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UNIFORM COVEN~HTS. 80rrowe~ and Lendc~ ~uvenant ~nd agrre r~ foll~~us:
1. taYmtpt ot Pdaclpal sod Interest. H~~rrower ~h~eU prumptly pay whcn due thc p~in~ipal af and interest on the
~ndebtedness evidenced by the Note, prepayment and latr char~;r. a~ pruvided io ~he No~e, and the princ~pal ot and m~erest
on aay Futurc Adva~ccs secured by th~s Martgage.
2. Fbnds tor T~es apo lawnace. Subjoct to appli~ahlc I:,v? o~ to a writ~en waiver by Le~drr. Barrower shall pay
to [.ender on Ihe day monthly instaNments of pri~cipal and u~te•r~.~ err payablr undcr thc Notc, until the Note paid in full.
s sum (herein "fiunds") equal to one-twclfth ot the yearl~ ta~~. anJ as~es~me~lc w•hich may attain priariry over ~his
Mongage, and ground rents on the Proptrty, if any, plus onc-twclfth ~~f yearly premium installmeots for hazard insurance,
plus one-twelfth of yearly prcmium installments (or morlgagc ~nsuranre. ~f :~ny, all a~ reasonably ectimated initiall~~ and trom
timt to time by [_ender on the basis ot a~scs~ments and h~lls ~nd re.~~unablc eslimates thercof.
'[l~e Funds shall be hold in an instituti~~o thr deEx•su~ or a~cuwits M which are insured or guaranteed by a Federal or
statt agency (including Lender if Lender is ~uch an ins~~tutionl. Lender ~hall apply Ihe Funds to pap +aid taxes, assessments,
insurance premiums and graund rents. 1 ender mrp nc?t charge tor ,c? holding and applying the F~mdc. anaty~ing ~aid acc.~unt.
or verifying and compiling said assessments and bills, unlrss Lendcr p:iy~ Borrowe~ ~ntcrest on Ihc Funds and applicable law
petmits Lender to make such a charge. Horrowe~ and l.ender map agree in writing at the time of executioo of thia
Mortgage that interest on the Funds shall hc paid to Borruwer, and untess such agreeniem i~ madc or applicable law
rcquires such interest to be paid. Lender shall not be required ~o pay Borrawer am~ intcrest or earnin~w on thc Funds. 1_eoder
shall give to Borrower, wiihout charge. an annual account~ng of ~he FunJs showing credits and dehits to thr Funds and the
purpost for which each debit to the f~unds was madc. The Funds are pleclgcd as addi~ionai se~:uritr for ~hc sums secured
by this Mortgage.
If the amount of the Funds hdd by Lender. together with thc future monthly installmcnts of Fund. payablc prior to
the due dates of taxes, asszssments, insurance premiums rnd Rround rems, shall exceed the amount required to pay ~aid taxes,
assesunents. insurance premiums and grouiid rents as they fall due, such e~cess shall be, at Burrower's option, cither
pranptiy repaid to Bormwer or credited to Borrowcr on monthly installmcnts of Funds. If the amount of thc i-unds
held by Lender shall not be sufficitat to pay taxes, assessments, insurancc prcmiums and ground rents as ~hey fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 da}s from the date notice is mailed
by l.ender to Borrower requesting payment thercof.
Upoa payment ia full of all sums secured by this Mor~gage. l_endcr shall prompdy re(und to Borrowe~ any Funds
held by Lender. If under paragraph 18 hereof the Property i~ sold or the Propcrty is otherwiu acquired by l.ender, I.ender
shall apply, no later than immediately prior to the sale of thc Property or its acyuisition by 1_ender, any Funds held by
Leoder at the time of application as a creJit aga~nst the sumc secu~eJ by this !?lortgagc.
