HomeMy WebLinkAbout2628UNtFau~ CovEN~NTS. Borrower and l_enJe~ coveoant and ;~grre aa folli~ws:
1. T~ymeat of Pdnciwl asd laferest. Barmwer ~hall p~umptl~~ pay v-hcn duc the principal of aod interest on the
iadeMedneu evidenced by the Note. prepayment aixl late char~e. a. pruvided ~n the Na1e, and the principal of and interest
on aoy Futuro Advances secu~ed by this Mortgage.
2. Fo~ds [o~ Tua aa~ Iawr~ace. Subject ~o applicablc law ur to a written waiver by l_e~der, Borrower~shall pay
to Lende~ o~ ~he day monthly installments of principal ai-d ~nirrr.~ arr payahlc unJer thc NMC, until the Noto is paid in full.
a tum (herein "Fu~ds") equal to one-tweltth ot ~he yr~~l~ ~a~r. anJ ~c~cssmentc which may attai~ priority over this
Mortgage. and grou~d rents on the Property, if any, plus onc-twcl(~h ot ycarly prcmium installments for hazard insurance,
plus one-twelfth of yearly prcmium installmen~s tar mongage ins~~rancr, if any, all as reascmably estimated initially and trom
time to time by I.ender on thc basis of asses~mcnts and hills and rrax~nable estimates thereof.
71~e Funds shall be held in an institutiun the depo~~t+ ~~r accuun~s at which are insured or guaranteeJ by a Federal or
state ageocy (including Lender i[ Lcnder is ~uch an institu~ionl. I.cndcr ahall •rpply the Funds to pay aaid taxes. asussments,
insutance premiums and graund rcnts. 1 rnder may noi charge ior ~~~ holding and applying Ihe Fundc. analy7ing said account.
or veritying a~d compiling said assessments and h~lls, unless I.ende~ pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Bc~rruwer and I.ender may agree in writing at the timc ot executiun ot this
Mortgage ihat interest on the Funds shall be paid t~~ Borruwer, and unless such agreement is made or applicahle law
requires such interat to be paid. 1_ender shall not be requir~i to pay Borrower any interest or carnings on the Funds. I.ender
shall give to Borrower~ without charge, an annual accouMing of the Funds showing credits anJ debits to the Funds and the
purpoae for which tach debit ta the Funds w~~ oiade. The Funds are pledged as additional secu~ity for ~he sums secured
by this Mortgage. -
If the amount ot ihe Funds held by l.ende~, together with the futurc monthly installments of Funds payable prior to
the due dates of taxes. assessments. insurance premiums and ground rents, shall exceed the amount requirccl to pay said trxes,
sssesstmnts, insurance premiums and ground rents as they (all due. such e?ccess shall be, al Borr~wer's option, either
ptomptly rcpaid to Borrower or cralited to Borrower on monthly installments of Funds. 1( the amount ot thc Funds
held by Lender shall not be sufiicient to pay taxes, assessmcnts, insurancc prcmiums anJ ground rents as thcy fall due,
Borrower shali pay to Lender any amount necessary to make up the deficiency wiihin 30 days from ~he date natice is mailed
by Lender to Borrower requesting payment thereot.
Upon payment in full of all sums secured by this Mor~gage, I.ender shall promptly retund to Borrower any Funds
hdd by Lender. If under paragraph lR hereof the Prop~rty i~ sold or thc Property is otherwisc acquired by l.ender, I.ender
s6d1 apply, no later tha~ immediately prior to the sale of the Property or its acquisition by 1_ender, any Funds held by
L.ender at the time o[ application as a credit agai~st the sums secured by this Mortgage.
