HomeMy WebLinkAbout0224 UN~FORM COYENANTS. Borrowcr and l.cndrr c~~vcnam :~nd :,~;~~ti a~ taUuv?s:
l. Psymeat of Priacipal and tnterest. Hurrrwc~ .halt ~ r~~mptt~ pay Nhcn dur thr prin~i~~.~i +~f ~nd interest un ~h~
~~debtedness evidenced hy the Note, prepayment anJ latc ch.irt~. ~nn•i~ird m ~he Note. and the principal of and ~nteres~
on any Futurc Advances securcd by this Mongage.
2. Funds tot Taxes aad /asuhace. Subjcrt to appfi;.~t l~ Iaa w:~ Nreuen u•aiver by I.ender, Borrower shall pa~~
to I.encicr on the day monthly installmentc of princip.~l and int~•rr.~ .~rc ~a~ahl~ undcr thc Notc, until Ihe Note is paid in iuii.
a sum (hercin "FunJs") equal tn ono-twclhh thc vrarl> :a~~. anJ a~ks,oxntc which may auain priority ovcr th~c
Mortgage, and ground rents on the Pr~c?E?erty, if any. ptus ~~nc-t~~rlf~h ot ~•carly prcmium installme~ts for hazard insur:~~fce,
plus one-twelfth of yearty premium installmrn~s for mongage i~»urancr. any, all az reasonably estimatcd initialiy and trom
time to timC by 1_endCr on thc basi~ of a.~e~•mcnls ~nJ h~~~~ ;~~~a r~,,,~,~~~hlr est~mates thercof.
'f~e Funds shall bc held in an inu~~uta?n th~ deEx+tii.. ur ,,«uun~s ut whirh are insurcd or guaranteed b}• a Fcderal or
state agency (including Lender ii ~cndrr ~..urh ~n insututi~~~~ i cnder ahall :~pp1}• the FunJs to pay s~id ~ates, assrssmcnl~,
insurance premiums and ground renu. 1 ender ma~• n~t charge t.~r holding and ap~?lying ~hc Fund~, analyzing ~aid acc.~unt.
or verifying and compiling saiJ asse~,mems and hilh, unle~a Lcnder pay~ Borrower interest an the Funds and applirahlr law
permits Lende~ !a make such a char~~. H~~rruwer and 1_cnJ~r ma~• ag~ee in writing at the timc ~~f c~ccuuun of thia
Mortgage that inlerest on ~he Funds ~h•rll he p:+id to f3orruwer, and unless such agreement i~ made ~.r applicable I;lN'
requires such interest to be paid, l.ender tihall n~~t tn rc~ywred tu [3orroWe~ an~ intrrest or earning, on Ihr f~und~. I.c;idcr `
shall give to Borrower, wilhoul charge. an annurl accvunting of the F=unJa ~hova•ing credits anJ debits to the Fund~ anJ tl~e
purpose for which each debit to tix Fund~ wa. maJe The t=unds an piedgeci a~ adJitional ~ei:urit~~ for the sun:, ,~tiurcJ
by this Mortgage.
If the amount of the Funds held by Len~k:r, tc~e~her Nith the tuture monthly instatlmentc uf Funds pa~ablc prior to
the due dates of taxes, as~essments, insurance premiums -rnd ground rrnts. shall e~ceed the amount reyuircd to pa} ,aid ta~es,
assessments, insurance premiums and ground rents ~s the)• faN due, such exrecs shall bt, at &~rrower's opUe~n. ~~ther
promptly repaid to Borrowtr or credited tu Borrower on monthty inst~llments of Funds. If the amount of thr Funds '
held by Lender shall not be sufficieat to pay taxes, assessmcnts, insurarxc premiumc and ground rents as they f~ll due,
Borrower shall pay to Lende~ any amount necessan• to make up Ihe deficienc~• within 30 dat•s from the date notice is n~ailyd
by Lender to Harrower requesting praymrnt ihercol.
Upon payment in full of all sums secured by th~s INor~gage. 1_ender shall prompUy refand to BorroMCr any Funds
held by Lender. If under paragraph 1R hereof the Propcrty sold or thc Propert}• is othervvise acquircd by I.ender, i_endcr
shall appty, no tater than immediatcly prior to thc sale of the Propertg or its acquisiteon by 1_eoder, any Funds heW bp
Lender at !he time of application as a credit agamst the sums secured by this htortgage_
3. Application of Psymeafs. Uolecs applicable taw pro~~ides c?therv?•ix, all payments reccived by l.cnder unJer thc
Note and paragraphs 1:uid 2 hereof shall be applied by Lcnder first in payment of amounts payable to Lender by $orrow•er
uader paragraph 2 hereof, then to intc~est payable on the Notc, then to the principal of the Note, and then to interest and #
prir~cipal on any Future Advances.
4. C6arges; Liens, Borrow~er shall pay all taxec, acsesSmcnts and othcr rharges, 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, i[ not paid in such manner, b~ Borrawe~ mai:ing payment, when due, directly to the
payoe thereof. Borrower shal! promptly furn~sh to Lender all noti+ces of amounis due under this paragraph, and in the event
Borrower shall make payment directl}. Borrower shall promp~ly furnish to l.ender receipts evidencing such payments.
