HomeMy WebLinkAbout2930UytFORa~ CoveN~rns. Bo~rower and Leader covenant and agree u[ol{ows:
1. hymeat ot lrincipl ae~ latenst. Borrow~er shall p~omptlY paY wheo due the principal of and interest oo the
indebtedneu evidenced by the No~e. prepsyment and late charges u provided in the Nwe, and the principal ot and interest
on iny Futuro Advsnces xcured by this Mortaaae.
2. Fa~ds tor Tuss asi lawrs~ce. Subject to applicabk law w to a wntte~ warver by Lende~. Borrower shall pay
to I.ender on the day monthly irtstallments o( principal and interest are payabk under the Note. until the Note is paid in (ull.
a sum (herein "Funds") equal to one-twelith of the yea~ly taXes and assessme~ts which may attain pnority over this
Morigage, and ground rents on the Property, if any, plus one-tweltth ot yculy prcmium inuallmenu for hazard insurance.
plus one-twelhh of yearly premium installments [or mortgage insurance, it any. all u reuonabiy estimated initiallY and trom
time to time by Lender on the basis of assasmenti and bills and rcasonabk atimates thereot.
'Rie Funds shall be held in an institutiun the deposits or accounts of which are insured or guarantood by a Federal or
state agtncy (including Lender if Lender is such an institution). l.ender shall apply the Funds to pay said taxa, assessments.
insuranc~ prcmiums and ground rcnts. Lender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments ar~d bills. unless Leader pa)s Borrower intetest o~ the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agrce in writina at the time o[ e~ecwion of this
Mongage that interest on the Fu~ds shall be paid to Borrower, and unless such agreement is madt or applicabk law
requires sui:h interest to be paid, Lender shall not be rcquired to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting ot the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds w•u madc. The Funds are pledged u additional xcurity for the sums secured
by this Mortgage. '
If tht amount of the Funds held by Lender, together with the future monthly installments o[ Funds payabk prior to
the due datts of taxes, assessments, insurance prc~r~iums and ground rents, shall excted the amouat rtyuired to pay said taxa.
assessments, insurance premiums a~d ground rents as they fall due. such ex~ess shall be, at Borrower's option, either
promptly repaid tu Borrower or credited to Borrower on monthly ~nstallments of Funds. lt the amount of the Funds
held by Lendcr shall not be sutfisient to pay tues, assessments, i~surance prem~ums and ground rents u they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thercof.
Upon paymtnt in full of all sums secured by this Mortgage_ 1_ender shall prompdy retund to Bnrrov-er any Funds
held by LtnJer. If under paragraph 18 hercof the Property ic sold or ~he Propert~• ~s othenvisc acqwrcd by l_tnder, I.eniier
shall apply. no later than immediately prior to the sale ot ~he Propeny or iis acquis~Uon by Lendtr, any Funds held by
Lender at the time of application as a credit aga~nst the sumc secured b~• th~s ~tortgage_
3. Applicalion of Paymeats. Unless applicable law pro~ides othervaise. all payments received by l.ender unJer the
Note and paragraphc 1 ~nd 2 hereof shall be applied by I.ender 6nt m payment of amounts payabk to I_ender by Borrower
under paragraph 2 hercot, then to interest payable on thc No~e. then ~o the principal o( the hote, and ~hen to interest and
pii~l~i~Y~ un eny FuiuiC A~i~~icrs.
4. C6arges; Lie~. BorroMer shall pay ali tares, atsessmrnts and othcr charges. fineti and imposit~ans attributable to
the Property which may attain a priority over ~bis lllortgage. and leasehald payments or ground rcnts, if any, in the manaer
provided under paragraph 2 hercof or, if not paid in such manner. by Borrovvcr making payment. when due, diroctly to the
payte thereo(_ Borrower shall promptly furnish to LenJer all nouces ot amounts due under this paragraph, and in the event
Borrower shall make payment direcU~•, Borrower shatl prompU~• fumish to Lender receipts evidencmg such payments.
Borrower shall promptly Jischarge any lien whicli has prionty o~er this Mortgage: provided, that Borrower shall not be
required to dixharge any such lien so long as Borrower shall agree in Mriting to the payment of the obligation securcd by
such lien in a manner accep~able to Lender, or shall in good [aith contett such lien by, or defend enforcement of such lien in,
legal proceed~ngc w•hich operate to prevent the enforcement ot ~he hen or torfuwre of the Property or any part thereo[.
