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UNIrORM COVlNANis. Bo~rowe~ and Leade~ cove.~aM and sara u follow::
~. liqr^~e~t ot hrel~l a~i Idenst. 8orrowe~ shall p~omp~i~ pay when due the principal ot aod interest oo thc
indebtednas evidenced by the Not0. p~WY~nt and late charges ac p~ovided in ~he Note, and the principal ot and interes~
on any Futuro Advsnces secured by this Mortssse.
2. 14~i ter Ta~~s awi I~arrce. Subject to applicat+k law •.r to a wrilten waiver by Ixoder. Borrower shall paY
to Lentkr on the day mo~thly installments of principal a~d in~crcct ~rc payahk under the Note. until the Note is paid in full,
a sum (herein "Funds") eqwl to ooe-tweltth of the yea~l~~ taac. snJ assasments which may attain priority over this
Mort~aje. and ~cound rents on the Pt~uperty. if any, plus one-twelUh of yearly prcmium installments tor haxard insurance.
plus oae-tweltth oE yearly premium installmen~s for mortgage insurancc. it any, all as rcasonably estimated initially and trom
time to time by Leader on the bua of assescmcnts and hills and rcasonabk estimates thercof.
'fl~e Funds shall be held in an institution ~he deposia or accounts of M-fiich ate insured or guaranteed by a Federal ot
sUte agency (includina Lende~ if Lender is such an inslitutiun). I.ender shall apply Ihe Funds to pay said uxes, asxssments.
iasuranoe ~emiums aod around renls. I.ende~ may nat charge ior so holding snd applying the Fundc. analyzing said account,
or verifyin` and compilina uid ass~ssments and bills, uoless Lender pays Bormwer intercst on the Funds and applicable law
permits Leader to make such a cAarga Borrower and Lender may agree in writing at the ~ime ot exceution o[ ihis
Mottga~e that interat on the Funds shall bc paid to Borrower. ar~d unless such agreement is made or applicable law
requires such interat to be paid. l.ender shall no~ be rcquircd to pay Borrower any interest or earnings on the Funds. Lends~
shall aive to Bonower~ without charge, an annual accounting of the Funds showing credits and debits to_ the Funds and the
pu[post for which taeh debit to the Funds was made. The Funds are plodged u additional socurity tor Ihe sums secured
by tAis Mortpje.
If the amou~t o[ the Funds held by Lender, together with Ihe futurc monthly installments of Funds.payable prior to
the due data of taxa. assesxments. insurance premiurtu and g~ound rents, shall eaceed the amoun~ requircd to pay said taxes.
assasaoents, insurarwe prcmiums and ground rents u they tall due, such excess shall be, at Borrower s option, either
promptly repaid to Borrower or credited to Borrower on monthty installments of Funds. If the amount of the Funds
~a ~- ~~ snatt ~oc ~~~c to wy ~ua. asxssme~ts. insurance prcmiums and gmund rents u they fall due.
Boet~o~ve~ sball pay to Lender any amount necasary to make up the deficie~uy within 30 days trom the date notice is mailed
by Leader to Horrower requesting payment thereof.
Upon pay~aent ia full of dl swns secuced by this Mortgage, l.endcr shall promptly rcfund to Borrower any Funds
held by [.eader. If under pusgraph 18 hereot the Property ia sold or the Property ~s otherwise acquircd by Lender, Lender
s6all apply. no later than immediately prior to the sale of the Prope~ty or i~s ~cquisition by Lender. any Funds held bv
I~eader at the time of application as a credit against the sums secured by this Mongage.
. 3. A~licatiou ot Paymeats. Unless applicable law provida othervvise, all payments received by Lender under the
Note and paragnphs 1 aad 2 hereot shall be applied by l.ender first in payment of amounts payable_to i.ender by Borrower
under parsgraph 2 hereof. ttien to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Futurc Advanoes.
4. C6sr`es; Litas. Borrower shall paY all taaec. assestments and othcr charges, fines and impositions attributable to
the Propert+y which may attain a priority over this Mortgage, and leasehold payments ar ground rents, if any, in the manner
prorided under paragraph 2 hercof or. if not paid in such manner, by Borrower making paymeot, when due. diroctly to ihe
payee thereof. Borrower shall promptly furn~sh to Lenckr alt not~ces of amounts due under this paragraph, aad in the event
Borrower shall make payment dircetly. Borrower shall promptly furmsh to Lender receipts evidencing such payments_
Borrowe~ shall promptly dixharge any lien which has pnonty over ~hic Mongage; provided, that Borrower shal) not be
requircd to d~scharge any such lien so long as Borrower shall •rgree io v-nlmg to ~he payment of the obligatiun secured by
suc6lien in a manner acceptable to Lender, or shall ~n good faith contetit such lien hy, or defend enforcement ot such lien in,
(egal proccedings which operate to prevent the enforcement of thr i~en or forfeuure af the Property or any part thertof.
