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Ur~dt~t Caver+~ts. Barrower and I.aider covenant and asree u tollows:
1. ti~eM ~f hb~e1N1 ri I~tere~st. Borrowsr shall promptlY paY whee due the priacipal of and iatecest on the
indebtedness evideneed by the Note, prepayment and late chargts as provided in the Note, and the pri~cipal of and interat
an tap Puture Ad~rances s~cured by this Mort~aae.
t!~i tor T~ as~ l~racs~ce. Sub}ect to applkab{e law or to a written wsiver by Lender. so,TOW« ~~n wr I'I
ta Lender o~ the day monthly instaHments of princigal and interest arc payaWe under the Note, until the Nate is paid in tull.
• iwn (l~ercin "Funds'7 equa! to one-twel(th of ihe yeariy taxes and usessme~ts which may attain prioriry over this
Mat=age, and gnwnd rent: on the Property, i1 any. plus one-tweif[h of yearly prcmium installments for hazard insuranoe. ~
plus one-twelfth of yearly premium installments for mortgage insurance, if any, al{ u reuonably estimated initially and froaa
time to ti~x by Ltnder on the basis of asussmtnts and bills and reasonablt estimates theceof. ;
'i?~e Funds shall be htld in an institution the deposits or accounts of which are insurcd or guaranteed by a Federal ot ;
state age~cy (including Lendet if Lender is such an instiwtion). l.ender shall apply the Funds to pay said taxes, asscssmeots. '
iruurance ptemiums and ground rents. Lende~ may not chargt for so holding and app{ying tht Funds, analyzin~ uid accounl,
or verifying and compiling said assessments and bills, unless Lender pays Horrower interest on the Funds and applicable law
permits Ltnder to make such a charge. Borrower and Lrnder may agree in writing at the time of execution of this
Moctgage that +nterest on the Funds shal{ t~t paid to Bor~ower, and unless such agreement is made or applicable law
rcquira such interat to be paid, Lender shall not bo required to pay Borrower any interut or carnings on the Fun~_ L.ender
shatl ~ive to Borrower, without charge, an annu2l accounting of tht Funds showing credits and debils to the Funds aad tht
purpoat tor which each debit to the Funds was made. The Funds are pledged as additional security for the sums securcd
by this MortQaQc.
If the amount of the Funds hetd by Lendcr, together with the future monthly installments of Funds payabte prior to
the due dates of taxa, assessments, insurance premiums and ground rents, shall exceed the amount rcquired to pay said taxa,
asxssments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either '
protnptly reQaid to Bormwer or credited to Borrower on monshly insta{{ments of Funds. If the amount of the Funds ~
heW by I.ender shall ~ot be sufficieat to pay taxa, assessmcnts, insurance prcmiums and ground rents u they fall due.
Bortrnver shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lsader to Borrower nquesting payment thereoi. ~
Upon payment in full of all sums secured by this Mongage, l.es?der shall prompt{y refund to 8orrowtr any Fund: ~
held by Lender. If under paragraph 18 hereof the Property is sold or thc Property is otherwise acquircd by Lender, Latder
shall apply, no later than immediately prior to the sale of the Property or its acquisition by [.ender, any Funds held by '
Leflder at the time of app{ication as a eredit against the sums secured by th~s Mortgage. '
3. ApplicsUiun of paymeets. Unless applicable law pro~ides otherwise. ali payments received by Lender under the
Note and paragraphs I and 2 hereof shall be appJied by Lcnder first in papment of amounts payabte to lender by Borrowet
under paragraph 2 heroof, then to interest payable on thc Nute. then to thc principal of the Note, and then to interest and
principal on any Future Advances.
C6ac~es; Lkns. Borrower sha{1 pay al{ ta~es. assessmcnts and othcr charges. firxs and impositions attributable to
the Property which may attain a priority over this Mortgage. and leasehald payment~ or ground rents, if any, in the ~s+anner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrowcr making payment, when due, directly to the
payte thereof. 8orrower shall promptly furnish tu Lender all notices of amounts ~ue under this paragraph, and in the event
Borrower shall make payment dire.-,tt~~. Sorrav?cr shall prompt{} furnisfi to Lcnder receipts evidencing such payments.
Borrower shall promptly Jixharge any lien whirh has ~rionty uver thiti Mortgage; provided, that Borrower shall not be
rcquired to discharge any such lien so long as Borrower shall ~gree in Hrit~ng to the pa~ment of the obliga~ion secured by
such lien in a manner acceptable to Lender, or shall in gcxxf faith conte~t such lien by, or defen~! enfotcement of such lien in,
legal proceedings which operate to pcevent the enfvrcement of the tien or forfeiture of the Property or any pari theteof.
