HomeMy WebLinkAbout0403 UNIFONM CO~'ENAN'fS. BO~fpWC: and t_c~Jc~ co~~enant and agrce rs faUows:
1, Payment of Ptlncipal and (nterest. Eiu~ruwer shall promptly pay Nhcn due the principal of and interest on thc
indebtedneu evidencecf by the Note, prepayment and late charbe~ ac praviJed in the Note, and the principal of and intercst
on any Future Advancec securecl by this Mortgage.
Z. Funds fo~ Tues and lasuraace. Subject t~ applicable law• or to a written waiver by Lender, Borrower shall pay
to l.ender on thc day monthly inst:~llments of principal and interest are p•ryable under the Note, until the Nnte is paid in full,
a sum~(herein "Funds") equal to ~ne-twelfth of the ycarly taxes aod ascessments which may attain priority over this
Morigage, and gn~und rents an the Pruperly, if any, plus one-twelhh of ~~early premium installments for hazard insurance,
plus one-twclfth of yearly premium installments tor mortgage insuranc~, if any, all as nasonabl~~ estimated initially and from
time to time by Lender on the basis of acsessments and bills and reasonable es~imates thereof.
The Funds shal! he held in an institution the deposits or accounts of which are insured ar guaranteed by a Fecleral or
state a~;ncy (including Leoder if 1_cnder is such an institwion). I.ender shall apply the Funds to pay said taxes, asseuments, ~
insurance premiums and ground rents. l.ender may not charge for ~o holding and applying the Funds, anal~~zing said acc~unt,
or verifying and campiling said ~ssessments and hitls, untess Lcndcr pa~~s Borrawer interest on the Funds and applicable law
permits Lertdcr to make such a charge. Borrow•er and Lender may agree in w~riting at ~he time of execution of this
~iortgage that interest on the Funds shall he paid to Borroa•er, :,nd unless such agreement is made or applicable law
requires such interest to be paid, 1_endcr shall nM bc requircd t~~ pa~~ B~~rrawer any intcrest or earnings on the Funds. Lender
shail gi~~e to Borrower, without charge, an annual accounung o! the Funds ~huwing credits anJ dehits to the Funds and the
purpose for which each debit to the Funds w~as made. The Fund~ an pledged as additional security for the sums secured
by this Alortgage.
If the amount of the Funds held by Lender, together with thc; fuuire monthly instattments af Funds pay~able prior to
the due dates of taxes, assessments, insuranre prcmiums anJ ground rents, shall exceed the amount reyuired lo pay said taxes,
assessments, insurance premiums and ground rents as ~hcy fall duc, such excess shall be, at Borrower's option, either
promptly repaid to BorroW~er or credited to BorroNer on monthly installments of Funds. lf the amount of the Funds
held by Lender chall not be suflicient to pay taxes, assessmcnts, incurancc pmm~ums and ground rents as thc~~ fal! due,
Borrower shal! pay to l~en~ler an?' amount nece~sary to m~ke up the deficiency within 30 days from the date notice is mailed
by Lender to Borrok•cr reyucsting payment thercat.
Upon payment in full of all sums sccured by this Mortgagc. I.cndcr shall promptly rcfund to Borrower any Funds
held hy t.ender. tf under paragraph lt~ hereof the Propcrty is st~ld or the Propeny is otheru•ise ~cquircd b~~ I_endcr. Lender
shall apply, no later than immediately prior to thc sale ~~f thr Prupc;rty ar its acyuisition hy I.ender, any Funds held by
Lender at ~he time uf application as a credit against thc sum~ secured h}• this Mortgage_
3. Applicalion of Payments. Unle~s applicable laa~ provides otherwise, all pa~•ments rereived by t_ender under the
Note and paragraphs 1 and 2 hereof shall bc applicd b}• Lendrr first in pa}•ment ot amoi~nts payablc to Lcnder b~ Borrower
under paragraph 2 hereof, then to ~ntcrest pa~•ablc on the Nar, thcn to thc principal of the Notc, and thcn to interest ~nJ
pri~cipal on aoy Futurr Advances.
4, Charges; Liens. Borro~~rr shall pay all taxes, ;i~s~ssments and ~~ther chargcs, fines and impositions attributable to
the Property which may attain a priority over thi. Ator[gage, and leasehold payments or.ground rents, if any, in ihe manner
p[+ovided under paragraph 2 hereof or, if not paid in such manner, b} Borrower making payment, when due. directly to the
payee thereof. Borrower shall promp~l}' furnish to LenJcr a11 notices of amounts due under this paragraph, aad in the event
Borrov?•er shall make pa~•ment directl~•. Bexrowrr ~hall promptiy furnish to l.ender receipts e~•idencing such payments.
