HomeMy WebLinkAbout0314Utv~FOttnt Cov~N,-NTS. Borrower and l.cndcr c~~venan~ and agree as foUows:
1. Paymeat of Prlnctpal aad lateresl. Borruw•cr shall prompUy pay whcn due the principal of and interest an thc
indebtedncss evidcnced by thc Note, prcpayment ~nd late chargec a~ pravided in Ihe Notc, and the principal of and in~erest
on any FWurc Advances secured by this Mortgagc.
2. Funds for Tues aad insursnce. Subject to applicable law or to a written waive~ by I.ender. Borrower shall pay
to l.e~der on ~he day monthly installments of principrl and intercct arc payable unJcr the Note, until the Note is paid in full,
a sum (hcrcin "Funcis") equal to ane-tw•elfth ot ~he~ycarly taxes and assessments which may attain priority ovc~ this
Mortgagc, and ground rents on the Proper~y, if any, plus one-twcl(~h of yearly prcmium installments for hazard insurance,
plus one-Iwelfth of ycarly premium installmcnts tar mortgage insurancc, if any, all as reasonably cstimated initially and from
time to time by Le~der on the basis af a~sessmcnts rnd hills and reasanablc es~imates thercof.
The Funds shall be held in an institutian the depcnits or accounts of which are insured or guaranteed by a Federal or
state ageoc~~ (including Lendcr if LcnJer is such an institution). l.ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. t.ender may not charge for s~ holding and applying Ihe Funds, analyzing said accaunt,
or verifying and compiling said asseasments and bills, unless t_ender pays Borrower interest on the Funds and applicable law
permits l.ender to make such a charge. Bc~rrower and I~nder may agree in writing at the time of executio~ of this
Mortgage that interest on the Funds shall t-e paid to Borrower, and unless such agreement u made or applicable law
reguires suc~ 'snterzst ta !zc ~ai3, t_e~~C~2f Stial~ iIOI t1C it,'t;lfiibtil [O pay` A~1f(UWCf :fll)' II1f~fCSl UI Cilftllll~ UIl II1C FUillL1. I.Cflljt°(
shall give to Barrower, without charge, an annual aca~unting of the Funds showing credits and debits to the Funds and the
purpose (or which each debit to the Funds was made. "il~e FunJs are pleciged as additional security for Ihe sums secured
by this Mortgage.
lf the amount of the Funds held by Lender, together with the future montl~ly installments of Funds payable prior to
the due dates of ~axes, assessments, insurance pmmiums and ground rents, shall exceed the amount reyuired to pay said taxes,
assesunents, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credi~ed to Bormwer on monthly installments of Funds. If the amount of thc Funds
held by Lende~ shall not be sutTicient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to ~ender any amount neccuary to make up ~he de6ciency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thercof.
Upon payment in full of all sums secured by this Mortgage. I.ender shali promptly refund to 8orrower any Funds
held by Lender. If under paragraph 18 hereof ~he Propcrty is sold or the Propcrty is otherwisc acquired by Lender, t_ender
shall apply, no later than immediately prior to the salc of thc Propcrty or its acquisition hy I~nder, any Funds held by
Lender at the time of application as a credit against the sums securecl by this Martgage.
3. Application of Paymeots. Unless applicable law• pro~•ides olherwise, all payments received by i_ender under the
Note and paragraphs I and 2 hereo( shall be applicd by I.cnder first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable on thc Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. Chu~es; Lk~. Borcower shall pay all taxes, asxssmcnts and athcr charges, fines anJ impositions attributable to
the Property which 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 ~n such manner, by Borrawer making payment, when due, directly to the
payce ther~eof. 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 ta Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provicied, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment ot the obligation secured by
such lien in a manner acceptabie to l.cnder, or shall in gcxxi faith contest such lien by, or defend enforcement of such lien in,
legal proccedings which operate to prevent the enforcement of thc lien or forfeiture of the Property or any part thereof.
S. Hszard losuranee. Borrower shall keep the improvements naw~ e~cisting or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extendeJ coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may ~eyuire; provideJ, that LenJer shall not require that the amount of
such coverage eYCeed that amount of coverage required to pay the sums securcd by this Mortgage.
"11~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided,
that such approval shall not be unreasonably 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
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall inclode a stanJard mortgage
clause in favor of and in form acceptabte to Lender. Lender shall have the right to hold the policies and renew•als thereof,
and Borrower shall promptly furnish to Lender all renewal notices anJ all receipts o[ paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and l.ender. (_ender may make proof of ioss if not made promptly
by Borrower. .
Unless Lender and Borrower otherwise agree in a-riting, insurance proceeds shall be applied to restoration or repair of
the Property Jamaged, provided such testoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not cconomirally feasible or i[ the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, wi~h the excess, if any. paid
to Borrower. If the Property 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 ~o seule a claim for insurance benefits, l.ender
is authoriud to collect and apply the insurance proceeds at t_ender's option either to restoration or repair of the Properiy
or to the sums sccured by this Mortgagc.
Unless I.ender and Borrower otherwise agree in writing, any s~ch application of proceeds to principal shall not extend
or postpone the due date of the monthly installmcnts referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph I8 hereof the Property is acyuired by [.ender, all right, titk and interest of Borrower
in and to an}• insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the aums securecl by this 111ortgage immediately priot to such sak or
acquisition.
6. Presen~ation and Maintenanct of Properly; Leaseholds; Condominiums; Planned Unit 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 Icasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower sh~ll 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. ~nd constituen~ documents. If a condominium or ptanned unit cievelopment
rider is executed by Bo~rower 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. Protectan of Lende~s Security. If Borrower fails to per(orm the covenants and agreements contained in this
Mortgage, or if any action or procceding is commenceJ which materially affecls Lender'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, ma}~ make such appearances, disburse such
sums and take such action as is necessary to protect Lender s interest. including. but not limited to, disbursement of
reasonable attorney's fces aod entry upon the Property to makc rcpairs. If [~nder required mortgage insurance as a
condition of making the loan secureJ by this Mongage. Borrowcr shall pay the premiums req~ired to maintain such
insurance in effect until such time as the requirement for such msurance terminates in accordance with Borrower s and
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