HomeMy WebLinkAbout1640UNtFUR~t CovrN~NTS. Borrowcr and l.en~icr co~•cnant and agrre as foUows;
1. Payment of Principal aad Interrsf. Borrua•cr ShaN p~umpdy pay whcn duc thr pri~cipal of and inlirest on the
indebtedness evidenced by the Note, prepaymcnl anJ late charbrx as pruvided in the Note, and the principal of and interest
on a~y Future Advancre securcd by this Mortgagc.
2. Fnnds for Ta:es and lnsuraace. Subjcct to applicablc law or to a written waiver by l.codcr, liorrower ~halt pay
to I.ender on ~he day monthly i~ctallmen~s of principal and ~nlerc.t arc pa}~ahlc unJer the Note, until the Note is paid in tull.
a sum (hercin "Funds"- equal to c~ne-twelflh of the ycarly taxcs and assessmcnts which may attain priorily over this
Mortgagc, and ground rents an thc Pmperry, if any, pluc ~~nc-~wclfth ut }•rarly prcmium insiallmcnts far hazard insurancc.
plus onc-tw•clflh of yearl~• prcmium installmcnts for murtgage insurancc, it any, all as rcasonably etitimatcd initiaqy and from
time to time hy Lcnder on the h:+si. of ati~cs~mcnts anJ-bilts :~nJ reationable cstimates thereof.
The Funds shall he held in an institution the de~x~sits or acc~~unts of which are insurecl or guaraoteed h~~ a Federal or
state agcncp lincludiag L.ender if I.cnder is such an inslitution). Lcnder shaU apply the Funds to {+:-y said ta~es, asscssmenta,
insurancc p~emiums and ground rents. Lcndcr may not chargc for ,~. holding and applying thc Fund., anal}~7ing said account,
or verif~•ing and compiting said asscs,ments and bills, unless Lrnder p:~ya B~~rrawe~ interest c~n the Funds and applicable law•
permits 1_endcr to make such a charge. Borruwer and l.rndcr may agrr~ in writin~ at thc 1in~e o( cxccution oI this
~tortgage that intcrest on the Funds ~hall hc paiJ to Borruwcr, and unle~s ~urh agrecment i~ made or applicahle law
rcyuires such interest ta be p:iiJ, t_~nder ~hall n~~t tk rcyuir~d to p:i~ I;orrow•cr an~• intcrest or e:+rning~ on the Funds. 1_ender
shaii git~e ta Borraw•er, wiittuui ~tiaek~, .,ii ,~nzua; accr.c;:~ii.^,~ ~f tltc l~:s:::l~ ,h:~ui!ig tr~itc ,~nd dehits to the Funds and the
purpose lor which eaeh Jebit tu the Fund~ v-•as madc. 'fhe 1=unds ar~ p1~Ylgrd as adJitional security for the sums secur~~1
by this \fortgagc.
If the amount of thc Funds hctd b}• i.cn~tcr, t~-gethcr aith thr tute~rc month!}• imta!lmcnts of Fun~s payablc prior to
the due Jates uf taxes, as~~ss~nent~, insurancc prcmium~ and gruund rrnt~, shall e~cced the amount r~yuired to pay said taxes,
assessments. insurance premiums snd gruund renEi as ~hc~ faU duc. cuch e~~e~c ~hall be. at liorrow•er'c opuon, either
promptl~~ rcpaid to Borrower or crcditrd tu Burruwer on munthl}~ imtaltmcntc of Fundc. If thc amount of the Funds
held by Lender ~haU not be sutiicient to pay ta~ec, acces~ments, inwr.~nrr prem~um. and ground rent~ as they fall due,
Borrower shall pay t~ Lender an~~ amount ncre»ary tu makc up the ~t~tiricn~~~ within 30 Ja~•ti Irom the date natice is m•rileci
by I.cnder to Borrowcr rcyucsting p:-~mcnt thcrcoi.
Upon pa~ment in (ull of all sums s~-cured b~~ thi. Mangagc. I.~nJer shall prompUy rcfimd to Borruw•er any I~unds
hetd by LcnJer. !f under paragraph 1~ hcrro( thr Propert}• i1 s~~ld ar thc ProJxrt~ is othcn~•i.e acquircd by Lendcr, l.cndcr
~hall apply, no latcr than immcdiatcly prior to the ,ale uf ~h~ pruExrh~ o~ i~a arquis~lion hy Lcnder, any I~unds held bp
Lendcr at thc t~mc of application as a crcJit against thc sum~ ucured h~~ thiti ~fortgagc.
