HomeMy WebLinkAbout0283UN~FOR~-t CovFN~Nrs. Borrowe~ anJ Lcndcr a~venan~ and agree as fallows:
!. Piy111tAI Of P~pC~i YUd IAIlflSl. l3orrower zhall promp~ly pay whcn duc the principal o( and intcrest on the
inckbtedness evidcnced by the Notc. prcpaymc~t and late charges ac proviJed in Ihe Notc, and thc principal of and ioterest
on any Future Adva~cec securccl by this Mortgage.
2. Fuads tor Tues a~d l~urance. Subject to applicable law or to a written waiver by I.ender. Barrower shall pay
to l.cnck~ a~ the day monthly installments of principal an~ i~tcrest are payable undc~ the Note, until the Note is paid in full,
a sum (hercin "Fu~cis") equal to one-twelfth ot the yearly tax~c and acussments which may atlain priarity over this
Mortgage, aod grou~d rents on the Property, if any, plus anc-tweltth of yearly premium installmcnts for hazard insurance,
ptus one-twelfth of yearly premium installments for mortgage insorance, it any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and bills and reasanable estimates thereot.
The Funds shall be held in an inslitution the deposits ar accounts ot which are insured or guaranteed by a Federal or
state age~cy (including Lender if I_ender is such an insti~ution). 1_ender shall apply the Funds to pa~~ said taxes, assessments,
insurance premiums and ground rents. l.ender may not charge for sei holding and applying the Fu~ds, analyzing said account,
ar verifying anJ compiling said assessments and bills, unless Lender pays Borrower interest on the FunJs and applicable law
permits l.ender to make such a charge. Borrower and Lender may agree i~ writing at ~he time of execution of ihis
Mortgage thet interest on the Funds shall he paid to Borrower, anJ unless such agreement is maJe or applicable law
requires suc:~ interest to be paid. 1_ender shall not he reyuireci ta pay Borrower any interest or earnings on the Funds. I_ender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The FunJs are pledged as additional security for the sums secured
by this Mortgage.
lf the amount o( the Funds held by t.ender, tagether with the future monthly installments of FunJs payable prior to
the due dates of taxes, assessme~ts. insurance premiums and ground rents, shall exceed ~he amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as they (all due, such excecs shall be, at Borrower's optian, either
promptly repaid to Borrower or credited to Borrower on monthly installmc~ts of Fundx. !( 1he amount of the Funds
held by Lender shall not be sutt'icient to pay taxes, assessments, insurance prcmiums anJ ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days f~om the date notice is mailed
by Lender to Borrower requesting payment ~hercof.
Upon payment in full of all sums secured by this Mortgage. 1_endcr shall .promptly refund to Borrower any Funds
held by [.encier. If under paragraph 18 hercof the Property is sold or the Properry is otherwise acquired by Lender, Lender
shall apply, no later than immediately prior to the sale af thc Property or its acquisition by t.endcr, any Funds held by
Lender at the time of application as a credit against the sums xcured by this Mortgage_
3. Application of Payments. Unless applicable lave provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.ender first in payment ot amounts payable to Lcnder by Borrower
under paragraph 2 hereof. then to interest payablc on the Note, thcn to thc principal of the Note, and thcn to interest and
principal on any Future Advances.
4. C6arges; Lkns. Borrovrer shall pay all ~axes, acscssmcnts and othcr charges, fines and impositions attributable to
the Property which may attain a priority over ihis Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dircctly to the
payee ther+eof. Borcower shall promptly furnish to Lender all_notices of amounts due under this paragraph. and in the event
Borrower shall make payment directly, Borrower shall promptly fumish to Lencier receipts evidencing such payments.
Borrower shall prothptly discharge any lien which has priority uver this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in w•riting to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall io good faith contest such lien by, or ckfend 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. Haiatrd Insuranre. 9orrowtr sha!! keep thc impro~•ements nou cxisting ar hercafier er.~:teci c~n the Property lTtSiliCd
against 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 requir~e; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'[be insurance carrier providing the insurance sh~ll be chosen by Borrower subject to approval by Lender, providod,
that such approval shall not be unreazonably 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, direcdy to the
insuraoce carrier.
AQ insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to [.ender. Lender shall have the right to hold the poficies and renewals thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts o[ paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender_ t_ender may make proof o[ loss if not made promptly
by Borrower.
Unless Lender and Borrower othervrise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Propeny damaged, proviJed such restoration or repair is economically feasible and .the security of this Mortgage is
not thereby impaired. If such restoration or repair is not rconomically feasible or if the security of this Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secureii by this Mortgage, with the eacess, if any, paid
to Borrower. lf the Property is abandoned by Borrower, or i( Borrower fails [o respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier otTers to settle a claim for insurance benefits, I.ender
is authorized to collect and apply tbe insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless L.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall n~t extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hercof or change the amount of
such installments. If under paragraph 18 hereof the Property is acyuired by.I.ender, all right. title and interest of Borrower
in and to any insurance policies and in aed to the proceeds thereof resulting from damage to the Propeny prior to ehe sale
or acquisition shall pass to l.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Prtsen•ation and Maiolenance of Property; Leaseholds; Condominiums; Planned Unk Devebpments. 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 leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower 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
condominium or planned unit development, and constituent Jocumems. If a conJominium or planned unit cievelopment
riekr is executed by Borrower and recorded ~ogether with this Mortgage. the covenants and agreements of such rider
shall be incorporated into and shall amend and supptement the covenants and agreements of this Mortgage as ~f the rider
were a part hereof.
7. Protection of [.toder's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s commenced which materially afTects l.ender's interest in the Property.
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender s mterest, including. but not limited to, disbursement of
reasonable attomey's fces and entry upon the Property to makc repairs. lf Lcnder required mortgage insurance as a
condition of making the loan secured by this Mongage. Borrawer shall pay the premiums required to maintain such
insurance in eRect until such time as the reyuirement for such insurance terminates in accordance with Borrower s and
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