HomeMy WebLinkAbout0370 UNtFORM CoveN~NTS. Borrower and LenJer covenani and agroc as follows:
l. Paymeot uf Principd ~nd Intereat. Borrower shaq pramptly pay w~hcn duc thc principal of and intcrest o•~ thc
indebtrdness eviJenced hy thc NMc, prcpayment and latc charges a+ provided in thc Notc, and Ihc principal of and intrrest
on any Future /ldvances secured by this Mortgage.
Z. Funds [or Tana ~nd lasurance. Subject to applica6le law or to a written waiver by Lender. Borrawer shall p~y
to'.endcr on thc day monthly installments af principal and iotzrcct are payable undcr ~he Notc. until ~he Not~ is paid in tull.
a sum (herein "Funds") equal Io une-tw•el(th ot thc yearly taxes anJ assessmenls which may atlain priority ovcr thi~
Mo~tgagc. and grouad ren4s on the Arope~ty. if any, plus one-twcl(th ot yearly premium installme~ts tor hazard in+urancc.
plus or~e-tN~eltth of yearly prcmium inctallments for mortgagc insurance. if any. all ss reasonably estim.ted initially and from
time to timc by Lender on the basis of assessmcnts and bills and.ceasonable estimates thereof.
The Funds shall bc held in an ins~itution the deposits or~Fcounts of which are insured o~ guaranteed by a Federal or
state agency (including Lende~ it I.ender is such an institution). l.ender shall apply the Funds to pay said taxes. assessments,
i~surance premiums and ground rents. l.e~ider oiay not charge (ur so holding and applying Ihe Funds. analyzing said account,
or verifying anJ compiling said asxssments and bills~ unless l.ender pays Borrow~er interest uo the FunJs and applicahlc law
petmits l_ender to make such a charge. Rarrawer and [xncler may agree in writing at the time of execution of this
Mortgage ihat intercst on the Funds shatl be paid to Borrower. and unless such agreement is made or applicable law
rcquira such interest to bc paid. Le~der shall not bc requirrJ to p~y Borrower any interest or earni~gs on the Funds. I.cnder
shall givc to Borrower~ without charge. an annual accounting of the Funds showing credits anJ d~bits to the Funds and the
purpose for which each dcbit tu the Funds was mad~. The Funds a~e pledged as additional security for the sums secured
by tbis Mortgage.
If the amount of the Funds held by Lender. together with Ihe futurc monthly installments of Funds payablc prior to
the due dates of taxa. assessments~ insurance premiums and ground ~ents. shall exceed the amount requircd to pay said tax~s.
assessment~S. insurance premiums and ground rents as thcy (all due, cuch excess shall be. at Borrower s option. either
promptly repaid to Borrower or cradited to Borrnwer on monthly installments of Funds. If the amount o[ the Funds
held by I.endcr shall not be suflicient to pay taxes. assessments, insurancc premiums and ground rents as they falt due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days (rom the date notice is mailed
by Leader to Borrower requ~sting payment thereof.
Upon payment in full of dl tums secured by this Mortgage, I.ender shall promptty refund to Barrower any Funds
held by L.ender. If under paragraph 18 hereof the Proprrty is sold or the Property is wherwise acquired by Lender. Lender
shall apply. no (ater than immediately prior to Ihe sale of the Property or i1s acquisition by Lender, any Funds held by
I.ender at the time of application as a credit against the sums securod by this Mortgage.
3. Application of Paymeats. Unless applicable law provicks otherwiu, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied b~ I_cnder first in payment of amounts payablc to Lender by Borrow~er
under paragraph 2 hereof, then to interest payablc on thc Note. then to the principal of the Notc. and then to interest and
principal on any Futun Advanoes. -
4. Cbarges; Lkns. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributahle to
the Properiy which may attain a priority over this I?lortgage. and kasehold 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
payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event
Borrower shall make payment dircet{y. Bortower sha~l) promptty fumish to I.ender 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 w long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to I.ender, or shall in goa! faith contest such lien by. or defend en(orcement of such lien in.
legal pruceedings which operate to prevent the enforcement ot the lien or [or[eiture of the Property or any part thereof.