3. Appliration of Pa~'menls. Unle~s applicahte (ati• pru~idcs othcn~i~c. all paymcntti «ccired by l.cnder ~in~icr Ihe
~iotc anJ paragraph. I a~d 2 hereut shall bc applirJ by l.cndcr fin~ ~n p:,~mcnt ~-f amuunts pa}•ahlc t~~ Lcndcr by Borro~cr
unJrr paragraph 2 hereof, then to intere~t payablc ~~n thc \utc, thcn m thr principal ol the Note, and thcn to interest anJ
principal on .~n~~ ~uture Adcanccs.
4. CharRes; Liens. B~~rru~~er .hall pa)' aU ta~c., a„~t.mrnts and ~~thcr chargr~, finC~ an~l im~x~tiiteuns atlnbutable to
the Propert~~ ~~hich may attain a priorit}• over thi~ \fortg~gc, :ind Ica~chi~)d paymcnts or ground ren~s. ~f an}•, in the manner
pruviJrJ u~,.lrf p.;;~g;aph 2 hcrcaf or, :f n~~t ~a:d in tiurh n~snacr. h~ R~~rr~~~ver makine pavmcnt. w-hen due, di~ectly ta the
payec thcrcof. Borrower shall promptly furnish t~~ Lender all noticrs o( amounts ~luc undcr this paragraph, and in the event
I3orru~er shall makr pa~~mcnt directh. Horro~~rr ~hall prumptl~• (urnish t« Lcndcr recript~ r+ed~ncing such paymcnts.
Borrow~cr shatl promptl~~ disc;hatge an}' lern -~hirh has pnc~nt~• ~~~rr thi~ 1ltortgag~: pr~~v~dcd. Ih~t F3urrow•cr ~hall not hc
rcquircd to dischargc an~• ~uch lirn so !a+ig :-s Bi~rrowcr ~hall agre~ in Nriting to thc pa~mcnt ul thc ~~bligati~.n sccurcd b~~
such lien in ~ manner aceeptablc u~ Lender, or .hall in g~xai faith cu~~tc-~t w~h hen hy. or ~efen~! enf.~rcement c~( such lien in,
(eg:~l pr~xecdingti wfiich o~x:rate t~~ pre~~cnt thc enl~~rccmrnt of thr l~rn rr forferture of !he Propcrt}' c~r an~~ part thereof_
S. Hazard la~urance. Hvrroucr shal! k~~sp thr ~mpra-cmcnl, ni~~+ c~it~ing ~~n c~re:-ft~r crrctcd on thc Pn~{krty intiurcd
~gainst l~ss h~• fire. hazards indudcd ~vitht~ thc trrm °~~trndrJ ~i~vcrag~", an~ iu~h athcr h~zard~ ati I.rndcr may rcyuire
.~n.l in such am~~unts and for surh ~nuJ~ a. Lcndcr ma~ riyuir~: pr~»idc.1, th;~t Lcn.f~r .h;~ll not reyuirc that thc amuunt of
~uch ~i~~•~r~g~ e~cc~d that amuunt c~f ~i~v~rag~ r~yu~rrd t.• r:~t thr ~~mr. ~ci~~r~d M' th~~ \!orlgag~.
"Ric ~ns«ran~c ~arricr providi~~g thc insurancc shall ix rh~~.~n by Burr~~tirr suhjcrt tc, ;tppro.al h~~ Lcii~lcr, pro~~ided.
that surh appru~:~l .hall not t~: unrea,onahl}~ ~~•ithh~ld. :~II prrnunm. on imuranc~ policics ~fiall hr p.~id in thc m~nner
providcd unJcr paragraph 2 hcrcof or. if not p:~id in w.h m~nn~r, h~ B.~rruucr mak~ne paymcnt. Hhrn duc, .i~rectly to the
~n~urance carrier.
All tnsurancr policic, anJ renr.+:~i, thcrc~~1 shall tx in fo~m .~rccpt.~blr to Lcn~frr anJ shaN includc a ~tan~l:ird mortg:~gc
dau~c in fav~~r ~.f and in furm acccpt:~hlc ~.~ Lcndcr. Lrndrr .h.~ll h;i~r thc right t~~ holJ the p~~li:ics ~nJ rcnix:~l~ thcreof.
and Borrow~cr ~h:dl prumptl~• furnish to I.endrr ~ll rrnrwal notice~ and al! rcceipts of paid premium.. In ihe event c>t loss.
