HomeMy WebLinkAbout0390UN~FORt-t Covc~.~HTS. Borrower and l.ender covenant and agree as follows:
1. Payauat ot Princlpsl and laterest. Borruwer ~hall promptly pay when due the principal of and interest oo the
indebtedness evide~ced by the Note, prepayment a~d late charges as praviJed in the Nate, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Fhads for Tue9 And lasurance. Subject to applicable law or tu a written waiver by 1_e~der, Borrower shall pay
to l.c~der on thc day monthly installments of principal and intcrcct arc payable undcr the Note. unti) the Note is paid in full,
a sum (herein "Funds") equal to ane-twelfth of the yea~ly taxes and assessmcnts which may attai~ priority over this
Mortgage, a~d ground rents on the Property, if any, plus one-twelfth of yearly prcmium installmants for hazard insurance,
plus one-tH•elfth of yearly premium inslallments (o~ mortRage insurancc, i( any, all as reasonably estimated initially and from
time to time hy 1_endcr on the basis of asscssments anJ bills and reasunable estimates thereof.
'il~c Funds shall be held in an instituti~n the depc~sits or accounts af which are insured or guaranteed by a Federal or
state agency (including Lender if l.ender is such an institution). I_ender shall apply the Funds ta pay said taxes. assessments,
insurance premiums and ground rents. I.ender may not charge for ~o holding and ap~-lying the Funds, analyzing said acrnunt,
or verifying and compiling said asse~sments and hills, unless I_ender pays~Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and l.ender may agree in writing at the time oi' e!cccution o[ this
~lortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
rcquires such interest to be paid. l.cnder shall not hc rcyuired to p:+y Borrawer any intcrest or earnings on the Funds. Lender
shall give tu Barrower, without charse, an annual accounting of ~he Funds showing credits and debits to the Funds and the
purpose for which.each debit to the Funds w;u madc. The Funds arc pledged as aJditional security for the sums secured
by this Mortgage.
lf the amount of the Funds hcld by Lender, together Hith thc tuturc monthly installments of Funds pa~~able prior to
thc due dates of taxes, as~cssmcnts, insurance premiums and ground rents, shaU exceeci the amount rcyuired to pa~• said taaes,
assessments, insurance premiums and ground rents as ~hr~• fall duc, such excess shall be, at Borrower s option, either
promptly repaid to Borrow~er or credited to Borrou~er on monthl~• installm~nts of Funds. If the amount of the Funds
held by Lender shall not be suliicient to pay taxes, assessments, in~urance premiums and ground rents as they fall due,
Borrower shall pay to t_ender any amount necessary to make up the Jefiricncy within 30 da~~s from the date notice is maileci
by I.ender to Borrower requesting paymcnt thereot.
Upon payment in full of all sums sccured by this Mortgagr_ 1_cnder shall promp~ly ref~md to Borrawer an~• Funds
held by LenJer. lf under paragraph IS hcrcof the Property is sold or thc Propcrty is othenvisc acquired by Lcnder, LenJer
shall apply, no later than immediatcl~• prior to the .ale o! thr Propcrty or its acquisition hy I_ender, any Funds helJ by
Lendcr at thc timc of appliration as a crcdit against thc sums sa;urcd b~• this Mortgagc.
3. Appli~aiion of Payments. Unlecs applicable law pmvides other~vise. all payments received b~ Lender unJer the
Note and paragraphc I and 2 hereof shall bc appli~•c1 by Lcnder fint in payment of amounts pa}'able to I.cndcr by Borrower
under paragraph 2 hereof. then to interest payable on the Nwe. then to thc principal of the Notr, anJ then to interest and
principal on any Futurc Advances. ,
4. CharRes; Liens. Borrow~er shall pay all Ia~es, :+~x:stiments and athcr charges, fineti anJ im~~sitions at~ributable to
the Propert~• N~hich may altain a priority over this Mortgage, and leasehold payments or grovnd rents, if an~•, in the manner
provided under paragraph 2 hereof or. if aot p•rid in such manner, by Borrower making payment, w•hen due, direcUy to the
payee thercof. Borrower shall promptly furnish to l_ender all noticcs of amounts due under this paragraph, and in the event
Borrow•er shall make payment direc~h•, Borrow•er 1haU promptl~~ furni~h to Lender receipts e~•idencing such payments.
Borrow~er shal) promptly Jischatge an~• lien ~~•hich has priority over this Mortgage; provided. tha~ Borrower shall not be
required to diu:harge any such lien so long as BarroHCr shal) agrce in uriting to the pa~~m~nt of ~he obligalion securcd by
wch lien in a manner acceplable to Lender, ~~r shall in go~l f:~ith conte~t such lien by, or JefcnJ enforcement of such lien in,
legal proceedings which oper:~te to prcvent the enforcement of thc lien or forfeitun: of the. Propert~• or an}• part there~f.
