HomeMy WebLinkAbout1137U:vit'oR~~ COYkN\NTS. BOffON'l'f :~nJ l.cn.lrr cuvcnant anJ :~K~~r a~ foU~,N~:
1. Payment of Prioclpd aud Inte~est. B~~rr~~HCr shall pmmrtl~ pa~• uhcn duc thc principa! af and intcrest on thc
indebtedness evidenc~d by the Notc, prepa~~ment and la~c chargr. a. pruvided ~n thr Note, dnd the principal of and ~ntercst
on any Future Advances secured b~• thic Mortgage.
2. Funds tor Ta:a and lasurance. Subjecl to applicable lav-~ or to a writtcn waiver by l.ender, HorroN•er chall pay
to l~nder on the day monthly installmentc af principal anJ ~nlere~[ are pa~~a:~le undcr the Note, until the Nate is paid in lull,
a sum (herein "Funds") equal ta onc-twelfth af thc }•carly ~a~e~ an.i ascessmcnts which map attain priorily aver this
Mortgage, and ground rents on the Pn~perty, if any, pluc une-twclith of yrarly prcmium installments [or hazard insurar-ce,
plus one-twelfth of Vearly prcmium inslallmenls for mortgage insurancc, if any, all as reasonably e~timateJ initially anJ (rom
time to time by Lender o~ the basis p( 3~SCSSO1CIlts and hillc anJ rea~nnahlr xt:m~~wc ~lu.....i
i he Funds shall be held in an institution the deposits or accounts c~F which are insured or guaraoteeJ by a Federal or
state agency (including Lender if Lender is such an institution). I.ender ~hall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. 1_ender may not charge Ior ~o holding and ~pplying ~he FunJs, anal~~zing said account,
or verifying and compiling said assessmen~s and bills, unless Lcnder p:-~s Barrc~wer interest on the Funds and applirabk law
permits Lender to make such 3 charge. Borruwer and Lender m•ry agree in writing at ~he time of execution o( this
Mortgage that interest on the Funds shall be paid to Borrower. ~nd unless such agreement is maJe or applicable law•
requires such interest to be paid, 1_ender shali not he reyuired t~~ pa~~ Borrower an~~ intrrest or earnings on the Funds. t_ender
shall give to Borrower, without charge. ~n annual accuunting of thr FunJs showing credits and debits to the Funds and the
purpose for which each debit to the Funds was maJe. The f=und~ are pledged as addidunal security for the sums secured
by this Mortgage.
lf the amount of the Funds held by l.ender, together with the future momhly~ inctallments of Funds pa~~able prior to
the due Jates of taxes, auessments, insurance premiums and ground rents, shall exceed the smount required to pay said taxes,
assessments, insurance premiums and ground rents as the}• fa~l due, such exress shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sutTicient to pay taaces, assessments, in~urance premiums and ground rents as they [all due,
Borrower shall pay to Lender any amount necessary to make up the deficienc~• within 30 days from the datc notice is mailed
by Lencler :o ~r:~~°er r~~uestin8 Papment tl~ereof.
Upon payment in ful) of all sums secured b~~ this Mortg~ge, I.endcr shall promptly refund to Borrawer any Funcls
held by Lender. If under paragraph 18 hereof the Property is sold or thc Propert~ is otherv-~isc acyuired by Lender. Lender
shall apply, no larer than immediately prior ~a the sale of the Property or its acquisition hy Lender, any Funds held by
Lender at the time of application as a credit aga~nst the sums secured b}• this Mortgage.
3. ApplicMian of Payments. Unless applicable law• provides ntherwise, all payments received by 1_ender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lendcr first in payment of amounts payable to l.ender by Borrow•er
under paragraph 2 hereof, then to interest payabic on thc Note. then to the principal of the Note, and thcn to interest and
principal on any Future Advances. :
4. C6arges; Lkos. Borrower shall pay all ta.res, a~sescments and othcr chargcs, fines and imFwsitions aur~butable to
the Property which may attain a priority over this Aiortgage, and leasehold payments or ground rents, if an}~, i~ the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whcn due, directly to the
payce thereof. Borrower shall promptly furnish to LenJer all notices of amounts ciue under this paragraph, and in the event
Barrower shafl make payment directl~•, Borrow•er shall promptly furnish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien K~hich has prinriry over this Mortgage; provided, that Borrower shall not be
required to discharge a~y 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 Lender, or shall iu goocl faith conte~t such lien by, or defend enfercement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or furfeiture of the Propen~ or an}• part thereof.
