HomeMy WebLinkAbout0235UNtFOant CovEN~HTS. Borrower and l.e~der covenant and ag~ee as follows:
1. Pqmeat ot Principal and Inferest. Borrower shall p~omptly pay when due the principal of and interest on the
indebtednesa evidenced by thc Note. prepayment and late charges as provided in thc Note, and the principal of and interest
on any Futuro Advances secured by this Mortgage.
2. Fnads to~ Tues aed Inwcance. Subject to applicable law or to a written waiver by Lender. Borrower sha1) pay
to [.ender on the day monthly i~stallments of principal a~d intcrest are payable under the Note, until the Note is paid in full.
a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessmcnts which may attain priority over this
Mortgage, and ground re~ts on the Propeny, if any. plus one-twelfth of yearly premium installments for hazard insurance,
plus one-twelfth of yearly premium installments tor mortgage insurance, if any, all as reasonably es~imated initially a~d from
time to time by Lender on the basis of assessments and bilis and reasonable estimata thenof.
The Funds shall t~e held in an institutio~ the deposits or accounts of which are insured or guaranteed by a Foderal or
state agency (i~cluding Lender if Lender is such an institution). I_ender shall apply the Funds to pay said taxes. assessments,
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyiing said account,
or verifying a~xl compiling said assessments and bills, unless Lender pa~~s Borrower interest on the Funds and applicahte law
permits Lender to make such a charge. Bor~ower and l.ender may agree in w~riting at ~he time ot execution ot lhis
Mortgage that interest an 1he Funds shall be paid to Borrower, and unless such agreement is made or applicable law
reqairts such irtterest !o be paid. Letsdtr sha!! nai bc rcquitc~ Ia pay Sorr~ucr an}• intcrest or carnings aa thc Funds. I.cndcr
shall give to Borrower, without charge, an annual accounting of ~he Funds showing creciits and debits to the Funds and the
purpose for which each debit to the Funds was made. The f unds are ple:igc:d as additional security for the sums ~ecureci
by this Mortgage.
If the amount of the Fonds held by Lenckr, together with ~he future monthly installments of Funds payable prior to
the due dates of ~axes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or creclited to Borrower on monthly inst~llmcnts of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiumc and g~ound rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 da~~s from the date notice is maileef
by Lender to Borrower requesting payment ~hereof.
Upon payment in ful) of all sums secured by this Mortgage, I.endcr shall promptly refunJ to Borrovver any Funds
held by I.enJer. If under paragraph 1R hereof the Pronertv ~c ~Id or ~he Pronert~• is Mherwicc aca~~ired hv 1 emler. 1 rndpr
shal) apply. no later than immediately prior to the salc of the Property or its acquisition by I_ender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Applkation of Paymeots. Unless applicable law provides otherw~ise. all payments recei~•ed by l_ender under the
hote and paragraphs 1 and 2 here~~f shall be appl~cd by I.cnder fir~t in payment uf amounts payablc to I.cndcr by Borrow•er
under paragraph 2 hereof, then to interest payable on the No~e, then to thc principal of the N<~te, ~nd then lo interext and
principal on any Future Advanccs.
4. C6arges; I,ieas. Borrowcr ~hall pay :+11 ta~-c+, asscstimcnts and othcr chargcs, fines anJ im~wsitions auributable to
the Property which may attain a priorily over this l~tor~gage, and leasehold payments or ground rents, if any, in ihe manner
proti•ided under paragraph 2 hereof or. if nut paid in wch manner, by Borrower making payment, when due, dirccQy to the
payee thereof_ Borrower shall promptly furnish to t_ender all noticcs of amounts due under this paragraph, and in the event
Borrower shall rnake payment dirn:dy, Borrower shall prompdy furnish to LenJer receipts evidencing su:.h payments.
Borrower shall promptly dixhargc any lien which has pnority ovcr this Mortgage; provided, th•rt Borrower shall not be
required to discharge any such lien so long as Borrower ~hall agree in uriting t~~ Ihe payment of the obligation secured b~•
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcemrnt of such lien in,
le~al proceedings which operate to prevent the enforcement of thc lien or torfeiwre of !he Property or any pa~t thereof.
S. Huard Insurance. BorroKer shall keep ~he ~mprovcmcntti nov- e~isting on c~reafter erccted on the Property insured
against loss by fire, hazards included with~n thc term "c~tende~l coverage", and such other hazardc as Lender may reyuire
and in such amounts and for sucfi periocfs as Lender ma~~ reyuirc; provided, that Lender shal! not require that the amount o[
such coverage exceed that amount of coverage reqwred to pay the sums secu~ed by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval sha11 not be unreasonably wilhheld. All premium~ on insarance policies shall t-e 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
insi~rance carrier.
All insurance policies and renew•als thereo( shall b~: in form acceptable to Lender and .shall include a standard mortgage
clause in favor of and in forrp acceptable to Lender. i_ender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly~ turnish to Lcnder all rencwal notices and afl receipts of paid premiumz. In the event of loss.
Borrower ~hall give prompt notice to the inauran~c rarner and I_ender. Lender may make proof of loss if not made promptl~•
by Borrower. -
Unless LenJer and Borrowcr otherKi,c agrec in wnting, imura~ce proceedt shall be applied to resloration or repair of
the Property Jamaged, prov~ded such re~toration or repair is economically (easible and the securiry of this Mortgage is
not thereby impaired. If such re~toration or repair is not economically fcasible or i( the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Prupert}• is abandoned b}• Borrower, or it Borrower fails to respond to l.ender within 30 days from the
date notice is mailed by l.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the inaurance proceeds at l.ender's option either to restoration or repair of the Properiy
or to the sums secured by this Morigage_
Unless I_ender and Borrower otherwix agree in wri~ing, any such application of procetds to pnncipaf shall not extend
or postpone the due date of the monthly imtallments re[crred t~~ in paragraph~ I and 2 hereof or change ihe amount of
such installments. If under paragraph 18 hereof the Property is acyuireci by Lender, all right, title anJ interest of Borrower
in and to any insurance policies and in and to the prckee~s thereof resulting from damage to the Propeny prior to the sale
or acyuisition shall pass to Lender to thc extent of the sums sccured by this Mortgage immediately prior to ~uch sale or
acquisition.
6. Preservation aad lfaintenanct of Properiy; [.eaceholds; (`ondominiums; Planned Unit Uertlopments. Borrow~er
shall keep the Property in good repair and shall not commit w•aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease ~f tins Mortgage is on a Ieasehold. If this Mortgage is on a unit in a
condominium or a planned unit developmcnt, Berrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominiuht or planned unit development, and constituent documen~s. If a conJominium or planned isnit development
riJer is executed by Borrower and recorded together wilh this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplcment the covenants and agreements of th~s Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. If B~rrower fa~ls to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeJmg is commenced w~hich matcrially aQectc I.enJer's interest in the Property.
including, but not limrted to. eminent domain, incolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then l.ender at I.ender'a option, upon notice to Borrower, ma}~ make such appearances, disburse such
sums and take sueh action ac is nece~sary to protect Lender's mterest. including. but not limited to, disbursement of
rcawnable attorney's (ces and cntry upon the Properry to make repain. If I_ender req:~ired mortgage insurance as a
condition of mak~ng the loan secured b~• this Mortga¢e. Borrower shall pay the premiums required to maintain such
insurance in efTect until such time ac the reyuirement for ~uch insurance terminates in accordance with Borrow•er's and
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