HomeMy WebLinkAbout1793UtvtFOat-t CovFH~HTS. Borrower and l.cnder covenant anJ a~~ee as fallows:
1. P~ymeat of Principd aod loterest. Borr~~wer shall promp~ly pay w•hen due the principal ot and iotcrest on the
indebtedneu evidcnceJ by Ihc Note. prepayment and latc chargcs ac praviJed in the Note, and thc principal ot aod. intercst
on a~y Futurc Advancec secured by this Mortgage.
2. Fepds to~ Tua and lnsun~ace. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to [.enck~ on ~hc day monthly inslallmenls of principal and interes~ are payable undcr the Note, until the Note is paid in tull,
a sum (hercin "Fuads") equal to one-twelfth ot thc yearly laxes and asussments which may attain priarity over lhis
Mortgage. and ground rents o~ the Property, if any, plus one-twel(th of yearly premium installments for hazard insurance.
plus one-tweltth o[ yearly prr~nium installments tor mohgage insurancc, it any, all as reasonably estima~ed initially and trom
time to time by l.endcr o~ thc basis o( assessments and hills and reasonable estimates Iheteof.
The Funds shall be held in an~ins~itution the deposits or accounts a( which arc insured or guaranteed by a Federal or
state agency (including Lender i( Lende~ is such an institutio~). 1_ender shall apply the Funds to pay said taxes, asussments.
insurance premiums a~d ground rents. 1_ender may not charge for so holding anJ applying the Funds, analyzing said account,
or veritying and compiling said assessments and bills, unless t_ender pays Borrowe~ inter~~st 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 Ihat interest on the Funds shall be paid to Borrawer, and unless such ag~eemenl is made or applicable law
requircs such interest to be paid, Lender shall nat he required to pay Borrower any interest or earnings on the Funds. l.ender
shall give to Borrower, without charge, an annual aca~unling of Ihe Funds showing credits and debits to the Funds and the
purpose (or which each debit to the Funds was made. The Funds are pledged as additional security for the sums secureci
by this Mortgage.
lf the amount of the Funds held by Lender, tagether wilh the future monthly installments of FunJs payable prior to
the due dates of taxes, assessments, insurance premiums and graund rents, shall exceed the amount required to pay said taxes.
assessments, insurance premiums and ground rents ac they fall due, such exceu shall be, at Borrower's option, ei~her
promptly repaid Io Borrower or crcdi~ed to Borrower on monthly installments af Funds. lf the amount o[ the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as ~hey fall due,
Borrower shall pay to l.ender any amount necessary to make up the deficiency within 30 days from the date natice is mailed
by Lender to Borrower requesting payment ~hereof.
Upon payment in full of all sums secured by ~his Mortgage, l.endcr shall promptly refund to Borrower any Funds
held by Lender. If uoder paragraph 18 hereof the Property is sold or thc Property is otherwiu acquired by I_ende~, I_ender
shall apply. no later than immediat~ly prior to the sale of the Property or i~s acquisition hy l.ender, any Funds held by
Lender at the time of applicatio~ as a credit against ~he sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by I.ender: under the
Note and paragraphs 1 and 2 hereof shall be applied by I.enJer first in payment of amounts payable to LenJer by Borrower
under paragraph 2 hereof, then to interest payable on the Nutc, thcn to the principal of the Note, and then to interest and
princiQal on any Future Advances.
4. Char~es; Lkas. Barrower shall pay all ta~cs, acu:ssmcnts and othcr charges. 6nes anJ impositions at~ributahle to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paymcnt, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower chall promptly fumish ta l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien whic~i has priority over Ihis Mortgage; provided; that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment ot the obligation secured by
such lien in a manner acceptable to Lender, or shall in goai faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enturcement o! the lien or tor[eiture o[ the Property or any part thercof.
S. Hszard Insurance. Borrower shall keep the improvements novv existing or here,~fter erected on thc Property insured
against loss by fire, hazards included within the term "exte~deJ coverage", and sach other hazards as 1_ender may require
and in such amounts and for such periods as Lender may reyuire; provideJ, that LenJer shall not require that the amount of
such coverage exceed that amount of coverage required to pay ~he sums secured by this Mortgage.
"Il~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
that such approval shall not be unreasonablx withheld. qll premiums on insurance policies shalf 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 the
insurance carrier.
All in~urance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptabte to Lender. Lender shall ha~e the right to hold the policies and renewals there.>f.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and LenJer. I_endcr may make prcx~f of loss if not made promptly
by Borrower.
Ualess Lender and Borrower otherwise agree in w~riting, insurance proceeJs shall be applied ta restoration or repair of
the Property damageJ, provided such restoration or repair is economically teasible and {he security of this Mortgage is
not thereby ii»paired. If such restoration or repair is not economically (easible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be appiied to the sums secored by this Mortgage. with the excess, if any, paid
to Borrower. If .the Property is abandoned by Borrower, or it Borrower (ails to respond to [_ender within 30 days from the
date notice is mailed by Lender to Borrower that ~he insurance carrier ofiers to settle a claim for insurance benefits, Lender
i~ authorized to colleet and apply the insurance proceeds at 1_enJer's option either to restoration or repair of ihe Propetty
or tp the sums secured by this Mortgage. -
Unless Lender and Botrower otherwise agree in writing, any such appliration of proceeds to principai shall not extend
or poslpone the duc date of the monlhly installments referred t~~ in paragraphs 1 anJ 2 hercof or change the amount of
such installments_ if under paragraph 18 hereof the Property is acyuired by Ixnder, all right, title and interest of Borrower
in and to any insurance policia and in and to the proceeds ~hereot resulting from damage to the Property prior to the sale
or acyuisition shall Pa~s to.Lepder to the extent ot the sums secured by ~hii Mortgage immediately ptior to such sak or
acquisition.
6. Preservalion and Maialenance of Property; i.easeholds; Condominiums; Planned Unit Developments. Borrou•er
shall keep the Property in good repair and shall not commit waste or permit impairment or deteriotation of the Property
and shall comply with the provisions of any lease if th~s Mortgage ~i on a leaschol~. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obliga~ions under ~he declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent Jocuments. If a conJominium or planncd unit development
rider is executed by Borrower and recorded together w~ith thic Mortgage, the covenanls and agreemems of such riJer
shall be incorporated into and shall amend and supplcment the co~•enants and agrcements of ~his Mortgage as if the rider
were a part hereof.
7. Profection of Leader's Securify, lf Borrower failc to perform the covenan-s anJ agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially afiects I.enJer's interest in the Property.
including, but not limited to, eminent domain, insolvency, cc~de enforrement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at i.ender's option, upon notice to Borrower, may~ make such appearances, disburse such
sums and take such action as is necessary to protect 1_ender's interest. ~ncluJing, but not limrted to, disbursement of
reasonable at~omey's fces and en~ry upon ~he Proper~y to make rcpairc. I( Lender reqaired mortgage insurance as a
condition of making the loan secured b}• this Mongage, Borroacr shall pay the prcmiums required to maintain such
insurance in effect until such time as the requirement for such , insurance terminates in accordanee with Borrower s and
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~~~r348 PacE~.792
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