HomeMy WebLinkAbout0329Unteo~~t Covwrerns. Bomower and Leoder covenant and ssrce u[oilows:
l. tqweN d M~eiMl ari 1Meisst. 8orrowe~ shaii promptly pay when due the p-incipsl of and interc~t on the
indebted~at evidcaoed by the Note. prepayment and Iste char~ec sc provided in Ihe No1e, and tt~e principal of and intercst
ou sny Futuro Adv~nces secured by this Mort~aa~e.
2. Pti~i tor T~tM Mi I~wrsoee. Subject to applicabk law ~~~ ta a written waiver by [.ender. Bo~rowe~ shall paY
to Lender on the day monlhly installments ot Qriocipal a~d in~~rcct an payahle under the Note, until the Note is paid in tull.
a sum (herein •'Fured~'~ equa) to one-tw~ltth of ~he yearly tax~~ aoJ assessments which may attain priority over this
Mortsase~ aod `round rents on the propeny. if any. E-lus one-~welfth ot yearly prcmium installmeots to~ huard insurance.
plus w~e-twelfth of yearly prcmium installments for mwtgage insurancc, if any, all as reasonably estimated initially and irom
ame to time by Let~der on the basis of assessmcnts and' hiNs and rcasonabk a~imata thercof.
The Funds shall be held in an institution the depac~u or accounts of wrhich are insu~ed or gwranteed by a Fedenl ot
state a~eency (includin~ Lender if Lender is such an inslitution). I.ender shall apply the Fut~ds to pay said uxa. assessments.
im~ranoe premiums and growtd tents. I.ender may nw charge for s~+ holding and applying the Fnndc_ analyzing said account,
or verifyin~ and compili~g said assessmems and bills, unless Le~de~ pays Borrowe~ i~tercst on the Funds aod applicable law
permit~ L,tnder to mtke such a charge. Borrower and Lender may agree in w~ting at the time o[ execut~on ot this
Mortgase tl~at ieterat on the Funds shall be paid to Borrower. and unless such agreement is madt or spplicable law
rrquira such intetat to be pxid. l.eoder shall not be requited ta psy Borrowe~ any intercst or earnings on the Funds. Lender
slWl give 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 t1~e Funds wu made. The Funds are plodged as additional security for the sums secured
by this Mort~aae. ~
If tl~e smount of tfle Funds tKld by Lender, together with ~he future monthly installmeo~s of Funds payabk prior to
t6e due dates of ~axes, assessmeats. insurance prtmiums and ground rcnts, shall eacceed the amount rcquired to pay said taxes,
aa~enents, i~urance premiums and ground rents as they tall due, such exccss shall be, at Barrower s opaon, either
p~+ompdy repaid to Bon~wet ot creditcd to Borrower on monthly installments of Funds. If the _ amount of the Funds
held by Lender shall not be sutficient to pay taxa. auessments, insu~ance pamiums and gmund rcnts as they fall due,
Borro~-er shall pay to L.eader any amou~t oecessary to make up the deficiency within 30 days (rom the date notice is mailed
by I,eader to Borrower requesting payment thereof.
Upoa payment in full of dl swqa secuced by this Mor~gage, l.ender shall promptly rctund to Borrowe~ any Funds
hetd by Lender, If under pusgraph 18 hercof the Prope~ty i~ sold or the Propcrty ~s otherwise acquired by Lender, Lender
shall apply, no later thad immodiately prior to the sale ot the Propcrty or its acquisition by Ltnder. any Funds held bv
I~eoder at ttk ~time of application as a credit against the sums socured by this Mongage.
3. Arpiieat~ ot Fyr~eafs. Unless applicable law provida otherwise, all payments received by Lender u~Jer the
Note and paragnphs 1 aad 2 hereof shall be applied by 1_ende~ 6rst in payment of amounts payable to [.ender by Borrower
unde~ paragraph 2 hereof, then to interest payabte on the Note, then to the principa! of the Note, and then to inter~st and
principal on aay Futute Advances.
4. C6srses; Lieas. Horrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
tlie PropeRy which may attain a priority over this Mortgage, and leuehold payments or ground nnts, if any, in the manner
Qtvvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
puyee thereof. Borrower shal! promptly furnish to Lender all notica of amounts due under this paragraph, and in t6e event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promp~ly discharge any lien which has priority over this Mongage: provided, that Borrower shall no! be
required to discharge any such lien so tong as 8orrower shall ~gree in .+•ri~~og to ~he payment of the obligatiun securcd by
such lien in a manner acceptable ~o Lender, or shall in good faith contca such lien by, or defend enforcement of such lien in,
kgal proceedings which operate to prevent the enforcement of the I~en or forfe~ture of the Propeny o~ any part thereof.