S. Huud lnsuraace. Borrower shall ketp the improvements nov- es~sting or hereafter ereded on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
wd in such a.mounts and for such periods as Lender may require; provideJ, that Lender shall not requirc that the amount of
such coverage e;ceed that amount of coverage required to pay the sums secured by this Mor~Eage.
'Il~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
that such approval shall not be unrcasonably withheld. All prcmium~.on insurance polic~es shall be paid in the manner
provided under paragraph 2 hereof or, if not pai~ in such manner, by Borrower mak~ng payment, when due, di~ectly to the
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender anJ shall include a standard mortgage
clauu in favor of and in form acceptable to Ixnder. Le~der shall have the right to hold the policies and renewals thereof.
and Borrower shall promptly furn~sh to Lender all renewal nouces and all receipts of paid premiums. In the event of loss,
Borrower shall grve prompt notice to the insurance carner and 1_ender. f_ender may~ make proof of loss if not made promptly
by Borrower.
Unless.Lender and Borrower otherwiu: agrce in writing, insurance procecds shall bc applied to_rcstoration or repair of
the Property damaged, provided such restora~ion or repa~r ~s economically feasible and the security of this Mortgage is
not thereby impaired. I( such restoratron or repair is not cconomically teasible or it the ucurity of this Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secureJ by this Mortgage, with the excess. if any. paid
to Borrower. If the Property is abandoned hy Borrower, or if Borrower tails to respond to Lender within 30 days from the
date notice is mailed by L.ender to Borrower that the insurance carrier ofTers to set~le 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 Pmpertv
or to the sums secured by ~his Mortgage.
Unless Lender and Borrower othervaise agree m wnting, any such applicaiion of prckeeds lo principal shall not extend
or postpone the due date of the monthly installmcnts rc(errcd to in paragraph~ 1 anJ 2 hereof or change the amount ot
soch installmepts_ If under paragraph 18 hereof the Property is acyuired b~ Lender, ali nght, title and interest of Borrower
in aud to any R-surance policies and in and to the proceeds thereof resulting from damage to the Property priot to thc sale
or acquisition shall pass to Lender to the extent ot the sums secured by this Mortgage immediately prior to such sale or
acquisition.
" 6. Prraenallon and :~taiotenance of Property; [.eueholds; Condominiums; Planned Unit Devebpmcnts. Borrowcr
shall keep the Property in good repair and shall not comro~~ Waste or permit impairment or deterioration of the Property
and sha)I comply with ~he provis~ons of any lease if this Mortg:+gc ~c un a Icaschold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrow•er ~hall ~xrform all of Borrower's obligations under the declaration
er coveoants creating or governing the rondommium or planned umt devel~~pmcnt, the by-laws and regulations of ihe
condominium or planned un~t develo~-men~, and constituent Jcxumemti I( a conJominium or planned unit development
rider ~s executed by Borrower and recordeJ together w~th th~s Mortgage. the covenants and agreements ot such rider
shall be incorporated into and shall amend anJ supptcment the co.enan~s and agreements ot Ihis Mortgage as if the riJer
were a part f.ereof.
7. Protection of Lender's Security. If HormNer fa~lc t~~ ~x~fi~rm the covenants and agreements contained in lhis
Mortgage, or if any acUOn ur proceed~ng ~c cummenecd wh~ch materiall}~ afTects Lender's ~nterest in the Property,
includmg. but not limited to, eminent domam. ~n~~lvenry, c~x1e enf~~rcement. ~,r :,rr•rngements or proceedings invoh•~ng a
bankrup~ or decedent. theq I.ender at 1_ender'~ nption, u{x~n notice to Borrow~er. ma~ make wch appearances, disburse such
sums and Iake such action a~ ~s necectiary ~o prrnect Lender's mterest, includ~ng. but not limited to, di~bursement of
rcasonable attomey's (ces and en~ry u~m thc Propcrly to makc rrpair~. If Lrndcr reyuircd mortgage inwrance as a
cond~Uon o( making thc loan cecureJ by thi> >tortg:igr, B~rrr.wcr sh.~ll ~y thc ~rcmiums reqUireJ to mai~riam such
in~~rance in eftect until such time as the reyuirement for wch insuran.c terminate~ in :~ccordance with Borrower's and
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