Borrow•er shall prompt(y discharge any Iien ~hich has priority orer this 111ortgage; provided, ~hat Borrower ~hall not be
rcquired to d~uharge any such lien so long as Bs~rro~ver shall sgrec in ~~ridng to thc payment oi the obligation secured b}~
such lien in a manner acceptable to Lender, or shall in g.~.~d f~ith contrst such lien by, or Jefend enforcement of such lien in,
legal proceedings which operate to prevent th~ ent~~rcement of the liers or forfeiture of the Propeny or any part thereof.
5. Hazard lnsurance, Borrower shall kcep Ihc ~mpro~~ements now cxisting or hercafter crected oR the Pmperly insured
against loss h~• fire, hazards included xithin the term "r~tendeil cover~ge", and surh other hazards as Lender may require
and in sach amounts and for such periods as Lender ma~~ reyuire; provided, that Lender shall not require that the amount of
such coverage exceed that amount of co~•erage required to pa}~ the sums secured by this Mortgage.
The insurance carrier providing the inwrance shalt be chosen by Borrow•er subject to approval by Lender, provided,
that such appro~~a! sha!! not be unreasanahlp withhcld. All premiums on insurance policies shall M: paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, b~~ Borrower making payment, when due, direcdy to the
insurance carrier.
Ali insurance poticies and renewals therec~f shall br: in forn~ accept:ible to Lender and shall include a~tandard mortgage
clause in favor of and in form acceptable to Lender. Lender shall ha~-e the right to hald the policies and reneW alc thereof.
and Borraw~er shall prompdy furnish to I_ender al! re~rual notices and all receipts of paid premium,. In the event of loss,
Borrower shall gir•e prompt notice to the insurance carrier and Lender. Lendcr ~~a}• make proof oC loss if not made promptl}
by Borrower.
Unless Lender and Borrow•er otherwitie agree in writing, insurance proceeds shall be applied ta restoration or repair of
the Propert}• Jamaged, provided such restoration or repair is economicall}• feasible and the security of this Mortgage is
not thereby impaired. If such restoration or rep~ir is n~t econe~mi~ally tcasible or if the securit}• of this Mortg:+ge wauld
be impaired, the insurance pnxeeds shall be aPplied to the sums sectued by this Mongage. with the excecs, if any, paid
to Borrowcr. If the Propert~ is abandoned h~~ gorrower, or if Borrow~er fails tc~ respond to 1_ender within 30 days from the
Jatc notice is mailed by Lender to Borrowe~ that the insurance carrier otFer~ to settle a claim for insurance benefits, Lender
is authorizeJ to collect and apply the insuran:e pr~xeeds at i.ender's optiun eith..r to restoration or repair of thr Propert~~
or to the sum~ secured b}' this 19ortgage.
Unless I_ender and Borrower othen+ise agree in writing, an} such application of pr~xeeds to principal sfiall not extend
or postponc the due date of thc monthl~• installmcnts rcferred t~~ in paraeraphs 1 anJ 2 hereof or changc thc am«~+nt of
such instalfinents. If under paragraph !S hereof the Propertt is acyuired b~~ ~ender, all right, title aod interest of Borrower
in and to am~ i»surance policies and in and t~ the pnxeeds thereot resulting trom damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this ~turtgage immediatel~~ prior to such sale or
acquisition.
6. Presenation and ~taintenance of Propert~; I.eacehotds; ('andominiams; Planned Unit Developmeots. Borrou~er
shall keep thc Property in g~ad repair and sha11 not commit waste or permit impairment or deterioration of the Properiy
and shall comply with the provisions of any lease if this Mortgage i~ on a Icaschold. If this Mortgage is on a unit in a -
condominium or a ptanned unit development. BorroN•er shall perform all of Borrnwer's obligauons under the dectaration '
ur covenants creating or governing the condominium or planned unit development, the by-laa~s and regulations of the
conJominium or planned unit development, :~nd conslituent Jocuments. If a condominium or planned umt :)evelopment
rider is executed by Borrow•er and recordeJ tugether with this M~~rtgage, the covenants and agreements of such 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. Protection of Ixnder's Security. If Bormuer failc t~ perform the covenants anJ agreements contained in this
Aiortgage, or if any action or proceedin~ is commenced Nhich materially afiects LenJcr's interest in the Property,
including. but not limited to, eminent domain. insolvene~~, cocle rnl~~rcement, or arrangements or proceedings invoi~~ing a
bankrupt or decedent, then Lender at l.enJer's option, upon noticc to Borrow~er, mat• make such appearances. disburse surh
sums and take such act+on as is neces~ary to protect I.ender's interest. inclncling, but not limited to, disbursement af
reasonable attomey's fccs and entry upon the Propertp to makc repairt. If Lender reyuired mortgage insurance as a
condition of making the loan sccured by this Mortgagc. 13ormwcr shali pa)' thc prcmiums required to maintain such
insurance in efTect until such time as the reyuirement for tiuch insurance terminates ~n accordanee with Borr~~wers and
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