HomeMy WebLinkAbout2856UNtPORM CoveH~nTS. Borrowe~ and l.enJer covenanl and ag~ee as tallows:
1. T~yllltp~ O~ PfIACI~I ~qd IAIlflSl. Borrowe~ shall promptly pay when due the princip•rl of and interest on the
indebted~ess evidenced by the Note, prepayment and late charges a. provided ~n the Nate, and the pri~cipal of and intercst
on aay Future Advances secured by ~his Mor~age.
2. FWad~ tor Tua and Ia=unace. Sub~ect to applicable law or to a written waiver by l.ender, Borrower shall pay
to Lender on Ihe day monlhly installmenls of principal and intere~t are payahle under the Note, unUl ~he hote ~c paid in full,
a sum (hercin "FunJs") equa) to onc•tvvelfth o( ~he ycarly taxe~ and acsessments which may attain priori~y over ~his
Mortgage, and ground ronts on the Pro~crty, if any, plus one-twcl(th of ~•early premium installmcn~s fot hazard insurance,
plus one-twelfth of yearly premium i~stallments (ar mo~~gagc insurancr, if any, all as rcasonably estimated initially and (rom
time to time by Lender on the basis of asxssmcnts and bills anJ reas~~nablc es~ima~es thereof.
71~e Funds shall be held in an institutian the depasits or rccoun~s o( which are insured ar guaranteed by a Federal or
state agency (iocluding Lender if Leoder is such an institution). 1 ender ~hall apply the Funds to pa)• said ~axes, assessments,
insurance premiums and ground re~ts. I.ender may not charge fo~ ,o holding and applying the Funds, analyiing said account.
or verifyi~g and compiling said assessments anJ bills, unlcss 1_e~dcr pa~•~ Borrowcr interest on the Funds and applicable law
permits Lender to make such a charge. Borrower ar.d l.ender may agree in writing at ihe time af execution of this
Mortgage that interest on the Funds shall he paid ta Barrower, and unless ~uch agreemem is made or applicable law
requires such interest to be paid, l.e~der shall not hc reyuircd to pay Bormv~er any intercst ar earniogs on the Funds. LenJer
shall give to Borrower, without charge, an annual accounling o( the Funds shc~wing credils and deh~ts to the.Funds and the
purpose for which eaeh debit t~ the Funds was maJe. The FunJ~ are pledged as addili~~na1 security for the sums secured
by this Morlgage. .
lf the amount of the Funds held by l.ender, together with the future monthly inctallments of Hunds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall erceeci ~he amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such exce.s sha~l be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly intt~llments of Funds. If thc amount of the Funds
held by Lender shall not be sutFicie~t to pay taxes, asscssmcnts, insur•rncc premi~~ms anJ grounJ rents as ~hey fall due,
Borrower shall pay to Lender any amount necessary to make up ~he deficiency withi~ 30 da~s from the date notice is mailed
by Ltuder to Borrower reques~ing payment thereof.
Upon payment in full of all sums sec:ured by th~s Morlgagc. I.ender shall promplly retunJ to Borrower any Funds
held by Lender. If under paragraph 1R hereof Ihe Property ic .old or thc Propcrty ~s othenvi.c acquired by I_ender, 1_ender
shall apply. no later than immediatcly prior to thc salc of thc Propcrty or its acquisition by I.cndcr, any Funds held by
Lender at ~he time of application as a credit aga~nst the sum~ secured by th~s Mc-rtgage.
3. Applicatfon of Psymeats. Unless applicahle law proviJes otherwise, all payments received by I.ender unJer the
Note and paragraphs 1 and 2 hereof shall be applied by LcnJcr firsl in paymem ot amounts payablc to I.ender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, thcn to thc principal of the Notc, and then lo interest and
principal on any Future Advances.
4. Charges; Lkns, Borrower shall pay all taxes, a+scssmcnts anJ oth~r chargcs, fines and imExxilions altnbutable to
the Property which may attain a priority over this Mor~gage, and leasehold paymcnts or ground rents, if any, in the manner
pmvickd undec paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, Girectly to the
payee thereof. Borrower shall promptly furnish to l.ender all notices of amounts duc under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promp~ly furnish to l.ender receipts evidencing such payments.
