HomeMy WebLinkAbout0965 UntFO~ Co~~t~,~xts, Borro.?•et and Lender covenant and agrce as lollovvs;
1. Pa~~ncat ot Princlpa! aad Interest. Borrow~at sha11 promptl~~ pay v?•hen ~due the principal of and interest on the
indebtcd~eu evidtnced by the Note, ptepayment and late charges as provided in the Note. and the principal of and inlerest
on any Future Advances secured by this Mortgage.
2. Funds for Ta~ca and Iasunace. Subjeet to applicable law or to a written v~•aiver by Lender. Borrowe~ sha11 pay
to Lende~ on the day mouthly instaltments of principal and inlerest are payable under tha Note. until th~ Note is paid in full.
a sum (htrtin '~unds'~ equal to one-twelfth of ttu yearly taxes and assessmentt which may attain priority over ihis
Morigage. and ground rents on the Property. if any, plus one-twellth oi yearly premium installments for huard insurance, =
plus one-twelfth of yeuly prernium iarialimenta for mortgage insurance. if aay. all u nasonably ostimated initially and from `
time to time by Lea~r on the basis of assessments and bills a~d reasonable estimates thereof. ~
'!'be Funds shall be held in an institution the depoaits or accounts of which an insured or gvsranteed by a F~leral or~
sbte agency (including Lender if I.ender is such an institution). Lender shall apply the Funds to pay said taxes, asseuments~
insuraacx premiums and ground rents. L.ender may not charge for so holding and applying the Funds, analyiing said account~
or verifying and compiliag said asussments and bills~ unless Lender pays Borrower interest on tbe Funds and applicable law
permits I.ender to make such a charge. Borrower and L,ender may aRrce in writing at !he time o[ execution oi this
Mortgage t}~at interat on ihe Funds shall be paid to Borrower. and unless such agreement is made or applicable law
requires such interest to be paid, Lcnder shall not be required to pay Borrower any interest or eamings on the Funds. Lender
shaU give to Borrower, without charge, an annual accounting of the Fu~ds showing credits and debits to the Fuads and the
- putpose for which eac6 debit to the Funds waz made. 'Ibe Funds arc pledgcd as additional socurity fot the sums secured
by this Mortga~e. .
If the amount of tbe Funds held by Lendcr, together with the future monthly installmeats of Funds payable prior to
the due data of taxes. assessments~ insurance premiums and ground rents. shall exceed the amouat required to pay said taxa.
asssssments. insuranca premiums and ground rents as they fall due, such excess shall be, at Borrower's option, eithrr
prompdy repaid to Bornower or credited to Borrowtr on moathly installments of Funds. If the amount of the Funds
he]d by Lender shall not be sufficient to pay taxes, assessments. insurance pnmiums and ground rents as lhey fall due.
Borrower s6a11 pay to Leoder any amount nxessary to make up the deficiency within 30 da~~s from the date notice is mailed
by I.ender to Borrower requesting payment thereof.
Upon piymeat in full of ali swns securtd by this Mortgage, Lender shall promptly refund to Borrower any Funds
_ held by I.ender. If unda paragrapb IS hereof the Property is sold or the Property is otherwise acquire~ by Lander. Lender
shal) apply, no later than immediately prior to the sale of the Property or its acquisition by L.~nder. any Funds hcld by
I.ende~ at the tirae of application as a credit against the sums sccured by this Mortgage.
3. Applicatioe of Payments. Unless applicable law~ provides otherwise, all paym~nts recei~ed by Lender under the
Note aad paragraphs 1 and 2 hereof shalt be applicd by Lender first in pa~~meni of amounts payable to Lender by BorroW~er
under paragraph 2 bereof. then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Futore Advanoes.
4• C6arges; Liens. Borrower shall pay all taxes, asuuments and other charges. fines and impositions attributable to
the Property which mzy attain a priority over this Mortgage. and leasehold .payments or ground rents~ if any, in the manner
provided uader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
payee ibereoi. Borrower sha1l pmmptly fwnish to Lender all notices of amounts due under this paragrsph~ and in the event
Borrower shall malce payment dirtctly. Borrower shall promptly furnish to I.ender receipts evidenciog such paymenu. .