S. Huud Insunnce. Borrower shall kcep the improvcmc~ts nou exicting on c~reafter erected on the Pcoperty insurod
agai~t loss by fire, hazards included within the term -'~~tende.l rovrrage". and such other hazards as Lender may require
and in such amounts and for such periudc a~ Lcnder may require; provided, that LenJer shafl not require that the amount of
such coverage exceed that am~~unt of coverage r~quired to pay the ~ums secured hy this Mor~gage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to appro~al by Lender, provided,
tbat such approval shall not be unreasonahly wilhheld. All premium~ on insurance policies shall be paid in the mannsr
providtd under paragraph 2 hereoF or, if not paid in such manner, by Borrowtr making Qayment, when due, directly to the
j insurance carrier.
~ All insurance policies and renewals thereof shal! be in form acreptable to LenJer ana shap include a standard mortgage
` clause in favor of and in form acceptable to Lender. Lcnder ~hall hatie the right to hold the policies and renewals thereof,
~ and Borrower shafl promptty furnish to Lender all renewal notices and ali receipts of paid premium~. In the event of loss.
Burtower shall give prompt noRce to the inwrasice wrn~r a~tid l.ender. {.en~er ma~ make proof of loss if not made-prompdy
by Borrower.
~ Un}ess Lender and Borrower othcrwi~e agree in w riting, insuranre prorecdc shall be applied to resroration or repair of
~ the Property damaged, provided such resturau~~n or repair is ec~nomically feasible and the security of this Mortgage is
not Ihereby impa~red. If such re~torat~on or repair is n~~t ecvn.~micall}• fcasible or if the security of tfiis Mortgage would
be impaired, the insurance pro~eeds shall be applieJ to the.5ums .ecurecl b}~ this ~lortgage. with the excess, if any. paid
to Borrower. tf the Property is abandoned b~ Borrower, or ~f Borrower fails to respond to l.ender within 30 days from the
date notice is mailed by Lendtr to $orruwer tha~ the insurance carrier flfters to settle a claim for insurance bene6ts, I.zndtr
is authoriud ro colled :ind apply the imurance p~c~ceed~ at LenJer's option eithet to restoration or repair of the Properiy ~
or to the wm> >ecured by ihis Mortgage.
Unless Lender and Borro~er otherwi,e agree ~n wnting, any such appli:~sion af proceeds to principal shall not extend
or postpone the d?ic date of the monthly in.tallmemc rcferred tu in paragraph~ 1.inJ 2 hereoE or changc ~he amount of
such instaUmenh. If under patagraph -I8 hereof the Pmpert~ i, acyuired h~ Lendcr. all right, tide and in?erest of Borrowtr
in and to any ~nsurance policies and in and to th~ proceeds thereof result,ng frum dam~ge to the Properry prior to the sak
or acyuisition shall pass to Lender to the extent of the ~ums secured by this ~tortgage immediately prior to such sale or
acguisition. ~
6. Presenalion and Nti~len~nce of Properi}; Leauhulds; Condominiums; Ptanned Unit Ikvelopmenls. Borrower
shall keep the Property in gaxl repair and shall not commii Haste or permit imp.,irment or deterioration of the Property
~ and sha11 comPly with the provisions uf any lease if thu ,tilortgage ~s on a leasehold. If this Mortgage is on a unit in a
condominium ot a ptanned unit deve{opmcnt. 8orroµ•er shal{ perform all of Bormwer's obl~gations under the dedaration
~ or covenants creating or governing the condominium or plan~ed u~it development, the by-laws and regutations of the
a ccuidominium or planped unit development, and constituem documents. If a con~ominium or planned unit develoQment
e nJer is executed by Borrower and recorded togethe~ with this Mortgage, the covenants and agreements of suCh rider
~ sh~ll be incorporated into and shall amend and aupplcment the covenants and agreements of this Mortgage u if the rider
were a parc hereof.
~ '7. Protection ot Lender's Security. If Bortower fails to perform the covenants and ag~eeme~ts containod in this
~ Mortgage, or if any action or procceding is commenced which materially aHects Lender's interat in the Property,
including. but not iimited to. eminent domain, irtsoldency, code entorcement, or arrangements or proceedings involving a
~ bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, ma~~ make such appearances, disburx such
~ sums and take such action as is oecessary to protect Ltnder's interest, including, but not limited to, disbursement of
~ reuonable attomey's fees and entry upor. the Properry to make rcpairs. If Lender required mortgagt insurance u a
~ candition of making the loan secured by this Mongage, Borrowcr shall pay the premiums required to maint~in such
~ ia;urance in eftect until such time as the requirement for such ,nsurance terminates in accordance with Borrower s arzd
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P.T t'-. , sa~c .
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