S. Haard IasYrawce. Borrower shall keep the ~mprovements now~ existing or hereafter erected on the Property iosured
against loss by firc, hazardx included with~n the term "extende~i coverage", and such other hazards as Lender may require
wd in such amounts and (or such periods as Lender may require; provided, that Lender shall not rcquire that the amount ot
such coverage eaceed that amount of coverage required to pay the sums secured by this Morlaa~e_
'It~e insurance carrier providing the insurance shall be chose~ by Borrower subject to approval by Lender, provided.
tbat s~h approval shall not be unreasonably withheld. All premiums on insurance polic~es shall be paid in the manner
ptovided uoder paragraph 2 hereof or, if not pai~ in such manner, by Borrower making payment, when dut, dircctly to the
inwrance carrier.
Ali insurance policies and renewats therrof shalt be in form acceptable to Lender and shall include a standard mortgage
claux in favnr of and in form acceptable to Lender. Lender shatl have the right to hold the policia and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid prcmiums. (n the event of loss,
Borrower shall grve prompt notice to ~he insurance carner and Lender. Lender may make proof of loss if not made prompUy
by Borrower.
Unless Len~ier and Borrow~er otherw~se ag:ee in writ~ng, insurance proceeds shall be applied to restoratian or repair of
the Property damaged, provickd such restora~~on or repa~r is economically feasible and the security of this Mortgage is
not thereby impaired. it such restoration or repair is not ecooomically feasible or it ~he security of this Mortgage wnuld
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage. with the exeess, if any, paid
to Borrower. If the Ptoperty is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the
date aotice is maded by Lender to Bortower that the insurance carrier o(~ers to settle a claim for insurance bertefits, Lender
is authorized to collect anJ apply the iosnrance proceeds at Lender's option either to restoration or repaer af the Properv
or to t6e sums secured by this Mortgage.
Unless l.ender and 8orrower otherwise agree in writin; , any such application of proceeds to principal shail not extend
or postpone the Jue date of the momhly instatlmentc rcferred to in paragraphc ! and 2 hereof or change the amount of
suc6 irutallmeats. !f under paragraph I8 hereof thc Property is acyuired b} l.ender, all right, title and interest ot Borrower
in and to any tnsurance policies and in and to the proceeds thereof [esultmg~ from damage to the Proper~y prior to thc sale
or acquisiUon shall pass to Lender to the extent of the sums secured by tha btortRage immediately prior ta such sate or
acquisition.
6. Pnxrvatioa aod ~faintenance of Property: Leasehulds; Condominiums; Planned Unit Developments. Borrowcr
shall keep the Property in good repair and shall not com~Uit Waste or permit impairment or deterioration of the Property
wd shall compl~ with the provisions of any lease if th~s Mortgage ~~ on a ieasehold. If this Mortgage is on a unit in a
condominium or a planned unit developmeat, Borrower shall per(orm al! of Borrower's obligalions under the declaration
or covenants creating or governing lhe condominium or planned unit development, the by-laws and regulations of the
condominium or planoed unit develo~,ment, a~d constituent documen~s. If a condominium or planned unit development
rider ~s eaecuted by Borrower and recorded together with Ihi~ Mortgage, the covenants and agreements of such rider
shatl be incorporated ~nto and sh•rll amend and supplement the co~enants anJ agreements of this Mongage as ~f the nder
were a part hereof.
7. Protafion of I,ender's Securfty. If B~rrower fads a, perf~rm the covenams and agreements contained in this
Mortgage, or if any acUon ur proceeding ~~ commence~l whicn materiaily .~tircts Lender's mtereti~ in the Pri~perty.
including, but not lim~ted to, eminent domain. insolvency, ccxle rnf«rrement, or arrangements or pruceedings invoh~ng a
bankrupt or deccdent. ~hen I_ender at I.ender's ~p~ion, upon notice to Borrower, ma~ m~ke such appearances. Jisburse such
sums and take such action as is necessary tu pro~ect Lender'c interest, including. but not IimneJ to. dizbursement of
reasonabk auomey's (ees and entry upcm ~he Propcr~y~ Ic, makc repairc. If i.cnder rcyuired mortgage inwrance a~ a
condition o( making thc loan ~ecured by Ih1s 111orlgagc. B~rrr.ucr sh.dl pey Ihc premiums required to mai~~la+n such
insurance in rfiect umil ~uch dme as the reyuirement for ~uch m~uran;e terminates in accordance wi~h BorroKCr'1 and
80~K t)`~ ~ PdGE Jzey
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