HomeMy WebLinkAbout0380 UNIFORM COVer..~Nrs. Borrower and l.ender cavenant and •rgrre as follows:
1. Paymeat of Priacipal aad inte~at. BarroN~er shall promptly pay when dut the principai of and interest on the
indebtedneu evidenced by t~e Note, prepayment and late charges as providrd in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage. .
2. Funds to~ Tua and lasnr~nce. Subjecl to applicable law~ or to a written waiver by I.ender, Borrower shaii pay
to i.ender on the day mon~hly initallments of principal and interest are pays~ble under the Note, nntil the Note is paid in full,
a sum (herein "Funds") equal to one-tw•elfth of the yearly taxes and assessments which may attain priority over this
Mo»gage, and ground nnts on the Property. if any, plus one-tweltth of yearly premium installment: fo~ hazard insurance,
plus one-Iwelfth of yearly premium installments for mongage insurance, if any, all as reasunably estimated initially and from
timc to time by Le~der on the basis ot assessments and bills and reasonablc estimates thereof.
The Funds shall tse held in an institution the deposits or accounis of which are insured or guaranteed by a Federal or
statc agency (including ~ender if Lender is such an institution). I.ender shalt apply the Funds to pay said taxes, assessments,
ir?surance premiums and ground rents. Lender may not charge for so halding and apptying the Funds, analyzing said account,
or verif}•ing arid campiling said assessments and bills, untess [_ender pays Borrower interest an the Funds and applicable law
permits I.ender to make such a charge, Borrower and I.cnder may agree in writing at the time of execution of this
Mortgage that interesl on the Funds shall be paid to Borrow~er, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not t~e required to pay Barrower any interest or earnings an the Funds. Lender
shall give to Borrower, without charge, an annual accounting uf the Funds showing credits and debits to the Funds and the
purpcue for which each debil to the Funds was made. The Funds are pledged as add~tional security for the sums secured
by this \lortgage.
If the amount of the Funds held by I_ende~, together with the future munthly instaltments of Funds payable prior to
the due dates af taxes, assessments, insurance premiums and ground rents, shall exceed the amount require~ to pay said taxa,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s optia~, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the ~unds
held by Lender shall not be suflicient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shalf pay to Lender an~~ amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting paymcnt !hercof,
Upon payment in full of all sums secured b~~ this Mortgage, l.ender shall promptly refund to Borrower any Funds
held by Le~Jer. If under paragraph IR hereof the Propert}• is suld or the Propertp is otherwise acquired by Lender, Lender
shall apply, no later than immediatel~~ prior to thc sale af thc Property or its acquisition b}~ l.ender, any Funds held by
Lender at the time of application as a credit against the sumti secured by this htortgage.
3. Applieatlon of Paymeots. Unless applicable (aw~ provides otFen~~ise. all payments recei~•ed by Lender unJer the
Note and paragraphs 1 and 2 hereof shall be applied by Lcnder first ~n payment of amounts payable to Lender by Borrow•er
under paragraph 2 hereof. then to intcrest payablc i~n the Notc, thcn to the p~incipal of the Note, and then to intcrest and
principal on any Future Advanccs.
4. Clwrges; Lkns. Borrower shall pay all taxrs, asu;scments and oth~r cfiarges. fines and impositions attributable to
the Propert~ which may attai~ a priority over this ;~lortgage, and leasehotd payments or ground rents, if any, in the manner
~rovided under paragraph 2 hereof or, if not paid in such manner, b~• Horrower making payment, when due, directly to the
payee thereof. Borroveer shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrow~er shall make payment direr,tly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrow~er shall promptly discharge any lien ~hich has priorit~• o.•er this l~iortgage; provided, that Borrower shall not be
required to discharge any such lien so long as 8orrower shall agree in xri~ing to the payment of the obligation secured by
suc6 lien in a manner acceptahle to Lender, or shall in goc~d faith contes[ such lien by, or defend enforcement of such lien in,
]egal proceedings which operate to prevent the enforcement o( the lien or forfeiture of the Property or any part thereof.
5. Hazard insurance. Borrower shall keep the improvements now~ cxisting or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amouots and for such periods as Lender may reyuire; provided, that Lender shall not require that the amount of
such co~•erage exceed that amount of cm•erage required to pay the sums secured by this Mortgage.
'Ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be urtreasonably withheld. A!1 premiums on insuranee policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrow~er making payment, when due, directly to the
insuraoce carrier.
Al! insurance policies and renew~als thereof shall be in form acceptabte to Lender and shal! include a sta~dard mortgage
clause in favor of and in fotm acceptable to Lender. Lender shall ha~•e the right to hold the policies and renewals thereof,
and Borrow~er shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insur~nce carrier and Lender. Lender ma}' make proof of (oss if not made prompdy
by Borrower.
Unless Lender and Borrower othen+i.e agree in w~riting, insurance proceeds shall be applied to restoration or repair of
the Property damaged, proviJed such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. 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 secured by this Mortgage. w~ith the excess, if an~, paid
to Borrower. If the Propert}~ is abandoned b~ Bnrmwer, or it Borrawer fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, I.ender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
ur to the sums secured by this Mortgage.
Unless Lender and Borrower atherKise agree in w~riting, any such applicatio~ of proceeds to principal shall not extend
or postpone the due date of the manthly installments referred ta in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph l8 hereof the Property~ is acqwred by I.ender, alt right, title and interest of Borrower
in and ro any insurance policies aRd in and to the proceeds thereof resulting from damage to the Propeny prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presenation ~nd ~laintenance of Property; Leaseholds; Condominiums; Planned Unit De~•elopments. Borrower
shait keep the Property in good repair and shall not commit uaste or permit impairment or deterioration of the Property
und ~bell c~mply with .he provisions of any lease if this Mortgage ~t on a Icasehold. If this Mortgage is on a unit in a
condominium or a planned unit Jevelopment. Borrower sha11 pertorm all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or ptanned unit development, the by-Isws and regulations of the
condorr~nium or planned unit development, and constituent documents. If a condominium or planned unit development
riJer is executed by Borrow•er and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplcment the co.enants and agreementc of this Mortgage as if tf~e rider
~ere a part hereof. ~
Proteetion of I.ender's Security. If Borrnw~er fa~ls to perform the covenants and agreements contained in this
Mortgage. or if an) action ur proceeding ~s commenced w•h~ch materially atTects Leoder's interest in the Property.
including, but ~iot limited to. eminent domain, insolvency, cocle enforcement. or arrangements or proceedings involving a
bankrupt or decedent, then I_ender at Lender s option, upon notice to Borrower, ma~• make such appearart~es. disburse such
sums and take such artion as is necessan- to protect Lender's interest. including, but not limited to, disbursement of
reasonable attome~~ s fces and entry upon the Property to make repairs. I( I_cnder reyuired mo~tgage insurance as a
condition of making the loan secured b~ this Mortgage, Borrowrr shall pay t~ premiums required to maintain such
insurance in et~ect until such timz as the reyuirement for such insurance termin tes in accordance with Borroweis and
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