HomeMy WebLinkAbout2416UNtFORnt CovFN~NTS. Bor~ower and I.e~Jer covcnant and agrce as fallows:
i. Paymeat ot P~inclpal ~ud lateral. Hc~~mwcr shall promptly pay when due the principal ot and interest an the
indebtedneu evidcoced by the Notc. prepaymcnt a~d late chargec ac providcd in the Nate, and Ihe principal ot and intercst
on any Futurc Advancec secured by this Mortgage.
Z. Runds Ior Tua and lasuaace. Subject to applicable law or to a writte~ waiver by t.ender. Borrower shall pay
to [.ender an ~hc day monthly iostallmcnts of principal and interesl are payable unde~ the Note, until the Note is paid in full.
a sum (herein "Funds") equal to one-twelfth oi thc yca~ly taxec and assessments which may attain prio~ity over this
Mortgage, and ground rents an the Property. if any, plus one-~welfth a[ yearly premium ins~allments for hazard insurance,
plus one-twelfth of yearly premium installments tor mangage insurance, if any, all as reasonably estimated initially and from
time to time by I.ender on the basis ot assessmen~s and hills and reasonablc estimates thereot.
'Ihe Funds shall t~e held in an institutian the deposits or accounts ot which are insurcd or gua~anteed by a Federal or
state agency lincluding Le~der if I_ender is such an institution). l.e~der shall apply the Fu~ds to pay said taxa, assessments,
insurance prcmiums a~d ground rents. I.ender may not charge for so holding and applying the Punds, analyzing said account,
or verifying and compiling said assessments and bills, unless t.e~der pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and I.ender may rgree in writing at the time of execution o! this
Martgage thal interat on the Funds shall he paid to Borrower, and unless such agreemem is made or applicable law
requira such interest to be paid. Lender shall not he required to pay Borrower any interest or earnings on the Funds. l.ender
shall give to Borrower, without charge, an annual accou~ting of the Funds showi~g credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security tor the sums secured
by this Mortgage. '
If the amount of the Funds held by Lencier, tagether w~ith ~he future monthly installments of Funds payable prior to
the due dates of taxes, assessmen~s, insurance premiums and g~aund rcnt~, shall exceed the amount required to pay said taxa.
assessments, i~surance premiums and ground rents ac they tall due, such eticess shall be, at Borrawer's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. !f the amount o( the Funds
held by Lender shall not be sutY'icie~t to pay taxes, assessmcnts, insurancc 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 natice is mailaf
by L.ender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mur~gage, l.cnder shall promptly refund to Borravver any Funds
held by I.enJe~. If under paragraph 18 hereof the Propehy is sold or the Property is otherwise acquired by I.ender. Lender
shall apply, no later than immediately prior to the sale of thc Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a crcdit against the sums secured by this Mortgage.
3. Application of Paymeats. Unless applicable law proviJes othenvise. all paymenis received by 1_ender unJer the
Note and paragraphs 1 and 2 hereof shall be applied by I.enJer 6rst in payment of amounts payable to I.ender by Borrower
under paragraph 2 hereof, then to interest payable on the Notc, then to thc principal o[ the Note, anJ then to interest and
principal on any Future Advances. '
4. C6arges; Lkns. Bonower shall pay all taxes, acccssmcnts and othe~ charges, fines and imp~nitions atiribulable to
the Propert~• which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereot or, i[ not paid in such manner, by Borrower making payment, when due, directly to the
payce thereof. Borrower shall promptly furnish to Lender all notices o[ amounts due under this paragraph, and in the event
Borrower shall make payment direct~y, Borrower shall promp~ly furnish ~o Ixnder receipts 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 Lender, or shall in good faith contest such lien by, ar defend enforcement ot such lien in,
legal proceeding3 which operate to prevent the enforcement of the I~en or forfeiture of the Propeny or any part thereof.
S. Hazard I~urance. Borrower shall keep the improvements now existing or hereafter erccted on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Le~der may reyuire; provideJ, ~hat Lender shall not require that the amount ot
such coverage exceed that amount of coverage required to pay ~he sums secured by ~his Mortgage.
The 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 poticies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dircctly to the
insurance carrier.
All insurance policies and renewais 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 premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and I.enJer. Lender may make prcx~( of loss if not madt promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair of
the Property damageJ, proviJed such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not econumically feasihle or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage, wi~h the eacess, if any, paid
to Borrower_ If Ihe Propeny is abandoned by Borrower, or i( Borrower fails to respond to !_ender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier ofiers to se~tle a claim for insurance benefits, I~nder
is authoriud to collect and apply the insurance proceeds at I_enJer's option either to restoralion or repair of the Properiy
or to t6e sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred t~~ in paragraphs I and 2 hereot or change ~hc amount of
suc#~ installments. If under paragraph 18 hereof the Property is acyuireJ by Lender, all right, title and interest of Borrower
in and to any insurance policies and in and !o the proceeds thereof resul~ing from damage to the Properly prior to the sale
or acyuisition shall pass to Lender to the extent of the sums secured by this hlortgage immediately prior to such sale or
acquisition.
6. Preservallon and Maintenance of Property; I:eueholds; Condominiums; Planned Unil De~•elopments. Borrower
shall keep the Property in good repair and shall not commit w~aste or permit impairment or deterioration ot the Property
and shall comply with the provisions of any lease if th~s Mortgage is on a Icasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrow•er chall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or pianned unrt development, the by-laws and rcgalationa of the
conJominium or planned unit development. ~nd constitueM documents. If a conJominium or planned unit de~•elopment
rider ~s executed by Borrow•er and recorded together with th~c Mortgage, the covenants and agreementc o( such rider
shall be incorporated ~nto and shall amend anJ supplcment the covenants anJ agreements of this Mortgage as if the rider
were a part hereof.
7. Proteclion of Lender's Security. If Borrower fa~lc to pcrform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced whirh materially aBects l.ender's interest in the Propeny,
including. but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then l~nder at l.ender's option, upon no~ice to Borrower, may make such appearances, disburse such
sums and take such action as is nececsary to protect l_ender's mierest, ~ncluJing. but not limited to, disbursement of
reasonable at~omey's fecs and entry upon the Property to makc repairs. It Lender required mongage insurance aa a
condition of making the loan xcured b~• this Mortgage. Bi~rruwer shall pay the premiums requireJ to mainta~n such
insurance in effect until such time as the reyuirement (or such msurance terminates in accordance with Borrovver's and
. ~ . ~~~34~ Q~~~2414 ~
~ . -
~
~
~ _ - .., __ ~ .
- ~ ~ ~-~Y,< ~- -