HomeMy WebLinkAbout0323UNIIWRId COVeNANT~, Botrower snd Leoder covenant and asroe u follows:
~. h~wewf ot hl~tlMl a~i 1NmN. Bornowe~ shal) promptly pay wheo due the principal ot snd interat on the
indebtednas evidenced by the Not0. prepayment and late chargcc ac provided in ~he Nde, and the principai ot and interest
on any Future Advances secured by this Mort6ata.
Z RNi tor T~es ~i l~wn~ce. Subject to applicabk law .~r to a written waiver by Leoder. Bormwer shall WY
to I.ender on the day monthly iostallments of principal anJ intcrcct ~re payaMe undet the Note. u~til the Note is paid in tull.
a sum (herei~ "Funds'7 eqwl to ooatwelfth ot the yearl~~ ~ax~~ arnl assasments which may sttain p~ority ovet this
Mwtjaje. and ~~ound rcnts on the Property. if any, plus one-twelUh of yeuty ptemium installments for hazard insurance.
plus w~e-tweltth of yearly pnmium installments for mongage insurancc, it any; all as rcuonably estimated initially and tran
time to time by Lender on the buis of assessmcnts ar-d hills and rca~onable estimata thereof.
'tl~e Funds shall be held in an insti~ution thc depa~iu or accounts of w~hich are insured o~ guaranteed by a Fede~al ot
state agency (including Lender if Lcnder is such an institution). I.ender shall apply Ihe Fu~ds to pay said taxa. assessments.
insunnoe pnmiums aod ground reots. I.ender may no~ cha~ge tor s~+ holding and applying the F~mdc. analyzing said account.
or verityin~ aed compiling said aueuments and bills, unless Lender pays Borrower interest on ~he Funds_and applicable law
permits Le~der to make such a charge. Barrower and Lender may agree in writing at the lime ot execution of this
Motigaae that intercst oo the Fu~ds shall be paid to Borrowe~, and unless such' agreement is made or applicable law
requires such iatercst to be paid. Lender shall not be rcquircd to Pay Borrower any interest or earnings on the Funds. Lender
shall aive to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds wu made. The Funds arc pledged u additional security for ~he sums securcd
by tMis Monpge.
If the amount of the Funds held.by Lender, ~ogether with the future monthly ins~allments of Funds payable prior to
the due data of taaes. assessments. i~uurance premiums and ground rcntc, shall exceed the amount rcquircd to pay said ta~ca,
s:sasments, insurance premiums and ground rcnts as they tall due, such excess shall be, at Botrower s option, either
proanptly repaid to Borrower or crodited to Bormwer o~ monthly installments of Funds. If the amount of the -Funds
held by Leader shall not be sufficieat to pay taxes. assessments, insurance pcemiums aod gmu~d rents u they fall due.
Borm*rer sball pay to Leader any amount nocessary to make up the de6ciency within 30 days trom the date notice is mailed
by Lende~ to Borrower reguatting payment thereof. .
Upon payment in full of all sums secund by this Mortgage, t.ender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hercof the Propeny i~ sold o~ the Propercy ~s athervvise acquiced by Leoder, Lender
shdl apply. no later than immediately prior to the sale of the Property or its acquisition by l..ender. any Funds l~eld bv
L.ender at the tisne of application as a cradit against the sums secured by this Mortgage.
3. Appiication of Payments. Unless applicable law provida otherwise, all payments received by Lender unckr the
Note and paragraphs 1 and 2 hereof shall be applied by I_ender first in payment of amounts payabk to Len~ier by Borrower
under paragraph 2 hercof, then to interest payable on the Note, the~ to the principal of the Note. and then to intcrut and
principal on any Future Advanc~s.
~. Cbaraes; Lie~. Borrower shall pay all ~axes. asscssmcnts and othcr charges, fines and impositions attributable to
t6e Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in tl~e manner
providal u~der paragraph 2 hereot or. if not paid in such manner, by Borr~wer making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. aad in the event
Borrower shall make payment directly, Borrower shall promptly (urnish to I.encier receipts evidencing such payments.
Borrower shall promptly discharge any lien which has pnonty over thic Mortgage; provided, that Borrower shall not be
rcquired to d~uhargG any tuch lien so long as Borrower shall ag~ee in writing t~. the paymeM o( the obliga~iun secured by
such lien in a manner acceptable to Lender, or sh•rll in good faith contest such lien by, or defenJ enforcement of such lien in.
legal proceedings which operate to prevent the enfoccement o( the lien or torfeiture of the Property or a~y part thereof_
S. Hszard Insurance. Borrower shall koep the improvements now cxisting or hereafter erected on the Property insured
against loss hy fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
wd in such amounts and for such periods as Lender may require; provided, that Lender shall not require that 1he amount o[
such coverage exceed that amount of coverage requi~ed to pay the sums secured ~by this Mort~a~e.
