HomeMy WebLinkAbout2462UNtFOatN CoveN~NTS. Bo~rowe~ and Le~der covenant and agree u follows:
1. taymeat ot P~Inclpal and laterest. Borrower shall promptly pay when due the principal ot and interest on the
i~debtedneu evidenced by the Note, p~epayment and late charges as provided in the Note, and the pri~cipal of and interest
on ar~y Futurc Adva~ces secured by this Mortgage.
2. I~ads to~ Tua aed l~urance. Subject to applicabk law or to a written waiver by Lende~, Borrower shall pay
to l.ender on the day monlhly installments of principal and interest are payable under the Note. until the Note is paid in full.
a sum (hereio "Funds") equal ta one-twelfth of Ihe yea~ly uxes and assessments which may atlain prio~ity over this
Mortgage, and g~ound renta on the Pr~ope~ty. if any, plus one-twelfth of y~arly premium i~stallments tor hazard insurance.
plus one-twelfth of yearly premium installmc~ts tor mortgage insuraoce, it any. all as reuonably estimated inilially and trom
timc to time by Lender on the basis of assessments and bills and reaso~able estimates thereof.
The Funds shall be held in an institution the deposits or accaunts o( which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). l.ender shall apply the Funds to pay said taxes, asseuments.
insurance prcmiums and ground rents. t_ender may not charge for so halding and applyiog the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on Ihe Funds and applicable law
permits Lender to make such a charge. Borrower and (.ender may agree in writing at the time ot execution ot this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid. Le~der shall not be required to pay Borrawer any interest or earnings on the Funds. I.ender
shall give to Borrower, without charge, an a~nual accol~nting of ~he Funds showing credits and debits to the Funds and the
purpose (or which each debit ta the Funds was made. The Funds are pledged as additiunal security for the sums socured
by this Mortgage. ~
If the amount af the Funds held by Le~der, togelher with the future momhly i~stallments of Funds 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 as they faU due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. !( the amount of the Funds
held by Lender shall not be sufficient to pay taxa. assessments, insurance prcm~ums and ground rents u they (all 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 rcquesting payment ~hereot.
Upon payment in ful) of al) sums secured by th~s Mortgage. I.endcr shall promptly re(und to Borrower any Funds
held by Lender. If under paragraph 1R hereof the Propeny ic ~old or the Propertp ~s otherwice acquired by l_ender, I.ender
shall apply, no late~ than immediately prior to the sale o( the Propcny or i~s acquisition by I.ender, any Funds held by
Lender at the time ot application as a credit against ~he sumc securcd by th~c Mortgage.
3. Application of Payments. Unlcss applicablc law provides otherw•ise, all payments received by l.endtr undcr the
Note and paragraphc I and 2 hereof shall be applied by I.cndc~ fint in pa}ment of amounts pay~ble to I.enJer by Borrower
under parag~aph 2 hereot, then to intcrest payable on the Notc, thcn to the principal of the Note, and thcn ~o interest and
~-nncipal on any Futurc Advancc4.
4. Cbar~es; Liens. Borrower shall pay all ~axc~, atiussmcnts and other charges. fines anJ ~mpcxitions auributahle to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the ma~ner
provided under paragraph 2 hereof or. ~f not paid ~n such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all noticcs of amounts due under this paragraph, and in the event
Borrow•er shall make payment direcUy, Barrower ahall promptly furnish to Lender receipls evidenemg such payments.
Borrower shall promp~ly discharge any lien w•hich has prior~ty rner this Morlgage: provided. ~hat Borrower shall not be
reqwred to d~scharge any such lien so long as Borrower shall agree in wnt~ng to the payment of the obliga~ion secured bj~
such lien in a manner acceptable to Lender, ar shall in good faith conteu such lien hy, or Jefend enforcement of such lien in,
legal proceedingc whicb operate to prevent ~he enforcement of the I~en or torfe~ture of the Property ar any part thereof.
S. Hazard Insurance. Borrower shall keep the ~mprovemen~s now existing pr hereafter erec~ed on the Property insured
against loss by 6re, hazards included withm the term "c~tendeJ cuverage", and such other hazards as Lender may require
and ~n such amounts and for such periods as Lender may reyuire; provideJ, that Lender thall not reyuire that the amount of
such coverage exceed that amount of coverage required to pay ~he ~umc ~ecured by thrs Mortgage.
The ~nsurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonahly withheld. All premium~ on insurance policies shall be paid in the manner
prov~ded under paragraph 2 hereof or, d not paid in such manner, by~ Borrower makmg payment, when due, direcU)• to the
insurance carrier.
Al) insurance policies and renewals thereof shall be in form accepteble to l_ender and shall ~nclude a standard mor~gage
clause ~n (avor of and in form acceptable to Lender. I_ender shall have the right to h~ld the policies and renewals thereof,
and Borrower shall prompdy fornish to Lender all renew•al notices and all receipts of paid premiumc. In the evenl of loss,
Bormwer shall give prompt nauce tu the insurance carner and l.ender_ Lendrr ma~~ make prcx~f of loss if nat made prampUy
by Borrower. .
Unless Lenckr and Borrower otherw~x agree in w~riting, insurance pr~xeedc shall be applied lo restoration or repair of
the Property damaged, provided sach restoration or repair is economically teasible and the security of this Mortgage is
not ~hereby impaired_ I( such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned hy Borrower, ar it Bormwer fails to respond to Lender within 30 days irom the
date notice is mailed by lxnder to Borrower that the insurance carrier ofters to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at t_enJer's option either to restora~ion or repair of the Propetty
or to the sums secured by ~his Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such applica~ion of procetds to pnncipal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs I and 2 hercof or change Ihe amount of
such installments. If under paragraph 18 hereof the Property is acquired by I.ender, all right. title and interest oE Borrower
in and to any insurance policies and in and to the proceeds thereof resulting trom damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent ot the sums secured by this Mortgage ~mmediately prior to such sale or
acquisition. ~
6. Pnservation and Naiatenance ot Property: I.easeholds; Condominiums; Planned Uuit Devebpments. Borrower
shall keep the Property in good repair and shall not commi~ waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease i( th~s Mortgage is on a Icasehold. 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 regula~ions of the
condominium or planned unit developmen~, and constituent documems. If a condominium or planned umt development
nder is executed by Bonower and recorded together w~th th~s Mortgage. ~he covenants and agreemen~s of sucM rider
shall be incorporated into and shall amend and supplement the covenan~s and agreements of this Mortgage as i( the rider
v-•ere a part hereof.
~. Protection of Lender's Security. I( Borrower failc to perform the covenanls and agreements contained in this
Mortgage, or if any ~ction or proceeding ~s commence~ which ma~erially aHects l.ender's interest in the Property.
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at !_ender's option, upon notice lo Borrower, may make such appearances, disburu sueh
sums and take such action as is necessary to protect Lender s imerest, including, but not limited to, disburxment of
reuonable attomey's fees and ontry upon the Property to make repairs. !f Lend~r .required mortgage insura~ce as a
condition of making the loan secureci by this Mortgage. Borrower shalt pay the premiums required to maintain such
insurance in effect until such time as ~he rcquiremenl Ior wch insurance terminates ~n accordance with Borrower s and
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