HomeMy WebLinkAbout1628UNtFO~tM CoveN~NTS. Borrower a~-d l.ender covenant and agree aa follows:
1. Paymcat ot Pdacipai aod latereat. Barrow~e~ shell promptly pay w~hen duc the principal ot and intercst on the
indebtedneu eviJenced by the Note, prepayment and late cha~ges as provided io the Note, and the principal of and intercs~
0o any Future Adva~ces xcured by this Mor~gage.
2. Fnnds tor Ta:a and lasurtace. Subject to applicable law or to a written waiver by l.ender, BoROwer shall pay
to l.ende~ an Ihe day monlhly installmen~s of principal and interect are payable under the Note, until the Note is paid in tull.
a sum (herein "Fu~Js") equa) to ~~ne-tweltth ot the yearly taxes anJ ascessments which may attain prio~i~y over this
Alortgsge, and graund renta on the Pmperty, if any, plus ooe-tvvel(th ot ycarly p~emium i~stallments for hazard insunnce,
plus or~e-twelfth of ytarly premium installments (o~ mortgage insurance, if any, all as reuonably estimated initially and from
time to time by Lender on the basis of assessmen~x and bills anJ reasonable estima~a thereo[.
The Funds shall be htld in an ins~itution the deposits or accaunls of which are insured ar guaranleed by a Federal or
state agency (including Lender if Lrnder is such an insti~ution). I.ender shall apply the Funds to pay said uxes, assessments,
insurance premiums and ground rents. l.ender may not charge for ~o hold~ng and applying ~he Funds, analyzing said account,
or verifying and compiling said assessmeots and bills, unless l.ender pa~~s Bo~rower interat on the Funds a~d applicable law
permits l.ender to mak~ such a charge. Borrower and l.ender may agree in wri~ing at ~he time ot execution ot this
Mortgage that interest on the Fu~ds shall be paid to Borrower, and unless such agreement is made ar applicable law
requira such inlerest to be paid. I_ender shall not tx required to pay Borrower any interat or earnings on Ihe Funds. I.ender
shall give to Borrower, without charge, an annual accounting ot the Funds shawing credits and debits to the Funds and the
purpose for wh~ch each debit ta the Funds was made. The Funds are pleJged as additional security for the sums secured
by Ihis Mortgage. -
If the amounl of the Funds held by Lender, toge~her with the future monthly inxtallments of Funds payable priar to
~he due dates of taxes, assessments, insurance premiums and ground rents, shall exceecf the amount reyuired lo pay said taxes,
assessments, 'insurance premiums and ground rentc as they fall due, such excess shall be, -at Barrower's option, either
Qromptly repaid to Borrower or credited to Borrower on momhly ins~allmems of Funds. 1f the amount ot the Funds
htld by Lender Shall not be sufficient to pay taxes, assessments, incurance premiums and ground rents as Ihey tall due,
Borrower shall pay to Lender any amount necessary ta make up the Jeficiency within 30 days (rom the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of al) sums secured by this Mor~gage. I.endcr shall promptly re(und to Borrov-~er any Funds
held hy l.ender. It under paragraph IR hereof the~Propeny is ~old or thc Propcrt~• ~s atherwic~: acquircd by l_ender, I.ender
shall apply, no later than immediatcly prior to the .ale ~~f the Pru~rty or i~s acquis~UOn by 1_ender, any~ Fundc held by
Lender at the time ot application as a creJi~ aga~nst the sum~ securcd by ~h~c Mortgage.
3. Applicalion of Paymeats. Unle~s apphcahle law proviJes otherwik, all payments received by I.ender under the
Notc and paragraphc 1 and 2 hereof sh.,ll be appl~rd by I.cndrr fint in paymcm ot amounts pap~blc to Lendcr by Ba~rower
under paragraph 2 hercof, then to ~nterest payable on thr Note, thrn ~o the principal o( the ho~e, anJ thcn ~o interest and
principal on any Futurc Advances. .
4. CIIafRK; [.kns. Borrower shali pay all ta~cs, a~u:ssments and ~•thcr chargcti. fines and ~mFxxitions attnbutahle to
the Propertp which may attain a priority over this Mortgage, and leaschold payments or ground rents, if any, in Ihe manner .
provided unJer paragraph 2 hereo( or, it not paid in such manner, by Borrower making payment, when due. Jirectly to the
payee ~hereof. Borrower shall promptly [urnish ~o Lender all not~ccs of amounts due under this paragraph, and in ~he event
Borrower shall make payment direcUy, Borrower shall promp~ly (urnish to LenJer receipts evidencing such payments.
