HomeMy WebLinkAbout0227Ucv~FOx~~ CovFr..aNrs. Borrower and l.enJcr ruvenan~ anJ :,gree a~ follows:
1. Payment of P~Inclpal and Interest. BorroNer shall promp~ly pay v-hcn duc the principal of and intcrest ~~n the
indebted~ess evidenced by the Note, prepayment and tate charges as pravided in the Note, and the principal of and interes~
on any Future Advances secured by thic Mortgage.
2. ~ads for Taxes ,~d Insuraace. Subject to applicable law or to a written waiver by I.ender, Borrower •shall pay
to Lender on the day monlhly installments of principal and interest ure payable under Ihe Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-tw~clfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Pmperty, if an~•, plus one-twelfth of yearly premium instaUments for hazard insurance,
plus one-twelfth of yearly premium installments for mort¢aYe insurancc. if anv, all ac rcasonablv estimated initiall~~ and from
ume to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
"Il~e Funds shall t~e held in an institutiun the deposits or accaunts of which are insured or guaranteed by a Federal or
state agency (i~cluding Lender if Lender is such an i~stitution). t.ender shall apply the Funds to pay said taxes, atsessments,
insurance premiums and ground rents. Lender ma~~ not cha~ge for ~o holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and billc, unless Lender pa~~s Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at ~he time of execution of this
Mortgage that interest on the Funds shalt be paid to Borrower; anJ unless such agreement is made or applicable law
requires sucti interest to be paid. Lender shall not be required to pa}• Borrower any interest or earnings on the funds. I.ender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpcue for which eaeh debit to the Funds was made. The Funds are pleclged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by I.ender, together w•i!h the future monthly installments of Funds pa}~able prior to
the due dates of taxes, assessments, insurance premiums and ground rents, s:~all exceed ~he amount reyuired to pay said taxes,
assesstnen~c, insurance premiums and ground rents as they fall du~, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of thc Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as 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 eequesting payment therrn[.
Upon payment in fulf of all sums secured by this Mprtgage, I.endcr shall promptly refund to Borrower any Funds
held by Lsnder. If under paragraph 18 hereof the Properl} is sold or the Property is otherwisc acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by I_cnder, any Funds held by
Lender st the time of application as a credit against the sums secured by this Mortgage.
3. A~ICM~Op OI P~OftD15. Unless applicable law• provides otherwise, all payments received by Lender under the
Note and paragraphs I and 2 hereof shall be applied b}• Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to i~terest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arges; Lk~. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents if any, in the manner
pmvided under paragraph 2 hereof o:, if not paid in such manner, by Borrower making payment, when due, directly to the
payce thereof. ~Borrower shall promptly fnrnish to Lender al{_notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipls evidencing such payments_
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to l.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal praceedings which operate to prevent the enforcement of the I~en or forfeiture of the Property or any part thereof.
S. Huard lnsunnce. Borrower shail keep the improvements now cxisting or hereafter erected on the Property insured
against loss by fire, hazards included within the term "ettended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may reyuirc; provideJ, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pa}• the sums secured by this Mortgage.
"Ihe 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 in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to ihe
insurance catrier.
All insurance policies and renewals thereof shall be in form acceptable to LenJer and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
and Borrower-shall promptly furnish to Lender all renewal notices and all receipts of paid premiumc. ln the event of loss,
Borrower shall give prompt notice to the in~urance carrier ~nd Lender. Lender ma}• make pnxif of loss if n~t maJe prompUy
by Bortower.
Unless Lender and Borrower othervvise agree in w-eiing, insurance proceeds shall be applied to restoration or repair o~
the Property damaged, provided such restoration or repair is economically feasible and the securit~~ of this Mortgage is
not thereby impaired. I[ such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shal! be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or i( Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, l.ender
is authorized to collect and apply the insurance proceeds at LenJei's option either to restoration or repair of the Property
or ta thc sums scc;::cd by this Aiortgage.
Unless Lender and Borrower otherwise agrce 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 1 and 2 hereof or change the amount oi
such installments. If under paragraph I S hereof the Property is acyuired by Lender, all right, title and interest of Borrower
in a~d to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to I.ender to the extent of the sums secured Ey this Mortgage immediately prior to such sale or
acquisition.
6. Presen~at~on and Maintenance of Properly; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Preperty in good repair and sHall not commit waste or permit impairment or deterioration of the Property
and shall comply with the pro~isions of any tease it this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or pla~ned unit develoament, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Morigage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part herwf.
7. Protection of Le~er's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially afiects Lender's interest in the Property,
including, but not limited to, eminent damain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, ~hen Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
reasonable attomey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condrtion of making the ioan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in efiect until such time as the requirement for such insurance terminates in accordance wiih Borrower s and
t::~;l; •J~~ ~!GE ~~~