3. Applic~ioa of Payments. Unless applicable law proviJes othervvise. all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_cnder fint in payment af amounts payable to I_ender by Borrov-~er
under paragraph 2 hercof, then to i~tcrest payablc on ihe Note, then to thc principal of the Note, and thcn to interest and
principal on any Future Advances. ,~• ~ ~ ,~
4. C6ar~es; Litas. Borrower sh•rll pay all laics, axscssmcnts and athc~ charges, t~ine~ and imposition~ attributahle to
the Propetty which may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paytuent, when due, directly to the
payee thereof. $orrower shall promptly furnish to 1_ender all notices of amounts due under this paragraph, and in tt~e event
Borrower shall make payment directly, Borrower shaU promptly tumish to l.eoder receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
ttquired to dixharge any such lien so long as Borrower shall agree in writing to the payment of ~he obligation secured by
suc6 lien in a manner acceptable to I.ender. or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enfurcement of ~he I~en or forfeiture of the Property or any part thereof.
S. H~wrd lnwrapce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by firo, hazards included within the term "extende~i coverage", and such other hazards as Lender may reyuire
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount o[
such coverage exceed that amount of coverage required to pay the stims secured by this Mortgage.
'IUe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by LenAer, providod.
that such approval shall not be unreasonahly withheld. All premiums on insurance policies shall be paid in the manner
providod under paragrsph 2 hereof or, if not paid in such manner. by Borrower making payment, when due,'dircctly to the
insurance carrier_ • • ~
All insurance policies and renewals thereof .shalt be in form accept:~ble to Lender 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 furoish to Lender all renewal notices and all receipts of paid premiumc. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and txnder. L.ender may make proof of loss if not made promptly
by Borrower.
Unleu Lender and Borrower othen+~ise agree in writing, insurance proceeds shall be applied to restoration or repair o(
the Propeny damaged, provided sut:h restora:ion or repair is economically feasible and the security of this Mortgage is
not thereby impaired. 11 such restoration o~ repair is not economic~lly feasible or it the security of this Mortgage would
be impaired. the insurance proceeds shaU be applied to the sums secured by this Mortgage, with the excess, if any. paid
to Borrower. lF the P~opert~~ is abanJoneci by Borrow•er, or it Borrower fails to•respond to Lender within 30 days from the
date notice is maileci'by Lender to Borrower that the insurance carrier offers to se~tle a claim for insurance benefits, l.ender
is aut6orized to collect and apply the iosurance proceeds at I_enJer's option either to restoration or repair of the Propert~•
or to the sums secured by this Mortgage.
Unless I.ender and Borrower otherwise agree in writing, any such application of proceeds to principa) shall not extend
or postpone the due date of the monthly instal(mcnts referred to in paragraph~ 1 and 2 hereof or change the amount of
such installmeuts. If unJet paragraph 18 hereof Ihe Property is acyuired by l.ender, all right. title and interest of Borrower
in aod to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to th~ sale
or acquisition shall pass to Lender to thc extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Pr+eservation and Maintenance of Property; I.eateholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not com~vit waste or permit impairment or de~erioration of the Property
and shall comply with the provis~ons of any lease it this Mortgage ic on a leasehold. !f this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shalt pcrform all of Borrower s obligations under the declaratiun
or covenants creatiog or governing tfie condominiiim or planned unit development, the by-laws and regulations of the
condominium or planoed unit developmen~, and constituent da:umentc. If a condominium or planned unit development
rider is executed by Borrower and recorded iogether w~th this Mortgage, the covenants and agreements of such riJer
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the riJer
were a part hercof. • .
7. Protectios of Lender's Security. If Bc~rrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commcnced which materially aBects I.ender's interest in the Property.
including, but not limited to, eminent domain, insolvcncy, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then l~nder at Lender', option, upon notice tu Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, incloding, but not limned to, disbursement of
reasonable at~orney's tees and entry upon the Property to makc repairs. I( I.cndcr requircd mortgage insurance as a
condition of makfig the loan secured by ~his Mortgage. Borraw~er shall pay the premiums requireJ to maimain such
inwranee in effect until such time as the reyuiremenl for such msurance terminate~ in accordancF with Borrower s anJ
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