HomeMy WebLinkAbout0602Uh~FOR~t Cover.~~TS. Bo~rower anJ I.cnJer cu~enant and ag~ee a~ foUows:
1. Paymeat of Priaclpal aad laterest. BorruWCr shall prampd~• pay when due the principal of and interest on the
irtdcbledness evidcnc~:d hy the Note, prcpaymcnt anJ latc charges a. prcwiJed in thc Notc, and the principa) af and interest
on aay Future Advancec secured by thic Mor~gagc.
2. ~ods for Tua aad lnsurance, Subject to applicable law• or to a written waiver by I.ender. Horrawer shall pay
to Ixnder an ~he day monthly installmcnts of principal and intcre~t are payable undcr the Note, until the Note is paid in full,
a sum (herei~ "FunJs") equa) to onc-twelfth ot thc ycarly taz~~c anJ as~essments which may attain priority over this
Mortgage, and graund rents on the Property, it any, plus one-tv-~clf~h of ~~carly premium i~stallments for hazard insurance,
plus one-tw•elfth of ycarly premium installments (or mortgage insurancc, if any, all as reasonably estimated initially and from
time to time by Lender on thc basis of atsessments and hillc and reasunable eslimates thereof.
The Funds shall he held in an institution ~he deposits ar accounts of which are insured or guaranteeci by a Federal or
state agency (including Lender if 1_ender is such an institution). I.ender shall apply the Funds to pay said taxes, assessments,
~insurance premiums and ground rents. I.ender ma~• not charge Ior s~. holding and applying the FunJs, analyzing said account,
or verifying and compiling said assessments and bills, unless l.ender pa~•s Borrower interest on the Funds and applicable law
petmits Lender to make such a charge. Borrower and I_ender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall he paid ta Kc~rrower, and unleu such agreement is madc or applicable law
requires sucti interest to be paid. 1_ender sh~ll not he rcquirecf to pay Borrov-er •rny interesl or carnings on the Funds. t_ender
shall 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 the Funds was made. The Funds are pledgeel as adiHtiuaal security for ~he sums secured
by this ~iortgage.
If the amount of the Funds held by l.emier, together ~vith the future manthly installments of Funds payablc prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall excced the amount required to pay said taxes.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's ~ption, either
promptly repaid to Borrower or credited to Borrower on monthl~~ installmen~s of Fund~_ If the amount of thc Funds
held by Lender shall not be sufficieat to pay tares, assessments, insurance premiums and ground rents as they [all due,
Borrower shall pay to Lender an~~ amount necessary to make up the deficiency within 30 days from the date notice is mailed
by L~nder to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgagc. I.endcr shall promptly refund to Borrower any Funds
held by Lender. If under paragtaph l8 hereof the Propcrt}' is sold or thc Properq~ is otherwise acquircd by l_ender, Lender
s6a11 apply, no later than immediately prior to the sale o( the Property or its acquisition b~~ Lcnder, any Funds helJ by
Lender at the time of application as a credit against the sumc secured by this Mnngage.
3. Applicatioa of Paya~eals. Unless applicable IaW pro.•ides otherW ise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereo( shalt be applied by t.endcr first in payment af amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the ;vote, then to thc principal of the Note, and thcn to interest and
principal ~n any Future Advances.
4. C6arges; I,kns, Borrower sh:~l) pay all taxcs, asscssmcnts and other charges, fines and impusitions attributable to
the Property which may attain a priority ove~ this Mortgage, and lease~old payments or ground rents, if an~r, in the manner
pruvided under paragraph 2 hereof or, if not paid in such manner, by Borrowe~ making payment, when due, directly to ihe
payee thereof. Borrower shall prompUy furnish to Lencler all notices of amounts due under this paragraph, and in the event
Borrower shall malce payment directly. Borrower shall promptly tumish to Lencier receipts evidencing such payments.
Borrower shall promptly dixharge any lien which has priorit~~ over this Mortgage: provicled, that Borrower shall not be
required to discharge any such lien so lo~g as Borrower shall agree in w•riting to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shali in good faith contest such lien by, or Jefend en[orcement of such lien in,
legal proceedings which operate to prevent the enforcement of thc I~en or forfe~~ure of ihe Property or any part thereof.
S. Hazard Insurance. Borrower shall keep ihe impro~•ements now existing or hercaftcr er..~cted on the Property insured
against loss by fire, hazards included within ~he term "ertended cover~ge", and such other hazards as Lender may reyuire
and in such amounts and for such periods as Lender may require: provideJ, that Lender shall not requirc that thc amount of
such coverage e~ceed that amount of coverage required to pa}~ the sumc ucured by this Mortgage.
T6e insurance carrier providing the insurance shall be chosen by Borrow•er subject to approval by Lender. provided,
that wch approval shall not be unreasonably ~ithheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcUy to the
insurance carrier.
All insurance policies and renewals ihereof shall be in form accep~able to Lender and shall include a standard mongage
clause in favor of and in form acceptable to Lender_ Lender shall have the right to hold the poliries and renewals thereof,
and Borrow•er shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. ln the event of loss,
Borruwer shall give prompt notice to the insurance carrier snd [_ender. t_ender may make proof of loss if not made promptly
by Borrower_ -
llnless Lender and Borrower othenvise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, praviJed such restoration or repair is economically (easible and the security of . this Mortgage is
not thereby impaired. If such resroration or repair is not eronomically (casible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be appiieJ to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property~ is abandaned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by I.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
i~ authorizod to collect and apply the insurance procteds at I_ender's option either to restoration or repair of ihe Property
or to the sums secured b~• this Mortgage.
Unless L.ender and Borrower otherwise agree ~n writing, any such application of proceeds to principal shall not extend
or postpone the due date of the munthly installments referred to in paragraphs 1 and 2 hercof or change the amount of
suc6 installments. If under paragraph 18 hereof the Propert}' is acyuired by Lender, all right. title and interest of Borrower
in and to an}~ insurance policies and in and to the proceeds thereo[ resulting from damage to the Property prior to the sale
or acyuisition shall pass to Lender to the e;tent of the sums secured by thii Mortgage immediately prior to such sale or
acquisition.
6. Presen911oo aod ~tainten~nce of Property: Leaseholds; Condominiums; Planned Unit Devebpme~ts. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgagc is on a leasehold. 1f this Mortgage'is on a unit in a
condominium or a planned unit Jevelopment. Borrow~er shall perform all of Borrower's obligations under Ihe declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of ihe
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rickr is executed by Borrow-er and recorded together with this Mortbage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants anJ agreements of this Mortgage as if the rider
were a part hereof.
7. Protectioo of Leader's Secarity. If Borroaer fails to perform the covenants anJ agreements contained in ihis
Mortgage, or if any action or proceeding is commenced which materiall}• afiects Lender's interest in the Property,
including, but not limited to. eminent domain. inu-Ivenc}•, code en(orcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Leader's option, upon notice to Borrower, ma~• make such appearances, disburse such
sums and take such action as is necessary to protect 1_ender's interest, including. but not Iimiled to, disbursement of
reasonable attorney's fces aod entry upon the Property to makc rcpairs. If [_ender required morigage insurance as a
condition of making the loan secured b~• this Mortgage. Borrower shall pay the premiums requireJ to maintain sueh
insurance in etTect until such time as the reyuirement for such msurance terminates in accordance with Borrower s and
b~~K347 ~~~E 599
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