HomeMy WebLinkAbout1698Un~FORi-t CovFtv~Nrs. Bormwer and Lendcr rc~•renant and ugree as follows:
I. Paymeat of P~iacipal and laleresf. Bormwer shall pramptly pay when due ihe principal of and interest on the
indebtedness evidenced by the Note. prepayment and late charges as proviJed in the Note, and the principal of and intercst
on any Future Adve~ccs secured by this Mortgagc.
2. Fbads for Tua and Iaauraace. Subject to appticable law or to a writ~en waive~ by l.ender. Borrower shall pay
to l.ender on Ihe day monthly installments of principal an~ inte~est are payable under the Note. until the Note is paid in full,
a sum (herein "Funds") equal•,to o~e-twelfth ot the yearly taxes and assessments which may attain priority over this
Mortgage. and ground renis on the Property, if any, pl~:s one-tweltth af yearly premium installments fo~ hazard insurance,
plus one-twelfth of yearly premium installments tor mortgage insurance. if any, all as reuonably estimated initially and from
cime to time by Lender on the basis of assessments and bills and reasanable estima~es thereof.
71~e Funds shall be held in an institution the depasits or accaunts of which are insured o~ guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). I.ender shall apply the Funds to pay said taxes. assessments.
insurance prcmiums and g~ound rents. l.ender may not charge tor so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless l.ender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time ot execution ot this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agrcement is made or applicable law
requires sucS interest ta be paid. Lender shall not be rcquired to pay Borrower any interest or earnings on the Funds. Lcnder
shall give to Borrower, without charge, an annual accounting of the FunJs showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by t6is Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, auessments. insurance premiums and ground rents, shall exceecl the amount requind to pay said taxa,
assesset~ents, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s op~ion, either
promptly repaid to Borrower or credited to Borrower on menthly installments of Funds. If the amount o( the Funds
held by Lender shall not be suf~icient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to L.ender any amount necessary to make up the deficiency within 30 day~s from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mongage, t.ender shal~ promptly retund to Borrower any Funds
held ~y l.ender. If under paragraph 18 hereof the Property is seld or the Property is othervvise acquired by Lender, Lender
shall apply, no later than immediately prior to the sale o( 1he Property ar its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage. '
3. Appiication of payments. Unless applicable law provicies othenvise, all payments received by Lender under the
Note and paragraphs 1 and 2 hercof shall be applicd by I.ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hercof, t6en to interest payable on the Note, then to the principal of th.: Note, and then to interest and
principal on any Future Advances.
4. C6srsss; Lkos. Borrower shall pay all taxes, assessments and other charges, 6nes and impositions attributable to
t6e Property ~rrhich may attain a priority over this Mortgage. and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid 'en such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all.notices of amounts duc under this paragraph, aad in the event
Borrower shall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree i~ Nriting to the payment of the obligatian secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S• Huud Insnrance. Borrower shall kcxp the improvements now~ existing or hereafter erected on the Property insured
againat loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the ameunt of
such coverage excced that amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
t6at such approval shall not be unreaconably withheld_ All premiums 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 form acceptable to Lender and shalt~ include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right ta hold the policies and renewals thereof,
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 1_ender. t_endcr may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherw~ise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property Jamaged. provicied such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economicall~ feasible or if 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 Propeny is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
is authorized to collect and apply t6e insurance procceds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such appliration of proceeds to principal shall not extend
or poatpope the due date of the monthly installments referred to in paragraphs I ar.d 2 hereof or change the amount of
such installments. If under paragraph 18 tieroof the Property is acyuired by I.ender, all right. title and interest of Borrower'
in aod to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass t~ l.ender to the extent of the sums secured by this Mortgage immediately prior to such sak or
acquisitioo. • . ,
6. Preservation aod Maintenance of Properly; Leascholds; Condominiums; Planned Uuit Devdopments. Borrower
shall keep 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 teasehold. If this Mortgage is on a unit in a
condominium or a planned unit developmen~, Borrower sha~l perform all of Borrower s obligations under the declaration
or covenants creating or governing ihe condominium or planned onit development. lhe by-laws and regulations of ihe
condominium or planned unit development, and constituent documen~s. I( a condominium or planned unit development
rider is executed by Borrower and recorded together w•ith 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. Protectjoo of Leoder's Security. If Borrower fails to perform the covenants and agrcements contained in this
Mortgage, or if aay action or proceeding is commenced which materially aHects Lender's intetest in the Property,
including. but not limited to, eminent domain, insolvency, code enforcement. or arrangements or proccedings involving a
bankrupt or decedent. then Lender at L.ender's option, upon notice to Borrower, may make wch appearances, disburse such
sums and take such action as is nocessary to protect Lender s interest, including, but not limited to, disbursement of
reuonable attoraey's fees and entry upon the Property to make repairs. If I.ender required mortgage insurancc u a•
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect u~til such titne as the requirement for such insuranre terminates in accordance with Borrower's and
8~349 P~~E169g
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