HomeMy WebLinkAbout2889UH~RattN CovEN,~Nrs. Bormwer a~d l.endr~ covenan~ and agrre a~ foUows:
1. hymeN ot Principal wd Isterest. B~xmwer .hall pmmp~l~ p~y v-hcn due thc principal ot and interest on the
indebtedness evidenced by the Note. p~epayment and late chargc. a. pruvi~kd ~n the Nole, and the pri~cipal of and ~nteres~
on aay Futurc Advances secured by th~s Ma~tgage.
2. ithnds 1or Tasa ~ad Ias~raace. Subjrc~ to applir~hlc lav- ~•r ~o a written warver by I.ender. Elarrower shall pay
to l.ender on thc day monlhly inctallmen~s of pnncipal and int~~r~~ .~rc payablc unJcr the Note, unUl the Note is paid in full.
a sum (herein "FunJs") equal to onc-twel(th of Iht yrarl) ~a~~. anJ ~~cescmemc which may attain pnority over th~~
Mongage, and ground rents on ~hc Prc~perty, if any. plus ~nc-twe{fth ol yea~ly premium ins~allments tor hazard insurance,
plus one-twelfth of yearly premium installments tor m~~rtgage msurancr. ~f a~y, all at reasanably ettimated initially and from
time to time by I_ender on the basi+ ot a+ses~m~nu ~nJ h~lh and reuwnablc estimata thereof.
'fl~e Funds shall t+e held in an ins~ituti~m thc de~x~~u, ~.r arcoun~s ot which are insured or gua~anteed by a Federal or
state agency (including l.ender if l.ender n~uch an inctitu~ion). 1 ender ~hall •rpply the Funds to pay ~:+id ~axes, ascessments,
iruurance prcmiums and ground rcn~s 1 ender may not charge lor so holding and applying the Fi~ndc. an~lyzing caid acc~unt.
or verifying and compiling said assessments and b~lls, uoless l.ender p:iya Borrower in~erat on the FunJs and applicable law
permits Lender ta make such a charge. Rorrovver and t_ender may agree in writing at Ihe time of executiun of this
Mortgage that interest on the Funds shall be pa~d lo Borrower, and unless such agreemem is made or applicable law
rcquires such interest to be paid, t_tnder shall not be rcquired to pay B~~rrower any interest or earnings on the Fundti. I.cnJcr
shall give to Borrower, without charge, an annual accaunung of the f=unJs ~howmg credits and debrts t~, the Fund~ and the
purpose for which each debit to the Funds wa~ madc. The Funds are pl~~igeei a. additional securiry for thc sum> >ecured
by this Mortgage.
lf the amouot of the Funds held by LenJer, together with the Iuture monthly inst:~llments of Funds payablc pnor to
the due dates of taaes, assessments, insurance premiums :+nJ ground rents, shall exceed the •rmount reyuired to pa~ ~aid taxes,
assessments, insurance premiums and ground rents as they fall due, si~ch excess shall be, at &~rrower's opnon. eithrr
promptly repaid to Borrower or credi~ed to Borrower on monthly installmcnts of Funds. It the amoum of thr I-unds
hetd by Lender shal) not be sufftcieat to pay taxes, assessmcnts, insursrxc prcm~ums anJ ground rents as Ihc}• fall due.
Borrower shall pay to Lender any amount necessar~• to make up the deficiency within 30 da~•s from the date notice i. mailed
by Lender to Borrower requesting paymcnt ~hercot.
Upon payment in full of all sums sccurcd by this Mor~gage. l.cnder shall promptly retund to Borrow•cr any Funds
held by Lendcr. If under paragraph 1R hereof the Property i~ u~ld or thc Propeny ~s otherwise acqu~red by Lrndcr, Lender
shall apply, no later than immediately prior to the sale o( th~: Pru~xrty or its acquis~tian by l.ender, any Funds helJ by
Leader at the time of application as a rredit agamst the sums secured h~~ this ~lortgage.
3. Applicstion of Payments. Uniecs applicable faw• nrovides o~herwise, all payments received by Lender anJer the
Note and paragraphs 1 and 2 hereaf shall bc applicJ by 1_cndei nrst in pa~ment c-t amaunis payable to Lcnder by Borrower
under paragraph 2 hercof, then to ~nterest payablc on thc 1V~tr, then to th~ principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arges; Lieas. Borrower shall pay all tarec, a~scs~m~nts and othcr charges, finet anJ impo~itions auributable to
the Property which may attain a pnority over this Mortgage, and leasehold paymen~s or ground rcnts, if any, in the manner
provided under paragraph 2 hercof or, if nut paid in such manner, by Borrower making payment, when due, directly to the
payee thereof_ liorrower shall promptly furni~h to Lencier all notices of amounts due under this paragraph, and in ihe event
Borrower shall make payment direcUy. Borrower shall prompdy furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has prionty over this Mortgage; provided, that Borrower shall not be
required to d-scharge any such lien so long as Borrower shall agree in writing to the payment ot the obligation secured by
uch lien in a manner acceptable to Lender, or shall in good faith conte~t such lien by, or defend enforcement of such lien in,
/~egal proceedings which operate to prevent the entorcement of the lien or torfe~ture of the Property or any part thereof_
s S. Hazard Insu~nce. Borrower shall keep the improvement~ ~ow exisUng or hereafter erected on the Property msured
~against loss b}• fire. hazards included withm the term "extended coverege", and such other hazards as l~nder may reyuire
and in such aniounts anJ for such periodc ac Lender may requirc: pmvided, that Lender shall not require that the amount of
sach coveragr exceed that amount of coverage required to pay ~he sums secured ~by this Mortgage.
