HomeMy WebLinkAbout2372UN~FORM CovFN~Nrs. Borrower and L_enJer covenant and agree ~s follows:
1. P~ymeot ot Principal aad laterest. Borruwe~ shal) prc~mpUy pay whc~ due the principal ot a~d interest on the
inJebtedness evidenced by ihe Note, prepayment and late charges as providcd m ~he Nate, and Ihe principal ot and i~tercst
on any Future Advances secured by this Mortgage.
2. Fuads tor Ta~ca and lnsunace. Subject to applicable law or to a written waiver by I.ender, Borrower shall pay
to I.ender on ~he day monthly installments of principal and interest are payable under the Note, until the Nate ic paid in [ull,
a sum (herein "Funds") equal to onc-tv-•elfth of ~hc yearly taxec anJ assessmenls which may altain priori~y over th~s
Mortgagc, and ground re~ts on the Propetty, if any, plus one-twel(~h ot yearly premium installments for hazard insuraoce.
plus~one-twelfth of yearly premium installments tor mor~gage insurance. it any, all as reasonably estimated initially and from
time to time by l.endcr o~ the basic ot assessmc~tx and bills a~d re~sanable estimatcs thercof.
'Il~e Funds shall he held in an institution the deposits or arcuunts o( whirh are insured or guarante~d by a Federal or
state agency (including Lender if l.ender is such an inst~tution). I.ender ~hall apply the Fu~ds to pay said taxes, assessments.
insurance premiums and graund ren~s. I.ender map nat cha~ge for ~o holding and applying the Funds, analyaing said account,
or verifying a~d compiling said asses~me~ts anJ bills, unless I_ender pay~ Borrower intere~t on the Funds a~d applicahle law
permits l.ender to make such a cha~ge. Borrower and l.ender may agree in writing at the ~ime o[ execu~ion ot this
Mortgage that interest ~~n !he Fu~ds ~hall t~e paid ta Born~wer, and unless such agreement is made or applicable law
reyuires such interest to he paid, l.ender shall not he requireJ ~o pay B~rrower any interest or earnings on the Funds. Lender
ahall give to Borrower, without charge, an annual accounting ot ~he FunJs showin~ credits anJ debits to the Funds and the
E-urpose for wbich each debit to the F=unds w~as made. The Funda •rre pleJged as addi~ional security for ~he sum~ secured
by this ~lortgage.
1f the amount of the Funds held by LenJer, together wi~h ~hc futurc monthl}~ inctallments of Funds payablc prior to
thc due dates af taxes, asscs~ments, insurance prernium~ anJ ground ~ent~, shal! exceeJ thc amount reyuired to pa~~ said taxes,
assessments, insurance premiums xnd ground rents as ~hey f511 due. +uch ercecs ~hall be, :~t Borrower's ~pt~~n, either
promp~ly repaid to Borrower or credi~ed to 8orrower on monthly in.tallmrnts af Funds. I( the amount of thc Funds
held by Lender ~hall not be sutTicient to pay ~axes, assessmcnts, in~uranrc premiumc and graund rents as ~hc}~ fall due,
Borrower shall pay to !_enJer any amount ntees~ar~• to mak~ up Ihe deficienr~• within 30 da~s fr~m ~he date notice is mailed
by Leader to Borrower rrquesting pa)~mcm ~hercof.
Upon payment in full af all sums sccured by thi~ Murtgage. 1 cnder shall prompd~• refunJ to Borrower an}• Funds
held hy Lender. It under paragraph 18 hcreot thc Propcny ic u-Id ur thc Prc~~-crt~ is othera~icr acywred b~• Lendc~, Lcnder
shall apply, no later than immediTtel}, prior to the .ale ~~f thr Pro~xny or its acquisnion by Lender, any i~undc helJ by
Lender at ~he iime ot application as a credit aga~nst the sum~ cecured M• thit ;~lortgagr.
3. Application oi Paymtnts. Unl«s applicaMe law- pro~ iJes otherW i.e. all paymen~c receivtd bp Lender unJcr the
Nute and paragraphs 1 and 2 hereof ~hall be applirJ b~• I.cnder fint in p~~mr~t uf amuunts pay~blc to I.ender hy Borruw•er
under paragraph 2 hereof, then to ~ntcrrst pa}able on the tiute, thcn tu th~ principal of the Note. ~nJ Ihen to interest and
pnncipal on any Fu~urc Advances. -
4. C har~es; Liens. BorroNCr .hall pa~~ all t.~~r~, a~u~timcnts anJ oihcr ~harge~. finc~ an.l im~x-citiuns ~ttnbutahle to
thc Property which may attain a pnoriry ~~ver thi~ ~tortgage, and lcasch~~ld paymcnts ~x ground rents, if any, in_the manner
provided und~r paragraph 2 hereof or. i( not p:ud m such m~nner, hy Borrov-er makinb payment, when due. Jirectly to•the
payee ~hereof_ Borrower shall promptl~• furnish to LenJcr all nobcrs ot amounts Juc under th~z paragraph, and in the event
Borrvwer shall makc paymem direcU~. Borrow~er ~hall prumptly (urm~h to Lendrr rereip~s evidencing such payments.
