HomeMy WebLinkAbout0335UNIlO~1~/ COVSNANTi. Borrowu and l.ender covenant and stra u tollow::
). hV~eM o~ hrc~l a~i Werpt. Borrower shall p~ompdy pay when due the p~incipal ot and ieterat on the
~ndeb~ednas evideaoed by the Nae. Prepaymeat and late chargec ac provided in the Note. and the principal ot and interest
oa any Futuoe Adv~nces secw+ed by this Mortgste.
2. RMi tor Ta~s s~i I~we~ee. Subject to applic~hk law ~.r to ~ written waive~ by Lende~. Borrower sha~~ WY
to Lendar on ~he day monthly inslallments ot principal and intcrcct arc payahle under the Note. until tl~ Note is paid in tull,
a:uat (herein "Fw~dt") eqwl to one-tweltth ot the yearl~~ ~as~• anJ assessmeots which may attain priority over this
Matsaje. and ~~ound renb on the Pwperty. it any. E-lus ooe-tweltth of yearly premium installments for hazard insu~ance,
plus one-twel[th of rearly premium installments for mortga~e ins~irance, it any, all u rcasonably estimated initially and from
time to time by Lender on the buis oi asxssments and hills and reasonable atimata thereof.
The Funds shall be held in an institution the depaita or accounts oF rvhich are insured or guarantted by a Fedenl ot
state ajency (inclndina Leode~ if Lender is such an institutionl. I.toder shall aPpIY Ihe Funds to pay said taxes. asseuments.
insurance ~emiums and gmund rcnts. I.ender may not chatge tor so holding sod applying ~he F~~~ds. analyzi~g caid account.
or verifyin~ a~d compiling said assessmenu a~d bills, unless Lende~ pays Bonower iMerest on the Funds and applicable law
pernats Lender to make such a charge. Barrower a~d Lender may agroe in writing at the time of exaution ot this
Mo~aae that interat on the Funds shall be paid to Borrower. and unless such agrcement is made or applicable law
requires such interest to be paid. Lender shall not bc rcquircd to pay Borrowet any in~erat or earnings on the Funds. Lender
s1a11 ~ive to Borrower~ without charge, an annual accounting of the Funds showing credits and debits to the Funds and thc
purpoae for wbich eaeh debit to tbe Funds wu made. The Funds are plodged as additional security for ihe sums secured
by tbis Mortaaae. ~
lf the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
tbe due data of taxes. asseuments. insurance premiums and ground rcnts, shall exceed the amount required to pay said taxa,
assa~nents. in:unnce premiuins and ground rcnts u they fall due, such excess shall be. at Bor~ower's opt~on, either
prompqy rcpaid to Borrnwer ot crodited to Borrower on monthly installments of .Funds. If the amount of the Funds
heW by Lender shdl not be sutSciwt to pay taxa. assessments, insurance p[emiums and ground rcnts u they fall due,
Borrower shall pay to Lender any amount necassary to make up the deficiency within 30 days from the date notice is mailed
by Leoder to Borrower requating payment thereof. ~
Upon paymeat ia full of all swns secured by this Mortgage, l.ender shall promptly refund to Borrowe~ any Funds
held by Lender. If under paragraph 18 hercof the Property ia sold or the Property_ ~s otherwise acquircd by Lender, Lender
shdl apply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds hcld bv
L.ender at the time of application aa a credit against the sums secured by this Mortgage.
3. A~plicatio~ ot Paymeats. Unless applicable law provides othervvise, all payments received by Lender under the
Note and pangnphs 1 and 2 hereof shall be applied by I_enJer first in payment of amounts payable to Lender by Borrower
under paragtaph 2 heroof. t6en to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances. ~
1. Cbartes; Liens Borrower shall pay all taxes, asscssmcnts and othcr charges, fines and impositions attributable to
tho property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hercof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee the~oof. Borrower shall promptly furnish to Lencier all notices of amounts due under this paragtaph, and in the event
Borrower shall make payment directly, Borrower shall promptly fumish to I.ender receipts evidencing such payments.