Borrower shall promp0y discharge any lie~ w~hich has prionty o~er this Mortgage: provickd, that Borrower shall not be
required to discharge any such lien so tong as Borraw•er shafl agree in u rit~ng to the payment a( the obligation secured b}~
such lien in a manner acceptable to Lender, or shall in good faith contc~t such lien by, or defend enforcement of such lien in,
legal proceedings which operate tt~ prevent the enforcement of thc hen or forfeiture of the Property or any part thereof.
S. Hazard Insuraace. Borrower shall kcep the improvemen~~ noW existing or hereafter erected on the Property insured
agains[ toss by fire, hazards included within the term "extended coverage", and such other hazards as l.ender may reyuire
and in such amounts and for such periodc as Lcnder may requin; provided, that Lender shall not requirc that the amount of
suCh coverage exceed that amount of coverage required to pa}• the sums tecured by this Mortgage.
The insurance carrier providing ihe insurance shall be chosen by Borrower subject to approval by Lender, provided.
that such approval shall not be unreasonably withheld. All premiumc on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or. if not paid in such manner, b}• Borrow~er making payment, when due, directly to thc
insurance carrier.
All insurance policies anJ renewals thereof shall be in form arceptablc to Lender and shall inciude a standard mortgage
ctause in favor of and in form acceptable to Lender_ Lender shal! have the right tv hold ~he policies and renew~als thercof.
and Borrower shall promptly furnish to I.enckr all renewal notic~ and all receipts of paid prers~iums. In the event of lo~s.
Borrower shall gi~•e prompt notice to ~he insurance carrier and Lender. Lender may make proof of loss if not made prompth•
by Borrower.
Unless i.ender and Borrou•er othcrN~~ie agrec in w riting, inwrance proceeds shall bc applied to restoration or repair
the Property damaged, provided such re~torahon or repair is economically feasible and the security of this M~rt¢age i~
not thereb}' impaired. lf such rest~rat~on or repair is n~~t rconomiraU~• feasible or it the securit}~ of this Atortgage w~~+.~1J
be impafred, the insurance proceeds shal( be applied to the sums secured b}' this Martgage, ~~ith the excess, if an~-, pa~d
to Borrower. It the Propert~ is ahandoned h~ Burrower, ur il Borrower fails t~~ respond to t_ender within 30 da~•s fron~ ehr
Jate notice is ma~led by Lender t~~ Borrow•rr that the insurancc carrier otTen to ,ettle a claim for ensurance henefit~, I.rc.,lr:
is authorizeci ta collect and apply the insuranrc proceeds at Lcndcr's opti~.n either t~• restoration or repair of the Pr~pert~.
or to t6e sums securec! by this itorigage. ;
Unles~ l.ender and Burraw•er otherv?isc agree in ariting, any such :,pplica~~on ~~f nnkeeds to prmcipal shall nut ~..r~:d
or postpone thc duc date of the monthly installmcnts referrcd to in paragraph, I and 2 hercof or change thc amount ~~i
such installments. If under paragraph 18 hereof the Propen~~ is acywred h} Lender, alt right, title and interest of Bc~rr~~wer _
in and to any insurance poticies and in and to the proceeds thereof resulung frum darnage to the Properly prior to thc ,.~i~
or acquisiUon shal! pass to Lender to the extent of the sums secured by this Atortgage immediately prior to such ~:~Ie or
acquisition.
6. Presenation aod ltaintenance of Properlv; I.easehulds; Condominiums; Planned Unit Devebpments. Borrm.rr
shall keep thc Property in good repair and shall not comrpit wastc or perm~t impairmer~t or deterioration of !he Propert}'
and shaR comp!}• w•ith the provisions ot any lease if this Mortgage i~ un a Ic~sch~~ld. 1[ this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shrll perform al{ of Borrawers ob6gations under the declarati~~n
or covenants creating or govetning the condaminium or planned unit develupment, the by-laws and regutations of the
condominium ar planned unit de~•etapment. ~nd rnnstituent dcxument~. If a condominium or planned unit developrocnt
rider is executed by Borrower and recorded ~ogether v?ith ~h~s Mortgage, tFx~ covenants and agreements of such ri~': r t
shall be incorporated into and shall amend and suppkment the covenants and agreemcnts of this Mortgage as i( the ri~ler ~
were a part hereof. #
'7. Protectioa of Lende~s Security. tf Borrow-er faii~ to perh~rm the covenants and agreements coniained in this
Mortgage, or if any action or proceeding ~s rommenced w•hich materiall}• affects l.ender's interest in the Propen}•.
ineluding, but not limiled to, eminent domain, insolvency. code enforcement. ~r arrangements or pmceedings invoh•ing a ;
bankrupt or decedent, then (_ender at Lender's option, upon notice to Borrower, may make such appcarances, disburse cuch ~
sums and take such action as is necessary to protect ixnder's mterest, including. but not limited to, disbursement oi
reasooable attom~y's fees and entry upon ~he Propcrt}• to m:~kc rcpair~. If Lcndcr reyuin:d mortgage inwrance as a ,
condition of making the loan secured b}~ this blongage. Borrower shall pay the premiums• requireJ to maintain such f
insurance in effect until such time as ~hc reyuirement for such ~nwrance icrminate~ in :~ccordance with Borrow•er'ti anJ
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