HomeMy WebLinkAbout2086UNtto~et-t CovFx.~tv7s. Borrower and l.ender coven~nt and agree as toUows:
1. Payment o1 Pirinclpal and lnterest. Borrow•cr shall promp~ly pay whcn due the principal of and interesl on the
indeb~edness evidenced by the Note, prepayment and late cha-ge~ a. pravided m the Note, and Ihe principal ot and intercst
on any Future Advancec ucured by this Mortgage.
2. Fuads tor Tua aod lnsurnace. Subject to applicab~e law or to a written waiver by 1_endsr, Borrower shall pay
t~ [.~r~~kr on ~t~ Jry m~riihiy instaitmenis oi principai and interesi are payat~ie under ~he I~ioie, utliil iht iriuie is ~~ai3 iii ~u11,
a sum (hercin "Funds") equal to une-twclfth ot the yea~ly taxec anJ ascessmen~s which may attain priority over this
Mortgage, anJ ground rents on Ihe Property, if any, plus one-tweltth of yearly premium inslallments for haaard insurance,
plus one-twel(th of yearly premium installmems tor mortgage insurancc, it any, all as reaso~ably ectimated initially and trom
time to time by 1_ender on thc basis of asxssments and bills and reasanable a~imates thereof.
The Funds shall t+e held i~ an institutian the depcuits or accaunts of which are insured or Ruaranteed by a Federal or
state agency (including Lender if l.ender is such an institu~ion). I.ender shall apply the Funds to ~ay said taxes, assessments,
insurance premiums and ground rents. I.ender may not charge (or ~o holding and applying the FunJs, analyzing said accaunt,
or ve~ifying and campiling said assessments and bills, unless l.ender p:~y~ Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and I_ender may agree in wnting at ~he time o( execution ot this
Mortgage that interest on the Funds shall he paiJ to Borrav-er, and unless such agreement is made or applicahle law
requires such interest to be paid. Lender shall nat he requireci to pay f3orrower any interesl or earnings on the Funds. !_ender
shall give to Borrower, without charge, an annual aca~unting af the Funds showing credits anJ debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as adJitiona! security for the sums secured
by this Mortgage.
If the amount o( the Funds held by LenJer, toge~her with thc future monthly~ installmcnts of Funds payablc prior to
.the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the :+mount reyuired to pay said taxes,
assessments, insurance premiums and ground rentt as they tall due, such excecs chall be, at Barrower's aplion, either
promptly repaid to Borrower or credi~ed to Borrowtr on mon~hly installments of Funds. If the amounl of the Funds
held by Lender shall not be sufftcient to pay taxes, assessments, insurance premiums and ground rents as ~hey fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 daps from ~he date notice is mailed
by Lender to Borrower requesting payment thereof.
lipvn paymrni in fuli uf aii surru se~:ureci by inix Pviorigage. i.ender snaii prompiiy reiun~i to 8orrower any FunJs
held by I.enJer. If under paragraph 18 hereof the Property ~~ sold or ~he Property is othenvise acqu~n:d by Lcndcr, Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition hy t_cnder, any Funds held by
Lender at the time ot application as a crcdit against the sumc secured by this Mortgage.
3. Applicstlon ot Payments. Unless applicable law proviJes othen~•ise, all payments received by t.ender under the
Notc and paragraphs 1 and 2 hereof shall be applied by 1_endcr first in payment of amounts payablc to LenJer hy Barrower
under paragraph 2 hereof, then to interest payablc on the No~e, then ta the principal of the Note, and then to interest and
principal on any Futurc Advances.
4. C6arges; Lkas. Borrower shall pay all ~azes, asccs~mcnts and othcr chargcs. fines anJ ~m~x~si~ions attributable to
the Property which may attain a priority over this Mor~gage, and leasehold payments or ground rcnts, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Barrower making payment, when due, directly to the
payee thereof. Borrower 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 (urnish to I_ender receipts evidencing such payments.
Borrower shall promp~ly dixharge any lien which has priority aver this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writ~ng to the pay~ment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien b}, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the I~en or [orfeiture of the Propeny or any part thereof.