S. Huud Ira~nace. Borrower shall kcep the improvements now e~isting or hereafter erected on the Property insured
against loss by fire, hazazds included w~ithm ~he term "e~tended coverage", and such otlxr hazards as Lendtr may rcquire
and in such amounts and !or such periods as Lender may require; provideJ, that LenJer shall not rcquire th~t the amount of
such coverage exceed that amoUnt of co~~erage required to pa~• the sum~ securcd by th~s Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrov--er subject to approval by Lender, provided,
that such approval shall not be unreasonably w~ithheld. All premiumc on insurance pc-licies shall be paid in the manner
provided under paragraph 2 hereof or, ,f rat paid in such manner, b~~ Borrower mak~ng payment, when due, d~rcctly to the
insurance carrier.
All insurance policies and renewals thereot shall be in form acceptebie to LenJer and shafl ~nclude a~tandard mortgage
clause m favor of and in form acceptable to Lender. Lender ~hall ha~e the right ~o hold the policies and renewals thereof.
and Borrower shall promptly turnish to Lender all renev-al radces and all receip~s of paid prcmiums. In the e~-ent of loss.
Borrower ihall g~~•e prompt notice to ~he insurance carner and Len~kr. LenJer ma} make proof of ioss if not made promptly
by Borrower_ -
Unless Lender and Borrower othen.~se agree in writ~ng, imurance prcxeeds shall be applied to restorat'an or repair o(
the Property damaged, prov~ded such restorat~on or repair is ~conomicaily~ feasible and the security of this Mortgage is
not thereby impa~red. If such restoration or repair ~s not econom~cally (easible or ~t the ucurit~• of this Mortgage would
be impaired.~ the insurance proceeds shall bt applied to the sums xcured b~• this Mortgage. ~~~th the excess, if any, Qaid
to Borrower. If the Propertp is abandoned hy Borrower, or it Borrrnver fails to respond to Lender vrithin 30 dayz from ihe
da~e notice is mailed by Lender to Borrower that the inwrance carrier ofiers to xule a claim for insurance benefits, I~nder
is asth~rized to eollect and agpiy the insurance pr~»~±s at LP~e~'s ^r s^R s~c.~! •~ rrctnr~ti~-~ n~ ~~~s nf !he PfOQtr1Y
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agrce in writing. any such appii~ation of prc~ceeds to pnncipal shall not extend
or poslpone the due date of the monthly installments referrcd ~a in paragraphs I and 2 hereof or change the amount o(
such installments. It under paragraph 18 heroof the Property is acquired by l.ende~, all right. titk and interest of Borrow~r
in and to any insurance policies and in and to the procceds thereof resul~ing trom damage to ihe Property ptior to the sak
or acquisition shall pass to Lender to the eatent of the sums secured by this 11lortgage ~mmediately prior to such sak or
acquisition.
6. Presenatjoa aod l~taiotenance of P~o~ert~~; Ltase6dds; Condomiaiums; Planaed U~it Derebpmcwts. Borrower
shall keep the Property in good repair and shall not commit wute or permit impairment or deterioration of the Property
and shall comply with the provisions of any kase it th~s Mortgage ~s on a leaxhold. If this Mortgage is on a~:nit in a
condominium or a planned unit development, Borrower shall petto:m all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned un~t development, ~ne by-laws and rcgulations o[ the
condominium or planxd unit development, and constituent Jocuments. It a condominium or planned unit development
rider is executed by Borrower and recorded together w~th th~s Mortgage, the covenants and agreements ot such nder
shall be incorporated into and shall amend and supplemtnt the co~~enants and agreements of th~s Mortgage as if the rider
were a part hercof.
~. Pra«~ios of Leoder's Secnritr. If Borrow•er fa~ls to perform the covenants and agreements contained in this
Mortgage, or if any aciion or proceeding ~s commenced w•hich materiaiiy aBects LenJer's interest in the Property.
including, but not limited to, eminent domain, insolvency, code enforcement, or arnngements or proceodings involvina a
bankrupt or decedent, then Lender at Leoder's option, upon naice to Borrower, ma~• make such appearanca, d~sburse such
sums and talce such xtion as is necessuy to protect Lender s inte~est, including. but oot limited to, disbursement of
reuonable attorney's tees and entry upon the Propeny to make repairs. If Lender requircd mortgage insurance u a
condition of malcing the ban secured by ~his Mortgage, Borrower shall pay the premiums rcquircd to maintain wch
insurance in effect until such time u the rcquirement for wch inwrance terminatcs in xcordance with Borrowers and
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