HomeMy WebLinkAbout2501Ut+traw CoveN~nts. Bormwer and l.ende. covenant and a~ree as follows:
l+ ty~e~f o/ h'Mc~l a~ 1s~a+eat. eorrower shaU promptl~ Day when due ihe p~it~ipal ot and interest on the
indebtednea evidenoed br the Note, Prepayment and late chargec ac p~ovided in the Note, and the p~incipai of ~nd inttrtst
~ou any Future Advances securod b~r this Mortgsta.
~. 1hNi to' Taac~ Mi I~w~ce. Subject to applicabk law a~ to a a-rittcn waiver by l.ender, Borwwer shsll pay
to Lender on the day montAly insiallmenta of principa! aod ~nt~rcc~ rre p~yahle under tF-e Note. until the Note is paid in tull,
• sum (herein "Fundt") eqwl to one-twelfth of the yeui~• taac. anJ assessmeots which may attain priority over this
MO~i~. ~ t~~ ~a ~ tbe Pooperty, it any, plus one-twcif~h of yeatly premium itutailments for huard insurance.
plus oae-twelRh o[ yearly prcmium iostatlmeots (or mortgage insunncc, if aoy, all as nasonably estimated initially and from
time to time by Leuder on the bssis ot assessmcots and hills and rcasonable a~imates thereot.
T1~e Funds shall be held in an institution the deposita or ~ccounts of which are iosured or gwrantetd by a Federal ot
ttate a~ency (includina Lender if Lcoder is such an ir~stitutioni. I.ender shall apply the Funds to pay saed ~axa. assessments.
inwranca premiums and gtound rcnts. I.ender may nat cbarge for s~+ holding and applying the Fnndc. analyzing ~aid acCOUnt.
or verifyin~ aod complina said assessments and bills, unless Leoder pays Bonower interest on the Runds and applicable law
pernut~ Lender to make such a charge. Borrowe~ and Lender may agree in writing at the time of exceutiort of this
Mottgage that interest on the Funds shall be paid to Borrower, and unlas such agreement is made or applicable law
t+equires such interest to be paid. Lender shall not be required to pay Bor~ower any intercst or ear~ings on the Funds. Lender
slWl ~ive to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Funds ar~d the
purpoae for which each debit to the Funds wzs made. The Funds are plodged u additional securi~y for the sums secured
by th~ Mortaaae.
If t1n amount of the Fuads held by Lender, toge~her with the future monthly insta!lmcnts uf Fundt pay~bk pri~r to
the due data of taxes. as.xssmeats, insuraece premiums and ground rents, shall exceed tht amount rcquired to pay said taxes,
asse~saae~ts. ittsurance premiums ~d ground rents u tl~ey fall due, such excess shall be, at Borrower s op~ion, either
pranptly repaid to $ort+ower or crodited to Borrower on monthly instatlments of Funds. If the amo~nt of the Funds
bdd by Leoder shall not be wMicient to pay taxes. asses.sments, insurance prcmiums and goound rents as they tall due,
Bono~rer sball pay to Lender aey amount ~acessary to make up the deficiency within 30 days trom the date notice is mailed
by l.e.u~kr to Borrower requating payment thereof.
Upoa paynaent ia fuU of all :wns ~cured by this Mortgage, l.ender shall promptly refund to Borrower any Funds
held by Leoder. If under paragraph 18 hereof the Propeny ia sold or the Property ~s othervvise acquircd by l.cnder, Leeder
sball apply. ra later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held bv
Looder at the time of application as a credit against the sums sccurcd by this Mortgage.
3• Alplkatio~ oE Paya~eals. Unless applicable law provida otherwise, all payments received by Lender under the
Note aad paragraphs 1 and 2 hereof shall be applied by [_ender 6rst in payment of amounts payable to Lender by Horrower
under puagraPh 2 hereof. then to interest payable on the No~e, then to the principal of the Nae, and then to interest and
principal on any Future Advanoes. .
4• C6artes; Lkas. Bonower shall pay all iaaes, assessmcnts and othcr charges. 6nes and impositions attributahle to
We Property which may attain a pnority over this Mortgage, and leasehold payments or gcnun~ rents, if any, ir~ the manner
providod unde~ paragraph 2 hereo[ or. ~f not paid ;n such manner, by Borrower making payment, when due, direcdy to the
psyee thereof. Borrower shall promp~ly furnish to Lender all not~ces of amounts due under this paragraph, aad in the event
Borrower shall make payment directly, Borrower shall promptly turn~sh to Lender receipts evidencmg such payments.
Borrower shall promplty dischargt any lien which has prionty over ~hic Mortgage; provided, ~hat Borrower shall not be
rcquind to discharge any such ;ien so long as Borrower shall agree in writing to Ihe payment of the obligatiun secured by
such lien in a manner acceptable to Lender, or shall in good faith contes~ such lien by, or defenJ entorcement of such lien in,
legal proceedings which opera~e to prev~nt the enturcement of ~he I~e~ or forfeiture of the Property or any part thereof.
