HomeMy WebLinkAbout0138UN~FOai-t CovFNANTS. Borrower and I.r~Jcr awenam and agree as foUows:
1, Paymeat of Principai aod lnterest. Borr~~wer shall promptly pay whcn due the principal of and in~erest un thc
indeb~edness evidenced by the Note. p~vpayme~t and late charges a. provided in the tiote, and the principal of and interes~
un any Futurc Advanccs securccl by this Mor~gagc.
2. Fbads tor Tues aad Inwrsnce. Subject to applicabie law or to a written waive~ by I.ender, Borrower shall pay
to l.ender on ~he d~y monthly installme~ts of principal and intcrest are payable undcr Ihe Notc, until ~he Notc is paid in full,
a sum (hercin "Funcls") equal to one-twelfth ot the ycar{y taxrs and astcssme~ts whirh may attain priority over this
Mortgage. and groui~ci rcnts on the Properly. if any, plus one-twclfth af ycarly premium installmcnts for hazard llis,:!1RCC,
plus one-twelfth of yearly premium installments for mortgagc insurance, if any, all as reasonably estimated initially anJ fram
time to time by Lender on the basis oi assessmcnts and bills and reason~ble es~imates thereof.
"Il~e Fu~ds shall be held i~ a~ institution the deposits or accaunts af which are insurtd or guaranteevi by a Federat or
st~te agency (including Lender if I.enJe~ is such a~ institu~ion). I.ender shall apply the Funds ta pay said taxes, assessments,
insuran~e premiums and ground rems. I_ender may not charge ior ~o halding and applying the FunJs, analyzing said account,
or verifying and compiling said assessments and bifls, unless l.ender pays Borrower inlerest on the Funds and applicable law
permits Lender to make such a charge. Borrower and I.cndcr may :1gfCi in writing at the'time af exe~:ution ot Ihis
Mortgage that inte~est on Ihe Funds shall be paid to Borrower, and unless such agreement is made or applicable law
.:.y:sira sucti interest to be paid, 1_ender shall not hc required to ~y Borrawer any interest ar earnings on the Funds. 1_ender
shall give to Borrowe~, without charge, an annual accc+unting of the Funds showing creciits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pleeiged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by ~ender, together w•ith the (uturc rrlonthly instaUments of Funds payablc prior to
the due dates of taxes, aue~mems, insurance premiums and g~ou~d rents, shall exceed the amou~t reyuired to pay said taxes.
assessments, insurance premiums and ground rents as the~• fal! due, such excess ~hall be, at BOffOVVer's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amoun~ of the Funds
hetd by.Lender shall not be suA'icient to pay taxes, assessments. insurance premiums and ground rents as they fall due.
Bonower shall pay to Lender any amount necessary to make up the Jeficiency within 30 day~s f~om the date notice +s mailed
by Lender to Borrower requesting payment ~hereaf.
Upon payment in fu11 of alt sums secured by this Mortgage. Lendcr shall promptly refund to Borrower any Funds
held by I.ender. If undec paragraph t8 hereof the Propeny is u~ld or ~hc Property is othenvise acquircd by Lender, I.ender
shall apply. no later than immediatcly prior to the sale of ~hc Property or i~s acquisition b}• 1_cnder, any Funds held by
Lender at the time of application as a crcdit against the sums secured by this Mortgage.
3. Applicstion of Payments. Unlesc applicable law provides otherwise. all payments received by I_ender under the
Note aad paragraphc 1 and 2 hereof shall be applied by I.cndcr first in payment of amounts payable to Lender by Borrow~er
under paragraph 2 hereof, then to interest payablc on thr Note, thcn to the principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arges; Lkns. Borrower shall pay all taxcs, asscstments and othcr charges, fines anJ impositions auributahle to
the P~opetty which may attain a priority over this Mortgage, and leasehold payments or ground renis, if any, in the manner
provided uneier para,graph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payce thereof. Borrower shall pcomptly furnish to LenJer all.notices of amounts due under this paragraph, and in ttie event
Borrower shall make payment directly, Borrower shall promptly (urnish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority aver tfiis Mortgage; provided, that Borrower tha11 not be
required to discharge any such lien so long as Borrower shall agree in writing to the pa}~ment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforeement of such lien in.
legal proceed+ngs which operate to prevent the enforcement of thc licn or iorieiwre of the Property or any part thereof.
S. Hazard Insurance. Borrower shatl keep thc imptovements now existing or hercafter crected on thc Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may reyuire
anJ in such amounts and for such periods as Lender may reyuire; provideJ, that Lender shall not reyuire that the amount of
such coverage exceed that amount of coverage required to pay the sums ~ecured by this Mortgage.
The insuranee carrier providing the insu~ance shall be chosen by Borrower s~bject to approval by ~ender, provided.
that such approval shall not be unreasonably withheld. All premium. 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, directly to the
insurance carrier.
All insurance policies and renewals thereof shall be in [orm acceptsbte to Lender and shall +nclude a standard mortgage
clause in favor of and in form acceptable to I.ender. I_ender shall have the right to hold the policies and renewals thereof.
and Borrower shail promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrowe~ shall give prompt notice to the +nsurance carrier and l.ender. 1_ender may make proc-f of {oss if not made promptly
by Borrower.
Unless Lender and Borrower othen+•isc agree in wriiing, ins~rance prcxccJs shall be applied to restoration or repair of
the Properiy damaged, proviJed such restoration or repair is economically feasible and the security of this Mortgage is
not Ihereby impaired. If such restoration or repair is not economically Feasihle or if the security of ihis Mongage would
be impaired, the insurance proceecis shall be applied to the sums secureJ by this Mortgage. with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower (ailc to resQond to Lender within 30 days from the
da~e notice is mailed by Lender to Borrower that the insurance carrier offers to seule a claim for insurance b.:nefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoratioo ur repair of the Propetty
or to the sums secured by this Mortgage. -
Unless l..ender and Borrower otherwise agree in writing, any cuch application of proceeds to principal shall not extend
or postpone the due date of the monthly instaN~nents referred to in paragraphs I and 2 fiereof or cha~ige the amount oi
such installments_ lf under paragraph IS hereof the Property is acquired by Lender, all right, title and inte~est 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 shal{ pass to I.ender to the extent oE the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presen•atbn and Maintenance of Ptoperty; Leaseholds; Condominiums; Planned Uait Developments. Borrowes
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shafi comply wiih the provisions of any lease if this Mor~gage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit Jevelopment. Borrower shall perform all of Borrower s obligations under the declara~ion
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent Jocuments. I( a conJominium or planned unit cievelopment
rider is cxecuted by Bortower and recorded together with ~his Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend anJ supplement the covenants and agreements o[ this Mortgage as if the rider
were a part hereof.
y. Protectioa of Lender's Security. If Borrower fails ta perform the covenants and agreements contained in this
Mongage, or if any action or proceeding ~s commenceJ which materially afiects [_ender's interest in the Property,
including, but not limited to, eminent domain. +nu.lvency, code enforcement, or arrangements or proceedings invotving a
bankrupt or decedent. ~hen Ixnder at Lender's aption, upon notice to Borrower, may make such appearances, disburse such
sums and take sueh action as is necessary 1o protect I~nder's interest, including, but not limited to, disbursement of
reasonabfe attorney's fees and entry upon the Property to make repairs. lf l.ender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrov-er shall pay the premiums required tu maintain sucfi
insurance in effat until such time as the requirement for such insurance terminates in accordance with Borrower s and
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