S. Huard Insurance. Borrower shall keep the impru~•ement~ no~ existing c,r hereafter erccted on the Property insured
against loss by fire, hazards inctuded within tne term "e~tended coverage", and such other hazards as !_ender may reyuire
and in such amounts and for such periods as Lender may reyuirr, prrn•ided, that Lender shall not require that the amoont of
such roverage exceed that amount of coverage required to pa~• the cums secured~by this l~tortgage.
The insurance rarrier providing the.insurance shall be rhosen b}~ Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonab!}• withheld. Ali premiumt un insi:rance policies chall be paid ~n the manner
provided under paragraph 2 hereof or, if not paid in such manne:, b}• Bc~l:ouer makmg payment, when due, dircctly to the
insurance carrie; . '
All insurance policies and renewals thereof shalt be in form accepiabie to 1_en~ier an~' shall indude a~tanJard mortgage
clause in favor of and in form acceptable to Lender. Lender .hall h~~e the right to hold the poli:ies and reneHals thereof.
and Borrower shail pr~mpUy furnish to Lender all renewal notices and all ieceipts of paid prerr~ium~. !n the e~•ent of loss.
Borrower shall give prompt notice to the insurance carrier and l.znder. Lender ma~ make prcx~f of loss if not made promptl}'
by Borrower.
Unless Lender and Borrower other~iw: agree in Hriti~g, insurance pnxceds shall bc applied to restoracion or repair of
the Property damaged, provideJ such re~toration or repa~r is eco: umi~alh~ feasible a~d the security of this Mortgage ic
not ~hereby impaired. Ii such restoraUon or repair is not rconomiralh~ feasible or ~f the securi.}• of this tilortgage woold
be impaired, the insurance pra-eeds shall be :~pplied to the sums secured by this Mortgage, with the excess, if an}~, paid
to Borrower. If the Propert~• is abandoned h~ Sorrower. or il Borrower fails to respond to l.ender within 30 da~•s from the
date notice is mailed by Lender to Borrower that the insurance carner otfers to settle a claim for ~niurance benefits, I~nder
is authoriud to collect and appi)' the insurance proceeds ~t Lender'1 ~ptiun either to re.sroration or repair of the Property
or to the sums secured by this Morigage.
Unless Lender and Borrow~er otherKise agree in wnting. anv such application c.f pr~xeeds to pnncipal shall not extend
or postpone the due date of the monthlv installments referred t~, in paragraph~ 1 anJ 2 hereof or change the amount oI
such installments. If under paragraph 18 hereof the Propeny i~ acyuired b~• Lender, 311 nght, tide and interest of Borrower
in and to am insurance policies and in and to the pr~eeds thereof resulting from damage to the Propert~~ prior to the sale
or acyuisition shall pass to Lender to the ertent of the sums secureci by this :lfortgage immediately ~rior to such sale or
acquisition.
6. Presena~ioo and 1laintenance of Propert}; [.eueholds; ('ondominiums: PlEnned Unit De~~elopments. Borrow~er
shall keep the Property in good repair and shall not commit Haste or permit impairment or deierioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
cor.dominium or a planned unrt Jevelopment. Borro~:~er shall per(.~rm all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or pianned unit development, the by-laws and regulations of the
condominium or planned unit development. ~nd constituert dacuments. If a condominium or planned unit development
riJer is executed by Sorrower and recorded tugether w~th this Mortgage, the covenants and agreements af such nder
shall be incorporated into and shall amend and supplcment the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of i,ender's Security. If Borrower fails to perform the c~venants and agreements contained in this
Mortgage, or if any action or proceedmg is commenced which materially afiects l.ender's interest in the Propen}'.
including.'6ut not lim~ted to. eminent domain, insolvenc}~, code enf~rcemenl, or arraogements or proceedings involving a
bankrupt or decedent, then Lender at Leader's option, upon notice to Borrower, ma~• make such :.ppearances, disburse such
sums and take such action as is necessary to protect (.ender's mterest, including. but not limited to, disbursement of
reasonable attorney's fees and entry upon the Propert}~ to make repairs. I( I.ender required mortgage insurance as a
condition of making ihe Icar sccured by this Mortgage. Borrower shall pay the premiums requ~red to mainta~n such
insurance in eftect until such time as the reyuirement for wch insurance termina.es in accordance with Borrower's and
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