HomeMy WebLinkAbout0014 UNtFORnt Cov~N~NrS. Borrawer and l.enJrr cuvcnant :,nd aK~~c a~ toU~~ac:
1. P~ymtat of Priaclpd snd latertst. B~~rrc~we~ .hiJl prunipil~ pay whcn Juc thc princi~.~:~1 uf and interest un thc
i~dtbtedness evidtnced by the Note, prepayment and late rh:~rcr. a. rr~?vidcd in thc Note. and Ihe principal ot and mterest
on any Future Advancex securcd by th~s Mortgagc.
2. Fruads fo~Tues and Insunace. Subject to applir~hl~ law ~•r to a Mritte~ waiver by i.tnder, Borrawer chall pay
to [.ender on the day monthly instailmen~c of principat and m~rrr.t .ur p~yahlC ~~nJer the Note. until the N~1e ic~iii i~ full.
a sum (herein "Funds") equa! !o one-twelfth c.f Ihe yrarl~ ~a~~. ~nsl as~estimcnl~ v?h~ch may attain priorily over Ih~~
Mortgage, and ground rcMs oo the Ptoper~y, if any, pluc ~~ne-~w~clfth o~ yearly premium installments fo~ hazard insurance,
plus one-twelfth of yearly premium in~~allmen~~ for m~~rtgage ~nturancr. any, all a~ reas~nably e~timated ini~ially and from
timo to time by l.ender on the basis of a.,cc,nunt+ and h~ll~ :~nd ria~unahlc eclimatet thereof.
The Funds shall be held in an ins~ituti~~n the deFx~,~t. ~,r a~cuunts ot which 8re incurecl or guaranteeci by a Federal or
state agency (including,Lender if lender wch an institution 1. I.endcr ~hall ap~+l~• the Fundc to pav said taxes, ascessments,
insura~ce premiums and gmund rents t ender may n~t charge n~r h~~ld~ng :+nd ~ppl~~ing thr Fundc. anali•ring ~aid arc~~unt.
or vtrifying and compiling said assessmems an~l h~ll~, unkss Lcndcr pay~ Bi~rmwcr interest ~~n the Funds and applicable law
permits Lendcr to make such a chargc. Rorruwcr and f_cnder may ag~cc in wnting at the timc ol c~ccwiun of this
Mortgage that imerest on the Funds shatl be paid to Borrower, and untess such agreenicnt i. m:i~3e or applecable law
requircs such interat to be paid, I_cnder s~all not he requiretii ~o pay Borrawer any interest or carnings un the I=unds. I.ender
shall give to Bc~rrowar, withoul charge, an annu;~l accuunting of the Funds showing credils and dehits to ~he Funds ~nd the
purpose for which each debit to tht Funds wa, made. The Funda are pl~-~1ged a~ a~ditional secunty for the sums secured
by this Mortgagc.
If the amount ot the Funds held by Ler~der, together with thc fuwre monthly installment~ of Fundc pa}•ablc prior to
tht due dates of taxes, assessments, insurance premiums and ground rents, shall e~ceed the amount reyuind to pa~~ ~aid ta~es,
assessments, insurance premiums and ground re~ts as ~hcr fall due, such exre.s shall be, at Borroa-er's opt«~n, cither
pranptly repssid to $orrower ar credited te Bo~rc?wer ~n mon~hly i~~taNments of Funds. U thc amoum of thc t-unds
held by Ltader shall not be sutBcient to pay taxes, assecsments, insurancc prcmnims ;~nd ground rents as the}• fall due,
Borrower shall pay to Lender any amount necessar~~ to make up the deficiency within 30 days irom the date notice is mailed
by l,ender to $orrower requesting paymcnt thereof.
Upon payment in full of all sums secured by this Mortgage. l.cndcr shall pramptly rcfund tr Bormw~cr any Funds
held by Lender. 1t under paragraph 18 hereot ~he Property i~ sold or thc Property~ ~s otherwise acqu~red by Lendcr, l.cnder
s6d1 apply, no later than immediately prior ro the sale af the Prupeny or its acquisition hy Lender, any Funds hel~ b}•
Lender at the time of application as a credit against the sum~ secured by th~s !1lortgag~.
3. Application of Paymeats. Unlecs applicable law• prc~~v~tes othen+iu, all payments received b}• Lender under the
Note and paragraphs I and 2 hereo( shall be appl~ed by l.cnder fint in pa}~ment of ami~unts pa}~ahlc to Lcndc~ by Borrower
under paragraph 2 hereof, then to interest pa~•ablc on thc Nute, then to the principal of thc Notc. and then to intcrest and
principal on any Future Advances.
~ 4. C6arges; Lkns. Borrower shall pa}• all t~xc~, a+ccssments and othcr chargcs_ fines and ~mp~xitions attributahle to
the Property which may attain a priority over this Mortgagc, and leaschold payments or ground rents, if any, in the manner
provided under paragraph 2 fiereof or, i[ not paid in such manner, by Borrower making payment, when due, directly to the
payce theeoof. Borrower shall promptly furnish to LenJer all notices of amounts due under this paragrtph, and in the event
Borrower shaU make payment directly, Borrower sha!! promptly furnish to Lender teceipts evidencing such payments.
