HomeMy WebLinkAbout2696UNIlORId COVENAl1Tl. Horrower and l.e~de~ covenant and a~rce ss toilows:
1. h~we~t ot hi~eiNi aM 1Meresl. 8ormwer shall promp~l~• pay when due the principal of and inte~est oo the
indeModnas evideaoed by tl~e Note. prepayment and late cha~gc~ a~ provided in 1he Nde, and the principa~ of and inte~est
vn any Futuro Advances secund by this Mortaa~e. ~
2. F~~i to~ Ta~ca a~i I~an~ce. Subjat to applical+k law ur to a written waive~ by Lender, Borrower shall pay
to Lender on Ihe day moethly installments of p~ncipal a~J in~crcct ar~ payable unde~ the Note. until the Note is paid in full.
a sum (hetei~ "Funds'~ equal to one-twelfth of the yearl~ ta~-c~ and assessments which may atuin priority over ~his
Mort=a~e. and `round re~ts oo the Property, if any. F-lus ono-twelHh of yea~ty prcmium installments for huard insurance.
plus oae-twelfth of yea~ly prcmium installments tor mottgage insurancc, if any, all u rcasonably estimatcd initially and trom
time to time by Leader on the buis ot assessments and hills and reasonable estimates thereof.
The Funds shall be beld in an instituti~n the deposiu or •rccounts of which are insured or guaranteed by a Federal ot
state a~ency (including Lender if Lende~ is such an institution). I.ender ~hall apply the Funds to pay said taxa, asseuments,
insursooe premiums and grouod rents. l.ender may nat charge lor so holding and applying the Fnndc. analyzing caid account.
or verifyin~ snd compiling uid assessments and bills, unless Le~der pays Borrower intercst on the Funds and applicable law
permits Lender to make such a charge. Borrowe~ and t~ender may agrce in writing at ~he time of exaution of this
Mo~aae that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requiea such interat to be paid. Lender shall nat be required to pay Borrowe~ any interat or tarnings on the Funds. Lende~
s6a11 aivt to Borcower. without charge, an annual accounting of the Funds showing credits and debits ta the Funds and the
purpoae for which each debit to the Funds was made. The Funds are pledged u additio~al security for the sums secured
by thia Mortaa~e.
If the amount o[ the Funds held by Lender, logelher with the future monthly installments of Funds payable prior to
t6e doe dtta of taxes. assessmenu, insurance prcmiums and ground rcnts, shall exceed the amount requircd to pay said taxa.
a:sasanents. insunnce prcmiums and gmund rcnts u they (all duc, such exccss shall be. at Borrower's option, either
pranptly rcpaid to Borrower or crodi~ed to Borrower on monthly installments of Funds. It the amount of the Funds
~a ~- ~~ ~„ti ~oe e~ s~~~ to wy ~ua, assessments, insurance premiums and ground rents as they fall due,
Borro~rer shall pay to Lender any amount necessary to make up the deficiency within 30 days from ~he dat4 notice is mailed
by Lsoder to Borrower requesting payment thereof.
Upoa paymeat ia full of dl sutns secured by this Mortgage, l.ender shall promptly rcfund to Borrower a~y Funds
held by L.ender. If under paragraph 18 herco( the Property i~ sold o~ the Property,s whenvise acquired by Lender, Lender
a6a11 spply. no later than immediately prior to the sale of the Property or its acquis~tion by Lender. any Funds held bv
I.eoder at the time of application as a credit against the sums stcured by this Mortgage.
3. Applieatioe of Paymeots. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs l.and 2 hereof shall be applied by I.ender first in payment ot amounts payable to Lender by Borrower
under paragraph 2 hereot, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on a~y Futute Advances.
~. C6u`a; Lieas. Borrower shall pay all ~axes, atsessmcnts and othcr charges, fines and impositions attributable to
tl~e Propeny which may attain a priority over this Mongage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, dircctly to the
payee thereof. Borrower shall promptly furnish to LenJer all notices of amounts due under this paragraph. and in the event
Borrower shall make payment direcUy. Borrower shall prompUy (urnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has prionty over th~s Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in v-nting to the payment o( the obligatian secured by
such lien in a manner acceptable to Lender, or shall in gcx~d faith contect such lien by, or defend enforcement of such lien in,
legal proctedings which operate to prevent the eoforcement of the hen or torititure o[ the Proporty or any part thereof.