71~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval sha11 not be unreasonably withheld_ All premiums on insurance policies sha11 be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower makmg payment, when due, directly to the
insurance carrier.
All insurance polic~es and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceqtable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furn~sh to Lender all renewal notices and all receipts of paid premiums_ In the event of loss,
Borrower sh~ll g~ve prompt notic~ ta the insurance carner and I.ender. Lender ma} make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower othen.•i.e agree in wnt~ng, insurance proceeds shall be applied to restoration or repair of
the Property damageJ. prov~ded sucF~ restoration or repair ~s economically feasible and the security of this Mortgage is
not thereby impa~red. I( such restoration or repa~r is n~~t economically Ieasible or i( ~ht security of this Mortgage would
be ~mpaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage, wilh the excess, if any, paid
to Bo~rower. If the Property is abandoned by Borrower, or i[ Borrower fa~ls to respond to Lender within 30 days from the
date ~otice ~s mailed b~ Lender to Borrower that the insurance carrier ofTers to settle a claim for insurance bentfits, L.ender
is authonzed tu collect and apply the inwrance proceeJs •rt I.ender's ~ption either to restoration or repa~r of the Propem•
~r to the sum~ secured by th~s Mortgage.
Unles~ 1_en~er and Borrower othen+ise agree m writing, any such application of prc•~eeds to principal shall nut extend
or poslpone the duc date of the monthly inatallments rcfcrred to in paragraphc 1 and 2 hereof or change the amount of
such installment~. If under paragraph 18 he~eof the ProFerty is acyu~red by Lender, ali nght, title and interest of Borrower
in and to any tnsur:~nce policies 3nd in and to the proceeds thereof resultmg from damage to the Property prior to th.: sale
or acqwsition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisitiun. • ~
. 6. Piresen~ation ~nd ~taintenance ot Property: Leaseholds; Condominiums; Plsnned Unit Devebpments. Borrowcr
shall keep the Property in gcwd repair and shall not comtpit yvaste or permu impairment or deterioration of the Property
and shall comPly with the provis~ons of any lease it this Mortgage ic un a leasehold. If this Mortgage is on a unit in a
condominium ur a planned unrt Jevelopment, Borrower shall perform all of Borrower s obligations under the declaratiun
or covenants creatmg or govermng 1he condomm~um or planned unit development, the by-laws and regidations of the
conJominium or planned unit develo~,ment. end constituent documenis If a conJominium or planned unit developmem
nder is execwed by Borruwer and recordeJ k•gether w~th thic Mortgage, the covenants and agreements of such rider
shall be incorporared into and shall amend anJ suppkment thc covenants and agreements of this Morlgage as if the riJer
werc a pari Fereof.
7. Proteclion of Lenders Security. If Borroaer fa~ls t~ perform the covenantc anJ agreements contained in ihit
Mortgage, or ~f :iny achon ~~r proreedmg ic cummeneed Nhich materially afiectc LenJer's m~erect in the Propeny.
includmg. but n„~ bm~~ed tu. eminent domain, incc~lvency, c~xle enforcem~nt. nr :,rrangements or proceedings invok;ng a
banknipt or deceJent. then Lender at I.ender's option, upon nouce to Borrower, ma~ make such appearances, dnhurse such
sums and ~ake such actiun e~ ~s nece4sary tu pro~ect l.ender's mterest. ~nduding. but not limited to, disbursement of
reasonable at~orney'c tecz and entry uM~n thc Propert~• to ma6e rcpa~r~. I( Lrndcr reyuired mortgage incurance as a
condrt3on ~~f • mak~ng thc Joan ~ccared b}• ~his M~~rtgage. Born:wcr sh.~ll pay the premiums requ~reJ to mainta~n tuch
insurancc in rttcct until wch timc as thc reyuirrmcnl' tor ~uch m~uran;c ~crmina~c~ in accordancc w~th Borrowcr'~ anJ
BO~K,,~~ PdGE 3z•3
~ ~ ~
~ ~
- .~ , -- _._ . . _ ... _ ~~ :~
.~ ~._ ~. ._:.. .. M - . ~