HomeMy WebLinkAbout0660UN~FORM CovcN~n7s. Bor~owe~ and l.ender caven•rnt and agree as tollows:
1. Paymeat of P~inclpd and laterest. Borrower shall promptly pay when due the principal of and interest on the
irtdebtedness evidenceJ by the Note, prepayment and late charges as provided ~n the Note, and Ihe principal of and intercst
on any Futurc Ad~•ancct securtd b~~ this Mortgagc.
2. Runds fo~ Taxes aad Insuraace. Subject to applicable law~ ar to a written waiver by I.ender, Borrower shall pay
to I_e~der on the day monthly installments of Qrincipal and ioterect arr payahle under the Note, until ~he Note is paid in tull,
a sum (herein "FunJs") equal ~o one-twelfth a( ~he yearly ta~ec and accessments which may attain priority aver ~his
Mortgage, and ground rents on the Pmperry, if any, plus one-twelhh of yearly premium installments for hazard insurance,
plus one-twelfth of yearly premium installmeots (or mortgag~ insuraoce, it any, all as reasanably ettimated initially anJ trom
time ta time by I_ender on the basis of assessmenti and bills anJ reasonable estimates ~hereof.
The FunJs shall t+e held in an institution the depc~sits o~ accounls o( which are insured or guaranleed by a Federal or
state agency (inctuding Lender if I_ender is such an inslitution). I.ender ~hall apply the Funds to pa}• said taxes, asussments,
~nsurance premiums and ground re~ts. I.ender may nM charge for ~o hoWing and applying the Funds, analyzing said account,
ur verifying and compiling said assessments and bills, unless l.ender pay~s Borrower imere~t on the Funds and applicable law
permits Lender to make such a charge. Barrower and I_ender may agree in wnting at the time of execution of this
Morlgage that interest on the Funds shall be paid to Borrou-~er, and unless such agreement is made or applicahle law
reyuires such interest to be paid, I.ender shall nat be reyuircd t~~ ~y Borrow•er :~ny interest or earnings on the Funds. I.ender
shall give to Barrovirer, without charge, an annual aca~unting ot the 1=unds ~howing credits and~ dehits to the Funds and the
purpose t~~r which each Jebit ~o the Fu~ds waa made. The f~und~ are p;edged a~ additional security for ~he sums secured
by this Mortgage.
!f the amount of the Funds held by Lende~, toge~her wi~h ~hc (uture monthly inslallments of Funds payablc prior to
~he due dates ~.f taxes, assessments, insurance premiums and ground rent~, shall e~ceed ~he amount required to pa~• said ~axes,
assessmentt, ~nsurance premiums and ground reMs as ~hey tall due, ~urh excess ~hall be, at B~rrower'c option, erther
promptly repaid to Borroaer or credited to Borrow~er on mon~hly ~nctallmcnts of Fundc. If the amount of the Funds
held by Lender shall not be sufficient to pay ta!eec, assessmen~s, incurancr premium~ and ground rentc as ~hey fall due,
Borrower shall pay to Lender any amount necessar~• ~o makr up Ihe deficiency within 30 days from ~he date nouce is mailed
by Lender to Borrawcr requesting paymcnt thercof.
Upi~n paynlent m ftd) uf aU sum~ se~ureJ by thi~ Mutlg.~gr. Lcnd~~ +hall ptumptly trfunJ lu B~atuw~~ any FunJs
held hy I.cnJer. If undcr parag~aph 1R hcrcof the Property ~~ .old or thc ProE-cr~~ n other~~itic acquired hy Lender, Lender
shall apply, no later than immediatcly prior ti~ Ihe .ale ~-t lhe ProExrty or its acy~us~t~on b~ Lendrr, am~ Funds heW by
Lendcr at thc hme of application as a crcdit against th~ sum~ sccured by th~s Mortgagr.
3. Applicalion of Pavmenls. Unlc« appl~cablc law pru~iJcs ~~Iher~i+c, all payment~ rccci~~ed by l.ender im.lcr the
tiotc and paragraph~ 1 and 2 hcreof ~hell bc applicd hy I endrr fint in pa~mcnt a( amuunts payable t~~ Lcndcr by Borrower
undcr paragraph 2 hcreof, thcn to ~ntcrest payablc on thc I~utr, Ihrrt t~. Ih~ principal of thc Nutr, and thcn tu imerest and
prmc~pal on any Futurc Advances. ~
4. CharRes; Lirns. Borrowcr tihal) pay all ta~c~, :~~~c~~mcnt+ and ~•thrr rhargr~. finct anJ ~m~•~itions attnbutahlt to
the Propert~~ which may attain a prioriry over ~hic I~turtgage, and Ieakh~~IJ paymenss or ground rentc, if any, in the manner
pruvided under paragraph 2 hereof or. if not p:~id in such manner, b~ Bnrrov-er m~king paymenl, when due, direclly to the
pa}•ee thcreof. Borrower shall promp~ly furoi~h to Lendcr all notires o! amounts duc under thiti paragraph, and in the eYent
BorruKer shall make pa~•ment d~recU~. Burmwer ~hall prompth furni~h tr. Lendcr receipts ~videnring such paymen:c.
Borrov-er shall promptl~• discharg~ any lien Hhirh has pnora}• u~cr thi~ Murtgagc: prowJcd, that Borrower thall not be
reqwred to discharge any ~uch lien ~o long as B~~rrower ~hall agrer in ~nting to th~ pa~ment ot Ihe obligati~~n secured by
wch 6en ~n a manner acceptable ro I.ender, or tihall in g~xxt faith contr~t Luch lirn h~', or defenJ enf~~rcement of such lien in,
legal prc-:ecding~ anich operatc to prcvent the cnforcemcnt ol thr I~rn nr forte~tur~ of the Property or any part lhereof.