Borruw•er ,h.,t! ~i~e prompt nudcc tu the insuc.~n~r wrr~er and l.ender. ! endrr ma~~ m~kc prc~ot ot lo~s if not made prompd)~
b~• Borrower. ,
Lnless LenJ~r and Borruw~r other~~,~ agre~ in ~ritmg. imura~~re pr~-.ecdc shall bc applicd tc~ rc+taration or repair ~tif
thc Propert)' Jamage~f. prvviJ~d such retiturahun ur repa~r ~5 eri~nomically fras~ble and the ~ee:urity of th~s ~lnrtg~~gc ~s
not ~hereb}• imp:~~rcd. If such rc,toratum or ;epa~r is nnt «~~num~r.~lh~ l~asihle or if the securit~• of this ~i~rtgagr ~+~uuld
be impaired. the insurance pr~xee~i~ tihall be applie~i to thr wms .rcure.f b~~ thit Mortgage. ~uh the excecs, if an~•, pa:d
ta Borr~~wrr. I( thc Prupcrt~ iti ;~han~lrncd h~ I;i~rruwcr. or it Borr~~wcr (ail, t<. res{~md to Lcndcr within 3U da~s from the
date no~ice i. mailcd b~• Lender tn Bo's:oH~er that the ~nsur:~ncr c:~rrier e+tTen ro,ettlc a claim for insurancc benefi~s, 1_ender
ia authorized to rollect and appl~ the imuranrr proceeJs at LrnJer'~ uptiun either to restoration or repair of th~ Propen~•
or to thc sums x~urcd h}~ this ~fortgagc.
lJnlesc I.endcr and Burruw~r other~i.r agrcc :n writing, an~ surh apptiration of pn.cceds to pnnripr~l ~hall not extend
or M~stpun~ thc dur datc of ttic m~~nthlc in~tal~mcnts rcfcrrcd tr in ~aragraph~ 1 aml ? hcmof or changc thc amount of
.,::e:t :a>:~!!.^.~~s:!~. !! ~lR+3ei p~r:~or.~Qh l8 hcreo( the Propcrt~' is acyuireJ h~ Lcnder, ,ili nght, titlc and interest of Borrow~er
in and to am imuraci~c policies and in and to the pn-ceeds thereof resulting f~am damage to the Pruperty prior to tnc saie
or acyui~ition ~hall pas~ 'o LcnJcr to thc c~tcni uf thc 5ums ~c~urrd h~ thu Mortg~g~ ~mmcdiatcly~ pnor !~> >uch s:~le or
acyuisition.
6. Presenalion and ~laintenance of Propert}: I.caceholds; ('ondominiums; Planncd Unit Decelopmenls. Horrowcr
~hall krep thc Pro~xrty in g~~d repair and shall siot commit wastc e~r permit impairmcnt or dcterioration of the Propcrt~~
and shall c~~mpl~• .+ilh Ihe provisiuns of any lease ~( thu 11~xtgagc i~ un a lraseh~~ld. If thic ~lortgage is an a unit in a
condominium ~~r a planncd im~t dc~~rlupmrnt. 8orrow~cr shal! ~rMrm all of Borrowcr's obligations under thc declaration
ur co~~en~nt~ createng e~r guvcrnin~ thr c~~nd~~mmium or planncd unit dcvcl~~pmcnt. the by-law~s and regulation~ of the
cunJun~inium ~.r planned unit Je~~~lopment, end constiuirnt J~uments. If a cundi~minium or planned unit Jc~rlo~~ient
n.ier i, r~ccut~d b~• BorruHer and rernrded t~~gether ~rtF~ thi~ .~tortgagc, thr ~o~•cnantt and agreements of siich neler
,hail bc: ~ncor~~rate~ ~nto anJ shali amend an~! supplrment the co~enamti and agrecments of this Mor~gage as if the ri~)cr
:.cre :~ p:~rt hercof.
7. Protection oi Lenders Security, 1( Be~rro~cer (aik t~ pcrf~~rm the covenantc and agreements c~~ntai~zed in this
;11ur~gagr. ur if an)~ action ur pro:eeding ~~ cammencr~t Hhich m;~tcriall~~ :iffech I.rnder', interect in the Propert~~.
includmg. hut rn.t (~m~tcd to. rm~ncnt domain. imrl~rnc}, ccxir cnf~~rrcmcnL i~r arrangcmcnts or ~+r~xccdings invohing a
bankrupt ar dr~rdent. thrn l.cnder :~t Lender', option, upon notice to Borrowrr, ma~ make such ap(karance~, di~hunc ~uch
~um~ and takc such action a~ is nccc~~an t~~ pm~cct Lendcr's imcrc~t. ~n~luding. hut ni~t IimitcJ to. di.hurscmcnt ~~f
reasonahlc attome)'. tccs and cntry uEx~n thc Propcrt~ t~ mal.c rcrain. It Lcndcr rcyuired morigagc en.~er.~ncc ati a
cund~Uun ot making thc loan Kl"UfC<I Ilt' (f115 ~t~~r~g~cc. Bi~rrc~ti+rr sh.ill pa~• thc premiums rry~nrc~l t~~ mainta~n ~urh
~nsurancc i~~ clTect until 1uch timc a~ !hc r~yuir~mcnt for tiuch msuranrc ~crminatc~ in accordan~c w~th Borrrwcr'~ and
BC~K ~~ PA13E ~4}-,~