HomeMy WebLinkAbout0684UHitoRM CovFN.~~TS. Borrower anJ l.cndcr ravcnai~t and ugree as tollows:
1. P~ymeat of Principd and lnteresl. Hor~ow~r shall pr~~mplly pay whcn due the principal of and i~tcrest on thc
indcbtedness evidcnced by the Note, prcpaymcnt and tate chargc~ a+ proviJed in the Nolc, And thc principal of and i~tercst
on any Futuro Advanccc sccured by thic Mor~gage.
2. Rnads tar Tues and Irours~ce. Subjcct to appl~cable law or to a writtcn waivcr by I.ender, Iiorrawcr shall pay
to I.cnckr on ~he day monthly ins~allmcros ot p~incipal anJ mtcrest arc payable undcr the Note, until the Note is paid in (ull,
a sum (herein "Fu~ds") equal to onc-twelfth of the ycarly taxe~ and asussmentc which may attain priority aver this
Mortgagc, a~d ground rcnts on the Pmpeny, if any, plux onc-twcl(th of ycarly prcmium inslallmenls for hazard insurance,
plus one-twelfth of ycarly premium inslallmcnts tor marlgage insurancc, if any, all as reasonably cstima~ed inilially and trom
time ta time by I.ender on the basis a( assessmenls •rnd bills and reasanablc atimates thcreof.
'il~e Funds shall he held in an institwion the deposits or acraunts of which a~e insured ar guara~teeJ by a Federal or
state agency (including Lender if I.ender is such an institu;i~n1. I.ender shall apply the Funds to pay said Iaxes, auessments,
insura~ce premiums and ground rents. I.ender may not charge lor ~o holding and applying the FunJs, analyzing said account.
or veritying and compiling said assessments and bills, unless I.ender pap~ Borrower interest on the Funds and applicable !aw
permits Lende~ to make such a charge. Borrower and l.e~der may agree in writi~g at the time of execution of this
Mortgage that interest on the FunJs shall he paid 1a Barrower, arxl unless such agreement is made or applicable law
requires such intereit to be paid, Lender shall not be reyuired to pay Rc~rrower any inte~est or earninFts on the Funds. I.ender
shall give to Barrower, without charge, :+n annual accounting of the f~unds showing credits and debits ta the Funds and the
purpose for which each debit ta the Funds was made. The 1=unds are pleciged as additional security for the sums secured
by this Mort~age.
If the amount of the Fu~ds hetd by I.enJe~, togc~her wilh ~he (uture monthiy installments of Funds payablc prior to
the due dates of taxes. assessmen~s, insurance pmmiums and ground rents, shall exceed the amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents ac they (all due, such exce+~t shall be, at l3orrower s option, either
promptly repaid to Borrower or crodited to Borrower on monthly installmcnts of Funds. If Ihe amuunt o( the Hunds
held by Lender shall not be suflicient to pay taxes, assessmcnts, insurancc premiumc anJ ground rents as thcy fall due.
Borrower shall pay to Lender any amount necessary to make up ~he Jeficicncy within 30 days fram the date notice is maileci
by Leuder to Borrower requesting payment ~hereot.
Upoti payment in full of all aums secured by this Mortgagc, I.cndcr shall promptly retund to Borrower any Funds
held by Lender. If under paragraph 18 hercof the Propcrty ~s wld or the Propcrl~• is otherwise acqwrcd by Lendcr, Lender
shall apply, no later than immediately prior to the xale of thc Property ar i~s acyuisition by I.cnder, any Funds hetd by
Le~der at the time of application as a credit against ~he sums secureci by this Mongage.
3. Applkalbn of Paymeats. Unless applicahle law proviJcs othcrwise, all paymenls reccived by 1_cnder under the
Note and paragraphs 1 and 2 hercof shall bc applied b~~ LenJcr fint i~ pa~~ment o( amounts payablc to Lender by Borrower
under paragraph 2 hereof. then to inlerest payable on the Noic, thcn to thc principal of the Note, and then to intcrest and
principal on any Futurc Advances.