S. Huard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property ins~~red
against loss by ,fire, hazards included within the tnrm "extended coverage". and such other hazards as I~nder may require
and in such amounts and for such periods as Lender may requi[c; provided. that Lender shall not requirc that ihe amount of
; such coverage exceed that amount of coverage required to pay the sums secured by this Mongage.
~ 'il~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by [.ender, pro~ided.
' that such approval shall not be unreasonably withheld. All premiums 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 carrier.
~ All insurance policies and renew•ais thereof shall ba in form acceptable to Lender and shall include a standard mortgage
~ clause in favor of and in form acceptabte to I.ender. ' Lender shall have the right to hold the policies and renewals thereof,
~ and Borrower shall promptly furnisfi to Lender all renew~al notices and all receipts of paid premiums. In the event of lois.
Bonower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made pramptly
~ by Borrower.
~ Unless Lender and Borrower otherwise agree in wr:ting, insurance proceeds shall be applied to rcstoration or rtpair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impa;red. 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 ucured by this Mortgage, with the eacess. if any, paid
to Borrower. If the Propeny is abandoned by Borrower, or if Borrower fails to rapond to Lender within 30 days from the
date notice is mailed by L,ender to Borrower that the insurance catrier often to settle a ciaim for insurance benefits. Lender
is aut6oriud to collect and apply the insurance proceeds at Lender's option eit6er to ratoration or repair of the Property
or to the sums ucurod by tbis Mortgage.
Unless Lender and Bonower otherwise agree in writing, any such application of proceeds to principat shall not extend
or postpone the due date of ihe monthly installments referred to in paragraphs 1 anJ 2 hereof or change the amount of
such installments. If under paragraph t8 hereof the Property is acquired by Lender, all right, title and interest of Borrow•er
in and to any insurance policies and in and to the proceeds thereof resufting from damage to the Property prior to the sale
or acquisition shall pass to i.ender to the exteat of the sums secured by this riortgage immediately prior to such sale or
acquisition.
~ 6. Preservalion and Maintenance of Properly; I,easeholds; Condominiums; Planned linit Ue~•ebpments. Rorrow•cr
~ shall keep ihc Propetty ia good repair and shall not commit w•astc or permit impairment or deterioration of the Propcny
and shalt comply with the provisions of any leau it tl~is 111ortgage is on a leasehold. If this !~tortgagc is on a unit in a
~ condominium or a planned unit developmcnt. Borrower shall perform all of Borrower's obligations under the dCClaf:~tl0l1
or covenants creating or governing the condominium or planned unit development, the by-law, anJ regulationt of the
conJominium or planned unit devetopment. and constituent documents. a conJominium or planned unit de~~elopment
rider is executed by Borrow•er and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incocporated into and shall amend anJ supplcment the covenants and agreements o( this Mortgage as i[ the rider
~ wcre a part hereof.
7. Protection ot Lende~s Security. If Borrower fails to perform the covenants anJ agreements cnntained in this
Mor~gage. or if any action or proceeding is commenccd which materially atCects [_enJer's interett in the Property.
including. but not limited to, eminent domain, in~olvency. code enforcement. or arrangements or proceedings invol.•ing a
bankrupt or decedent, then Lender at I.ender's option, uj+on notice to Borrow•er, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender s imcrest. including, but not limi~ed te, di~bursement of
reasonable at~omey's fees and en~ry upon the Property to make repairc. If Lender requircd mortgage insurance as a
condition of mal:ing the loan secured by this Mongage. Borrower shalt pay the premiums iequired to maintain such
insurancc in ~ftect until such time as the reyuirement tor such insurance terminates in accordancc with BorroK•er s and
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