5. Haza~d Insurance. Borrow•er shall krep the improvementc now c~icting or hercaftcr crected on the Property insured
against loss h}- firc. hazards inrludcd with~n thc term "~rtcndcJ a~vcr:~ge". anJ such othcr hazardc aa Lcnder may require
and in such amounts and for surh p~:riodc as I.cndcr ma~• reyuirc: pr.~vidcd, that LcnJcr .hall not reyuirc that thc amount of
:uch cuvcragc erreed that amount of cm•erage reyuired to pa)~ the wm~ .erured h~ this ~tongage.
The insurance carrier providing the insurance shall he choun hy Borrowrr subject to appro~•al bp LenJer, provided,
that such approval shall not bc unrcasonabl}' w~thhcld_ ~CII premium~ on insurancc policics shall tx: ~aid in thc manner
provided undcr paragraph 2 hereof ur. if not paid in such manner, b~• Borrower making payment, when due, directl~~ to the
insurance carricr. ~
All insurance policiec and rene~als thereof shall tx: in forni acceptable to Lender and shall includr a~tandard mortg~ge
rlauce in (a~•or of and in form acceptahle w 1_cnder_ I_endcr .hall have the righ~ to hold ~he policies anJ renewak thereof,
and Borro~cer shall promptl~~ furnish to Lender all renrwal notices and aU receipts of paid prcmium,. In the e~•cnt of loss,
Borrower shaU gi~~e prompt notice to the insur.~nce c•rrrier and Lender. 1_enJer ma~• make prcx~f of ioss if not made promptl~•
by Borrower_ ~
Unless Lender and Borrow•er othcn+•ik aerec in ~ rit~ng, insurance pn•ceedc shall be applied to restoration or rep~ir o[
the Propen)~ damageJ, provided such restoratiun or rrpair is economicall~~ feasible and the security of this Mortgage is
not thereby impaired. If such restoration or « pair is not .conomicalh~ feasihle or if the securit~• of this Mortgagc would
be impaired, the insurance proceeds shall be applied to the sums securcd by this hlortgage. ~ith the exceu, if an}, paid
to Borrowcr. If ihe Propert}- is aband~~ned hc Borrower, or if Borrower fails to respond to l.ender within 3U days from the
date notice is mailed bv Lender ~o Botrower that the insurance carrier ofiers ~o senle a claim for insurance henefits, Lender
i~ authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
ur to the sum~ Secured by ~his rtortgage.
Unless 1_cnder and BorruH~cr ottien+isr agree in w~riting, an~• such applicatiun of proceeds to principal shall not e~tend
~~r p.~stpone thc duc date of the mon~hl~• installment~ rc(erred to in paragraphs I and ? hcrcof or changc Ihe amount of
wch insiallments. If under paragraph 18 hereof the Property is acyuirecl b)• Lender, all right, title and interest of Borrovser
in and to an~• insurance policies ~nJ in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acyuisition ahalt pais to Lender to thc extent ot the sums secured by thi> >iortgage ~mmediately prior to such sale or
acquisition.
6. Preser~alion and ~faiotenance of Property; Leaseholds; Condominiumc; Planned Unit I~~•elopments. Borrower
shall kcep ihc Property in good repair and shall not commit wastc or permit impairmcnt or deterioration of the Ptoperty
and shall romply with the provisions of any lease ~t this Nartgage is on a Icasehold. If this Morigage is on a unit in a
condominium or a planned unit de~•clopmcnt, Borrow•er shall pcrform aU of Borrower's obligaUons under the dcclaration
or covenants rreating or governiAg the condominium or planned unit development, the by-laws and regulationc of the
ron.t.~minium or planned unit development, and constituent documems. It a rondominium or planned unit de~•elopment
ri~er is executed by Botrow•er and rccorded together ~~ith this Mortgage, the covenants and agreemenls of soch riJer
shall be mcorporated into and shall amcnd anJ supplcment ~he covenants and agreements of this Mortgage as if the rider
w~re a part hereof.
7. Proleclion of I.enders Security. I( Bnrrow'er fails ~o ~xrform the covenants and agreements contained in this
A~urtgage, ur if any acUon or pro:eedmg ~c commrnee~ which materially~ afTects I.enJer's interest in the Pmperty.
includmg. bul n~~t limited to. eminent domain. insc-ive~cy, code enforcement, or arrangements or proceedings invoh•ing a
bankr,ipt or decrdent. then Lender at I.enJer's option, upon notice to Bormw~cr, ma~ make such appearances, dishurse such
sums and takc such ac~ion as is necc~tian• to protcct l.cndcr s intcrest. ~ncluding. but nM limstcd to. Jicburscment of
reasonahle auomey's ters and entry u{wn thc Property to make rcpair~. If I.ender required mortgage insurance as a
condi~ion of making ~hc loan sccured h}• thiti ;lfortgagc. B~~rrowcr shall pa~• thc prcmiunu ,r~CquireJ 1~ maintain such
insuranee in eiTect until such time as the reyuirement for such msurance terminates iti ~eeOrdance .w~rth Borruvrer s anJ
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