HomeMy WebLinkAbout1263UKt~o~tFt CovEft~t~rrt, Borrower and L~de- cove~an~ and asree u follows~
U~^~t ef h~eiNl a^i lMenN. 8ormwer shall p~omptly pay when due the priocipal of and interest oo the
indebtednw evidenoed br the NWe, prepayment and late char~cc ac ~-rovided in ~he Note, and the principRl of aod i~terest
oa any Future Advances saurod by this Mortsste-
2. R~i tK Tua wl t~wn~ee. Subjcct to applicat-k law ~u ta a written waiver by Ler~der. Borrowe~ shall pay
to I.ender or~ ~he dsy ~thl~- installmems of principal and ~nt~rec~ ~tc ~yahle unde~ the Note. until the Note is paid in full.
• suen (hetein "Fuads"1 eqwl to o~e-twelfth o( ~he yearl~ tax~Y anJ assessmeots which may attain pnority ove~ ~his
Mart~aje. and ~r~ound rena ou ebe Pwpeny, it a~y, plus oee-twelfth of yea~l~r premium installments ior huard insurance.
plus oat-tw~elfth of yearly prcmium installments tor moriga~e insunnce, ~t any, sll as rcuonably atimated initially and trom
time to time by Le~dcr oo tbe buis of assacmcnts and hills and rcawoabk estimata thereof.
The Funds shatl be held in an insti~wion the depocus o- accounts of which aro insured o~ guaranteed by a Federal ot
s4te a~ency (iocludina Lender i[ [.ander is such an institution). I.ender ahall aPply the Funds to pay said uxes, asseume~ts.
iuwranc~e pt~emiums aod around rents. l.ender may na~ eharae to~ u+ holding and applying the Fu~dc. analyzing caid aecount,
o~ verifyin~ and complina said assessments and bills, unless Le~e~ pays Bormwer intetat oo the Funds and applicable law
permits l.ender to make such a charge. Borrower ar~d Lender may agree in writing at the time ot execu~ian ot this
Mortp~e that interat on the Fw~ds shall be paid to Borrower, and u~ku such agreeme~~ is made o~ applicable law
requira s~xh interat to be paid. L.ende~ shall not be rcquired to pay Borrowe~ any interest or earnings ort the Funds. Lender
shall sive to Borrower, without charge, an annual accounting of ~he Funds showing credits and debits to the Funds anti thc
purpoae for which taeh dtbit to tbe Funds was mad~. The Fw~ds are ple~ged u additional security tor the sums secured
by this Mortjaee.
If the artwu~t ot the Funds held br I.ender, together with the future monthly ~nstallments of Funds payable prior to
tlle due data of tua, assessmcau. i~surance premiums and ground rcnts, shall etceM ihe amount nquircd to pay said taxes,
a:sea~enu. iasurarn:e prcmiums and ground renu u they fall due, such excect shall be, at Borrower's opt~on, either
pt~anptly rcpaid to Borcovrer or credited to Borrower on monthly ~nstallme~ts of Funds. If the amou~t of the Funds
uaa ~- c,~a~~ ~„u Aa ~~< <o p.r ~~a. assessmenu, insurance prcmiums and ground rents as they ta!! due,
Borro~r~r sAall pay to l.ender any amount nacessary to make up the deficiency within 30 days from ~he date notice is mailed
by l.eader W Borrovrer requestina paYment thereof.
Upoa paymeot io fuU of all sums secuted by this Mo~tgage, l.ender shall promptly re(und to Borrower any Funds
hNd by Lender. If under puagraph !S heteof the Property ia sold or the Property ~s ahenvisc acquircd by l_ender, Lcnder
shall apply, no later than immediately Prior to the sale of the Prop~ny or its acquis~tion by Lende~, any Funds held bv
l.eoder at the time of application ~ a credit against the sums secured by this Mongage.
3. A~plicatio~ af tapae~ts, Unless applicable law provides otherwise, all payments received by 1_ender under the
Note and pangnphs 1 aud 2 heted shaR be applied by t_ende~ 6rst in payment of amounts payable to Lender by Borruwer
unde~ paraataph 2 heteot, tlien to interest payable on the Note, then to the principal of the Note, and then to interest and
pcincipal on any Futurc Advances.
4. C~es; I~eas. Bottower shall pay all taxes. auessments and ahcr chargcs. Rnes and ~mpvsitions at~ribu~able to
the Propeny which raay attain a pnority ovtr this Mortgage, and leasehold payments or grounti rents, if any, in the manner
pe+ovided under paragraph 2 hereof or. ~f not pa~d in iuch manner, by Bo~rower making payment, when due, directly to the
payee thazof. Bo~rower shall p[omptly fum~sh to Lender all nouces ot amounts due under this paragraph, and in the event
8ormwer shall make payment d~rectly, Borrower shall promptly furn~sh to Lender rcceipts evidencmg such payments.
Borrower shalt pramptly diseharge any lien which has prior~ty over thic Mongage; provided, that Borrower shall not be
reqwred to d~scharae any such lien so long as Borrov-er sha11 agree in ~n~mg to the payment ot tt-e obligatiun secured by
such fien in a manner acceptable to lxnder, or shall ~n ga~d faith conteti~ such lien by. or defend enforcement of such (ien in,
kgal proceed~ngs wh~ch operate to prevent the enforcement of the I~en or tortenure of the Propeny or any part thereof.
