~f shall be in form aciep~able to l.ender and shall ~nclude a~~andard mor~gage
clause in favor of and in form accep~able to Lender. 1_ender .hall have ~he right to hold ~he policies and renew•al~ Ihereof,
and Borrower shall prompdy furnish to Lender all renewal no~~ces and all seceipts of paid premium~. In the event of lo~s,
Borrower shall give prornpt notice to ~he inaurance carner and 1_ender. I_ender may make pn~f nf loss if not made promptly
by Borrower.
Unless Lender and Borrower othcrw„c agrcc in wril~ng, irourance pnxccds shall bc applicd to restoration or repair of
the Property JamageJ, proviJed such re~toratiun or repair ~s economically (easible and the securi~y of this Mortgage is
not thereby impaired. I( such restoraNon or repair is not econamically (easible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any. Paid
to Borrower. !f Ihe Property is abandoned by Borrower, or it Bormwer fails to respond to I.ender within 30 days trom the
date notice is mailed by Lender ~o Borrower that ~he insurrnce carner ofTers to senle a claim for insurance henefits, I_ender
i~ authorizec! to collect and apply Ihe insurance proceeds at I.ender's option either to ratoration or repair of thc Property
or to the sums secured by this Mortgage.
Unless 1_ender and Borrower otherv-.ise agree in writing, any such application of proceeds ~o pnncipal shall not extend
or postpone the due date of the monthly installments re[erred to in paragraphs I and 2 hereof or change the amount of
such installments. It nnder paragraph 18 hereof the Property is acyuired by Lender, ali nght, title and interest of Borrower
in and to any insurance policies and in anJ to the proceeds thereot resulting Irom damage to the Properly prior to the sale
or acyuisition shall pass to Lender to the extent of Ihe sums secured by this Mortgage immed~ately prior to such sale or
acquisition. •
6. Preservalion aod 111aiolenance of Property; I.ezseholds; Condominiums; Planned Unit ihvelopments. iiorrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the pro~is~ons o( any lease i( this Mortgage n on a Ieasehuld. I( ~his Mortgage is on a unit in a
condominium or a planned unrt ckvelopment, 8orrower shall perform all o( Borrower's obbgations under ~he declaraUon
or covenants creating or govermng the condominium or planned unit developmenl. ~he by-laws and regulation~ of the
condominium or planned unit development, and constituem documen~s. I( a condominium or planned umt devclopment
nder ~s executed by Borrower and recorded together w~Ih ~h~s Mortgage, ~he rnvenants and agreements of 4uch rider
shall be incorporated into and shall amend and supplement the covenams and agreements of this Mortgage as it the rider
were a part hereof.
7. Proteclion of Ltnde~s Security. lf f3orrower failc ~o perf~rm the covenants and agreemenls contained in this
Mortgage, or if any action or proceeding is commenceJ which ma~erially aBects I.ender's interest in the Proper~y,
including, but not limited to, eminent domain, insolvency, code entnrcement, or arrangements or proceedings invol~•~ng a
bankrupt or decedenl, ~hen Lender at !_ender's option, upon notice ~o Borrower, may make such~appearances, ~iisburse such
sums and take such action as is necessary ta protect I.ender's interest, incluJing, bul not limited to, disbursement of
reasonable attomey's (ees and entry upon the Proper~y to make repairc. If I.cnder requireJ mortgage insurance as a
cond~uon of making the loan secured by ~h~s Mortgage, Borrower shall pay ~he premiums required to maintain such
insurynce in eBect until such time as ~he requirement for such msurance terminates in accordance with Borrower s and
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