Borrower shall prompQy discharge any lien which has pnoriry over this Mortgage; provided, Ihal Borrower shall not be
required to discharge any such lien so long as Borrower shatl :~gree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in gcxxl f~i~h conte~t such lien hy, or defenJ enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the I~en or (orfe~wre of the Property or any part thereof.
S. Huard Insurance. Borrower shall keep the ~mprovement~ now• cxisting or hercaftcr crccted on the Pmperty insured
against loss by fire, hazards included within the term "extendeJ coverage", and surh other hazards as Lender may reyoire
anJ in such amounts and for such periods as Lender may reyuire; provided, that LenJer shall not reyuire that ~he amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing Ihe insurance shall be chosen by Borrower subject to approval by LenJer; provided,
that such.approval shall not be onreasonably withheld. All premium~ on insurance policies shall be paiJ 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 tx in form accep~able to LenJer and shall include a stanJacd mortgage
clause in favor of and in form acceptable to l.ender. Lender shrll h•rve the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices anJ all receipts ot paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and I.ender. 1_ender may make proof ot loss if not made promptly
by Borrower_
Unless Lender and Borrower otherwis~: agree in writing, insurance proceeds shall be applied to rettoration or repair of
the Property damaged, provided such restorat~on or repair is economically feasible and the security of this Mortgage is
not ~hereby impaired. If such restoration or repair is m~t ecunomically feasible or it tht security of this Mortgage would
be~impaired, the insurance proe:eeJs shall be rpplieJ to the sums xcured by this Mortgage, w~th the excess,'if any, paid
to Borrower. If ~he Propert)• is abandoned by Horrower, or if Borrower fails to responJ to I.ender within 30 da~s from the
date notice is mailed by I.ender to Borrower that the insuranre carrier otTers ~o settle a claim for +nsurance benefits, Ixnder
is ruthorized ta collect and apply the insurance prqceeds ~t LenJer's option either to restoralion or repair of the Properiy
or to the sums ~ecured by this Mortgage.
Unless Lender and Burrower otherwise agree in wnting, any such application of proceeds to pnncipal shall not extend
or postpone ~he duc date of the monthly instalkncros referred to in paragraphs I anJ 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property ii acyuued b}• Lender, all right, title anJ interest of Borrower
in and to any insurance policies •rnd in and to thc procceds ~hereof re~ul~ing (rom d;~mage to the Property prior to the sale
or acyuisition shall pass Io Lender to the extent of Ihe sums sccured by this Alortgage immediately prior to such sale or
acquisition.
6. Preserv~lion aod 1laiatenance of Property; [.easeholds; ('ondominium~; Planned l.'nil Ihvelopmenls. Borrow~er
shall kcep the Property in good repair and shall not commit waste or permit impa~rmcnt or delerioratiun of the Property
and shall comply with ~he provisions of any lease ~t thi, ~tur~gage ~s an a Icas~hoW. If this Mortgage is on a unit in a
condominiom or a planned unrt developmenl, Borrower tihalf perfarm a{I of Borrower's obligations under the declaration
or covenants creat~ng or governing Ihe condom~nium or planned unit development, the by-laws and rcgulationc of the
conJominwm or planned unit developmen~, and comtituem documen~c. I( a condominium or planned unit development
nder is executed by Borrower and recordeJ ~ogether wUh this Mortgage, the covenants and agreemenls of such rider
shall be incoaporated into and shall amend and supplement the co~~enants and agreements of this Mortgage as i( the rider
were a part htreof.
7. Protection of Lender's Security. If Borrower fails to perf~~rm the covenants and agreements contained in this
Mortgage, er if any action or proceed~ng a commenced which materially atiects LenJer's interest in the Property,
including, but not I~mited to. eminent domain, insolvency, code enforrement, ar arrangements or proceedings involving a
bankrupt or decedent, then Lender at LenJer's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such ac~ion as is necessary to protect I_ender's interest, incluJing, but not limited to, disbursement of
reasonable attomey's (ces and entry upon the Propcrty to makc repaus. If I_cnder reyuired mortgage insurance as a
condition of making the loan stcureJ b~ this Mortgage. Borrowcr shall pay the premiums- requireJ to maintain such
insurance in efiect until such time as the requirement for such insurance terminates in accordance with Borrower s and
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