HomeMy WebLinkAbout0972 ~ ~t ~t ~ ~
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UNtFO~ CovEN~Nrs. Borrower and LenJer covenant and agree as follows:
l. Tane~t ot Principal a~d IMe~est. Borrower shall prompQy pay when due the principa! of aod interest on the
indebtedntst evidenced by the Note, prepaycnent and late ch~rge~ a~ provEded in the Nole, and the principal of and intercst
on aoy Futurc Advances xcured by this Mortgage.
2. Fb~ds for Tasa ~ lawrs~ce. Subject to applicahle lav? ~?r to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal anJ int~rrc~ .,rr payahle under the Note, until the Note is paid in full.
s sum (1~ercin "Funds") equal to one-twclfth of the yearl~ ta~c. anJ assessment~ which may attain priarity over this
Mortgage, and ground rents on the Property, if any. plus one-twelfth oi yearly premium installments for hazard insurance,
plus one-twelfth of yearly premium installmen~s for mortgage insurance. if any, all as reasonably estimated initially and from
time to time by Lender on the basis of assescments and hills and rea~onable rstimates thereof.
The Funds shall be held in an institution the deposits or ~ccounts of which are insured or guarante~d by a Federal or
state agency (including Lender if Lender is auch an institution). I.ender ~hall apply the Funds to pay said taxes, assessments,
insurance prcmiums and ground rents. l.ender may not charge tor u? holding and applying the F~inds. analyzing said a~count.
or verifying and compiling said assessments and bills, unless t_ender pays Borrower intcrest on the Funds and applicable law
permits Lender to make such a charge. Barrower and Lender may agree in writing at the time ot execution of this
Mortgage that interext on the Funds shall be paid to Borrower, and unless such agreement is made o~ applicable law
requires such interest to be paid, Lender shail not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrowtr, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpcue for which each 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 fuwre monthiy installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rent~, shall exceed the amount required to pay said taxes,
asse~sments, insurance premiums and ground rents as they fall due, such ezcess shall be, at Borrower's option, either
prompdy repaid to Borrower or crediled to Borrower on monthly installments of Funds. If the amount o( the Funds
6eld by L.eoder shall not be suftcient to pay taxes, assessments, insurancc premiums and ground rents as they fall due,
Borro~ver sball pay to Londer any amount necessary ro make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upna payment in full of all sums secured by this Mortgage, I_ender shall promptly refund to Borrower any Funds
held by L.ender. If under paragraph 18 hereof the Property u sold or the Property is otherwise acquired by Lender, Lender
a6a11 apply, no later than immediatcly prior to the sale of the Property or its acquisition by Lender, any Funds held by
L.ender at the time of application as a credit against the sums secured by this Mongage.
3. Appiication of Payments. Unless applicable law provides othen+~ise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hercof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances. '
1. CLat~a; Lieas. Borrower shall pay all taxes, assessments and othcr charges, fines and 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, by Borrower making payment, when due, ciirectly to the
payoe thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragriph, and in the event
Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments.
Bonowu shall promptfy dixharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
suc6 lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legai pcoceedings which operate t8 prevent the enforcement of the lien or foefeiture of the Property or any part thereof.
S. Huard Insuranee. Borrower shall keep the improvements now e!cisting or hereafter erecred 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 requirc; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to 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 unreasonably withheid. All premioms on insurance policies 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 cazrier.
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~ All insurance policie~ anJ renewals thereof shall be: in form acceptable to Lender and shall indude a standard mortgage
~ clause in favor of and in form acceptable to Lender. I_ender shall have the right to hoid the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
? Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
~ by Bonower. '
Unless Lender and Borrow•er othen+•is.: agree ~n writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, Rrovided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. ]f su~h 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 any, pa?d
to Borrower. If the Propert}' is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at [_ender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless I.ender and Borruwer otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpune the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
suc6 instaUmeots. If under paragraph 18 hereof the Property is acquired by I.ender, 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 aoquisition shall pass to Lender to the extent of the sums secured by this Martgage immediately prior to such sale or
acquisition.
~ 6. Prtservation aad Maintenance of Property; Leasehulds; Condominiums; Planaed Unit DeveloQments. Borrower
shall kcep the Property in good repair and shall not comroit waste or permit impairment or deterioration of the Property
F and shall comply with the provisions of any iease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrouer shall perform all of Borrower's obligations under the declaration
~ or covenants creating or governing the condominium or planned unit develvpment, the by-laws and regulations of the
~ condominium or planoed unit development, and constituent documentc. If a condominium or planned unit development
~ rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such tidcr
~ shall be incorporated into and shalt amend and supplement the covenants and agreements of this Mongage as if the rider
were a part hereof.
7. Protection of Leader's Securfty. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially afiects Lender's interest in the Property,
~ ittcluding, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then L.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
aums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
~ reasonable attomey's fecs and entry upon the Property ro make repairs. If Lender req:~ircd mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the pren:~ums required to maintain such
~ insurance in eflect until such time as the requirement for such insurance terminates in accor,~iancP w;th Borrower's and
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