HomeMy WebLinkAbout0855 UHIFURM COVENANTS. Sorrower a~d l.ender cavenant and agr~~c as follows:
l. Paymeat ot Prtr?c1pa1 sad lntercst. Barrower shall promptly pay when due the principal of and interest on the
indebtcdr~ess evidenced by the Note, prepaymcnt and late charges as p~ovided in the Note, and the principal of and i~terest
o~ any Future Adva~ces sccured by this Mortgage.
2. Feads for Ta=es aml Iasuraece, Subject to applicahle law or to a written waiver by I.ender. Borrower shall pay
to Lendcr on the day monthly instaliments of prinripa) and interest are payable under the Notc, until the Note is paid in fuU.
a sum (herein "Fu~c1s") equal to one-twelfth of the yearly taxes and assessme~ts which may attain priority over this
Mongage, and ground renta on the Property. if any, plus ono-twelfth of yearly premium i~staltments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably ~stimatcd initially and from
time to tirr~ by Lettder on the basis of assassments and hills and reasonable estimates thereof.
'[1n Funds shall be held in an institution the depcuits or accounts of which are insurcd ar guaranteod by a Federal or
statc agency (including Lendcr if Lender is such a~ institution)_ Lendcr shall apply the Funds to pay said taxes, assessments.
insurance premiums and ground rents. Lender may not charge (or so holding and applying the Funds, analyzing said account.
or verifying and compiling said assessments and bills, unless Lender pays 8orrower interest on the Funcis and applicable law
permits Lender to make such a charge. Borrower and I.ender may agree in writing at the time ot execution of this
Nortgage that interest on the Funds shall be paid to Borrower, and unltss such agreement is made or applicable law
requires such interest to be paid. l.ender shaU noi be required to pay B~rrov?er any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting uf the Funds showing cresiits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additionat security for the sums secured
by this Mortgage. .
If ttea amount of the Funds held by l.ender, together with the future monthly instaliments of Funds payable prior to
the due dates of taxes, assessments, irtsurance premiums and g~ound rents. shall exceed the amount required to pay said tazes.
assessments, insurance premiums and ground lents as they fall due, such excess shatl be, at Borrower's option, either
promptly repaid to Borrower or crodited to Borrower on monthly installmenls of Funds. Jf the amount of the Funds
held by Lender shall not be sutTcient to pay taxes, azsessments, insurance premiums and ground rents as they fall due.
Borrower shall pay to Lender any amount neces~ry to make up the deficiency within 30 da}•s from the date notice is mailed
by Lender to Borrower requesting payment thercof.
Upon payment in full of a!1 sums secured by this Mortgage, l.cnder shall promptly refund to BorroW~er any Funds
held by L.enJer. If under paragraph 18 hereof the Property is sold or Ihe Property is otherwise acquired by Lender, Lender
shall apply. no later than immediately prior ta the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit agai~ist~the sums secured by this Mortgage.
3. AppGcation of Paymeats. Unless appticable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I_cnder first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. thet? to interest payable on the Note, then to the principal of the Note, and then to interest and ~
principal on any Future Advances.
4. C6arges; Lk~. Borrower shall pay ail taxes, asscssments and other charges, fines anJ impositions attributable to
the Property which may aitain a priority over this Mortgage, and leasehold payments or ground rents, if a~y, in ihe 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, aod in ihe event
Borrower shall make payment directly. Borrower shall promptly fumish to L.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 so long as Borrower shall agree in a~riting to ihe payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legat praceedings which operate to prevent the enforcement of the lien or forfeiture of the Propeny or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements now• cxisting or hercafter erected on ihe 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 reyuire; provided, that Lender shail not require that the amount of
such coverage exceed that amount of coverage required tv pay the sums secured bp this Mortgage.
'Ihe insurance carrier providing the insurance shall be chosen by Bonower subject to approval by Lender; provided. ?
that such approval shall not be unreasonably withheld. All premiums oa insurance policies shall be paid in the manner ~
ptovided under paragraph 2 hereof or, if not paid in suc6 manner, by Borrower making payment, wheo due; direcUy to the ~
insurance carrier.
All insurance policies and renewals thereot shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renew•als thereof,
and Borrower shatl promptly furnish to Lender all rencwal notices and all rcceipts of paid prem+ums. In the event of loss.
Borrower shall give prompt notice to !he insurance carrier and Lender.• LenJer may make proof of IQSS if not made promptly
by Borrower.
Unless Lender and Borruwer otherwitie agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, proviJed such restoration or repair is economicailp feasible and the security of this Mortgage is
not thereby impaired. It such restoration or repair is not economically feasible or if the security qf this Mortgage would
be impaired, the insurance proceeds shall be applied to the s~uns secured by this Mortgage, with the excess, if any, paid
to ~orrower. If the Property is abandoned b}~ Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is maited by I.ender 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 Lender's option either to restoration or repair of the Properiy
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherw•ise agree in w~riting, any~ such application of proceeds to prineipal shall not extend
or postpone the duc date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amotmt of ~
such installments. If under paragraph 18 hereof the Property is acquired by Lender, ail right, tide and interest ot Borrower ~
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Propeny prior to the sate
or acquisidon shall pass to Lender to the extent of the sunu secured by this bfortgage immediately prior to such sale or
acquisition. _
6. Presen•aUon and :?faintenance of Propert}~; Ixaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Propeny in good repair and shall not commic w~aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a ieasehold. If this Mortgage is on a iinit in a
condominium or a planned unit deveiopment, 8orrower shal! perform al! of Borrower s obligations under the declaration
or covenants crcating or govsrning lhe condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned onit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrecments of such rider
shatt be incorporated into and shall amend and supplemeni the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of I.ender's Security. If Borrow•er fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced w~hich materially affects 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- tu protect Lender's interest, including, but not limited to, disbursement of
reasonable attorney's fees and entry upon the Propcrt~ to make repairs. If Lender required mortgage insurartce as a
condition of making the loan secured by this Mortga~e. Borr~wer shall pay 1he premiums required to maintain such
insUrance in efiect until such time as the requirement for ~uch insurance terminates in aceordance with Borrower s and
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