HomeMy WebLinkAbout2526UN~FO~tt~t CoveH~NTS. Boirower and I.tnJer cove~rnl and agrce as tallows:
1. P~ymeot ot Principal aod Interesf. I3orruw•er shall promptly pay when due Ihe principal of and interest on the
indebtedneu evidenced by the Note, prepayment and late charges ac praviJed in the Note, and the principal of and interesl
on any Future Advancec securcd by this Mortgage.
~ 2. Fuads for Taxa and lnsu~tace. Subject to applicable !aw or to a written waiver by l.ender, Borrower shall pay
io l.ende~ an the day mon~hly instal~ments of pri~ci~ a~ and interect are payable under ~he Note, until the Note fc paid in [ufl,
a s~im (herein "Funds") equal ta ane-twel(th of the yearly taxec and ascessmentc which may attain priarity over this
Mortgagc, anJ ground rents on thc Property, it any, plus o~e-tw~el(th o( yearly premium installments for hazard insurance,
plus one-twelfth of yearly premium installments tor mortgage insurance, if any, all as reasonably estimated initially a~d trom
time to time by Lender on the basis ~f assessmentt and bills and reasonable estimates thereof.
'i?~e Funds shall he held in an institwion the deposits or arcounts of which are insured a~ guaranteed by a Federal or
strte agency (including Lender if l.ender is such an inslitulionl. I.ender shall apply the Punds to pay said taxes, assessments,
insurance premiums and ground rents. l_ender ma~• not charge far ~o holding and applying the Funds, analyzing said account,
or verifying and comp~ling said aisessments ~nd hills, unless 1_ender pa~s Borrower interest on the Funds and applicable !aw
permits Lender to make such a cha~ge. Borrow•er and l.ender may agrce in writing at ~ the time of execution of this
Mortgage that interest un the Funds shall be paid ~o Barro~ver, and unless suc~n agrreme~u is made or applicable law
reyuires such interest to be paid, 1_ender shall not he reyuired ~o pay Borrower any interest or earnings on the Funds. l.ender
~hall give to Dorrower, w~ithout charge, an annual aca~unting of the Fund> >howing credits anJ Jebits M ~he Funds and the
purpo~e fur whirh each debit to ~he F=unJs wa~ made. The f=und~ are pledged a~ adJitional securit~ for the sums secured
by this ~lortgage.
If the amoum o( the Funds held by LenJer, togcther wilh thr (uture monthly installments of Fundc pa~•abte pnor to
the due Ja~es ot taxes, asicssments, insuraRCe premiums and ground renh, shal~ erceed thc amount reyuired to pay said taxes,
assessmentc, insurance premiumc and ground rents as they fail due, such erce~s 1ha11 be, at Borrower'c opuon, either
promptl~• rcpaid to Borrower or cred~ted ~o BorraNer on mon~hly in.tallmcnts of Funds. !f the amoun~ of thc Funds
held by Lender shall not be sufficient to pay taxes, assessmems, intiurance premiumc and ground rent's as ~?~eq fall due,
Borrower shall pay to Lender any amount neces~ar~~ to make up Ihe defic~rncy within 30 da~s from the date notice is mailed
by l.ender to Borrower requesting paymcnt thercot.
Upc~n payment in full of all sums sccurcd by thi. Mortgagc. Lcnder shall pramplly «fund to Barr.~wcr any FunJs
held by I.ender. If under paragraph 18 hereof the Pro~rt~ ~c ,uld ~~r thr Prupert~ ~s o~heru~ice acqwred by LrnJer, 1 ender
shall apply, no later than immediatrl~• prior to the ~ale i-f Ih~ Pro~xrty ur us acqwcit~on h~~ I.ender, any Fundt held b~•
Lendcr at ~hc time o( appliration as a crcJit against thc sum. ticcured by thi, titortgagc.
3. Application of Payments. Unlres apphrahlc law pro~ iJes olher~ i~e, all paymentc rerrivrd by I.ender unJer the
Nutc and paragraphc I and 2 hcreo( sh.~ll bc applird b~• LcnJcr fin~ in paymcm o( amaunls payablc to Lcndcr hy Borrowe-
under paragraph 2 hereof, then to ~mcr~~t pa}•ahle on the tiotr, thrn tu thc principal o( the No~c, anJ ~hcn ta iMerest and
pnncipal an am~ Futurc Advances.
,. Char~es; Liens. Bor~owcr ~h:~ll pa~~ all ~a~r., :~~k~timcnls :~nd ~~thrr ch:irgc~, fineti and ~n~~.tiihuns attributahle to
thc Property w•hich may attain a pnority ovcr thic ~tortgage, and Icacehi~IJ ~.rymcnts or ground rents, if any, in the manner
provided unJcr paragraph 2 t~ereaf or. ~( n~~t p:~id in wch mannrr, b~ Bc~rrower making paymenl, when duc, Jirectly to the
pa}~ee thercof. BorruWer shall promptly furnish ~o LenJcr all noticcs oi amounts Juc under this paragraph. and in the event
Borrower shall makc papment directf: '3c~rrower ~hall prompU~• furnish tc- 1_ender rereipts r~idenc~ng iuch payments.
Borrower shall promp~l} discharge an~ ,~ ~~hich has pnorst)~ ~~vrr thi~ Murtgage: prov~ded, that Borrower shall not be
reqwred tu discharge any ~uch lien ,u I~.n~; ,,c BOffOKCf Sf13II agrer in NnUng k~ thr payment of the obhgation secured by
wch lien in a manner acceptable n~ LenJ:r, .-r ~hall in g~xxl faith ~:onte.~ such lien by, or Jefend cnforcement of such lien in,
legal pr~kced~ngt which oM:rate t.~ p-e.rnt the cnfur~emcnt of the I~rn ur torfeit:uc of the Propeny~ or any part thereof.
