HomeMy WebLinkAbout1100UNtrat~ CoveN~nts. Bomower and I.ende- covenant and a~~ee u tollows:
l. hneN ot hi~c~l a~i INcnsl. 8o~rower shal) prompN~• pay when due Ihe principal ot and iotercst on the
indeatedneu evidenced by the Note. prepsyment a~d late chargcc ac provided in the Note, and the principal ot and inleresl
o~ any Futurc Advaaces socured by this Mortaaje.
2. F1Mi tor T~t~s a~i I~wra~ce. Subject to applicahk law or to a writlen waive~ by I.ender. Borrower shall pay
to Lend~r on Ihe day monthly installmen~s o[ pri~cipal anJ ~nt~rcct arc ~yat~le unde~ the Note. until the Note is paid in full.
a sum (herein "Fund~") equal to one-twelAh ot the yearl~~ ta~~. anJ assasments wh~ch may attain pnority ove~ ~his
Morisaje. and ~rou~d rents on the Pmperly, if any. plus one-twelGh of yearly prcmium installments io~ huard insurance,
plus oae-twel(th of yearly p~emium installmeets tor mortgage insurancc. it any, all as rcawnably cstimated initially and trom
time to time by I.ender on the buis of assescmeots anJ hills and reasanable estimates thercof.
The Funds shall be held in an institu~ion thc deposia or •rccounts ol which are insurcd o~ gua-~nteed by a Federal ot
sbte a~ency (including Le~der if Lcnde~ is such an institution 1. I.ender ahall apply Ihe Funds to pa) said uxa, assessments.
insurance premiums ~nd ground rents T ender may not ebarge to~ so holding and applying ~he Fundc. analyzing caid account.
or verityin` aod compling said assessments and bill~, unless l_ender pays Borrower interat on ~he Funds and applicable law
petmits Lender to make such a charge. Borrower and l.ender may agree in writing at the time ot execution o( this
Mon~a~e that interat on the Funds shall be paid to Borrower, and unlas such agreemeM is made or applicable law
rcquira such interest to be paid. l.ender shall ~ot be rcquircd to pay Borrower any interat or tarning~ on the Funds. Lender
shall pve to Borrower, without charge, an annual accounting af the Funds showing credits and deb~ts to the Funds and the
purpose tor which each debit to the Funds wu made. The Funds are plodged as additional security far ~he sums secured
by this Mortjage. '
lf tbt amount ot the Funds held by Lender, toge~her wi~h 1he future monthly instatlments of Funds payable prior to
the due dates o[ taxa, assessments, i~nurance prcmiums and ground rents, shati exceed Ihe amount required to pey said taxa,
aase~ments. insurance premiums and ground rrnts as they tall due, such excess shall be, at Horrower's opt~on, ei~her
promptly rcpaid to Borrower or cred~ted to Botrower on mon~hly ins~allments of Funds. If the amount of thc funds
hdd by Leoder shall not be sulGcieat to pay taxes, asscssments, insurance prcmiums and ground ~ents as they (all due, ..
Borroaer thall pay to i.ender any amount necessary tu make up ~he deficiency within 30 days f~om the date notice is mailed
by Lender to Borrower rcquesting payment thereof.
Upou payment in full of all sums tocured by this Mortgage, l_ender shall promptly retund ~o Borrower any Funds
held by I.ender. If under puagraph 18 hercof the Property i~ sold or ~he Property ~s othervvise acquircd by Lendcr, l.ender
s6dl apQly. no later than immediately prior to the sale ot the Property or its acquis~tion by l.ender. any Funds held bv
Leader at the time ot application as a credit against the sums securcd by this Mongage.
3. A~pucatlu~ ot Paymtats. Unless applicabk law provides otF~erwise, all payments received by l.ender unJer the
Note and pangraphs 1 and 2 hereo( shall be applied by I.ender 6rst in payme~t ot amounts payable to Lender by Borrower
uader paragraph 2 hercof, then to mterest payable on the Note, then to the principal ~( the Note, and then to interest anJ
principal on any Future Advances.
4. Chutes; Lkas. Borrower shalt pay all laarti. at~cs~mcnts and othcr ch:+rgeti. fines and impcnihons attributable to
1he Property which may attain a priority over this Mortgage, and leasehold payments or ground «nts, if any, in the manner
provided under paragraph 2 hereof or, d not pa~d ~n ,uch manner, by Borrower making payment, whon due, directly to the
payee theteof. Borrower shall promplly (urn~sh to l.ender all notices of amounts duc under this paragnph, and in the event
Borr+nwer shall make payment d~rectly. Borrower shall promptly (urn~sh to Lender receipts evidencmg such payments.
Borrower shaU promptly discharge any hen which has pnonty over th~c Mortgagr, providcd, that Borrower shall not be
rcqwred to d~scha~ge any wch lien so long rs Borrower shall ~grec in v-nting t~~ the paymeot ot Ihe obGgatiun secured by
such lien in a manner acceptable ro Lender, or shall in good (ai~h conte.~ iuch lien by, or defend enforcement of such lien in.
legal proceed~ngs which operate to prevent the en(orcemr:u of the I~en or tor(eiwre ot the Property or any put thereof.
S. Hszard Insuraace. Horrower shall keep ~he ~mprovemem~ now etiaung ur herca(ter erected on the Property insured
against toss by firc, hazards :ncluded withm the term "extendeJ covcr:+ge", and such o~htr hazardc as Lender may reyuire
and in such amounts and for such periods ac I_ender may reyuirc; provideJ, that 1_ender tihall not reyuire that ~he amount of
such coverage exceed that amoum of coverage reqwred to pay the ~umti ~ecured ~by thiti Mort~age.