Borrower shall promptty discharge any lien which F~as prionty over this Murtgage: provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agrce in writing to the payment of ihe obligatiun secured by
such lien in a manner acceptable to [.ender, or shait in goc~d faith cont~st surh lien hy, or defend enforcement nf such lien in,
' lega! proceedings which operate to prevent the cnfurcement of the lien or forfe~turc of the Property or any part thereof.
' S. Haurd Insurance. E3orrower shall keep the improvcmcnts no.~ existing or hercafter crected on the Pmperty insured
~ against loss by fire, hazards included within the tcrm "~xtended coverage", and such other hazards as Lender may require
I and in such amounts and for s•.~ch periods as 1_ender may rcyuire; pmvided, that Lender shall not reyuire that the amount of
such coverage exceed that amopnt c~f rnverage required ta pay the sum~ secured ~by this htortgage.
'Ilx insurance carrier providing the insurance shall be chosen by Borrow~er subject to approval by Lender, provided,
~ that sueh approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
; providod under paragraph 2 hereof or, if not paid in such manner, by Borrower make~g payment, when due, direcdy to the ~
insurance carrier.
All insurance polic~e~ and renewals thereof shall he in form aceeptablc to LenJer and shall include a standard mortgage
clause in favor of and in form acceptable to l_ender. Lender sha(f have the right to hold the policies and renewals thereof,
and Borrower shall promptty t.~rnish to Lender all renewal not~ces and all receipts of paid premiumc. In the e~•ent of loss.
$ortower shall give pmmpt notice ro the insurance carrier and Lender. Lender may make prcx?f of loss if not made promptly
~ by Borrower_ ~
Unless Lender and Borrower athen+~~x: agree in writing, incurance proceeds shall be applied to restoraiion or repair of
the Property damaged, provided such reatoradon or repair ~s rconomically feasiblc and the security of this I4lortgage ic
not Ihereby impaired. It such restoration or repair is not economically feasihle. or if the security of this M~rtgage would
be impaired, the insurance proceeds shall be applied to the sums secured b~• this Martgage. w~ith the excess, if an~~, paid
! to Borrower. If the Propertp is abandoned by Bormwer, or if Barrower fails to respond to Lender wiihin 3~ days from the
f date notice is niailed by Lender to Borr~wer that the insurance carrier otTers to settle a claim for insurance benefits, 1_ender
is aut6orized to collect and apply the insurance proceeds at Lender's option either to resturation or repa~r of the Pmpert~
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherv?ise agree ~n wnting, sny such application of proreeds to pnncipa! shall not e~tend
i
or postpone the due date of the monthly installmcnts rcferred t~• in paragraphti 1 anJ 2 hereof or change thc amount ot
such installments. If under paragraph 18 hereof the Property is acyuired h~ Lcnder, a!I right, title and interest of Borrowcr
~ in and to any insurance policies and in and to thr proceeds thereaf resulting from damage to the Propeny prior to th~ aale
or acquisition shaU pass to I.ender to the extent of the sums secured by this Mortgage ~mmediatety prior to such. sale or
acquisiiion.
6. Presen~adon aod ~taintenance of PropeAy: Ixasehulds; Condominiums; Planned Unit De~~elopments. BorroKCr
shall keep the Praperty in good repair and shall not comro~t waste or permit impairr~nt or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is vn a leasehold. If this Mortgage is on a unit in a
condominium or a planned uait development, Borrower shall perform all o( Borrower s obligadons under the declaratiun
or coveoants creating or governing the condommium or planned unit development, the by-laws and regulations of the
condominium or planned unit development. and constituent da:umentti. (t a condominium or ptanned unit_Jevelopment
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such ridcr
shall be incotporated into and shall a?nend and supplcment the covcnants and agreements of this Mortgage as if the ri~cr
were a paR hereof.
7. Protection of Lender's Securfty. If Borrower (~~ls to perform the covenams and agreements contained in this
Mortgage, or if any action or proceed~ng is commcnceJ wh~ch materiall}• afiects l.ender's interest +n the Proper~~•,
inctuding, but not limited to, eminent domain. insoivency, aicic enforcement. or arrangements or proceedings invohing a
bankrupt or decedent, then Lender at Lender's option, upon natice to Borrnwer, may make such appearances, disburse such
sums and take such action as is necessary tu protect I.ender'~ mterest, including, but not lim~ted .to, disbursement of
re~sonablt attomey's fees and entry upon thc Propcrty to makc rcpairs. If i.cntlcr rcyuircd mortgage insurance as a
condition of making the loao secured by this Murtgage. B~rr~.wer sh:~fl pay the premiurns reqwreJ tu maintain zuch
insurance in etiect until sueh time as the reyciirement for tiuch insurance terminates in accordance w•rth Borre~wer's anJ
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