HomeMy WebLinkAbout0915 UN~FOR~,s CovEN~NTS. Borrower and Lender covenant and agree as fallaws:
1, taymeat of Principsi and Interest. 8orrower shall promptly pay when due the principal of and interest on th~
indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and irttercst
on any Futurc Advances xcured by this Mortgage.
2. Fonds tor Tues and Iasursnct. Subject to applicablc law or to a written waiver by l.ender, Borrower shall pay
to L,ender on the day monthly i~staflments of principal and interest are payable under the Note, until the Note is paid in [ull,
a sum (herein "Funds") equal to one-twelfth ot the yearly taxes and assessments which may attain priority over this
Morigage, and ground rents on the Pr+operty, if any, plus one-twelfth of yearly prrmium installments for hazard insurance,
plus one-twelfth of yearly premium installments [or mortgage insurance, if any, all as reasonabiy estimated initially and f~om
time to time by Lender on the basis of asussment~ and bills and reasonable atimata thereof.
The Funds shall bt held in an institution the deposits or accounts of which are insured or guaranteed by a Federa) or
state agency (including Lender if Lende~ is such an institution). l.ender shal! apply th~ Funds to pay said 1axa, assessments,
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
or ve~ifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and [.ender may agree in writing at the time of execution ot this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
rtquires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accaunting of the Funds showing credits and debits to the Funds and the
purpose for which each d~bit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together wiih the future monthly installmenls of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly instailments of Funds. If the amount of the Funds
htld by Lender shall not be sufficient to pay taxes, assessments, insurancc premiums and ground rents as they fall due.
Borrower shall pay to Lender any amount neces~ary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgagc. I.ender shall promptly refund to 9orrow•er any Funds
held by L.enJer. If under paragraph 18 hereof the Property is sold or thc Property is otherwisc acquired by (.ender, Lender
st~all apply, no later than immediately prior to the sale of the Properiy or its acquisition by I.ender, any Funds held by
Lender at the time of application as a credit against the sums secured by th;s Mortgage.
3. Application of P'ymeats. Unless applicahle law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.cnder first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to thc principal of the Note, and ~hen to interest and
principal on any Future Advances.
4. Clwrges; Lie~u. Borrower shall pay all ~axes, acsessments and other charges, fines and impositions auributable to
the Property which may attain a priority over this Mortgage, and leasehold payments ar ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directfy to the
payee theceof. Borrower shatt promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Morlgage; provided, that Borrower shall nat be
required to discharge any such lien so long as Borrower shall agrec in writ~ng to the payment of the obligation secured by
such lien in a manner acceptabte to Lender, or shall in good Eaith contest st+ch lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forCeiture of the Property o~ any part thereof.
5. Huard Insurance. Borrower shall keep the ~mprovements now existing or hereafter erccted on the Property insured
against Ioss by fire, hazards included withm the term "extended coverage", and such other hazards as Lender may require
and in soch amounts and for such periodc as Lender may require; provideJ, that Lender shall not require thai the amount of
such coverage exceed that amount of coverage required ~o pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
that such approval shall not be ~~nreasonahly withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph Z hereof or, if not paid in such manner: by B~rroK-er making Qaymeni, when due, directly to the
insurance carreer.
All insurance policies and renewals there~f shall be in form acceptable to LenJer and shall include a standard mortgage
clause in favor of and in form acceptahle to Lender. Lender chall ha~e the right to hold the policies and renewal~ thereof,
and Borrower shall promptly furnish to Lender alt renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and Lender. l.ender may make proof of loss if not made prompdy
by Borrower.
Unless Lender and Borrower otherw~se agree in writing, inwrance procecds sha(I be applied to restoration or repair of
the Property damaged, proviJed such restoration or repair is economicatly feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not econamicallp fcasihle or ~f the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by BorroK•er, or it Borrower Fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
is authorized to colltct and apply the insurance proceeds at Lender's option either to restoration or repair o[ the Aroperty
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such apPlication of proceeds to principal sha11 not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change ihe amount af
such installments. If ~nder paragraph 18 hereof the Property is acyuired h~~ Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. .
5. Prtserv~ttion and 111aintenance of Properly; Leaseholds; Condominiums; Ptanned Unit Developmenis. Borrower
shall keep the Property in good repair and shall not commi~ w•aste or permit impairment or deterioration of the Property
and shal! comply with the provisions of any lease if this Mortgage ~s on a leaschold. If this MortgaQe is on a unit in a
condominium or a planned unit devetopment, Borrower st?all perform all of Borrouer's obligatians under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regufations of the
condominium or ptanoed unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Botrower and recorded together with ~his Mortgage, the covenants and agreements o( such rider
snall be incorporated into and shatl amend and supplement the covenants and agreements of this Mortgage as if the ric3er
were a part hereof.
7. Protection of Lendsr's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any actien or proceeding is commenced wh~ch materially afiects Lender's interest in the Property,
including, but not limited to, eminent domain, insotvency, code e~forcement, or arrangements or proceedings involving a
bankruQt or decedent, then Lender at Lender's oplion, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
cond~tion of making the loan secured by this Mortgage, Borrower shalt pay the premiums required to maintain such
insurance in effect until such time as the requiremem for such itssucanze terminates in accordance with Borrower's and
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