S. Hazard Inwtawce. Borrower shall keep the improvementc now existeng or hereafter erected on tbe Propeny insured
against loss by fire, hazards included within Ihe term "eztended coverage", and such o~her hazards as (_ender may reyuire
and in such amounu and fo~ such periods as Lender may require; provided, that I_ender shall not rcquire that the amount of
such coverage exceed that amount of coverage required ~o pay the s~ims xcured by this Mortaage.
7he insurance carrier providing the insurance shal! be chosen by Borrower subject to approval by Lender; provided.
that sueh approval shall not be unreasonably withheld. All premiumc on insurance polic~es shatl be paid in the manner
provided under Raragraph 2 hereof or, ~f not paid in such manner, by Borrowet makmg payment, when due, directly to the
iosunnce carrier.
A1) insurance policies and tenewals therrof shall be in form accept~blc to Lender and shall include a standard mortgage
clauu in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renevvals thereof,
and Borrow•er ahall promptly furnish to Lender all renewal nouces and alt receipts of paid prcmiums. in the event of loss,
Borrower shall g~ve prompt notice to the ~nsur~nce carreer and t_ender. !_ender may make prcx.t of loss if not made promptly
by Borrower.
Unlats Lender and Borrower otherw~k agree in writ~ng, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided wch restoration or repa~r is economically feasible and the securiry of th~s Mortgage is
not thereby impaired. If such restoration or repair is not rconomically feasible or if the security of this Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secureJ by this Mortgage, with the excess, if anp, paid
to Borrower. If the Property is abandoned by Borrower, or il Borrower fails ta respond to Lender within 30 days ~rom the
date notice is ma~fed by L.ender to 8orrow•er that ~he insuraoce carrier otTers to senle a claim fot insurance benefits, Lender
is auiborized to collect and apply the insurance procceds at Lender's option either to restora~ion or repa~r of the Propenv
or to the sums secured by this Mortgage.
Unless Lender and Borrower othervti~e agree in writing, any such application of proceeds to pr~ncipal shall not extend
or postpone the due date of the monthly installmcnts rcferred tn in puagraph~ I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the ProFerry is acywred b~ I.enJer, ali nght, title and interest of Borrower
in aud to any tnsurance policies and in and to Ihe proceeds thereof resul~ing from damage to the Property prior to th~ sale
or acquisiqon shaii pass to Lender to the extent of the sums secured by this !-fortgage irnmediately prior to such sale or
acqwsition.
6. Presen•alioa aod tittintcn~nce of Ptoperty; l.epsehulds; Condominiums; Planned Unit Devebpmenls. Borrowcr
shall keep the Property in good repair and shall not com~pi~ Waste or permit impa~rment or deterioration of the Property
aod shall comply with the provis~ons of any lease if this Mortgage it on a feaschold. If this Mortgage is on a unit i~ a
condominium or a planned un~t Jevelopment, Borr~wer shall per(orm all of Borrower s obligat~ons under the declaratiun
or coveoants creating or guvermng the condominium or planned unit developmcnt, the by-laws and regulations of the
condominium or planned unit de~~elo~ment, ~nd constiwent document~. I( a conJominium or planned unit development
rider is eaecuted by 8orrower and recorded together Kith th~~ Mortgage, the covenants and agreemen~s of serch rider
shall be incorporated mto and shall amend aod sappkment the covenants and agreements of this Mongage as ~f the n.ler
were a part Fereof_
7. Protection of Lenders Security. If Borruwer (ail~ t~~ per(nrm the covenants anJ agreements contained in this
Mor~gage, or if any action ~~r procreJing ~s rommenced Khich materially afirctc Lender'c ~nterest in the Propert}•.
including, but nrn bm~ted to, emment domain. ~n«.hcn~~. codc enforrement. or arr:~ngemcnts or proceedings im•oh~ing a
bankrupt or decedent. ~hen I_ender at I.ender'a op~ion, up~m no~ice to Borrower, may~ make such appearances. dishurse such
sums and ~ake such ac~ion ac is nece~.ary to protect Lender's mterest. inclu~ing. but not limrted to, disbursement ot
reasonable attorney's (eec end entty u~x~r- the Proper;y lo make reparr~. !f I.rnder reyuireJ mortgage incurance at a
cond~t~on oi makmg thc Ioan ~ecureJ by thu l~turlRage. B~rrr.wcr sh.dl pa~• the premiums reqiureJ to maintam such
insurance in etiect until ~uch time as the reyuiremem (or wch ~n~uran,e termina~eti m:~ecordance w•i~h Berrrv-er'. and
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