HomeMy WebLinkAbout0912Ur~~toR~~ CovFNnNTS. Borrowcr and l.enJrr ~uvci-aiu anJ agr~,c a~ follows:
1, Paymeot of Priacipal nad Inhral. No~ruv-cr shall prump~ly pay Nhen due thc principal nf and interest un the
inckbtcdness evidenccd hy thc Notc, prepayment und latc chargc~ ati provided ~~ ~he Note, and the principal of and intercst
o~ any Fuwrc Advances securccl by thic Mortgage.
2. Funds for T~sa and Inwraace. Subject to applicabie law or ta a written waive~ by t.ender, Borrower shail pay
to I.encier a~ ~hc day monthly installmenls of principal and mtercct are payablc undcr the Note, until the Note is paid in full,
a sum (hercin "Funds") equal to one-twelfth of the ycarly taxcc and assessments which may attain p~ic~rity over this
Morigage, and ground re~ts on the Property, it any. plus one-twclfth af ycarly prcmium installmenta for hazard insurance,
plus one-twelfth ~f yearly premium installmcnls for mortgage insurancc, i( any, all as reasonably cstimated initially and from
[ime to time hy Lender on Ihc basis of a~sessmcnls and bills and reasunablc es~imates thecrof.
'il~e Funds shall be held in an institution the deposits or aca~unts of which a~e insured or guaranteeJ by a Federal or
state agency (including Lender if Le~der is such an institution). I.ender sh•rll apply the Funds to pay said taxes, assessments,
i~surance premiums and g~ound rents. l.ender may not charge Ic~r tio holding and applying the FLnc1s, analyzing said account,
or verifying and compiling said assessments and hills, unlesx l.e~der pays Borrower interest an the Funds and applicable !aw
permits Lender ta make such a charge. Borrower and t.ender may :~gree in writing at the tirne of execution ot this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires sucti interest to be paid. l.ender shall not be rcyuirc~ to ~wy Borrower a~y interest or carnings on the Funds. l.ender
shall give to Borrower, without charge, an annual aca~unting of the Funds showing credits and debits to Ihe Funds and the
purpose far which each debit to the Funds was msde. The Funds are pledgeci as additianal security for the sums secureci
by this l~~fortgagr.
lf the amount of the Funds held by LenJer, tc~gether N~ilh thc future monthly instullments of FunJs payablc prior to
the due dates of taxes, assessments, insura~ce premiums anJ g~ound rents, shall exceed ~he amount reyuired to p:-y said taxes,
assessments, insura~ce premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. !f the amount of thc Funds
held by Lender shall not be sufficient to pay ~axes, assessments, insurancc premiums and ground rents as they fall due,
Borcower shall pay to Lende~ any amount neces~ary to make up ~he deficiency within 30 Jays from the date notice is mailed
by Lender to Borrower requesting payment ~hereof.
Upon payment in full of all sums secured by this Mongage, l_cnder shall promptly refund to Borrower any Funcls
held by l.en~ier. If under paragraph 18 hereot the Propcrty is sold or thc Properry is otherwise acquired by 1_ender, I.ender
shall apply. no later than immediatcly prior to thc salc of the Property or its acquisition by l.cnder. any Funds held by
Lender at the time ot application as a crcciit against the sums secured by this Mortgage.
3. Applkstioo of Paymeats. Unless applicable law provides otherwis~, all payments received by I_ender under the
Note and paragraphs 1 and 2 hereof shall be applicd by 1_cnder first in pa~•ment of amounts payable to 1_endcr by Borrower
under paragraph 2 here~f, then to interest payablc on thc Note. then to the principal ot the Note, a~d thcn to interest and
principal on any Future Advances.
4. C6argea; Lie~. Borrower shall pay all taxes, a~sessmcnts and othcr chargcs, fines a~J irrtFwsitions attributable to
the Property which may attain a priority over this Mortgagc, and leasehold payments or ground rents, if any, in the manaer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dircctly to the
payee thereof. Borrower shall promptly furnish to Lemier all_notices of amounts duc under this paragraph, and in the event
Borrow•er shall make payment directly, Borrower shall promptly lurnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: proviJed. ~hat Borrower shall not be
required to discharge any such tien so long as Borrower shall agree in writing to the payment of the obligation ucured by
such lien in a manner acceptable to Lender. or shall in gcx~d faith contett such lien by, or defend enforcement of such lien in,
legal procccdings which operate to prevent the enfon-emcnt of thc licn or for[eiture of the Property or any part ihereof.
S. Huud Insurance. Borrower shall kcep the improvements now~ existing or hercafter erccted on the Property insured
against loss by fire, hazards included within the term "extendeJ coveragc", and such other hazards as Lender may require
and in such amounts anJ for such periods as 1_ender may requirc: provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
Tt~e ~nsurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, providod.
that such approval shall not be unreasonably withheld. All prem~ums 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, dircctly to the
insurance carrier.
All insurance policies and renewals thereof ahall bc in form accep~able to Lender and shall include a uandard mortgage
clause in favor of and in form acceptable to Ixnder. Lender shall have the right to hold the policies and renewals ihereof,
and Borrower shall promptly furnish to Lender all renewal notices anJ all receipts of paid premiumc. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and I.ender_ LenJer may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, in~urance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repa~r is ea~nomics!!y feasible and the security ot ihis Mortgage is
not thereby impaired. If such restoration or repair is not economically feasihle or i( the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any. paid
to Bortower_ If the Property is abandoned hy f3orrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by l.ender to Borror1er that the insurance carrier ofiers to setUe a claim for insurance benefits, l.ender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair ot the Property
or to the sums secured by this Mortgage. ~
Unlus L.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly instalfinen~s referred to in paragraphs t and 2 hereof or change the amount of
such installments. If under paragraph 18 hcreof the Property is acyuired by Lender, 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 Propeny prior to the sale
or acquisition shall pass to Lender to ihe extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. ~
6. Preservation and ~taintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
shall kecp the Property in good repair and shall not commi~ waste or permit impairment or deterioration of the Property
and shall comply with the provisioos of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit developmcnt. Borrower shall perform all of Borrower s obligations under the declaration
or covenanls 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 conJominium or planned unit development
rider is executed by Borrower and recorded together w•ith this Mortgage, the covenants and agreements aF such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part htreof.
7. Protection of Lender's Security. If Rorrow~er faik to perform the covenants and agreements contained in this
Mortgage, or if any action or proceed~ng is commenccd which materially afiects t_ender's interest in the Property,
including, but not limited to, eminent domain. insolvency, code enforcement. or arrangements or proceedings involving a
bankrupt or decedent, then 1_ender at Lender a option, upon notice to Borrower, ma~~ make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including. but not limited to. Jisbursement of
reawnable attorney's (ecs and entry opon the Property to make repairs. I( Lcnder requircd mortgage inxurance as a
condition of making the loan securect by ~his Mortgage. Borrow•er shall pay the premiums required to maintair. such
~nsurance in eftect until such time as the requirement for such insurance termina:Ps in accordance with Borrower s and
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