"Ilu ~ns~jrance ~arrier providing the insursnce shall be chosen by Borrower subject•to apQroval by L.ender; provided.
that such approval shall nut be unreawnabl}• withheld. Ail premwmt on insurance policies shall !+e paid in the manner
provided unJer paragraph 2 hereof ur, if not paid in such manncr, bp Hurrower making payment, when due, directly to ihe
insurance carrier.
All insuraace ~wGcie~ anJ ren~wals thercof sh~ll be in form acceptable to LenJer and shall include a s~andard mortgage
claux in faw.r ~f and in form acceptable to Lender. Lender shall have the right to hold the policies ancl renewals thereof.
and Borrower sh~ll promptly furmsh to Lender all renewal notices and all receipts of paid premiumc. In the event of loss.
Borre~wer sh:tll gwe pro~npt nutice to the ~nsurance carner and Lender. Lender may make proof of loss if not made promptl}'
b)' B~rrower
Unless Lender and B+~rr.~~er otherw~.~, agree in writing, in~ur~nce proceeda shall k+e applied to restoration or repair of
the Pruperty damaged, provi~ied wch «.torahon or repair ~s economically (easible and the security of this Mortgage ic
not thereb}' impaired. If w~h retit.,;aLvn or rcpair ~s not cconumicall}~ feacible or ~f the security of lhis Mortgage a•ouW
be impaired. the msurance proceeds +hall b~: ~pplied to the sums xcored bp this Mortgage, vvith the excess, if any, paid
to Borr.~wcr. If [he P[opett) ~~ ahand~nrJ hy Bc~rrower, or if Borr~wer fails to respond to Lender within 30 days trom the
~ate notire i~ mailed by Lender t~~ Borroµ~er that the insurance carner otTers to seule a claim for insurance benefits, Lender
u aut6oraed to collect and appl~~ the insurance proceeds at Lender'~ optiun e~ther to restoration or repair of the Propen~
or to the sum~ secured by this Murtgagc.
Unlezs Lender ~nd $urruwer ~~therwix agree in wnting_ any such rpplication of proceuis to principal shall not extend
or postponc the Jue date of thr montnly installmenK referrrd to in paragraph~ 1 and 2 hereof or change the amount ~of
such i~stallmeats. !f under paragraph 18 hereof the Property i~ acyuued h~ Lender, all right, title and interest of Bormv-•er
in and to any insurance policies snd in and to the proceecis thereof resulhng from damage to the Propeny prior to thc s~le
or acquisition shall pass to l.ender to the extent of the sums secureci by this Mortgage immediately prior to ~uch sale or
acquisition, `
6. Pnsenalion and ~Itinfen~nce of Property: I.ezcehulds; (:ondominiums; Planned Uait De~elopments. Borrowcr
shall keep the Propcrty in good repair and shall not comroit waste or permit impairment or deterioration of the Property
and shall comply with thc pmvisions of any lease if this Me~rtgage iti on a Icaschold. If this Mortgage is on a unit in a
condominium or a planned unit de~~elopment. Borrower tihall per(~~rm all of Borrower's obligations under the declaratirn
or covenanls creating or governing the condc:m~nium or planned unit development, the bylaws and regulations of the
condominium or planned unit development, and constituent Jocument~. If a conciominium or planned umt development
nJer is executed by Borrower and recorded ~~~gether with ~his Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement ihe covenants and agreemenls of th~s Mortgage as if the rider
we~e a part hereof.
7. Protectioo of Leader's Securfty. If Borrower fails tn perform the covenan~s and agreements contained in this
Mortgage, or if any action or proceedmg is commenced which materially afiects Lender's interest in the Propert}~,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements er proceedings imol~•ing a
bankrupt or decedent, then Lender at Leader's option, upon notice to Borrower, may make such appearances, Jishurse such
sums and take auch action as is necessar}• to protect l.ender's mterest, including. but not limited to, disbursement of
reasonable attomey's fees and entry upon the Propeny to make repairs. lf l.ender requircJ mortgage insurance as a
condition af making the loan secured by this Mongage, Borrower shall pay the Premiums required to maintain such
insurance in eBect until Such time as the reyuirement for such insurance lerminales ~n accordancr with Borrower's and
~~lox 349 ~a~ E2$SS