HomeMy WebLinkAbout1148UNtFORt-~ Cav~N~NTS. 8orrowe~ and l.e~der covenant and agree as follows:
1. T~ydltll~ O~ PI'I11CIpv Q11I III~!(t5~. Borrower shaQ promptly pay when due the principal of and interest on 1he
indebtedr~est evidenced by the Note, prepayment and late charges as provickd in the Note, and the principal of and intenst
on aay Futur~e Advances secured by this Mortgage.
2. Ftiwd~ !or Ta:es and lntursace. Stibject to applicable law or to a written waiver by i.ender, Borrowe~ shall pay
to Lende~ on the day monthly installments of principal and interest are payable u~dcr the Note. until the Note is paid in fuil.
a aum (herein "Funds") equal to o~c-twelfth of the ycarly taxes and assessments which may attain priority over this
Mortgage, and ground rents on tha Pc+openy. if any. plus one-twelfth of yearly prcmium installments for hazard insu~ance.
plus onc-twelfth of yearly premium installments fo~ mortgage insurance, if any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and bills a~d reasonable estimates thereof.
The Funds shall be beld in an institution the deposits or accounts of which are insured or guaranteed by s Federal or
state agency (includi~g Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments.
insurat~ce premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessmenu and bills, unless Lender pa~~s 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 interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
requires such interat to be paid, Le~der shall not bc required to psy Barrower any interest or earnings on the ~unds. l.ender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose !or which each debit to tht Funds was made. The FunJs are pledged as additional security for the sums secured
by this Mortgagt.
If the amount of the Funds held by Lender, together with the futurs monthly installments of FunJs payable prior to
the due dates of taxes, assessments, insu~ance pcrmiums and ground rents, shall exceed the amount required to pay said taxa,
assessments, insurance premiums and ground rents as they fall due, such excecs shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly instsllmcnts of fiunds_ li the amount of the Funds
held by Lender shall not be sutiicie~t to pay taxes, assessments, insurance premiurrc and ground rents as they fall dae,
Borrower shall pay to Lender any amourtt 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 sums secured by this Mortgage, I.ender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph IR hereof the Property is sold or the Prope~ry• is othenvise acquired by l.ender. Lenckr
shall apply, no later than immediately prior to the sale of ~he Property or its acquisitio~ hy l.ender. any Funds held by
Le~der at the time of application as a credit against the sums secured by this Mongage.
3. Applicatioa of Payments. Unless applicable law provides otherwise, all payments received by [_ender under the
Note and paragraphs I and 2 hereof shall bc appiied hy I.ender first in paymgn=;qf ~ajtl~iyabte~lo Lcnder by Borrower
under paragraph 2 hereof, then to interest payablc on the Note, thtn to the pt~ncip of tb~e ~ide, and then to interest and
principal on any Future Advances. '~' `' ' _. ,
4. Cdarges; Lkas. BorroHer shall pay all taxcs, assessments and other charges, fines and impositions atttibutable to
the Property which may attain a priority over this Mortgage, and leasehold payments or gr+uund renis, if any. {n ihe manner
provided under paragraph 2 hereof or, i( oo! paid in such manner, by Borrower making paymtnt, when due, dircctly to the
payce thereof. Borrower shall promptly furnish to l.ender all notices of amounts due under this paragraph, and i~ the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptiy discharge any tien ~•hich has priarity over this Mortgage; provided, that Borrower shall not be
required io discharge any such lien so )ong as Borrower shall agree in writing to the payment of the obligation xcured by
such lien in a manner acceptable to I.ender, or shall in gooef faith contest such lien by, or defend enforcement of sach lien in,
legal proceedings which operate to prevent the enforcement o! the lien or fodeiture of the Property or any part thereof.
S. Huard Insurance. Borrower shall i:cep the improvements now existing or hereafter erected on the Property insured
against loss by ~ire, hazards included w~ithin thc term "e~tended covc~age", and such other hazards as l.ender may require
and in such amounts and for such periods as Lender may rcyuirc; 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.
T6e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approva! shal! not be unreasonahly withheld. 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, ~vhen due, directly to the
insurance carrier.
All insurance palicies and renewals thereof shall be in form acceptable 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 ihereof,
and Borrower shall promptly furnish to Lender all renewal notices anJ all receipts of paid premiums. in the event of loss,
Borrower shall give prompt noti~e to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrow~er othervvise agree in w riting, insurance proceeds shall be applied to restoration 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 econon~ecally feasible or if the security of Ihis Mortgage would
be impaircd, the insurance proceeds shall be applied to the sums sect~red by this Mortgage, with the excess, if any. paid
to Borrower. If the Property is abandoned by Borrower, or it Bormwer fails to respond to Lender within 30 da}•s from the
date notice is mailed by I.ender to Borrower that the insurance carrier offers to settle a ciaim fot insurance beneSts, Lender
is authorized to coQect and apply the +nsurance proeeeds at [_ender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments reterred to in paragraphs i and 2 hereof or cha~ge !he amount of
such installments_ If under paragraph 18 hereof the Property is acyuired 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 Propeny prior to ihe sale
or acquisition shall pass to l.eader to the extent of the sums secured by this Atortgage immediately prier to such sale or
acquisition.
6. Preservation and ;-taintenance of Properly; Leasebolds; Condominiums; Planned Uolt Devebpments. 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 th~s Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit devetopment. Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or go~erning the condominium or p{anned unit development, the by-laws and regulations of the
condominium or planned unit development. ~nd constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recordeJ together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shalt amend anJ supplement the covenants and agreements of this Mor~gage as if the rider
were a part hereof.
7. Protation of Lende~s Security. If Borrower fads to perform the covenants and agreements contained in this
Mortgage, or if any actior. or proceeding i~ commcncc4 N•hich materially afiects I_ender's interest in the Property.
including, but not limited to, eminent domain. insol~•ency~. code enforcement, or arrangements or pruceedings involving a
bankrupt or decedent, then Lender at Lender'~ option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender s interest, including, but not limited to. disbursement of
reasonable attomey's fecs and entry u~n the Property to make repairs. If Lender required mortgage insurance as a
condition of making the toan Sccured by this lllortgage. Borrower shall pay the premiums required to maintain such
insurance in etiect until such time at thc reyuirement for such msurance terminates ~n accordance with Borrvwer s and
. . 6!1~1K 347 ~~~E 1145
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