HomeMy WebLinkAbout0307UruFORta CovEN~NTS. Borrowcr and LcnJer r~~vcna~t and agree as [allows:
l. Payment ot Priacipd sad lateresl. Bor~awer shall promptly pay whco due thc principal of and interest on the
indebtedneu evidenced by the Not~. prepayme~t and late charges as provided in ~he Nate, and the principal of and intercst
on aay Futurc Adva~ccs secured by this Mortgage.
2. Fuuds for Tup aad lnsurasce, Subject to applicabk law or to a written waiver by l.ender, Borrower shall pay
to i.tnder a~ the day monthly i~stsllments of principal and interest are payable under the Note, until the Note is paid in tull,
a:um (herein "Funds") equal to one-twelfth ot ~he yearly taxes and asseuments which may attain priority ove~ this
Mortgage. and ground rents on the Property. if any, plus one-twclfth of yearly premium installments for hazard insurance.
plus o~e-twelfth of yearly premium installments for mongage insurance, if any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and bills and reasonable estimates theroof.
'[l~e Fu~ds shall be held in an institution the depcuits or accounts of which are insurod or guaranteed by a Federal or
state agency (including L.e~der if Lender is such an institution). I.ender shall apply the Funds to pay said taxes. assessments.
insuranoe premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
ot verifying and rnmpiling said assessments and bills, unless lender pays Borrower interest on the Fu~ds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution ot this
Mortgage that interes~ on the Fu~ds shall be paid to Borrower. and unless such agreement is made or applicable law
i`CgUiI23 5ii~ii liilEie.it t0 IlE Quit~. Len3er shaii not tx requirea to pay Borrower :~ny ~nterest or earnings on the Funds. l.onder
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 Funds are pledged as additional security for the sums secured
by this Mortgage.
lf the amount of the Funds hefd by Ltnder, together with the tuture monthly installments of F~inds payable prior to
the due dates of taxes. assessmeats~ insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assesunents, i~surance premiums and gr~ound rents as they fall due, such excess shall be, at Bonower s option. either
prompUy rcpaid to Borrower or crodited to Horrower on monthly installments of Funds. If the amount of the Funds
held by l.eader shall not be su8icient to pay taxes. assessments, insurancc premiums and ground rents as they fall due,
Borrower shall pay to l.ender any amount necessary to make up the deficiency within 30 days trom the date notice is mailed
by Lender to Borrower requestiag payment thereof_
Upon payment in full of all sums aecured by this Mortgage, I_ender shall promptly re(und to Borrower any Funds
held by L.eader. If under parsgraph 18 herco[ the Properiy is sold or the Property is otherwise acquired by Lender, Lender
s6a11 apply, no later than immediately prior to the sak of the Property or ita acquisition by Lender. any Fu~ds held by
Lender at the time of application as a credit against the sums secured by this Mongage.
3• A~Ikatio~ of Pqee~tr. Unless applicable law provides otherwise, all payments received by Lender under the
Note aad paragraphs 1 and 2 hereof shall be applied by 1_ender 6rst in payment of amounts payable to Lender by Borrower
under puagraph 2 hereof, then to inierest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advanoes.
4. CLarses; Lkes. Borrowtr shali pay all taxes, assescments and other charges, fines and impusitions attributable to
t6e Property which may attain a priority over this Mortgage, and leasehold payments or ground rents. if any. in the manner
provided under paragraph 2 hercof or, if not paid in such manner, by Borrower making payment. ~vhen due, dirxily to ihe
payee theroof. Borrower s6a11 promptly furnish to Lender all_notices of amounts due un~kr this paragraph. and in the event
Borrower shal) make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing such payments.
Borrower shalt prompdy discharge any lien which hat priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in vvriting to the payment of the obligation secured by
suc6lien in a manner acceptabk to Lendtr. or shali in good faith contest such lien by, or ckfend enforcement of such lien in,
legal pmceedings which operate to pnvent the enforcement of the lien or forfeiture of the Property or any part thereof.
S• Haiard iearance. Borrower shall keep the improvements now existing or hereafter erected on the ~Property insured
againtt loss by Sre. hazsrds included wit6in the term "extended coverage", and such other hazards as l.ender may require
and in wch amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage execed that amount of coverage required to pay the sums secured by this biortgage_
The insurance catrier providing t6e insurance shall be chosen by Borrower subject to approval by Lender, provided.
that wch approval shall not be unroasonably withheld. All premiums on insurance policies shall be paid in the manner
ptovided under paragraph 2 hercof or, if not paid in such manner, by Borrower making payment, when due. dirccdy to the
inwrar,ce carrier.
All insurance policies and renewals thereof shall be in form acceptable to LenJer and shall include a standard mortgage
clause in favor of and in fortu acceptable to Lender. l.ender shall have the rigt~t to hold the policies and renewals thereof.
and Borrower shall protuptly furnish to Lender all renewal notices and all receipts of paid prrmiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and l.ender. Lender may make proof of loss if not made promptly
by Borrower.
Unles~ Lender and BoROwer othenvise agree in writing, insurance proceeds shall be applied to'restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
be impairod, the insurancx proceeds shall be applied to the sums secured by this Mortgage, with the eacess, if any. paid
to Borrower. If the Property is abandonod 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 carricr offers to setlle a claim for insurance benefits, Lender
is aut6orizod to collect and apply tbe insurance ~rocoeds at Lender i option either to restoration or reQair of the Property
or to the sums securod by this ~Iortgage.
Unless I.ender and Bonower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referrcd to in paragraphs I and 2 hereof or change the amount of
suc6 installments. If under paragraph 18 heroof the Proporty is acquired by L.ender, all right, tiUc and interest of Borrower
in and to any insurance policies and in and to the proceeds theroof resulting from damage to the Property prior to the sale
or acquisition shall p•rss to L.eoder to the extent of the surtu secured by this Mortgage immodiately prior to such sak or
acquiaition.
6. P~sservatioo and Maintenaoce of PropeAy; Lease6olds; Condominiumt; Planned Uait Devebpments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioralion of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. !f this Mortgage is on a unit in a
eoadominium 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 dc~cuments_ If a condominium or planned unit development
rider is eaecuted by Borrower and recorded together with 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 put hereof.
7. Profectioe of Leoder's Secnrity. If Borrower fails to per(orm the covenants and agreements contained in this
Mortgage, or if any action or proeeeding is commenced which materially aRects Lender's interest in ihe Property.
including, but not limited to, eminent domain, insolvency, rode enforcement, or arrangements or proceedings involving a
baolcrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearar~ces, disburse such
sums and take auch action as is necessary to protect Lender s interut, including, but not limited to, disbursement of
reatonable attomey's fea and entry upon the Property to make repairs. If Lender required mortgage insurance u a
coadition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
ins~uance in effect u~ti) such time as the requirement for such insurance terminates in accordance with Borrower s:~d
t. ,~~ 350 P~~F 307 i