HomeMy WebLinkAbout2682UN~FORnt CovFN~N-rs. Borrower and I.enJcr covenant and ag~re as follows:
1. P~ymeat ot P~incipsl aad Inlenst. Hc~rn-wcr shall p~~~mptly pay when due the principal ot and interest on the
indebted~KU cvideocal by the Note. prepayment and late charges as proviJed in the Note, and the principal ut and intercsl
on a~y Futurc Advances securcd by this Mor~gage.
2. Fuad~ tor Tua aad in~uraace. Subjecl to applicable law or to a written waiver by Lender. Borrowe~ shall pay
to Lender o~ ~he day monlhly installments of principal and interest are payable under the Note, until the Note is paid in (ull,
a a+:m (herein "Funds") cqual ta ons-twelfth o( the yearly taxes and ascessments which may attain priority over Ihis
Mortgage, and gruund rents on the Property. if any, plus one-tweltth of yearly p~emium installments fo~ hazard insurance.
plus one•tweltth of yearly premium i~stallmeots (or mortgage insurance, if any, all as ressc~nably estimated initially and from
time to time by Lender on the basis ot auessmems and bills and rcasonable estimates thercof.
'flie Fundc shall be held in an inslitWion the deposits or accaunts of which are insurcd o~ guaranteed by a Federal or
state agency (including Lender if 1_ender is such an institutian). 1_ender shall apply ~he Funds to pay said laxes. assessments,
insurance premiums and grouod rents. I.ender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said asseuments and bills, unless l.ender pays Borrower interest on ihe Funds and applicable law
permits Lende~ to make such a charge. Bo~rawer and Lender may agree in writing at the time o( execution of this
Mortgage that interest on 1he Funds shall be paid to Borrower, and unless sucA ag~eement i~ made or applicable law
rcquires such interest to be paid. Lender shall nat he required to pay ~orrawer any in~erest or earnings on the Funds. [.ender
shall give to Borrower, without charge, an annual accaunting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are plecigecl as additianal security for ~he sums secured
by this Mortgage. ~
If the amount of the Funds held by LenJer, tagether v-~ith the (uture monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxa.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, eithcr
promptly repaid to Borrower or credited to Borrower on monthly installments af Funds. !f the amount of the Funds
held by Lendcr sha11 not be sufficient to pay taxes, as,cessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 day~s (rom the date notice is mailed
by Lender to Borrower rcquesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. I.ender shall promptly refund to Borrovver a~y Funds
held by l.ender. If under paragraph 18 hereuf the Property is sold or the Property is otherwise acquired by l.ender, Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by I_ender, any Funds held by
Lender at the time ot application as a credit agai~st ~he sums ucured by this Mortgage.
3. APplicatioa oi Paymeats. Unless applicable law~ provides otherwise, all payments received by I_ender unJer the
Note a~d paragraphs 1 and 2 hereof shall be applied by l.cnder first in payment of amounts payable to Lcnder by Borrower
under paragraph 2 hercof, then to interest payablc on the Note, then ta the principal ot the Note, and then to interest and
pri~cipat on any Future Advances.
4. C6arges; Lkos. Borcower shall pay all taxe~, acsessmcnts and athcr charges, fines and imp~xitions atlributable to
the Property which may attain a Qriority over this Mor)gage, and leasehold payments or graund rents, if any, in the manner
pmvided under paragraPh 2 hereof or. if not paid in such manner, by Borrower 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 shell promptly furnish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over ~his Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to Ihc payment of thc obligation secured by
sucb lien in a manner acceptable to Lender, or shall in gcu~ci faith contest such lien by, or defenJ enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or for[eiture of the Property or any part thereof_
S. Hazard Iosurance. Borrower shall keep the improvements now• existing or hetcafter erected on the Property insured
against loss by fire, hazards included wi~hin the term "extended coverage", and such other hazards as 1_ender may require
and in such amounts and for such periods as Lender may reyuire- provideJ, Ihat Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured hy this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrow•er subject to approval by Lender; provided,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manrter
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dircctly to the
insurance carrier.
All insurance policies anJ renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Ixnder. Lender shall have the right to hold the policies and renew~als thereof,
and Borrower shall promptly furnish to Lender all renewal notices anJ al{ receipts of paid premiums. ln the event of loss.
Borrower shall give prompt notice ~o the insurance carrier and t ender. Lender may make proof of loss if not made promptly
by Borrower_ .
Unless Lender and Borrower otherwise agree in writing, incurance prcxeeds shall be applied to restoration or repair of
the Property damaged, proviJed such restoration or repa~r is economically feasible and the security of this Mortgage is
not thereby impa~red. I[ such restoralion or repair is not economically fcasible or if the security of this 1Nortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. w~tfi Ihe excess, if any, paid
to Borrower. If the Ptoperty is abandoned by Borrower, or i( Borrower fails to respond to t_ender wiihin 30 da)•s from the
date notice is mailed by l.ender to Borrower that the insurance carrier otTers to settle a claim for insurance benefits, Lender
is authoriud to collect and apply the insurance proceeJs at l.ender's option eithet to restoration or repair of the Properly
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraph~ I and 2 hereof or change the amaunt of
sucfi installments. !f under patagraph I8 hereo[ the Property is acyuired hy Lender, all right, title and interest ot Borrower
in and to any insurance policies and in and to the proceeds thereof resul~ing from damage to the Propeny prior to the sale
or acquisition shall pass to Lender to the extent of the sums ~ecured by this Mortgage immediately prior to such sale or
acquisition.
6. Presen~alion aod ~taintenance ot Propert~; t.cueholds; Condominiums; Planned Unit De~•elopments. Borrow•er
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 leasehold. If this Mortgage is or~ a unit in a
condominium or a planned unit ekvelopment, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, Ihe by-laws and regulations of the
condominium or planned unit development, and constituent Jocume~tc. If a conJominium or planned ~init de~~elopment
nder ~s executed by Borrower and recorded together w•ith thi~ Mortgage. ~he covenants and agreement~ of such rider
shall be incorporated into and shall amend and supplement the co~~enant~ and agreements of this Mortgage as i( the rider
were a part hereof.
7. Protection of Ltnder's Securify. If Borrow•er fails to perform the covenants anJ agreemenls contained in this
Mortgage, or if any action or proceeding is commenced wh~ch ma~erially atiects I.ender's interest in the Pmpert~~.
including, but not limited to, eminent domain, insolvency, code enforrement, or arrangements or proceedings invol~•ing a
bankrupt or decedent, then l.ender at I.ender's option, upon notice ~o Borrower, ma~~ make such appearance~, disburse such
sums and take such action as is necessazy to protect Lender's interest, including, but not limited to, disbursement of
reawnable at~orney's fces and en~ry upon the Proper~y to makc repairs. If Lendcr required mortgage insurance as a
condition of makmg the loan secureJ b?~ this Mortgage. Born.aer shall pay the premiums requireJ to maintain such
insurance in eRect until such time as the reyuirement for such insurance ~erminates in accordance with Borrower s and
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