HomeMy WebLinkAbout0724UH~FOR~t Covert~NTS. Bo~rower a~d l.endcr covenant :+nd agree as follows:
1. Psymeat of P~iacipN and laterest. Horrower shall promptly pay when due ihe principal of and interest an the
indebtedness evidenced by the Note. prepayment and Iate charges ac provided in the Notc, and the principai of and intcrcs~
0o any Future Advances secured by this Mortgage.
2. Ftiads tor Tua and ]n~unace. Subject to applicable law or to a written waiver by t.ender. Borrower shall pay
to Lender on the day monthly installments of principal and interest are payable under the Note. until thc Notc is paid in full,
a sum (hercin "Funds") equal to one-twelfth of the yeady taYCS and assasments which may attai~ priority over this
Mongage, and ground rents on the Propeny. if any, plus ane•twelfth of yearly promium installments for hazard insurance.
plus one•twelfth of yearly premium installments for mongage insurancc, if any, all as reaso~ably estimated initially and from
time to time by Lender on the basis of assessments aod bills and reasonable estim~ta thereof.
'il~e Funds shall be held in an institution the deposits or accounts of which are insurcd or guaranteed by a Fcderal or
state agency (including Lende~ if Lender is such an institution). t_endet shalt apply Ihe Funds to pay said taxes, assessments.
insurance premiums and ground rcnts. !_ender msy not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that inter~st on the Funds shall be paid to Borrower. and unless such agrcemen~ is made or applicable !aw
requires sucS interest to be paid. L.ender shall not be required to pay Borrower any interest or esrnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpc~se for which each debit to tbe Funds was made. The Funds are pledged as additio~al security for Ihe sums securcd
by this Mortgage.
If the amount of the Funds held by Lender, together with the (uture monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiurns and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as ihey fall due, such eacess shall be, at Borrower s option, either
protnptly repaid to Bormwer or credited to Borrower on monthly installments of Funds. lf the amuur+t of the Funds
held by Lender shall not be suf6cieat to pay ta~ces, assessments, insurance premiums and ground rents as they fall due,
Borrowe~ shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all :ums secured by this Mortgage. I.ender shall promptly rcfund to Borrower any Funds
held by [.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwisc~acquired by Lender, Lender
slull apply. no later than immcdiately prior to ihe sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums securcd by this Mortgage.
3. Applieation of Paymeeta. Unless applicable law provides otherwise, all payments received by Lender under the
Note and patagraphs 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lender by Borrower
under paragtaph 2 hereof, t6en to interest payable on the Note, then to ihe principal of the Note, and then to interest and
principal on any Future Advances.
4. C`arses; Lkac Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and I~auhold payments or ground rents, if any, in the manner
provided under paragrapl~ 2 hereof or, if not paid in such manner, by Borrower making payment, when due, diroctly to the
payee lhercof. Borrower s6a11 promptly fumish to Lender all_notices of amounts due under this paragraph, and in the event
Borrawer shall make payment directly. Borrower shall promptly fumish to L.ender receipts evidencing such payments.
Bonower shalt promptly discharge any lien ~hich has priority over Ihis Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manaer acoeptabk to l.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or fodeiture of the Property or any part theroof.
S. Hazard I~raece. Borrower shall keep the improvements now• existing or hereafter erected on the Property insured
against loss by 8re, hazards included wit6in the term "extended coverage", and snch other hazards as Lender may- require
and in such amounts and for such periods as Lender may require; provided, that ~enckr shall not require that the amoont of
such coverage excced that amount of coverage required to pay the sums ucured by this Mortgage.
'ILe insuracice carrier providing the insurance shall be chosen by Borrovver subject to approval by Lencier, provided,
that such approval shall not be unreasonably withheld. All premiums on insurance policiu shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paymeot. when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lencier and shall include a.stanJurd mortgage
clause in favor of and in form uceptable to Lender. Lender shall have the right ta hold the policies and renewals thereof,
and Borrower shall proroptly furnish to Lender all renewal notices and all rcceipts of paid premiums. In the event of loss.
`Borrower shall give prompt notice to the insurance canier and Ixnder. Lender may make prooi of loss if not made promptly
by Borrower.
Ualesa Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to resturation or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mongage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any. paid
to Borrower_ If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, L.ender
is authorizai to collect and apply the insurance procceds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of praceeds to principal shall not extend
or poatpone the due datc of the monthly installments referred to in paragraphs 1 and 2 hereof or change the am~unt of
suc6 installments. If under paragrapt~ 18 hereof the Property is acquired by l.ender, all right. title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition,
6, heservatioo and Maiutenance of Property; Lea~ebolds: Condominiums; Planned Unit Devebpmcnts. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shatl comply with th~ provisions of any lease if this Mortgage is on a leasehold. 1( this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Berrower s obligations under the declaration
or covenants creating or governing ihe condominium or planned unit development, the by-laws and regul~tions of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
ridsr is executed by Borrower and recorded together with this Mortgage, the covenants and agreements ot such rieler
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof. •
7, protectioa oE Ltader's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding is commenced which materially atiects Lender's interest in the Pruperty.
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take auch action as is necessary co protect Lender s interest, including, but not limited to, disbursement of
reasonable attomey's fees and entry upon the Property to make repairs. If L.ender required mortgage insurance as a
condition of making the loan secureci by this Mortgage. Borrow•er shall pay the premiums required to maintain such
iusuratxx in effect until such time as the requirement for such insurance terminates in accordance wi(h Borrower s and
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