HomeMy WebLinkAbout0932 UNtFORrt Cov~Hnrrrs. Borrower and Lende~ rovenan~ and agree a~ faU~~ws:
1. Payment of Pr[ncEpal and lnterest. Borruwer shall ~romptip pay ~~hen due the principal of and interest on the
indebtedness evidenceJ by the Note, prcpayment and late charges as provided in the Note, and th~ principal of and interest
on any Future Advances secureJ by this Mottgage.
2. Funds for Ta~[es and Insurnnce. Subject to applicahie law or to a written waiver by Lender, Borrower shall pay
to I.ender on the day monthly installments of principal and interest are payable under the Note, until the Notc is paid in full,
a sum (herein "Funds") equal to one-t~clfth of the yearly taxes and assessm~nts which may attain pri~~rity over this
Mongage, and ground rents on the Propert~•, if any. plus one-twelfth of yearly premium installments for hazard insurance,
plus one-tw~elfth of yearly premium instal(ments far mortgage insurance, if any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reason~ble estimates thereof.
• The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteecl by a Federal or
state agenc~~ (including Lender if Lender is such an institution). I.ender sha(1 apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. [_ender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and hills, unless 1_ender pa}•~ Borrawer 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 of this
Mortgage that interest on the Funds shall be paid ro Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shaN not he required to pay Borrower any interest or earnings an the Funds. i_znder
sha!! gi~•e to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Fund~ are pledged as additional security [or the sums secured
by this M~rtgage.
If the amount of the Funds held by l.ender, togethcr with the future monthly installments 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, inst~rance premit~ms and ground rents as ihcy fall due, such excess shalt be, at Borrower's option, either
prompt{y repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender sha11 not be sufltcient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessar~~ to make up the deficiency within 30 da}~s from the date notice is mailed ,
b~~ Lender to Borrower requesting payment thereof. '
Upon payment in full of alt sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
held by l.ender. If under paragraph 18 hereof thc Property is sold or thc Property is otherwisc acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of the Propc:rty or its acquisition by I.cnder, any Funds heid by
Lender at the time of application as a credit against the sums secured b}~ this Mortgage.
3. Application of Paymeats. Untess applicablc law prrn~iJes otherwise, al! payments reccived by Lender un~er the
Note and paragraphs I and 2 hereof shall bc applied by Lender fint in payment of amounts payablc tu Lendcr by Borrower
under paragraph 2 hereof, then to interest payable on the Nutr, thcn t~~ the .principal oi the Notc, and ihen to interest and i
principal on any I~uture Advances. I
4. C6atges; Liens. Borrower shall pay all laxcs, a.srssmcnts and c~thcr ch:~rgcs, fines an~ impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
-provided under paragraph 2 hereof or, if not paid in such manner, bp Borrower making payment, when due, directly to the
payee thereof. Borrawer shall promptly furnish to Len~cr all notices oi amounts duc under this paragraph, and in the event i
Borrower shall make payment directly. Borrowzr tihall prompdy~ ~urnish to Lender rcceipts evidencing such payments.
Borrower shall promptly discharge ar~y lien ~?hich has priority uver this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as BorroHer shall agree in writing to the pa~~ment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contrsi such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enfurcement of thr liert or furfeiture of the Property or any part thereoi.
5. Hazard Insurance. Borrower shall keep the impro.cment~ nou rxisting or hereafter erected on the Property insured
against loss by fire, hazards inc(uded within the term "e~tende~i coverage". and such other hazards a~ Lender mati~ reyuire
and in such amounts and for such periods as Lender ma~~ reyuire; provided, that Lender shall not reyuire that the amount of
such coverage exceed that amount of co~erage required to pa~• 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 unreasonably withheld. A!I premiumti on insurance policies shall bt: paid in thc manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
Ail insurance policies anel renewals there~~f shall tx in forni acceptablr to Len~er and shali include a stan~lard mortgage ~
dause in favor of and in form acceptable to Lender. Lender ,hall ha.e the right to hold the policies and rcnewals tF?ereof, ,
and Borrower shall promptly furnish to Lender a~l rencwai notices and all receipts of paid premiumti. In the event of loss.
Borrower shall gi~~e prompt notice to the insur.ince carrier and Lender. Len~ier may make pruof of loss if not made promptl}~
by Borrower.
Unless Lender and Borrow~er otherwi~c agree in tiriting. insurance pr~~ceeds shall be appl~ed to restoration or repair of
the Property damaged, provided such re~toration ur repair is economicafly fcasihle and the security of this Mortgage is
not thereb}~ impaired. If such restoration or repair is not erun~~micall~• fcasib~e or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applis:d to the sum5 secure~ b}~ this Mortgage, w~ith the excess, if any, paid
to Borrower_ If the Propert} is abandoned h~ Borrower. or it Borrower fails t~, res~nd to l.ender within 30 days from the
.iate notice is mailed by Lender to Borrower that the insurance carrier ofiers to settle a ctaim for insurancc benefits, Lender
is authorized to coilect and apply ihe insurance proceeds at i_ender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless I.ender and Borrow~cr atherwise agree in writing, an~ such application ~~f pr~~ceeds to principal shall not e~tend
or postpone the due date of the monthl~• installmcnts r~ferred t~~ in paragraph, 1 and 2 hcrcof or change the amount of
such installments. If under paragraph 18 hereof the Propert}~ is acyuired hy~ Lender, all right, title and interest of Borrower
in and to an~ insurance policies and in and to thc pruceeds thereof resulting fron~ ~amage to the Property prior to the salc
or acyuisition shall pass to Lender to the e~tent of the ~um~ sccured b}' this Mortgage immediately prior to such sale or
acquisition.
6. Preser~ation and ~taintenance of Propert~; i.eacehulds; Condominiums; Planned Unit Developmenls. Borrowcr
shall keep the Properiy in good repair and shall not commit ~~aste or permit impairment or deterioration of thc Property
and shaU comply w~ith the provisions of any lease if this ~tt~rtgage i~ vn a Icasehuld. If this Mortgage is on u unit in a
condominium or a planned unit de~•cloPment. Borrower >hall pcrform all of Borrower's obligations undcr the declaration
or covenants creating or governing fhe condominium c~r plannrd unit development, the by-taws and regulations of the
conJominium or planned unit development. .?nd constituent ~lo~umentti. If a con~iominium or planned ~mit ~e~~elopment
rider ~s e~ecuted by Borrower and recorded together ~ith thi, Mortgage, the covenants and agreements of such rider
shall be incorporated into ~nd shall amend ancl supplcment the co~~enants anel agreements of th+s Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. If Bnrrower fails t~ p~rform the covenants and agreements cor.tained in this
Mortgage, or if any action or proceeding is comm~nce~l which materially afiects l.ender's interest in the Propeny, ~
including, but not limited to, eminent demain, insolvenc). code enforcemcnt, or arrangements or proceedings involving a
bankrupt or decedent, then [.ender at Lender's optiun, upon notice to 8orrower, ma}• make such appearances, disburse such
sums and take such action as is ?ecessary to protect Lender's interest. including. but not limited to, disbursement of
reasonable attamey's fces and entry upon the Propcrt}' to make rcpairs. If I.cndcr required mortgage insurance as a
condition of making the loan secured b}' this Mortgage. Be~rra~?er sha(I pay the premiums required tu maintain such
insurance in effect ~ntil such time as the reyuirement for such insurance terminates in accordance with Borrower's and
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