HomeMy WebLinkAbout2721UN~toxat CovFN~NTS. Borrowcr and l.cnJrr cuvcnant and agrcc a~ foUows:
1. Paymeat of Priacipal aod laterest. HurruHer ihall p~ompUp pay whcn duc thc p~incipal o( ~nd intcrest un the
indeb~cdness evidcnccJ hy thc Notc, p~cpaymcnt and latc chargrs a. proviJed in ~he Notc, and thc principal ot and intercst
on any Future Advancec secured by thi~ Mor~gage.
2. Fuads for Tues aad lawraace. Subject to applicablc law or la a writlen waiver by I.cnder, Barrowcr shall pay
to I.cmier an the day mon~hly i~stallments ot principal anJ intcre~t •rrc payable undcr 1he Nutc. until the Note is paid i~ full,
a sum (hercin "Funds") equal to ane-twclfth o( thc ycarly ~axcti and asussmems which may auain priority over this
MortRagc, anJ ground rents on the Pmpeny, if any, plus one-twcU~h of ycarly prcmium installments far hacard insura~x;e,
plus ane-twelfth of yearly premium installmcnts (or morlgage insurancc, if any, all as reasonably estima~ed initially anJ from
~imc to time hy 1_endcr on thc basis of assessmc~~s :~nd hills and rea~onablc estimata thereof.
'll~e Funds shall be held in an ins~iw~ion the de{xnits ur accaunts of which arc insured or guarantecd by a Federal or
state agency (including l.ender if l.ender is such ;~n institulion). I.ender shall apply the Funds to pa~~ said taxes, assessments,
insurance premiums and ground rents. I.ende~ may not charge for ~o hoWing and applying the Funds, analyxing said account,
or vcrifying and compiling said asscasments and billti, unless LenJer pays Borrowcr in~erest on the Funds and applicable law
permits Lender to make such a charge. Bc.rrower and Lender may agrce in writing at the time of execution o( this
Mortgage that interest on the Fu~cis shall be paiJ to Bormwer, and unless such ag~eement is made or applicable law
requircs suc:~ interest to be paid. l.ende~ shall not hc reyuircd to pay Borrower any intcrest or earnings on the Funds. I_ender
shall give to Borrower, without charge, an annua! aca~unting ot the FunJs showing creclits and debits to the Funds and the
purpose [or which each debit t~ the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
lf the amount of the Funds held by l.enJcr, together with thc future manlhly ins~allments of Funds payable prior to
the due dates of Iaaes~ assessments, insurance premiums and ground renis, shall excceci Ihe amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as thcy fall due, such cxccss shall be, at Borrowcr's option, either
prompQy repaid to Borrower or crcdited to Borrower on manthly inslallments of Funds. If thc amount of the Funds
'held by l.ender shall not be suflicient to pay taxes, assessments, insurance premiums and grouod rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the dehciency within 30 days from the date notice is mai{ed
by Lender to Borrower requesting payment thercof.
Upon payment in full of all sums secured by this Mortgagc. I.cndcr shall promptly rcfund to Borrower any Funds
held by I.ender. If under paragraph I8 hereo( the Propcny is sold or thc Propcrty is otherwisc acquired by l.ender, I_ender
shall apply, no later than immediately prior to the sale of ~hc Property or its acquisition by l.endcr, any Funds held by
Lender at Ihe time of application as a credit against the sums secured by ~his Mortgage.
3. Applkatfoa of Paymeats. Unless applicable law provides otherwise, ~II payments received by Lender under ihe
Notc and paragraphs 1 and 2 hereof shal! be applicd b~• Lcndcr first in payment o( amounts payable to Lcnder by Borrower
under paragraph 2 hereof, then to interest payablc on the Notr, thcn to thc principal of the Note, and then to interest and
principal on any Future Advances.
4. Clwrges; Lk~. Borrower shall pay all tax~K, a+sessments and other chargcs, fines anJ impositions attributable to
the Property which may attain a priority over this Mor~gage, and leasehold payments or ground rents, if any, in the manaer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcUy to the
payee thereof. Borrower shall promptly furnish to LenJer all.noticcs of amounts due under this paragraph. aad in the_event
Borrower shall make payment directly, Borrower shall promptly furnish to Lencier 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 o( the obligation secured by
such lien in a manner acceptable Io l.ender, or shall in good faith contest such lien hy, or defend enforcement of such lien in,
legal proceedings whieh operate to prevent ~he enforcement of the I~en or forfeiture of the Property or any part thereof.
S. Hazard lnwrance. Borrower shall kcep the improvcments now• exis~ing or hercaftcr crccted on the Property insured
against loss by fire, hazards included within the term "extendeJ coverage", anJ such other- hazards as l.ender may require
anJ in such amounts and for such periods as Lender may require; provided, that Lender shalt not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured b}• ~his Mortgage.
'Il~e insurance carrier providing Ihe insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonably withheld. All prcmiums on insurance policies shall 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 insurance policies and renewals thereof shall be in form acceptablc to LenJer and shall ~nclude a standard mortgage
clause in favor of and in form acceptable ta Lender. I_ender shall have the right to hold ~he policies and rcnewals thereof,
and Borrower shall promptly [urnish to Lencier all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender. I.ender may make proof of loss if not made prompUy
by Borrower_
Unless Lender and Borrower otherwise agree in writing, incurance proceeJs shall be applied to restoration or repair of
the Property damageJ, proviJecl such restora~ion or repair rs economically feasible 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 secured b) this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned hy Borrower, or i( Borrower fails to respond to Lender within 30 days from the
Jate notice is mailed by I.ender to Borrower that the insurance carrier o(iers to setlle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceecis at t_enJer's option either to restoration or repair of the Properiy
or to the sums sec:ured by this Mortgagc.
Unless l.ender and Borrower otherwise agree in writing, any such applicalion of proceeds to prineipal shall not extend
or postpone ~he due date of the monthly installmcnts refcrred tc~ in paragraphs I and 2 hereof or change the amount of
such installments. I[ under paragraph 18 hereof the Propeny is acyuired by l.ender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceecls thcreof resulting from damage to the Properiy prior to the sale
or acyuisition sh•rll pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. .
6. Presen~atioo and Maintenance of Property; l.easehulds; ('ondominiums; Plsnned Uait Devebpments. Borrowcr
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease it this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall pertorm all of Borrower s obligations under the declaration
or covenants c~eating or governing the condominium or planned unit development, the by-laws and regulations of the
conJominium or planned unit development, and constituent Jocuments. If a condomioium or planned unit ckvelopment
rider is executed by Borrower and recorded toge~her with this Mortgage, the covenants and~ agreements of such rider
shall be incorporated into and shall amend anJ supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection ot Gender's Security. If Borrower failt to perform the covenants anJ agreements contained in this
Mortgage, or if any action or proceeding is commen:.eJ which materially aHects 1_ender's interest in the Property.
includ~ng, but not limited to, eminent domain, inu~lvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, ~hen l.ender at Lender ~ option, upon notice tu Borrower, may make auch appearances, disburse such
sums and ~ake such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney's tces and cn~ry upon the Property to make rcpairs. If Lcndcr rcquircJ mortgage insurance as a
condition of making the loan secureJ by this Me~rtgag~. Bo~rower shall pay the premiums required to maintain such
insurance in efiect until such time as thc rcyuirement tor such insurance terminates in accordance with Borrower s and
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