S. Nwrd losunnce. Borrower shal! kcep the ~mpro.~ememt noK eiisung or hereaher erected on the Property insured
against loss by 6ro, hazards included w~thm the tefrr- "extended coverage", a:~J such other hazardt as l.ender map reywre
aad +n wch amounts and for such periods as l~ender may reyuire; prmided: that [.ender shall not require that the amount of
such_coverage exceed that amount c-f coverage reqwred to pay the sums uc~~red ~by th~s Mortaage.
7]ie insurance carrier ptoviding the insuranre shall tx chosen by Borrower subject to approval by I.ender, provided,
that such approval shall not be unreasc~nahly withheld_ AU p~em~um~ on insurance polic~es sha11 be paid in the manner
provided uoder paragraph 2 hereof or, if not pa~d m such manner, by Borrow~er makmg payment, when due, dirrcdy to the
insurance carrier_
All insurance ~wl~cies and renewals therrof shall be m torm accep~able to Lender anJ shall include a standard mortgage
clause in favor of and ~n form acceptable to Lender. 1_ender shall ha~e the right to hold the policies and renewals thereof.
and Borrower shall promptly furn~sh to ~ender ali renewat noaces and aN receipts of pa+d premiumc. ln the event of 1oss.
Borrower shall grve prompt noace to the insurance carner aod lender. Lender ma~• make }xa~f ot loss if not made promPtly
bv Borrower.
~ Unlas Lende~ and Borrower otherv-~x agrc~ in wntmg, inwrance proceeJs shall b.: appiied tn restoration or repair of
the Property damaged, pro~ukd such restorat~on or re~-a+r is econnmirafl}~ feasible and the security of th~s Mortgage ~s
not ~htreby impa~rcd. If such restoraaon or repair is not econ~~m~c~lly (easihle or ~f the security of th~s. Mortgage w.~u1d
be impaued, the insurance proceeds shall be applied to the sums secureJ by th~s M~~rigage. wiih the excess, if an~•, paid
to Borruwer. if the Proptrt~~ ~s abandoned hy Borrower. or it Borrower faits.to respond to i_ender within 30 clays from the
date notice ~s ma~led by [,ender to Borrew•er that ~he insurance carrier otTers to sen3e a claim for insurance benefi~s, I.ender
is aut6oriud ta collec! and apply the insurance proceeds at LenJer's optiun either to restoration or repa~r ot the Propertc
or to the sums secured b} this Mortgage
Unless Lender and Borrvw~er othena~se agree m wnt~ng. am such application i-f pnxeeds to pr~nc~pal sh•rl! not e~tend
or postpone tbe due date of the monthh installment~ referrcd tu in paragraph~ I- and 2 hereof or change the amount of
suc6 installmeuts. 1t under paragraph 18 hereof the ProE,ert~ ~s acyuired b} Lendcr, aU nght. tide and interest of Rorr~~wcr
in a~d to am~ tnsurance policies and in anJ to the proceats thereof resulang (rom damage to the Property prior to thc sale
or acquisition shall pass to l.ender to ihe e~tent uf the ~umi secured b~ this Afortgage ~mmediately prior ta iuch sale or
acquisition "
6. Prrsenatioa and ~laintenance of Propertr: I.eueholds; ('ondominiums; Pl~nned Unit Ih~~elopments. Borroucr
shall keep the Propertc in good repair and shall not com~oii K aste ~~r permU i:*~pa~rment or deterioration of the Property
and si~all comply with the Qtovesions of any leax ~f th~s ~~lottg~ge „ un a teasebt.ld. lf this Morlgage is on a umt m~
condomin~um or a p;anned un~t devrlupment, Borrower ~hall E+crform all of Borrower's obhgatwns under the declarat~~~n
or cocenants creat~ng or governmg the condomin~um or planned unit development, the by-laws and regulationc of the
condominiu:n or planoed unit develo~,ment. enJ constituent Joeument~. If a condominium or planned unrt development
r~cier ~s executed by Borruwer and recorded tugether xnh thi~ Mortgagc. the covenants and :-greements of ~uch ndcr
shall be incorporaled mto and shall amend anJ supplement thc cv~enams anJ agre~ments of Ihis Mortgage as if the nJcr
were a part Fereof.
7. Prote~tioa of I.enders 5rcurfty. If B~rr..wer (a~t. t~~ perf~~rm the covenants and agreements c~mtained in thic
Mortgage, or +f any actiore ur prmeed~ng ~t cummrnce~f r.h~rn materialh .ifTeclc I.en{1er's ,nteretit in the Prnpertv.
including, but n~~t l~mited to. em~nent doma~n. ~m~•hency, c~xlc enforcement. ~~r arrangemcnt~ or proceedings imol.~ng a
bankn~pl o~ deceJent. ~hen I.enJer at I ender'` opuon, upun noUce ~o Borrower, ma~ make surh appearance~, di~hur~e such
soms and take such a.~iun ~. ~s nece„an a- pr~.tect Lenders mtcrest. ~nrlu~iing. but not I~m~teJ to, dicbunement ~~f
rc~sonahlc a~~vmey'~ fec~ and emry upm thc Propcrt~ ti~ make rcpnirti. If Lrnder rcyuirrJ rnortgage incurance ati a
condiUun ~~( mak~ng the loan :ecureJ hy this ~1~~rtK.~gr. B~.rrr..+cr sh ~II ~a~• thr prem~ums required to maii~tam w~h
insurance in etiect unUl ~uch ume at the rcy~nrement (~•r ~uch ~n;utan;e trrmin:ttc. in .iccordanee w~th Borr~~~cr'. and
~ n~K 34? F~~E ~~'60
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