Borrower shall promp~ly discharge any lien which has pnority over this Mortgage; provided, that 8orrower shall not be
required to discharge any such lie~ so long as Borrower shall agree in v-riting to the payment of the obligation securcd by
such lien in a manner acceptable to Lender, or shall in good faith contes~ s~ch lien by, or defend entorcement of such lien in,
legal proceedings which operate to prevent the enturcement of ~he lien or forfe~ture of the Property or any part thereof_
S. Hazard Insarance. Borrower shall kcep the impmvements now• existing or hereaft~r erected on the Property insu~ed
against loss by firc, haiards included within the term "extended coverage", and such other hazards ac Lender may require
wd in such amounts and for such periods as Lender may require; provided, that LenJer shall notrequire that 1he amount of
such coverage eaceed that amount of coverage required to pay the sums secured ~by ~his Morlaa6e•
'Il~e insurance carrier providing the insurance shall be chosen by Borrower subject to apQroval by Lender, provided,
that auch approval shall not be unreasonably withheld. All premiums on insurance policies shatl be paid in tt~e manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whcn due, directly to the
insurance curier.
All insurance policies and renewals lhereof shall be in form aecep~able 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 the policies and renewals thereof,
and Borrower shall promptly furaish to Lender all renewa) not~ces and all receipts of paid prcmiumt. In the event of loss,
Borrower shall grve prompt not~ce to ~he insurance carner and Lender. Lender may make proof ot loss if not made pmmpNy
by Borrower.
Unkss Lend~r and Borrower otherw~~e agree in w~rit~ng, insurance procceds shall be applied to restoration or repair of
the Property damaged, provieied such restora~ion or repa~r is economically (easible and the security of this Mortgage is
r.ot thereby impaired. lt such restoration or repair is not economically feasible or. if the securily of this Mortgage would
be impairtd. the insurance proceeds shaii be applied to the sums secureJ by this Mortgage, w'ith the excess, if an}•, paid
t~ Borrower. If the Property is abandoned by Borrower, or it Borrower fads to respond to !_ender within 30 days from the
date notice is maded by Lender to Borrower that ~he insurance carrier otiers to settle a claim for insurance benefits, Lender
is authorized tu collect and apply the insurance proceeds at Lender's o~+tion-either to restoration or repaur cf the Pr~pertv
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree ~n wnting, any such application of proceeds to principal shall not extend
or postpone the due date of the momhly installmentc referred to in paragraphc I and 2 hereof or change the amoum of
such installments. If under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interes! ot Borrower
in snd to an~~ tnsurance poiicies and in and to the proceeds thereof resulung from damage to the Property prior to th~ sale
os acquisitjon shall past to Lender to the extent of the sums secured by this I-tortgage immediately prior to such sale or
acquisition.
6. Preservatioa and Rlaiotenance of Property; l.easehulds; Condominiums; Planned Uait Devebpments. Borrowcr
shall kcep the Property in good repair and shall not comroit yvaste or permit impairment or dereriotation of the Property
and shall comply with the provisions of any lease it this Mortgage ic on a Ieaschold. If this Mortgage is on a unit in a
condomimum or a planned unit development, Borrower shatl pertorm all of Borrower's obligations under the declaratiun
or covenants creat~ng or governing 1he condommium or planned unit develupment, the by-laws and regulationc of the
condominium or planoed unit development. ~nd constituent Jocumentc. If a-conJominium or planned unit•development
rider is eaecuted by Borrower and recorded toge~her v-ith thi~ Mortgage, the covenams and agreements of such rider
shall be incorporated into and shall amend and supplrment the co~enan~s an+i agreemeAts of this Mortgage as i( tf~e rider
were a part t~ereof.
7. Protation of I.ende~s SecurSty. I( B~rrower fa~l` a~ perfo~m the covenan~c anJ agreements contained in thi~
Mortgage, or if any action ur proceeding ~c commence.l which materially a(Tert~ 1_ender's interetit in the Pm~xr~y,
including, but not I~mited to, cm~nent domain. inc~lvency, c~xle en(orcemenL or arrangemcm~ or pr.xeedings im•ol~~ng a
bankrupt or decedent, then I.ender at I.ender's opiion, upon notice to Borrower, may make such appearance~, Jishurse-such
sums and lake such action as is necessar~• to prote~t l.end~r'c mterest, incluJing, but not lim~~ed to, dnbursement of
rcasonable auomey'c tees• and entry upon the Property to make repa~r~. If I.ender reyuired mortgage in~urance ac a
condit~on ot makmg thc Inan ~ecured b}• thi~ Mortgagr, B~~rrr.wcr sh.dl pay thr prcmiums rcquireJ to maintam such
insurance in rlTect until such urrte as the reyuirement for ~urh insuran:e terminates in accordance wuh Borrower'ti and
~ ~~~K 347 PAGE 3`~35 ~
t ~ ~
~ ~ ~
~
- .~ ~ . _ . r ._ - -_ - . r:~:~ :~~