HomeMy WebLinkAbout0403 UN(FORM CoVEtvhNTS. Borrowcr a~d ~endcr cuvenant and agrre as foUuws: ' '
l. P~'AIlA! OE P~'~11C~I aOd IAltlCSf. Barr~~wcr shall prump~ly pay whcn diN: Ihc principal of and interest un Ihr
inckbtMnoss evidenced by the Note, prepayment and late cha~gr~ a. pruvided in the Note, and the principal of and ~nteres~
on aay Future Advances secured by this Martgage.
2. Fhnds for Tues aad Iosurance. Subject to applicablc law ~,r to a writren waiver by l.ender, 8orrower xhaU pay
to l.ender an the day mor~thly installments of principal and intrrcct ,~re payable under ~hc Note, unlil the Note is paid in full.
a sum (hercin "Funds") equal to one-twelfth af the yca~ly taxc. •rnd assessmcnts which may attain prioriry ovcr ~his
Mortgage, and ground rents on the Properry, if any, plus one-twclfth ot ycarly prcmium installments far hazard insursnce,
plus one-twefflh of yearly premium installments for mortgage insurancc, if any, al1 as reasonably e~timated initially and from
time to time by I_etxier on the basis ot assessmcnts and hills and re:~sunable estimates thercaf.
'I~e Fu~ds shall •be held i~ an instiwtion thc deposits or arc~~un~s ot which are insured o~ guarantecd by a Fcderal or
state agency (including Lender if Lender is such an institution). Lcnder.hall :,pply the Funds to pay said taxes, assessments,
insu"rance premiums and gmund ~ents. 1-ender may not charge !or zc~ h~lding :ind~applying Ihe F~ind~, a~~alyzin~ said acrnunt.
or verifying and compiling said asses~cments and hilh, unlcss I_ender pa}~s Bormwcr intcrest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agrcc: in writing at ~he tinie exec:ution o( ~his
Mortgage that interest on the Funds shatl tx; paid to 8orrower, and unless such agreen~ent is made or applicable law
rcquires such interest to be paid, !_ender shall not he reyuired to pay Borrower any intcrest or carnings ~~n the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the FunJ~ showing credits and debits to the Funds :~nJ the
r..'r~__
which cach dehit to the Funds was madc. The Funds arc pledgcd as additionat se~-urity for thc sums secured
by this Mortgage.
]f the amount of the Funds held by Lendcr, together with the futurc monthly installmcnts uf Fundx payablc prior to
the due dates of taates, assessments, insurance premiums and ground rents, shall exceed the amount reyuireJ to pa}• said taxes,
assessments, insurance premiums and gruund rents as they fall due, such er~ecs shall be, at Borrow~er's option, either
promptly repaid to Borrower or credited to Borrower on monthly instaAments ~~f Funds. If the amount of thc Hunds
held by Lender shall not be sufTicient to pay taxes, assessments, insurancc premiums and ground rcnts as thcy fall duc,
Borrower shall pay to Lender any amount necessary to m;~ke up the deficiency withi~ 30 da}~s from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in ful) of all sums secured by~ this Mortgage, t.cnder shall promptly rcfund to Rorrow•er any Funds
held by L.cnder. lf under paragraph 1R hereof the Propeny i~ sold or ~hc Property is otherwiu: acquired b~~ Lender, Lcnder
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds helJ by~
Lender at the time of application as a credit against the sums secured by this Mongagc.
3. Appliratioa of Payments. Unlecs applicable law proviJes o~herwise. all payments received by Lender under the
Note a~d paragraphs 1 and 2 hereof shall bc applied by Lcnder first in p:~yment of amaunts payable to l.cndcr by Borrowcr
under paragraph 2 hereof, then to interest payablc on the Notc, thcn to thc principat of the Notc, and thcn to interest and
principal on any Future Advances.
4. C6arges; Liens. Borrower shal! pay al! ta~es, asscssmcnls and othcr chargcs. fincs and impositions attributable to
the Property which may attain a priority over this Mortgage, and leaschold payments or ground rents, if an}•, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directty to the
payce thereof. Borrower shatl promptly furnish to ~ender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall promptly furnish ta l.ender receipts evidencing sueh payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; proviJed, that Boriower shall not be
required to discharge any such lien so long as Borrower shall agrce in W riting to the payment of the obligatic~n secured by
such lien in a manner acceptable to i.ender, or shatt in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement o( the lien or forfeiture of the Property or any part thereof.
S. Kazard I~uurance. Borrower shall keep the improvement~ now existing or hercafter erected on the P~operty insured
against loss by fire, hazards includ~d within the term "extended coverage", and such other hazards as Lender may require
and in such amounts an~i for such periods as Lender may require; pro~•ided, that Lender shal! not require that the amount of
sueh coverage exceed that amaunt of coverage required to pay the sums secured by this Mortgage.
The iosarance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided,
that such approval shall not be unreasonahly withheld. All premium~ on insurance poticies 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 anJ renewals thereof shaU bc in form aceeptable to Lender and shall include a standard m~rtgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shatl promptly furnish to Lender all renewal Rotices and al) receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insur:+nce carrier and Lender_ Lender may make proof of loss if not made prompUy
by $orrower.
Unless Lender and Borrower othena•i~; agrec in w•riting, insurance proceeds shall be appfied to restoration or repair of
the Property damaged, provided such restorat?on or repair is economically feasible and the security of this Mortgage ic
not thereby impaired. If such restoration or repair is not economically feasible or it the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage. with the excess, if any, paid
to Botrower. If the Property is abandoned by Borrawcr, or i( Borrower fails ta respond ta 1_ender within 30 days from the
date notice is mailed by L.ender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, Ixnder
is aut6orized to collect and apply the insurance proceeds at 1_ender's optivn either to restoration or repair of the Property
or to the sums secured by this Mortgage.
UnlesS I_ender and Borrower otherwise agree in writing, any such aPplicateon of pra:eeds to principal shall not extend
or postpone the duc date of thc moMhly installmcnts referred to in paragraphs I and 2 hereof or change thc amount of
such installments: If under paragraph 18 hereof the Property is acyuireJ by Lender, all right, title and interest of Bormwer
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 shalt pass to Lender to the extent of the sums secuteJ hy this Mortgage immediately prior to such sale or
acquisition.
6. Presen•atioo aud 61aintenance of Property; Les~seholds; Condominiums; Planned Uait Developments. Borrowcr
shall keep the Property in good repair and shall not comrqit waste or permit impairment or detetioratiun of the Property
and shall comply with the provisions of any lease if th~s Mortg~gc is on a leaschold. If ihis Mortgage is on a unir in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planoed unit development, and constituent documen~s. If a condominium or pianned unit devciopment
rider is executed by Borrower and recorded together with this Mortgage, Ihe covenants and agreements ot siich rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgag,e as if the rider
were a part hereof.
7. Protection of I.ealer's Security. If Borr~wer fail~ to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding is commenced which materially afiects I.ender's interest in the Property,
including, but not limited to, emineat domain, in.solvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at l~nder's option, upon notice 1o Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect lxnder s interest, including, but not limited to, disbursement of
reasonable attomey's fees and entry upon tt?e Property to makc repairs. I( i.ender rcyuired mortgage insurance ac a
condition of making the loan securecf by this Mortgage. Bormwer shall pay the premiums requireJ to maintain such
insurance in ef~ect until such time as the requirement (or such insurance terminates in accordance wi~h Borrower s anJ
~ ~