HomeMy WebLinkAbout0943 UNrnatt?~ Covetvet~trs. Borrower and l.ender covenant and agrce as follows:
l. ~'s~eat ot Priacipd asd lnterat. Borrower shall promptly pay wt?en due the principal of and interest on the
iadebtedness evide~ced by the Note. prepaymeat ~nd late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Ftiwd~ ior Tua aod Iewrsece. Subject to applicabk law or to a written waiver by Lender, Boirowsr shall pay
to Lender on the day moothly installmenls of principal and interest are payable under the Note. until thc Note is paid in full.
a sum (herein "Funds") equal to onatwel[th of the yearly taxes and assessments which may attain priority over this
Mortgage. and ground rents on the Property, if aay, plus oae-twelfth of yearly premium installme~ts for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initia!!y and from
time to time by Lender on the basis of assessments and bills and reasonable estimates theteof.
The Funds shall beLold in an institution the deposits or accounts of which are insured or guaranteed by a Fede(al or
state agency (including Lender if L.ender is such art institution). Lender shall app{y the Funds to pay said ta~ces, assessments,
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
or verifying 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 Lender may agree in writing at the time of execution of this
Mortgalte that interest on the Fnn~c eF~~ll M..o:.i o^cr`:;•i:, =.,-~y ' yu::l agic;~,iii'a:itt i's TitnQ2 vi s~~YUCdblt IaW
requires 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, wilhout charge, an annual accounting of the Funcis showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums securecl
by this Mortgage.
lf the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taues, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and gcound rents as they (all due, such excess shaff be, at Borrower s option, either
promptly repaid to Borrower or credited to Bormwer on monthly installments of Funds. If the amount of the Funds
hetd by Lender shail not be sut~icient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any a~nount necessary to make up the deficiency within 30 daps from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, I_ender shall promptly refund to Borrower any Funds
held by I.ender. If under paragraph 18 hereof the Praperty is sold or the Property is atherwise acquired by Lender, Lender
shall apply, no latec than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Applicatioa of Paymeats. Unless applicable law• provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the I~ote, then to the principal of the Note. and then to interest and
principal on any Future Advances.
4. C6arges; Lieos. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributab{e to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall 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 lxnder receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shali 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,
legal Qroceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pan thereof.
j 5. Hazard Insurance. Borrower shall keep the improvements now• existing or hereaftcr erected on the Property insured
'i against loss by fire, hazards included within the term "extended coverage", and such oiher hazards as Lender may require
a~d in such amounts and for such periods as Lender may require; 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.
j 'I~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
j that such approval shall nat be unreasonabfy withhetd. All premiums on insurance policies shall be paid in the manner
f provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
t insurance carrier.
€ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
; clause in favor of and in form acceptable to Lender. Lender shail have the right to hold 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 Ioss if not made promptly
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by Borrower.
Unless Lender and Borrower othecwise agree in wri.ing, insurance proceeds shalf be applied to restoration or repair of
~ the Property damaged, provided such restoration or repair is economically feasib(e and ihe 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 any, paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 da)s from the
~ date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a daim for insurance benefits, Leader
~ is authorized to collect and apply t6e insurance proceeds at Lender's option either to restoration or repair of the Property
~ or to the sums secured by this Morlgage.
s Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shafl not extend _i
~ or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
~ such installments. lf under paragraph l8 hereof the Property is acquired by Lender, all right, tide and~ interest of Borrower
z in and to an~~ +nsurance policies and in and to the proceeds t6e~eof 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 immediate{y prior to such sale or
acyuisition.
; 6. Presenation and ltaiatenance of Property; Leueholds; Condominiums; Plaoned Unit Developments. Borrower
~ shall keep thc Property in good repair and shali not commit waste or permit impairment or deterioration of the Property
and shall cemply with the provisions of any lease if this Mortgage is on a leasehotd. 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 governing the condominium or planned unit development, the by-laws and regulations of the
condominiucn or planned unit development, and constituent documents. ti a condominium or planned unit de~~elopment
' rider is executed by Bormwer and recorded together with this Mortgage, the covenants and agreements of sueh rider
` shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
~ 7. Protectioa of I.ender's Security. If Sorrower faits to perform the covenants and agreements contained in this
Mortgag~:, or if any action or proceeding is commenced which materiatly a8ects Lender's interest in the Property,
including. but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, 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 Propeny to make repa+rs. If Lender required mortgage insurance as a
condition of mal:ing the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such ~
insurance in effect until such time as the requirement for such insuranc~ terminates in accordance with Borrower s and ; 3
~ ~;.~~~412 pa~ 941
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