HomeMy WebLinkAbout1293UHtFORt-t Covetv~k~rs. Barrower and l.ender cavenant and agrce as fallows:
1. tayment ot Prlaclpal snd laterest. Borrowe~ shall promptly pay whcn due the principai of and interest o~ the
indebtedness evidcnceJ by the Notc. prepayment and late charges as provided in the Notc, and thc principal of and intercst
on any Future Advances secured by this Mortgage. ~
Z. Ptinnds Iot Tues and Inwr~ace. Subject to applicabk law or to a written waiver by l.ender. Borrower shall pay
to l.ender on thc day monthly installments of principal aq~ interest are payable under the Note. until the Note is paid in full,
s aum (herei~ "Funds") equal to o~e-tweltth of the yea~ly taxes and assessments which may attain priari~y over this
Mortgagc, and ground re~ta on thc Pmperty, if any, plus ane-tweltth of yearly premium instaltments for hazard insurance,
plus oae-twelfth of yeariy premium instatlments tor mortgage insi~rancc, if any, a!1 as reasonably estimated initially and trom
time to time by Lender on the basis ot assessmc~ts and bills and reasonablc estimates thercof.
'il~e Funds shall he held in a~ institution the depasits or accounts af whieh are insured or guaranteed tiy a Federal or
state agency (including L,ender if Lender is such an institution). I.ender shall apply the Funds to pay said taxes, asxssments.
insuranoe premiums and ground rents. l.e~dor may not charge for so holding and applyi~g the Funds, analyzing said account.
or verifying and compiling said asxssments and bills, unless [.end~r pays Borrower interesl on the Funds and applicable law
permits Le~de~ to make such a charge. Bor~ower and I.ender may agree~ in writing at thc time of exccution of this
MoRgage that interest on thc Fuads shall be paid to Borrower, and uniess such agrtement is made or applicable law
requira sucy interest to I~e paid, l.ender shall not be required to pay Borrower any interest or earnings on the Funds. ~tnder
shal) give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Fw~ds and the
purpose [or which each debit to the Funds was made. The Funds are piedged as additional security for the sums secured
by this Mortgage. _
If tt~e amount of the Funds held by l.ender, together with the future monthly installments of Funds payable prior to
the due dates of taxes~ assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
aasessments. insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's oplion, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. lf the amount of the Funds
held by Lende~ shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Bormwer shall pay to I.ender a~y amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower r+equesting payment ~hereo[.
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrower any Funds
held by l.ender. If under paragraph 18 hereof the Propeny is sold or the Property is othenvisc acquired by Lender, Lender
s6a11 apply. no later than immediatety prior to the sale of the Property or its acquisition by I.ender, any Funds held by
I.ender at the time of application as a credit against the sums secured by this Mortgage.
3. Applkation uf psyme~ts. Unless applicable law provides otherwise, all paymenls received by Lender under the
Nota and paragraphs 1 and 2 hereof shall be applied by !_ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principa) of the Note, and then to interest and
principal on any Future Advances.
4. Cdarse~ Lie~. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Morigage, and lessehold payments or ground rents, if any, in the manaer
provided u~der paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee the~+eof. Borrower shall prnmptly furnish to Lender all.nolices ~f amounts due under this paragraph, aod in the event
Borrow~r shall make payment directly. Borrower shall _promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shalt not be
requircd to discharge any such lien sb long as Borrower shaU agree in w•riting to the payment of the obligation secured by
suc6 lien in a manner acceptabk to I.eader, or shall in good faith contest such lien by, or defend enforcement of such lien in,
Iegal proceedings which operate to prevent the enforcement of the I~en or fodeiture of the Property or any part thereof.
S. Hazud Insarance. Borrower shaU keep the improvements now existing or hereafter erected on the Property insured
agairut loss by fire, ha7ards included wit6in the term "extended coverage", and sach other hazards as l.ender may require
and in such amonnts and for such periods as Lender may require; provided, that Lender shall not requirc that the amount of
such coverage excced that amount oP coverage required to pay the sumx secured by this Mortgage.
The insurane~e carrier providing the insurance shall be chosen by Borrovver subject to approval by Lender, provided,
that such approval shalf not be unreasonabty withheld. Ali premiums on insurartce policies shall be paid in the manner
providod under paragtaph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals ihereof shall be in form acceptable to LenJer and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shal! have the right to hold the policies and renevvals ihereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if nvt made promptty
by Borrower.
Uniess Lender and $orrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically (easible 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 Mortgage would
be impaired, the insuraoce proceeds shall be applied to the sums secured by this Mortgage, w+th the excess, if any, paid
to Borrawer. If the Properiy is abandoned by Borrower, ar if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that ~he insurance carrier ofters to settle a claim for insurance benefits, I.ender
is authorized to collect and apply ihe insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums securod by this Mortgage. -"
Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property ~s acquired by l.ender, all right, title and interest of Borrower
in and to any insurance goticies and in and to ihe proceeds thereof resulting from damage to tbe Aropeny prior to the sale
or acquisition shail pass to Lender to the extent of the sums secuted by this :4fortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenaace of Prope~ty; Leaseholds: Condominiums; Ptanaed Uolt Dc~~ebpmeots. 8orrower
shali iceep 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 Mortgage is on a leasehold_ If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower s obligations under the deelaration
or coveoants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit clevelopment
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of 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 hereof.
7. Protection of Lender's Secarity. if Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially aftects Lender's interest in the Property,
wcluding. but not limited to, eminent domain, insolvency, code enforcement, or arrangcments 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 such action as is necessary to protect Lender s interest, including, but not limited to, disbursement of
reasonable attomey's fees and entry upon the Property to make repairs. !f Lender required mortgage insurance as a
conditioo of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in efCect until such time as the requirement for such insurance terminates in accordance with Bormwer s and
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