7'he ~nsurance curier ptoviding the ~nsurance shall be chosen by Borrower sub~ect to approval by Lender, provided,
t6at wch approval shall not be unreasonably withheld. AI! premwmc on insurance polic~es shall be paid in the manner
prov~dtd under paragraph 2 hereof or, ~f not pai~f in such manner, by Borrow•er mak~ng payment, when due, dircctly to the
inwrance carner.
All insurance ~wl~cies anJ renev~als thereot shall be in form acceptable to LenJer anJ shall include a t~andard mortgage
clause in favor of and m form acceptable to I.ender. Lender ch~ll have ~he right ta ho1J the policics and renevralti thereof,
and Borrower shal! promptly furnish ro Lender all renewal nouces and aU reccipts of paid premium~. In the event of locs,
Borrower sh~ll g~ve prompi nutic~ to the inwrance carncr and Lender. Lender ma~ make pnx~t of loss if not made prompUy
by Borrower. '
Unkss Lender and Borrower othcrw~K agrer in wnUng, intiurance pnxccdc shall bc applied to restaration or rtpair of
the Property damaged, prov~deJ surh re.loranun or repair is ecunum~cally (easible and the security of this Morlgage ~s
not Ihereby impa~red. I( such restoralion or repa~r ~s m~t cconomically (eacible or i( tf~e xcunry of Ihis Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secureJ by ~his Mortgage, with the excess, if any, paid
to Borrower If the Property is abandoned by Borrower, or il &-rrc~wer (ails tc~ respond to t_ender within 3U days from the
date not~ce is mailed by Lender ~o Borrower thai the msurance r.uner otfen ro xettle a claim for insurance lxnefits, l.ender
is authonud to collect and apply the ~murancr pra.eeJs at Lcndcr's up~~~~n cuhcr ~o restorat~on or repa~r of the Pmpen~•
or to the sums secureJ by this Mortgage j
Unless l.cnder and Borrower otherv-i~c agrce m uriUng, any such applicalion uf pnx:eeds lo pnnc~pal shall not cxlend ~
or postpone ~he duc Jate o( the munthlv in~tallmcn~ti referrcd ~o in paragraphti I ~nd 2 hereof or change Ihe amount a(
suc6 installmenb. It under paragraph 18 hereof the ProFerty ~s acyuueJ hy IxnJcr, ali nght, UUe and interest of Borrower '
m aad to any~ Insurance poficits and ~n ~nJ to thr prcx:eeds thereof rryulung from damage to the Property prior to th~ aale
or acqwsiGon shall pass to Lender to the eatent o( the wm~ securcd b} thi~ l~lortgage immediately prior to such sale or ~
acquisition.
6. Presenation aod ~ltintrn~nce of Propert~: Leasehuldc; ('ondominiums; Planned Unit Derelopments. Borrowcr
shall Icap the Property in gcwd repair and shall not cumtpil y~~aste c~r perm~t ~mpairment or delerioration of the Property
and shall compl)~ wdh thc provis~ons of any Icasc if thn Murtg~gc i~ ~in a Icasch~~ld. It this Mortgage is on a i~nn in a
condominwm or a planned unit devclopment. Borrower ~hall ixrform ~II u( Borrower's obbgat~ons under ~he declarat~un '
or covenanls creating or governing ~he condom~mum or planncd umt developmcnt, the by-laws and regulationc of the
conJominwm or planned unit develo~,ment. :md constituent d~xument. If a• conJominium or planned unrt development
r~der ~c executed by Borrower and recorded t~~geiher w~~h th~~ M~~rtgage. the covenant~ and agreements o( wch ndcr
shall be ~ncorporated into and shafl amrnd anJ wpplcmrnt thc co~enam~ anJ agreements o( ~hn Mor~gage as ~t the nJer
wcre a part Fereof. '
7. Prote~tion of Lenders Security. It li~~rruwer f.,~l~ t~~ ~xrl~~rm the cc-venant~ anJ agreements c~~ntained in this
Mortgagc,-ur if any act~on ~~r prcxccding ~~ c~~mmcncc~l which matcriall~ .~(Trc~~ 1 cn~lcr'ti ~nlcrc~t in Ihc Propcr~y.
including. hut n~~~ hrmtcd tu, cmincnt dom:un. in~uhcnr}. ~~~dc cnf~~rccmrnt. ~ir ;~rr.~n~cmcmti or prcxccdings ~nvohing a
bankn~pt or de~eJent. then LenJer a1 I enJer'i ~~pt~on, u~x-n n~-t~ce to Borrower, n-a~ m:~ke such appearances, di~hurse such
sumt and lal~e such a~uun a+ is nrcc~.an• t~~ pm~ect Lender'a inleretit. mcliuhng. but nc~t Iim~tcJ to, dishursement ~~f
reasonahle allorncy'~ tceti and rn~ry up+m the Proprri~ t~~ mai~c rcpn~rti. II I_rnJrr rry~~ircd murtgage in•.iirance ati a
condihun u( mak~ng ihc foan ~ec~ue.l br ~hi~ Mur~gnEr. Fi~~rn:~cr sh ~II p~y thr prrmunnti reqwreJ to mainta~n wih
insurance m rtiect unUl ench t~me •rti the « yu~rrmeni f~~r wch m,uran;r terminate~ in accordance w•nh B~rr~~wcr'~ and
a~~~.
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