HomeMy WebLinkAbout0564 UN(FORM COV$NAHT3. Borrower and Le~der covenant and agree as followa: ~
1. l~aent ot Pdndpal aod Iefecest. Bormwet shali p~omptly pay when due t!k principal ot and interest on tht
endebtedneu evidenced by tho Note. pnpaymeat and late c;,arges as provided in the Note, and the principal of and interost
on any Future Adv~nces secured by thi: MartQage.
Z. tti~ toc T~a ana iawraeee. Subject to applicabk law or to a written waiver by Lender~ Borrowe~ shall pay .
to Lender on the day monthly instaliments of principal a~d interest are payable under the Note. until the Note is paid in full. '
a stun t'herein "Funds") equal to onc-twelfth of the yeady taxes and assessments which may attain priority over this +
Mortgage. ~nd ground ren4 on the Property. if any, plus opo-twelfth of yearly premium instalimants for hazard iruurance.
plus one-twelfth of yearly premium iastallmenta for mortgage insurance, if any, all as reasonably estimated initially and fmm ~ ~
time to time by Lender on the basis of assescments and bitls and reasonabk estimates thereaf. ~
The Fundt shall be held ia an institntion the deposits or accouMs of which an insured or guaranteaf by a Federal or ;
atate agency (including L.ender if L.ende~ is such an institution). Ltnder shall apply.the Fl?nds to pay said taxes. assessments.
insuranco pnmiums and grouad reats. Lender may not charge for so holding and applying the Funds, analyziag said account,
or verifying aad oompling said asxssments and biits, unless Lende~ pays Bornower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lcnder may agree in writing at the time of execution of this ~
Mortgage that interat on the Funds shall_ be paid to Borrower, and unless such agroement is made or applicable law
requin:s such inferest to be paid. Leader shall not be rcquired to pay Borrower any interest or earnings on tt~e Funds. Lender :
sbap give to Borrower, without charge. an annual accouoting of the Funds showing credits and debits to the Funds and the ~ {
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured ~
by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthty installments of Funds payable prior to ;
the due dates of taaex. assessmeats, insurance premiums and gronnd rents, shall excced the amount rsquired to pay said taxes, }
aaseuments, insuran~x prcmiums and ground rents as they fall d~~e; such excess shali be, at Borrower s optio~, either
pranpdy repaid to Borrower or credited to Borrower on manthly instaliments of Fuads. If the amount of the Funds ;
held by L.ender shall not be sufficient to pay taxes. a~ssessments, insurance prcmiums and ground rents as they falt due,
Borrower shall pay to Lender any amount ntcessary to make up the deficiency within 30 days from the date notice is mailed
by Lender W Borrower requestiag payment thereof. ;
Upon payment in full of all swns secured by this Mortgage, I_ender shall promptly refund to Borrower any Funds ~
held by Lender. If under paragraph 18 hereof the Property is soid or the Property is otherwise acqaired by Lender. Lender i
shal! apply~ no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Funds held by ~
Leader at the time of applicatioa as a credit against the sums secured by this Mongage. ;
3• Applicataa of Paymeats. Unless applicable law provides otherwise, all payments received by Lender under the {
Note aad paragraphs 1 and 2 hereof shall be applied by Lcnder first in payment of amaunts payable to Lender by Borrower
under paragraph 2 he~+eof, then to iaterest payable on the Note, then to the principal of the Note, and then to interest and i
principal on any Futur~c Advances. ;
4• Charse~ Lkos: Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
t6e Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. in the manner
pmvided under paragraph 2 hereaf or. if not paid in such manoer, by Borrower making payment, when due, direcdy to tbe
payee thereof. Botrowcr shall prompdy furnish to Lender all notices of amouats due undcr this paragraph, and in the eveat `
Borrower shall make payment directly, Bonower shaq promptly furnish to I,ender receipts evidencing such payments. ~
Borrower shall prompQy discharge any lien which has priority over this Mortgage; provided. that Borrower shal! not be
requirod to discharge any such lien so long as Borrower sha11 agree in writing to the payment of the obligation 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 the lien or forfeiture of the Property or any part Ihereof.
~ S. Hazard I~nrance. Borrower shall keep the improvements now existing or herea[ter erec(ed on the Property insured
agaiost loss by fire. hazards inciuded within the term "eztended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may require; provided. that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mongage. 4
The insuraace carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, ~
t6at such approvai shall not be unreasonably withheld. Al! premiums on insurance policies shall be paid in the manner
provided under pazagraph 2 hereof or, if aot paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier. .
All iasurance policies and renewals thereof shait be in form acceptabte to Lender and shall include a standard morigage
clause in favor of and in form acceptable to I.ender. l.ender shall have the right to hold the policies and renewals thereof,
and Borrower 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 insurance carrier and l.ender. Lender may make proof of loss if not made promptly ~
by Borrower. ~
Unless Lender aad Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of j
the Froperty damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is ~
not thereby itnpaired. If such restotation or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shaii be applied to the sums secured by ihis Mortgage, with the eacess, if any, paid
to Borrower. If the Properiy is abandoned 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 the insurance carrier offers to settle a claim for insurance benefits, L.ender
is authorited to collect and apply t6e insurance proceeds at Lender's option 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 application of procaeds to principal shall not extend
or poatpone the due date of the monthly installments referred to in paragraphs-1 and 2 hereof or change the amount of
suc6 installments. If under paragraph 18 hereof the Prc?perty is acquir~d by I.ender, alt right, title and interest of 8orrower ~
in and to any insur~nce policies and in and to ihe proceeds thereof resulting from damage to tbe Property prior to the sale
or acquisition shalf pass to Lender to the eatent of the sums secureci by this Mortgage immediately prior to such sale or 4
acquisition.
6. Praervation and Mainteaance af Property; Les~eholck; Condominiuau; Planned Unit Devebptcents. Bonower t
shail keep the Property in good repair and shafl not comtnit waste or permit impairment or deterioration of the Property
and shaU comply with the pmvisions of any lease if this Mortgage is on a leasehold. If this Mongage is on a unit in a ;
condominium or a planned unit development, Borrower shall perform all of Borrower s obligations under the declaration i
or covenants creating or governing the condominium or planned unit development, the by-taws and regulations of ihe
condo.minium or planned unit development, and corrstituent documents. If a condominium or planned unit development -
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and s6all amead and supplement the covenants and agreements of this Mortgage as if the rider =
were a part hereof. :
7. Protectfoo of Lende~'s Secarity. If Botrower fails to perform the covenants and agreements contained in this
Mortgage, or if any actia~ or proceeding is commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then Lender at Lender's option, upon notice to Bonower, may make such appearances, disburse such
sums and take such action as is n~sary to protect Lender's inieresi, including, but not limited to, disbursement of
reasonable attomey's fees and entry upon the Property to make repairs. If L.ender required mortgage insurance as a
condition of makiag the loan s~cured by this Mortgage. Bo~rower shall pay the premiums required to maintain such
insurance in effect until such time u the requirement for such insUrance terminates in accordance with Borrower
s and
. - . A'~~x 295 F~~E " 563 ~ ~
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