BorroK•er shall promp~l~ dixharge any lien which has pnonry over thit Mortgage: provided, that Borrower shall not be
reqwred to discharge any such lien so long :~s Borrower shall agree in N~iting to ~he payment o( the ~~bligation secured by
such lien in a manner acceptable to Lender, or ~hall in gcxxi faith c~~nte~t such lien hy, or defend enforcement o( such licn in,
legal praceedingc vvhich o~erate to prevent the en(orcement u( ~he I~cn ar torte~turc of ~he Properry or an}• part thereof.
S. Hazard Insurance. Borrow•er shall keep the ~mprovcmcnt~ now cxisung or hereafter erec~ed un the Pr~,pcrty inwred
against loss h~~ 6re, hazards included withm the ~erm "rxtendeJ cover:+ge", and such other hazards as Lender may reyuire
and ~n such amounts and for such prriods ac l_ender may reyuire; provideJ, that Lende~ shall not reyuire that the amount of
such co~•erage ecceed that amoum of co.~erage required to pay the cum~ tiecured by this Morlgage.
The msurance carrier providing the insurance shall 6e chosen by Borrower subject to approval by 1_ender; provided.
that such approval shall not be unreaconably withhe{d. All premium~ on insurance policies shall be paid in the manner
prov~ded under paragraph 2 hereof or, ~f not paid in such manner, by Borrower makmg payment, when due, d~recUy to ihe
insurance carrier.
All insurance policies and renewals thereof shall tx in form 7Cl'C~11JhIl` to LenJer and shall include a titanJard mortgage
clause m favor of and in form acceptable to Lender. 1_ender +hall ha.c the right t~~ hnld the ~+c~licies and renev-alc thereof.
and Borrow~er shall promptly furnish to Lender all rcnewal noiices and all receipts of paid premiumt. In the e~•ent o[ l~ss,
Borrower ~hall gi~e prompt nouce to the imurance carner and LenJer. 1 endrr may male prcx~f of loss if not made prompdy
by Borrower. ~
Unless t.enJer and Bonower otherwix agree in v-rilmg. imurance pnxeeJc sh•rll be~pplied to rectoration ~~r repair of
the Properry Jamaged, prowded such restora~~on or repair ~s ernnomically feas~ble and the securiry of this Mortgage is
not ihereby impaired. lf such restoration or repair is not economically feasible or it ~he securiry ot this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage, wqh Ihe excecs, if any, paid
to Bormwer. If the Property is abandoncd by Borrower, or ~t Borrowcr fails tc respond to I.ender within 30 da}~s from the
date notice ~s mailed by Lender to Borrower that the insurance carrier often ~o settle a~claim tor ~nsurance txnefits, Lender
is authorized to collect and apply the insurance proceeds at I.ender's opt~on either to restoratibn or repair ot the Property
or to the ~ums secured by this Mortgage.
Unless I_ender and Borrower otherwise ag~ee ~n wri~ing, any such application of proceeds to principal shall not extend
or postpone the due da~e of the monthly installmentc referred to in paragrapht I and 2 hereof or change the amount of
~uch installments_ I( under parag~aph 18 hereof the Property is acyuired by I.ender, al! right, title and interest of Borrower
~n and to any insurance policies and in and to the proceeds thercot resulung trom damage ta the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this 1-lortgage immediately prior to such sak or
acquisition.
6. Presenation and :Naintenance of Property; I.easeholds; Condominiums: Planned Uuit Devebpments. Borrower
shall keep the Propeny in good repair and shall not commit w~aste or permit impa~rment or deterioration of the Property
and shall comply with the provisions of any lease if this Mor~gage is on a leaaeh~~ld. If this INortgage is on a unit in a
condominium or a planned unit Jevelopment. Borrower shall per(i~rm all of Borrower's obligaaons under the declarat~on
or covenants creating or g~verning the condominium or planr.ed unrt development. ~he by-laws and regulations of the
condominium or planned unit development, and constituent Jocuments. If a condominium or planned un~~ Uevelopment
riJer is executed by Borrower and recorded toge~her with ~his Mortgage, the covenants and agrcements ot such rider
shall be incorporated into and shall amend and supplement ~he co~~enants and agreements of th~s Martgage as if the rider
were a part hcreof.
7. Protectioa of Lender's Security. It Borrower fadc to perform the covenants and agreements contained in this
Mongage, or if any action or procceding ~s commence~l a•h~ch ma~erially affects 1_ender's interest in the Propeny.
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceeding~ involving a
bankrupt or decedent, ~hen Lender at Lender's option, upnn notice to Borrower, may make such appearances, disburu such
sums and take such action as is necessary to protect l.ender's interest, including. but not lim~ted to, disbursement of
reuonable a~tomey's tees and entry upon ~he Property to make repairs. I( (_ender required mortgage insurance as a
condrtion of making the loan secured by ~his Mortgage. Borrower shall pay the Qremiums required to mainlain such
, insurance in e(fect until such time as ~he rcquirement for such insurance terminates in accordance with Borrowei s and
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