4. C6arges; Lkas. Borrower shall pay all taxcc, a~u;scments and Mhcr chargcs. fines anJ impositions att~ibutable to
the Propeny which may attain a priority over this Mortgagc, and leaschold payments or ground rents, if any, in the manoer
provided under paragraph 2 hereof or, if oot paid in such manner, b~• Borrawer making payment, when due, directly to the
payce thereof. Borrowcr shall promptly turnish to LenJer all.notices of amounts duc ~mder this paragraph, and in the event
Boirower shall make payment directly, Borrower shall promplly furnish to l~nder receipls evidencing such payments_
Borrower shall promptly discharge any lien which has prinrity ovcr this Mortgagc: provided, that Borrower shall not be
required to discharge any such lien so long as Borrowcr shail agrec in writing to the payment o( the obligation secured by
such lien in a manner acceptable to Lender, or shall in gocxi faith contest such lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the lien or torfeiture of ihe Property or any part thereof.
S. Huud I~urance. Borrower shall keep the imprc~vemeots now• existing or hereaftcr erected on the Properry insured
against loss by fire, hazards included wi~hin the term "extendeJ coverage", and such other hazards ac I_ender may reyoire
and in such amounts and for such periods as Lender may reyuire; pmvideJ, that LenJer shall not reyuire that the amount of
such coverage exceed that amount af coverage reyuired ~o pay the sums secured by this Mor~gage.
7t~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Len~er; provided,
that such approval shall not be unreasonably withheld. All premiumt on insurance policies shall be Qaid in the. manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insuranee policies anJ renewals thereof shall be in form acceptable to Lender anJ shall include a standard mortgage
clause in favor of and in form acceptable to l.ender. Lender shall have the right t~~ hold the policies and renewals thereof.
and Borrower shall promptly furnish to Lender all ren~wal notices and all receipts of paid premiumc. In the event of loss,
Borrower shall give prompt notice to the insurau~e carrier rnd Ixnder. I.enJer may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwisc agree in writing, insurance praceeds shall be applied to restoration or repair of
the Property Jamaged, provided sucA restoration or repair is economically teasible and the security of this M~rtgage is
not thereby impaired. ff such restoration or repair is ne.t economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applieJ to the sums secured by this Mortgage. with the excess, if any, paid
to Borrower. U the Properly is ahandoned by Borrower, or it Borrowcr fails to respond to Lender within 30 days from the
date notice is mailed by l.ender 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 a[ Lender's option either to restura~ion or repair of lhe Property
ur to the sums secured by this Mortgage.
Unless Lender and Borrower otherw•ise agree in writing. any such application of proceeds to principal shall not extend
or pcntpone the due date of the monthly installmcnts referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereo[ the Propeny is acyuired by Lender, all right, title anci interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from ciamage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sak or
acquisition.
6. Preaervation and Maintenance of Property; I.taseholds; ('ondominiums; Planned Unit Devebpments. Borrower
shall keep thc Property in good repair and stiall not commi~ waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease i( 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 bylaws and rcgulations o[ the
conJominium or planned unit development, and constituent Jocuments. I( a condominium or planned unit clevelopment
rider is eaecuted by Borrower and recorded ~ogether w~Ih ~his Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplLment Ihe covenants and agreements of this Mortgage as if the rider
were a part hereof- '
7. Protection of Lende~s Security. If Borrower fail~ to pertorm the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commcnced w•hich materially aQects l.ender's interest in the Propeny,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements c~r proceedings involving a
bankrupt or decedent, then Ixnder at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protecl Lender's mlerest, including, but not limited to, disbursement of
reasonable attomey's (ees and emry upon thc Property to makc rcpeirs. If Lcnder required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums requircd to maintain such
insurance in effect until such time as the reyuirement for such insurance ~erminates in accordanee with Borrower s and
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