5. Huud Iasurance. Borrower shall keep Ihc ~mprovcments now exis~ing or hereafter ercc~ed on the Properry insured
against loss by fire, hazards included wi~hin ~he term "~atendeJ coverage", anJ such oiher hazards ac 1_ender ma~ reyuire
anJ in such amounts and for such periods as Lender may reyuire: provided, that I.enJer shall not require that Ihe amount of
such coverage exceed that amount of coverage required to pay the cums cecured hy this Mortgage.
The 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 ~n the manner
provided under paragraph 2 hereo[ or, if not paid in such manner, by Borrower making payment, whzn due, directly to the
inwrance cartier.
All insurance policies and renewals thereof shall be in form acceptable to LenJer and shall ~nclude a ~tandard mortgage
clause in favor of and in form acceptable to Lender. ~ender ahall have the right a~ hold the policies and renew~als thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premium,. In the event of loss.
Borrower shall give prompt notice to the insurance catrier and 1_ender. Lender ma~• make prcx~f of loss it not made prompU~•
by Borrower.
Unless Lender and Borrow~er otherw~ise agree in writing, insurance procceds shal) bc applied to restoration or repair of
the Property damageJ, proviJed such restora~ion or repa~r is economically feasible and the securi~y of this Martgage is
not thereby impa~red. It such restoration or repair is not economically (easihle or if the security of Ih~s Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage. with the excess, if any, paid
ta Borrower. It the Properry is abandoned by Borrower. or if Borrower fails to respond to I_endcr within 30 days (rom the
date notice is mailed by l.ender to Borrower that ~he insurance carrier oliers to settle a claim for insurance benefits, l~nder
is authorized to collect and apply Ihe insurance proceeds at I_enJer's option either to restoration or repair of ~he Propeny
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of prcxeeds to prmcipal shall not e±etend
or postpone the due date of the mumhly installments referred t~ in paragraphs I and 2 hercof or change thc amounl ot
such installments. If under paragraph I8 hereof the Property is acywred by~ Ixnder, al~ right, tide and imerest o( Rorrower
in and to any insurance policies and in and to the proceeds thereof resul~ing from damage to the Property prior to the sale
or acyuisition shall pass to Lender to the extent ot the sums secured by thu llfortgagc immediatety prior tc~ ~uch sale or
acquisition.
6. Praerv~lion and ~taintenance of Property; I.easeholds; ('ondominiums; Planned Unit De~•elopments. Borrow~cr
shall keep the Property in good repair and shall not commit wastc or permit impairment or deterioration o( ~he Property
and shall comply with the provisions of any lease it th~s Mongage ~s on a Icasehold. If this Mortgagr is on :, unit in a
condominium or a planned un~t development, Rorrower shall perform all of Bormw•er's obhgations under ~he declaration
or covenants creating or governing the condominium or planned unit developmenl, the by-laws and regulation~ of the
conJominium or planned unit development, and cons~iwent documentc I( a candominium or planned umt Je~•elopment
nder is executed by Borrower and recorded together aith th~~ Mortgage, ~he covenants and agreements o( such nder
shall be incorporated into and shall amend anJ supplement the co~•enams and agreements of thic Mor~gage as i( the riJer
were a part hereof.
7. Protecfion of [.ende~s Security. lf Borrov-•er fail~ ~o pc~fc.rm the covenantc and agreements rontained in this
Mortgage, or if any aclion or proceed~ng ~s commenced wh~ch materially afiects LenJer's interest in ~he Propert~•.
including, but not limited to, eminent domain, insolvency, code en(orrement. ~ir arrangements or pr~~ceedings invol.•ing a
bankrupt or decedent, then Lender at I_enJer's option, upon notice to Borrower, may make such appearances. dishurse such
sums and take such action as is neces~ary to protect (.ender's in~erest. ~nch~ding, but not lim~ted to. disbursement of
reasonable attorney's fccs and entry upon ~he Proper~y to makc rcpairs. If l.endcr rcyuired morigage in~urance ac a
condition of making the loan secured by this Mortgage. Bi•rmv-er sh-rll pay the premiums requireJ to maintam such
insurance in efiect until such time as ~he requirement for such msurance Ierminates ~n accordance with Borrower s and
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