S. Haz~rd Insurance. Borruw•er shall I.eep the impro~cment, noH c~icUng ~~r hereafter erected on the Pn~pert~ insured
against lots h}~ fire, haza-ds included with~n the term "~uendr~i rovcrage", anJ such'pther hazardti a~ I.ender may reyuire
anu ~n sucn amciunts anu for surn periotic a~ i.enuer ma}• require; pm~•iae~, tnat i.enuer chaii not rcyuire tnat tne amucim oi
tiuch co~~er~ge e+cceed that amuunt uf coverage reywred to pa}• ~hc ~~im. .ecured h~• this Mor~gage
The ~nsurance rarrier providing the insurance shall be chutien b}~ Borrower subject to approval h}' L_ender, provided,
Ihat surh appro~al ~hall not be unreawnably w~ithheld All premiumti .~n insurance ~c~licies ~hall hc paid ~n the manner
pro~~~ded undcr p:+ragraph 2 hercof ur. if nvt p:+~d in wch mannrr, b~ B~~rrower making payment, when due, d~rectly to the
insurance carrier.
All insurancc Fx~hcic~ and renewals thcre~~t thall Fx in form .~r~ept.,Mc to Lcn~lcr ~nd sh~l) ~ncludr a titanJard morlgage
clause ~n fa~•~~r ~.f and in f.irm accep~~ble ta l.ender. 1_rnder .hail ha~r thc right tn hold the poliries ~nd renewalti thereof.
and Borrower .h:+ll prompd~~ lurnish to Lender all renew~l noticeti and :tll receipts of ~aid premium. In the e~ent ot 1ocs.
Borrower .h:,ll gne prompt nut~c~ ~o Ihe imuran~e carnrr .inJ t.ender. LenJrr ma~ mal~e pnx.t of loss ~f not made pmmptly
b~• B.,rrower. .
~ Unless Lender and Borruwrr other~~x agree in Wnhng, inwrante pn.cceJc shall be applied to re~toration or repair of
the Property damaged, proviJed such restoration or rcpair is economically :easible and the security of th~s Mortgage is
not thereby impaired. 1( wch resloration or repair is n~~~ cron~~mirall~~ (~atihle or if the secursty~ of this ~lortgage would
be impaired, the ~nsurance proceeds shall be applied to the sums secureJ by~ this M~rtgage. K ~th ~he excecs, if any, paid
to Borrower. IF the Property is abandoned by Horr~~wer, or it Borrowcr faih to res~~nd to l.ender within 31) da~•s from the
date notice is mailed b~~ Lender to Borrower that th~ incurance carr~er ofTers to settle a cla~m for imurance henefils, l.ender
iti autharized to collect and apply the insurance proceeds at I ender's optiun eUher to restoration or repair of the Property
or to the surn~ secured by this Mortgage.
Unless I_ender and Borrower otherwise agree ~n wnting, an~ such application of pnxeeds to pnncipal shall not eatend
or postpone the due date of 1he monthly insiallmcntc referred to in paragraphti I anJ 2 hereof or change tfie amount of
such installmenb. If under paragraph 18 hereof the Property is acyuired b}~ Lender, ali nght, 1iUe and interest ot Borrower
in and ro any insurance policies and in and to the proceeds thereof resulUng from Jamage ro the Propert}• pnor to the sale
or acyuisition shall pass to Lender to the extent of the sums secured by this :1lortgage immediately prior tu wch sale or
acquisition.
6. Presena~ion ~od ~taintenance of Propert~; Ixaceholds; ('ondominiums; Planned Unit De~~elopments. Borrower
shall kcep the Properly in good repair and shall not commit w•astc or permrt impairment or deteriotation of thc Property
and shall comply with the provisions of any lease i( th~s Mortg3ge i~ on a Icasehold. If this Mortgage is on a unit in a
condominium or a planned unit cievelopment, Borrower shall perform all ~f Borrower's obligat~ons under the declara~~on
or covenants creating or governing the condommium or planned un~t development, the by-laws and regulatior~ of the
condominium or planned unit development, and constiwen~ documen~s. If a condominium or planned unu de~elopment
nder is exeeuted by Borrower and recorded together with this Mortgage, the covenants and agreements c,f cuch nder
shall be incorporated into and shall amend and ~upplement the co~enants and agreemrnts of ~h~s Mor~gage as i( ~he riJer
were a part hereof.
7. Proteclion ot I.ender's Security. If Rorrower failc to perform :he covenants and agreements contained in this
Mortgage, or if any acUon or proceeding is commenced which ma~erially ~Bects I_ender's inlerest in the Property,
inciuding, but not limited to, eminent domain, insolvency, code enfor~ement, or arrangements or proceedings involving a
bankrupt or decedenl, ~hen Lender at Lender's option, upon notice to Barrovrer, ma}• make such appearances, disburse such
sums and take such action as is necessary to protect t.ender's mterest. ~nciuding, but not lim~ted to, disburxment ot
teasonable attomey's tees and entry upon the Proper~y to make repairs. I( [_cnder rcquired mortgage insurance as a
cond~tion of making the loan secured by this Mongage, BorroK•er shalf pay the premiums rcquired to maintain such
insurance in efTect until such time as the rcquirement for such insurance terminates sn accordance wich Borrower's and
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