S. Nuard Insuranee. Borro~.er tihall keep the impro.~mentti n~~~. e~ict~ng ~•r hereafter erected on the Proper~y ~ncured
aga~nst loss by fire. haza:(~S IRCIUIII'lJ with~n the term "r~tende~ rovcrage", and s~uh other hazardc ac Lender ma}~ reyuire
anJ in such amounts and tor w~h pencxl~ ati Lender•map rcyuire: provided, that LeoJer tihall not reyuirc that the amount of
such cuveragr erceed that amnunt uf cn.erag^ requued to pa)~ th~ wmti ,ec~~red b}~ this Mor~gage.
The ~nsurance rarrier pru~•idin~ the inwr•rnre ~hall be chusen by Borro~er suhject to approval by Lender, provided,
that such appro~•al ~hall n~~~ be imr~a,~~nahly w•ithheld. All premn+m~ ~n i~sura~ce ~licies chall tx paid m the manner
pro~•~ded und~r paragraph ~'~ereo( .ir, if not pa~d'in tiuch manner, by B~.rro~er makmg payment, when due, direcdy to the
insurance rarcier_
All insurance Ex~hcieti and renrNals thereot chall Fx ~n form accep~.~bl~ to !_en.ler end shall include a~tandard mortgage
clau~e m favt~r c~( and in (orm accept;~ble to (_rnder. Lender ~hall ha~c the right ti~ hold the policirc and rrnevrals thereof,
and Bort~~v-er ~h.~ll promptl}~ furnish to Lender all r~ncwal notireti and all receipts of p~id prem~um. In the erent of lacs,
Borrower ~hall g~~•c prompt noucc to the ~n~ur.,nce .arr~rr and Lender. I.en~er ma) make ~Snx~f of loss ~f not made promptly
by Borrower.
Unleu LenJcr and Borrov-er otherw~tic agrrc in wnt~ng, in~urance pr~xeeJs shall bc applied to re~toration ~r repair of
thc Property~ Jamaged, provi~ed suc:h re~toration or repair is economic~lly (easihlc and the ~ecuri:p of this Mortgage ~s
not ~hereby impaired. 1t such retitnrahon or rcpa~r ~s n~~t economic~lly tea~ihle or if ~ht securit}~ of th~s Mortgage would
be impa~red, the ins.irance pnx:eeds chall be applied to the sums se~ureJ b~• this Mortgage, w~th the excecs, if any, paid
to Borrower. It the Properl~ is ah:~ndoned b~ Horr~~wer, ar it Borrower t~ils to res~nd to l.ender w~thin 30 da}•s (rom the
Jate noUce is mailed b~• Lender to Borrower that the insurance carner otTen to settle a claim for imurance benefits, Lender
is authorized to cotlect and •rpply~ the insurance proceeds at Lender's optiun either to restorat~on or repair af the Property
or to the sum> >ecured by this Mortgage.
[~nles~ Lender and Borrower rnherwice agree in wniing, any sueh app!iration of pmceeds to principal ~hall not extend
or postpone the due date c~f the monthl}~ installmcntc rcferred to in paragraph, 1 and 2 hereof or change the amount of
such installments. It under paragraph 18 hereof the Propert~~ is acywred by (xnde.-, all r~ght, tiUe and interest of Borrower
in and ro any insuranre pol~cies and in and to the proceeds Ihereaf resulung from damage to the Propert~~ pnor to the salt
or acyuisition shall pass to Lender to the e~tent of ~he aums secured by this 111ortg:~ge immediately prior t~~ such sale or
acquisition.
6. Presen~tion aod ~taiotenance of Propert~; I.easeholds; Coodominiums; Planned Unit De~~elopments. Borrower
shalt kcep thc Property in gcwd repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply u~ith the provisions of any lease ~f thu ;~1ong:~ge ~~ on •r leasehold. If thic Alortgage is on a unrt in a
condomin~um or a planned unit development, Borrower shall ~xrform all of Borrower's obl~gations under Ihe declaration
or covenants creating or govermng the condomimum or planned unit development, the by-laws aRd regulations of the
conJominium or planned unit development, and constituent Jocumems. It a condominium or planned unit de~elopment
nJer is executed by Borrow•er and recorded together with ~hn Mortgage, the covenants and agreements o( ~uch riJer
shall be ~ncorporated ~nto and shall amend and ~upplement the co~enants and agreemenls of this Mortgage as ~f the rider
were a part hereof.
7. Protection ot Lender's Secunty. If Barrow~er fails to perform the covenants and agreements conlained in this
Mor~gage, or if any acUon or proceeding is commenceJ which ma~eriaUy afiec~s I.ender's interest in Ihe Property.
induding, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or pmceedings invol~•ing a
bankrupt or decedent, ~hen l.endtr at l.ender's option, upon notice to Barrower, ma~~ make such appearances, dishurse such
suins and take such action as is necessary to protect Lender's ~nterest. ~ncluding, but not limrted to. disburxment of
rEasonable attorney's tees and en~ry upon ~he Property to make repairc. It I_ender requircd ~nortgage insurance as a
condition of making the loan secured by ~his Mortgage. Borrower shall pay the premiums required to maintain such
insurance in.e(fut un~il such time as the requiremen~ (or such msurance terminates in accordance with Borrowers. and
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