Borrower sha11 promptly dischuge any lien which has priority over this Mortgage; provided, that Borrower shall not be '
required to discharge any such lien so fong as Borrower shall agree in writing to the paym~nt of the obligation secured by
aucb tien in a manner.aaeptabk to Lender, or sha11 in good faith contat such lien by, or defend eoforcemcnt of such lien iri,
legal proceediags which operate to prevent the enforcement of the lien or fodeiture of ihe Property or any part thereof.
S. Auard Inmrance: Borrower shall keep th~ improvements ~ow existing or hereafter erected on the Property iosured
against loss by Sre, hazar~ds included within the term "extended coverage", and such other hazards as I.ender may rcquirc
and ia such amounts and for such periods as Lender may cequire; provided. that Lender shall noi require ihat ihe amount of
sueb cover~ge exceed lhat amount of coverage requiral to pay the sums secured by this Mortgago.
'Ibe inwrance carrier providing the insurance shall be chosen by Bonower subject to approva] by L.ender, provided~
that such approval sba11 not be unreasonably withheld. All premiums on insurance policies sball be paid in the manner
providcd under paragrap6 2 hereof or, if not paid in such manner. by Borrower making payment, when due. directly to the
insurance carrip:
All insurance policies and renewals thereof sha11 be in fotm acceptable to Lender and shal) include a standard mortgage '
clauu in favor of and in form acceptable to L,ender. I.ender shall have the right to hold ihe policiu and renewals thereof.
and Bortovrer shall promptly furnish to Geader ail tenewal notices and all receipts of paid premiums. Ia tbe evtnt of loss,
Borrower shall give prompt notice to the insurance carrier and L.tnder. Lender may make proof of loss if not mad~ promptly
by Borrower. '
Unless L.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is ~conomicalty teasibie and the security of this Mortgage es
not thereby impaired. If such restoration or repair is not economically. [easible or if the uce~rity of tfiis Mortgage v~•ould -
be impaired, ihe insurance proceeds shall be appli~d to the sums secured by this Mortgage, with the excess. if any. paid
to Borrower. If the Propetty is abandoned by Borrower, or if Borrower fails to respond to Lender within 39 days from th~
date notiu is mailed by Lender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, Lender
is authoriud to coJied and appiy the insurance procecds at Lendcr's option either to restoration or repair of the Propert~ ~
or to the sums securod by this Mortgage.
Un1us Lender and Borrower othetwise agree in writing, any such application of proceeds to principal shall not ertend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
sucb installments. 1i under paragraph t 8 hereof the Property is acyuired b~• l.ender, all right, tidc and interest of Borrow-er
in and to any insuraace policies and in and to ihe proceeds thereof resulting from damage to the Property prior to the sale
os acquisition shall pass to I.ender to the extent of the sums secured by this 1~tortgage immediatel~• prior to such sale or
acquisition. .
6. Prcsen~alion and ~iaintenance of Property; I.easeholds; Conduminiums; Planned Unit De.~elopments. Borto~cr i
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions o! any lease if this J~tortgage is on a leasehold. I( this I?lortgage is on a unit io a
condominium or a planntd unit de~•elopment, Borrou•er shal) perform all ot Borrov?•ei
s obligations under tht declaration
or covenants creating or governing ihe condominium or planned unit development. the by-law•s and regulations of thc
condominium or plann~d unit doveiopment, and constituent documents. 1! a condominium or planned nnit dcvelopmrnl
rider is extcuted by BorroW~er and recorded Iogether v?•i1h this A~ortgage, the covenants and agreements of such rider
shall be incorporated into and sball amend and supplement the cm•enants and agreements ot this Mortgage as if ~he ridcr
~•ere a paR hereof. ~
9. Prot~cijon ot I.cndec's Securtt~r If Borrower lails to per[orm the covenants and agreements contained in this
Mong~ge, or i[ any action or proceediag is commenced w•hich materially aRec~s Lender's interest in the Propcrt~.
including, but not limiied to, eminent domain, insolventy, code entorcement, or arrangements or proceedings invol.•ing a
bankrupt or decedent, then I,ender at Lender's op~ion, upon notiee to Borrower, may make such appearances. dishurse such j
sums and take cueh snion as is necessary to proiect I.ender i interest. including, but not limited to, disbursemcnt c+f f
reasonable attomey's lccs and entry upon the Propcrty to make repairs. If I.endcr requercd mortgage insurance as a
condition oi makiaa the loan secured by this I?iortgage, Borrower shall pay the premiums required to maintain ~uch
insurance ia efteet until sucb time as ihe requirement for such insurance terminates in accordance with Borsow~er's and
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