S. Hazard insunoce. Borrower shall keep the improvements now existing or hereafter erected on the Propeny insured
against loss by 6rc, hazards included within the term "citeodeJ coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may reyuirc; provided, that Lender shall not require ihat the amount of
such coverage exceed that amount of coverage required to pay ~he sums secured ~by this Mortaage.
'it~e insuranca carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. ptovided.
that such approval shall not be unreawnably withheld. All premwmc on insurance policies shafl be paid in the manner
provided under paragraph 2 hereof or, ~f not paid in such manner, by Borrovrer mak~ng payment, when due, directly to the
insurance carrier.
All insurance policies and renewals therrot shall be in form accept:+ble to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold thc policies and renewals thereof,
and Borrower shall promptly [urn~sh to Lender all renewal not~ces and all receipts of paid premiums. In the event of loss.
Borrower shall g~ve prompt nouce to the insurance carner and Lender. Lender may~ make proof ot loss if not made prompUy
by Borrowcr.
Unless Lender and Borrower otherw~se agree in w~nbng, insurance proceeds shall be applied to restoration or rcpair of
the Property damageJ, proviJed such rcstorat~on or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restor-rt~on or repair is no~ cconum~cally (casible or it the security of this Mortgage woold
be impaired, the insurance procceds shal! be applied to thc. sums secured by this Mongage, with the excess, if anp, paid
to Borrower. If the Property is abandoned hy Borrower, or•if Borrower (ails to respond to I.ender within 30 days from the
date notice ~~ maded by l.ender to Borrower ~hat the ~nsurance carrie~ ofTers to settle a claim for insurance benefits, Lender
is aut6orized to collect and apply the iniurance proceeds at Lendcr's option euher to testoratwn or repa~r of the Propertr
or to the sums secured by this Mortgage. ~
Unless [.ender and Borrower otherwi,e agree m writing, an}• such application o! proceeds to pnncipal shall not extend
or postpone the doe date of the monthly installmentc r~ferred to in paragraphc I anJ 2 hereof or change the amount of
such installments. If under paragraph I8 hereof t6e Property ii acywred by l.ender, ali nght, title and interat of Borrower
in aod to any tnsurance policies and in and to thc proc:eeds thereof resulung from damage tu the Propeny prior to th~ sale
or acquisition shal! pass to Lender to the extent of the sums ~ecured by th~s Mortgage immediately prior to such sale or
acquisition. -
6. Preservatioa ~nd ~taintenance of Property; l.easeholds; Condominiums; Planned Unit Developmenls. Borrow~cr
shall keep the Property in good repair and shalt not comro~~ ~+'aste or permit impairment or deterioration of the Property
and shall compl}' with the provis~ons of any lease i( this Mor~gagc ic on a leascholJ. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrow-er shall per(orm al! of Borrower's obhgations under the declaration
or coveoants creatmg or govern~ng the condommium ~r planned unit development, the by-laws and regulations of the
condominium or planaed unit development. and constituent J~umeni.. I( a cunJominium ot planned unit development
riJer is eaecuted by Borrower and rerorded tuge~her with thi, Mortgage, the covenants and agreements of such rider
shall be ~nco~porated ~nto and shall amend and supplement the co.enants and agceements of this Mortgage as if the riJer
were a Part Fereof.
7. Protection of I,ender's Stcurity. If B~rrower fa~l~ ii~ perf~~rm the covenan~s an~ agreemepts contained in this
Mortgage, or it any acUOn or proceeJmg ie cummrnced which matrrially aliects 1 enJer's mterest in the Property,
inclod~ng, but not limi~ed to. cm~nent dc~main. inc~dvenc}~. axle enf~-rrement. ~~r ~rrangemems or procecdings invol~•mg a
bankrupt or decedent, then Lender at I.ender'~ op~~on, u~~n no~ice to Borrower, ma~ make such appearances, disburse such
sums and lake such acliun ac is nece~~ar}• tu pratect I.ender's ~nterest, incluJing. but not hmited to, d~zbursement of
reasonable attomey's tce~ and cn~ry up~~n ~hc Propcri~ to makc repairti. I( I.rndcr rcyuired mortgage inwrance as a
conJ~hon of mak~ng the loan ~ecured b~ thu Atar~gage. Bnrrr•wcr sh.df pap lhc prem~ums reqwreJ lo maintam such
insurance in etfect unt~) luch ume as Ihe rryuirrment (or tiuch m;uran:e term~natrs in :~ecordanre wilh Bormwer's anJ
B(lOK 346 PACE ~~c7~