3. Appficateon of Payments. Unless applicable law proviJes otherN•ise, all payments received by t.cnder under the
Not~ and paragraphs 1 and 2 hereof shall be applied by Lcndrr first in pa}•ment uf amounts payahle to i.ender by BorroVt•er
under puagraph 2 hereof. then to interest payablc on the Note, then to thc principat of the Notc, and then to interest and
principal on any Future Advances.
4. C~es; Litas. Borrower shall pay a!1 taxe~, assescments and other charges, fines and impositions attributahle to
tbe Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in th~ manner
pcuvidod unckr paragraph 2 hereof or, if not paid in such manner, b~ $orrower making payment, when due, directiy to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
requircd to discharge any such lien so long as Borrower shall agree in wriUng to the payment of the obligatiun 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,
legal proceedings which operate to prevent the enforcement of thc lie~ or forteiturc of the Property or any part thereof.
S. Huard I~u~ance. Borrower shall keep the ~mprovements nov? existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", anJ such other hazards as l~ender may require
and in such amounts and for such periods as Lender may reyuirc; provided, that Lender sha!! not require that the amount of
such coverage exceed that amount of coverage required to pay the cums secured ~by this Mor~~age.
'Il~e insura~ce carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
thst such apptoval shall not be unreasonably withheld. Al( premiums on insurance policies shali 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 and rer.ewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
elauu in favor of and in form acceptable to Lender_ Lender shal( have the right to hold the policies and renewals thereof.
. wd Borrower shall promptly furnish to Leoder all renewal notices and all receipts of paid premiumc. In the event of Ioss.
Borrower shall give prornpt notice to the insurance carrier and l.ender. l.ender ma}~ make proof of loss if not made promptlp
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provicied such restorat~on or repair is economically feasible a~d the securiry of this Mortgage is
not tt?ereby impaired. If such restoration or rcpair is not cconomical{y feasible o~ if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
to Borrower. If the Property is abandoroed by Borrower. or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by l.ender to Borrower that Ihe insurance carrier ofiers to settle a claim for insurance benefits, Lender
is aut6orized to collcct and apply the insurance proceeds at Lender's option either to restoration or repa'v of the Propert~'
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherv~•ise agree in w~riting, an~• such application c~f proceeds to principal shall not extend
or postpone the due date of thc monthly installments refcrred to in paragraphs 1 and 2 hereof or change the amount of
such installmeuts. If under paragraph 18 hereof the Property i~ acqu~red by l.ender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resutting from damage to the Property prior to th~ sale
or acquisition shalt pass to l.ender to the exteat of the sums secured by this Mortgage immediately prior to such sale or
acquisition:
6. Preservatioa and Maintenance of Property; I.easeholds; Condominiums; Planned Unit Developments. Borrow~cr
shap keep the Property ia good repair and shall not com~pit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any tease if this Mortgage is on a Icaschold. )f this Mortgage is on a unit 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 planncd unit development. ~he by-laws and regutations of the
condominium or planned unit development, and constituent Jocuments. 1t a condominium or planned unit development
rider is executed by Borrower and recorded together wi~h this Mortgage, the covenants and agreements of such riJer
shall bt +ncorporated into and shall amend and supplement the covcnants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protectioa of [.ende~s Securfty. If Borrow-er fails to perform the covenants and agreements contained in this
Mortgage, or if any acUon or proceeding ~s commence~ K~hirh mater+aHy afiects Lender's ioterest in the Property,
including, but not limited to. eminent domain, insc?Ivency, code cnforcement, or arrangements or proceedings invoh•ing a
bankrupt or decedent, thcn Lender at LenJer's option, upon notice to Borrower, ma~• make such appearances, disburse such
sums and take such action as is necessary tu protect l.ender's ~nterest, inchiding, but not limited to, disbursement of
reasonable attomey's fees and entry upon the Propcrty to makc rcpairs. lf Lender reqiiired mortgage insura~ce as a
condition of making the loan secured by this Mortgage. Borr~~µcr shall pay the premiums requireJ to maintain such
iasutance in efiect until such time as the reyuirement for wch insarance terminates in :?ccordance with Borrower s and
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