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UN~Fat?K CovEN~Nrs. Borrower and Lender cov~nant and agrre as follows:
1. tayment of Principal and Inlerest. Barrower shait promptly pay when due the priucipai of and interest on ihe
iadtbttdness tvidtnced by the Note, prepayment and late chargrs a. provided ~n the Nott, and the principal of and interes~
on any Futurc Advances secured by this Mo~tgage.
2. Pbads for Tuts aad lnsurance. Subject ta applic~blc taw ~~r to a written waiver by Lender, Borrower shall pay
to L.ender on the day monthly installments of principat and in~~rc~t arr ~ayahtc emder the Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the yearl~ ~a~c. and assessments which may attain priority aver this
Morigage, and ground rents on the Pmperty, if any. Flus one-twelfth ot ~•early premium installments for haZard insurance,
plus one-twelfth of yearly premium installmen~s for mortgage insurancc. if any, all as reasonabty estimated initially and from
time to time by Lender on the basis ot asses.mcnts and hills and re:~sonable estimates ihereof.
The Funds shaN be htld in an ins~itutian ~he depos~t~ or accounts at which are insured or guaranteed by a Federal or
state agency (including Lender if l.ender is such an institution). 1_ender ~hall apply tht Funds to pay said taxes, assessments,
insurance pnemiums a~d ground rents. l.ender may not charge tor sc? holding and applying the F~~rtds. analyzing said account.
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the fiunds and applicable law
permits Lender to make such a charge. Borrower and ~ender may agree in writing at the time of execution oi this
Mortgage that interest on the fiunds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, Lendtr shall not be required to pay Borrower any interest or earnings an the Funds. Lender ~
shalt give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which tach debit 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 with the future monthly installments of Funds payablc prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pa}• said taxes,
asstssments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
prompdy repaid to Borrower or credited to Borrower on monthly installme~ts of Funds. If the am~unt of the ~unds
held by I.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to makc up 1he deficiency within 30 days from the date notice is mailed
by I.ender to Bortower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, I.ender sha!! promptly refund to Borrower any Funds j
held by I.ender. If under paragraph l$ hereof !he Property is sold or the Properry is otherwise acquired by Lender, Lender 1
shall apply. no later thaR immediately prior to the sale of the Property or its acquisition by L.ender, any Funds held by I
Ltndet at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless appticable law provides otherwise, a!1 payments received by Lender unJer the
Note and paragraphs 1 and 2 hereof shall be applied by l.ender first in payment of amounts payable to Lender by Borrower '
under pazagraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then ro interest and i
principal on any Future Advances. ~
4.~ C6arges; Liens. Borrower shall pay all taxes, assessments and othcr charges, fines and 'empositions attributable to
the Property which may attain a priority over this Nortgage, and leasehold payments or ground rents, if any, in the manner
ptovided under paragraph 2 hereof or. if not paid in such manner, b} Borrower making payment, when due, directly te the
payce thereof. Borrower shall prompdy furnish to Lender all nodces of amounts due under this paragraph, and ia the event
Borrower shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing such payments. 1
Borcower sha11 promptly diuharge any lien which has priority over this Mortgage; provided, that Borrower shall not be ~
rcquired to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to [.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the l~en or forfeiture of the Property or any part thereof.
S. Hazud I~rranct. Borrower shaU keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and 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 ~by this Mortgage.
'Rie insurartce carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
that such approval shall not be unreasonably withhetd. All premiums on insurance policia 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 curier.
A!1 insurance policies and reneuals thereof sha~l be in form acceptable 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 thereuf,
and $orrower shall proroptly furnish to Lender all renewal notices and al[ receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make pr.~of of loss if not made promptly
by Borrower.
Unless Lender and $orrower otherw~isc: agree in writing, insurance proceeds shap be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If 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 by this Mortgage, with the excess, if an}~, paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by L.ender to Borrower that the insurance carrier ofTers to settle a elaim for insurance benefits, L.ender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of ihe Propeti~~
or to the sums secured by this Mortgage. ,
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or Qostpone the due date of the monthly instatlments referred to in paragraphs 1 and 2 hereof or change the amount of
such instal~ments. If under paragraph 0 8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
:n and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to ihc sale
or acquisitiun shali pass to lxnder to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presen•atiort and ~taintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrow~er
shall keep the Propeny in good repair and shall not comro~t waste or permit impairment or deterioration of the Property
and shafl comply with the provisions of any lease if this Mortgage is on a leaseho(d. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governiRg the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit developmenr, and constituent documems. If'a condominium or planned unit_cievelopment
rider is executed by Botrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shail amend and supplement the co~~enants and agreements of this Mortgage ~s if the rider
were a part hereof.
7. Protectiob of Lender's Securfty. If Borrower fails ro perform the covenanis and agreements cont~ined in this
Mortgage, or if any action or proceeding is commenced which materially afiects t_ender's interest in the Praperty,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involtiing a
bankrupt or decedent, then Lender at Zender's optinn, 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 attomey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrow~er shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates ~n accordancP with Borrower's and
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go~X ~Q~ par,E 949
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