Borrower shall promp~l~ Jischargc any licn whirh has pn~nty o~r: Ihiti Mortgagc; prov+Jcd, tha~ Borrowcr shall not bc
rcqwred to d~scharge any such licn +o long as Borrowcr shall ~grec in writ~ng t~ thc paymcnt of thc obliga~iun sccured by
such lien ~n a manner a~ceptable ro Lender, or shall in g~x.ci taith conte.~ ~uch lien by, or defend entorcement of such lien in,
legal pr~xeeding~ which operate to prevent the enf~-rcement of thr I~rn or forfe~turr of the Properry or an}~ part thereof_
S. Hazard Insurance. Borrower shall I.ecp the ~mpro~emrn~~ n~~~ e~ic~ing or hercafter errc~ed on the Property ~na~red
against loss b~• fire. haza:ds induded within the term "~~tendeJ coverag~', and such other hazards ac t_ender may reyuire
and ~n such amounts and for such ~xrials ac Lender may reyu~re; pmv~ded. ~hat LenJer ~hall not reyuire that the amuimt af
cuch a~verage erceed that amuunt of co~~erage required t~- pa~ the ~um. ~ecured by thi~ 111orlgage.
The ~nsurance rarrier providing the insurance tihall be cho~rn b~~ Borroucr suhject to aPpro~~al hy I.enJer, provided,
that such approval ~hall not be unreasonahly withheld. All prcmium~ on insurance poliries shall tk paid m the manner
prov~ded undcr paragraph 2 hercaf or. ~f not p•rid in such manner. by Be~:rower making payment, when due, direclly to the
insurance carrier.
All insurance ~+c~l~cieti anJ renewals thereM ~hall tx in lorm arcept.~blr to Len.ler and shal) in~lude a~tandard mortgage
clause in favor iif and ~n form acreptable to Lender. I.rnder tih~tl ha~r the right t~. hold thc poliriec and rene~al~ thereof.
~nd Borruwcr ~hatl promptly turnish to I_endcr all rcnrw~~l no~ire+ and all receipts of paid premium~. In the e.•ent af loss,
Borrower ~hall give prompt nouce to the imurence rarner .~nd Lender. I.enJrr ma~ make proof of loss if not made prompdy
by~ Borr~wer. _
Unlcss 1_cndcr and Borrow~er other~ix: agrre in wr~l~ng, imurance pnkerd~ shall bc applied to restoration or repair of
the Propert}~ damaged, proviJeJ such restoration or repair is econom~raily feasibtc and ~he securitp of this Alor~gage is
not ihereby impa~red. If such restoration or repair is n<a economir•~Ily feacihle or i( ~he securily of this Mortgage would
be ~mpa~red, the insurance proceeds snall be applieJ to the sums secured b~ thic Mongage. v-~ith the excecs, if any, paid
to Borrower. If the Proper~~ is aband~~ncd b~ Borrawer, or it Bormwer taih ~o respond to Lender within 30 days (rom the
Jate notice ~~ mailed b}~ Lender to Borrower that ~he insurance carner otTen to setNe a claim for ~nwrance benefits, I.ender
~~ authorized to collect and apply the insurance proceeds at Lender', optwn either to restoration or repair of the Property
or to thc sums sccured by this Mortgagc.
Unlest Lender and Borrower otherwice agree ~n writing. an~ such application of proceeds to principal shall not extend
or pc~stpone the duc date of thc monthl}• installmcnts rcferred to in paragraphs I anJ 2 hereof or change the amount of
such instalfinents. If under paragraph 18 hereof the Propeny u acywrcd by Lendcr, all right, title and interest of Borrower
in and to any insuranre policies and in and to ~he proceeds ~hereoi resulting from damage to the Property priar to the sale
or acquisition shall pass to Lender to the e?etent of the sums secured by this 111o~tgage immediateiy prior to such sale or
acquisition.
6. Preser~alion and 11~inlenance of Propert~: t.easeholds; ('undominiumc; Planned Unit De~•elopmenls. Borrower
shall keep tF~c Property in good repair and shall not commic Kaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease it th~s Morlg:~ge i~ on a Icaschold. If thic Mortgagc is on a unit in a
condominium ar a planned umt development, Borrower shaU per(orm all of Borrower's ohhgaUOns under the declaration
or covenants creating or governmg the condominium or planned unit development. Ihe by-laws and regulations o( the
conJomimum or planned unit Je~•elopment, and constituem d~xumenl~. It a cond~minium or planned umt Je.elopment
nJer is executed by Borrower and recorded together wilh ~his 111r.r~gage, ~he covenants and agreertients o( ~uch nder
shall be incorporated mto and shall amend and supplement the co~enants and agreements of th~s Mor~gage as if the riJer
were a part hereof.
'7. Protection of Le~er's Security. If Borrower failc to pertorm the covenants anJ agreements contained in this
Mortgage, or if any ac~ion ur proceeding is commenced which materially aBec~s I.ender's interest in ~he Property,
including, but not limited to, eminent domain, insolvency. code en(arcement, or arrangemenls or ptoceedings involving a
bankrupt or decedent, then Lender at I_ender's option, upon notice to Borrower, ma~• make ~uch appearances, Jisburse such
sums and take such actiun as is necessary to protec~ Lender's interest. ~ncluding, "but not limited to, disbursement of
reuonable attomey's tees and en~ry upon the Property to make repa-r~. If I.cnder required mortgage insurance as a
c4ndition of making the loan secured by this Mortgage. Borroy-•er shall pay Ihe premiums required to maintain such
insurance in effect until such time as ~he requirement for such insurance terminates in accordance with Borrower s and
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