HomeMy WebLinkAbout2937UN~FOR~t Cov~N~NTS. Borcower and Le~de~ covenant and agree as tollows:
1. Paymcat ot Princlpal aod latenst. 8orrower shall prompUy pay when due thc principal of and interest on the
indebtedneu evidenced by the Note. prepayment and late charges as provided in the Note, and 1he principal of and intercst
on any Future Advances secured by ~his Mortgage.
2. F'uads tor Tues and Iasunnce. Subject to applicable law or to a written waiver by I.ender. Borrow~e~ shall pay
to l.endc~ oA the day mo~thly installments of priocipal and ioterest are payable under the Note, until the Note is paid in full,
a sum (hercin "Funds") equal to o~e-twelfth of ~he yearly ~axes and assessments which may attain priority over this
Mortgage. and ground rcnta on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installme~ts (or mortgage insurance, if any. all as reswnably estimated initially and [rom
time to time by Le~der on the basis of assessments and bills and reasonable atimata the~eof.
The Funds shall be held in an mstitution the depcuits or accounts ot which are insurcd or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). l.ender shall apply the Funds to pay s~id taxa. asseuments.
insurance premiums and gtound rents. I.ender may not cha~ge (or so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on Ihe Funds and applicable law
permits Lender to make such a charge_ Borrower and Lender may agree i~ writing at the time ot execution of this
Mortgage that interest on Ihe Funds shall he paid to Borrower, and unless such agreement is made or epplicable law
requires such interest to be paid, Lender shall not be require~ to pay Borrower any interest or earnings on the Funds. I.ender
shatl give to Borrowtr, wiihout charge, an annuaf accounling of the Hunds showiog credits and debits to the Funds and !he
purpose ~ar which each debit to the Funds was made. The Funds are pledged as aJJitional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with ~he tuture monthly installments of Funds payable prior to
the due data of taxes, assessments, insurance premiums anJ ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they iall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. !f the amou~t o[ the Funds
held by Lender shall not be sufficient ta pay taxes, assessments, ~ insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary ta makc up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesling payment thereof.
Upon payment in full of all sums se~:ured by this Mortgage. I.endcr shall promp~ly refund to Borrower any Funds
held by I.ender. if under paragraph 18 hereof ~he Property is u~ld or ~hc Property ~s othervviu arquired by l.enJer, l.ender
shall apply, no later than immediatcly prior ~o the salc of the Property or its acquisition by I_ender, any Funds held by
Lender at the time of application as a credit against the sums secured by th~s Mortgage.
3. Applicalion of Paymeats. Unless applicahle lavv proviJes otherw~ise, all payments received by l.ender under the
Note and paragraphc 1 and 2 hereof shall be applied by I_ender fint in pa~menl ot amounts payable to I_ender by Borrower
under paragraph 2 hereof, then to intcrest payable on the ~lotc, thcn to thc principa! of the Note, anJ then to interest and
principal on any Future Advances.
4. Charges; Liens. Borrow•er shall pay all ta~e~, astessmcnts and othcr cha~gc~. fines and impositions attributable to
the Property which may attain a priority over ~his Mortgage, and leaseholtl payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, hy Borrowcr making payment, when due, directly to.the
payce Ihereof. Borrower shall prompUy furnish to LenJer all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall promptly (urnish to Lender receipts evidencing such paymtnts.
Borrower shall promp~ly dixharge any lien wfiich has prionty c.ver ~his Mortgage; provided, ~hat Borrower shall not be
required to discharg~ any such lien sc~ lang as Borrower shall agree in v-rit~ng to ~he payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in gootl faith conlest such lien hy, or defeoJ enforcement of such lien in.
legal prckeedingc v-~hich opera~e to prevent the cnforcement of thc I~en or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements no~ e<is~ing or hereafter erccted on the Propcrty insured
against loss by 6re, hazards included within the term "cxtended coverege", and such other hazards as Lender may reyuire
and in such amounts and for such periods ac l.ender may reyuire; provideJ, that LenJer shall not require that Ihe amount of
such coverage exceed that amcwnt of coverage required to pay the sums secured by this Morlgage.
The insurance carrier providing the insurance shall be chosen by Borrower sub~ect to approval by Lender; provided,
Ihat such approval shall not be unreawnahly withheld. All premiumc on insurance ~olicies-shall be paid in the manner
provided under paragraph 2 hereof or, ~f not paid in such manner, by Borrower makmg payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall he in form acceptable to (_ender and shall include a~tanJard mortgage
clause ~n favor of and in form acceptable to l_ender. Lender ~hall have the right to hold the policies and renewals thereof,
and Borrower shall prompU~• furnish to Lender all renewal notices anJ aU receipts of paid premium~. In the event of loss,
Borrower shall gi~•e prompt notice to ~he insurance carrier and Lender. 1_ender may make pr«-f of loss if not made promptly
by Borrower_ _
Unless Lender and Borrower othcrwisc agree in writing, in~urance pnxeeJs shall be applied to restoration or repair of
the Property damaged, prov~ded such restorat~on or repair is economicaliy feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasihle or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrowcr, or it Borrower fails to respond to 1_ender within 3~ daps from the
Jate notice is mailed by Lender to Borrower ~hat the insurance carrier oRen to settle a claim for insurance benefits, Ltnder
is authorized to collect and apply the insurance proceeels at I.ender's option either to restoration or repair of the Properly
or to the sums sccured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, an}• such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragra~+h 18 hertof the Property :s acquired b~~ Lender, al! right, sitle and interest of Barrawer
in and to any insurance policies and in and ~o the proceeds thereof resul~ing [rom damage to the Properly prior to the sale
or acquisition shall pass to L.ender to the extent of the sums secured by this Mortgage immediately prior ~o such sale or
acquisition.
6. Presen•alion aod Maioten~nce ot Propetty; Leaseholds; Condominiums; Planned Uuit Developments. Borrower
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 itax it this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit devetopmen~, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or govern~ng the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unil developmenl, and cons~ituent documents. It a condominium or planned unit devrlopment
ridtr is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the cuvenan[s and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lende~'s Security. If Borrower fa~ls ~o perform the covenants anJ agreements contained in this
Mortgage, or if any action or proceeding is commenceJ w•hich materially aliects Lender's interest in the Property,
including, but nM limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's oPtion, upon notice ~o Borrower, may make such appearances, disburse such
sums a~d take such action as is necessary to protect Lender s interest, including, but not limited to, disbursement of
reuonable attomey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secuted by this Mongage, Borrower shall pay the premiums required to maintain such
insurance in efiect until such time as the rcquirement for such insurance terminates in accordance vvith Borrower's and
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