HomeMy WebLinkAbout0021 UNlFORM C`OV~NANTS. $OfrOWCf BfIII I.Cillltf COVtOAfll 3fItI ajjfCt eS fO~IOWS:
1. P~ymeal ot Prioclpsl and Iateresl. Bor~ower shall p~omptly pay when due the pnnc~pal ol and interest on the
indebtedneu evidence:i by the Note, prepayment and late charges as provided in thc Note, and the principal ot and in~ens~
on aay Future Advances secured by this Morigage. ,
. 2. Ithads tor Tua and I~urance. Subject to applicable law or to a written waiver by l.ender, Borrower shall pay
to l.enckr on ~he day monlhly installmen~s of principal and interest arc payable under the Note, u~til Ihe Note is paid in full,
a sum (herein "Fuods") equal to ane-twetfth ot the yea~lx taxcs and assessments which may attain priorily over this
Mortgage, and ground renta on ihe Proper~y. if any, plus one-twclfth of yearly premium installments for haaard insurance.
plus one-twelfth of yearly premium installments for mortgage in:urance, if any. all as ressonably e.ctimated initially and trom
timc to time by Le~der on the basis of asscssme~ts and hills and reasonable estimates thereof.
The Funds shall be heid in an institutian the deposits or accounts of wh+ch are insurcd or guaranteed by a Federal or
state agency (including Lender if l.ender is such an institution). I.ender shall apply the Funds to pay said taxes, asscuments,
insurance premiums and ground rents. I.ender may not charge for so holding and applying the Funcls, analyzing said account,
or verifying a~d compiling said asxssments and bills, unless I_ender pays Borrower interest an the Funds and applicable law
permits Lender to make such a charge. Borrower and I.ender may agree in writing at the time ot execution ot this -
Mortgage thal interest on the Fu~ds shall be paid to Borrowtr, and unless such agr~r~^nt is made or applicable law
requires such interest to be paid, l.ender shal! not he required~o pay Barrower any inte~est or oarnings on the Funds. I.ender
shall give to Borrower, without charge, •rn annual accounting of the Punds showing creelits ~nd debits to the Funds and the
purpose tor whirh each dcbit to the Funds was made. The Funds src plecfged as additiunal security for the sums sccurcd
by this Mortgagc.
If the amount of thc Funds held by I.endcr, together with the (uture monthly instaitments af Funds payable prior to
the due dat~s of taxes, assessments, insurance pre+niums and ground rents, sfial! exceed the amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as thcy tall due, such excess shall be, at Borrower's option, either
prompdy repaid to Borrower or credi~ed to Borrower on m~nthly installments of Funds. If tht amount of thc Funds
hetd by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to !_ender any amount necessary to make up the deficiency within 30 days tram ~he date notice is mailed
by l.eader to Borrower requesting payment therent. '
Upon payment in full uf all sums secured by this Mt?ngage. I.ender shall promptly refund to Borrowcr any Funds
held by I.ender. If under paragraph IS hereof the Property is cold or the'Property is otherwise acquired by Lender, l.ender
sha!! apply, no 1ate~ tha~ immediatcly prior to ~he ~ale of the Property or its acyuis~tion by I.endcr, any Funds held by
Lender at the time ot application as a cr~llit against thc sum, secured by this Mortgage.
3. Appllcation of Payments. Unless applicable lavr pru~~iJes othcrwise, all payments received by Lender unJer the
Note and paragraphc 1 and 2 hereof shall be appGed by Lender fint in p~yment o( amounts payable to I.endcr by Borrower
under paragraph 2 hereof, then to interest payable on the Ne~~c, thrn to thc principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arges; Lkas, $orrower sh~ll pay all trxes, a~srscments :~nd ather charges, fines and impositions auributaMe to
the Property which may attain a priority over this Mortgage, and leaschold payments or ground rents, if any, in the manner
provided under paragrnph 2 hereof or, it not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event
Bo~rower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments.
Borrower shalt promptly discharge any tien which has priority aver this Morlgage; provided, that Borrower shall not he
requirtd to discharge any such lien sc+ long as Borrower shall •rgrec in writing to the payment o( the obiigation secured by
such lien in a manner acceptable to I.ender, or shall in gcxxl faith conte+~ such licn hy, or defend enforcement of such lien in,
legal proceedings which operate to prevent the entorcement of the lien or [orfeiture of the Property or any part thereof. ~
S. Huud Insurance. Borrower shall keep the impmvement+ now existing or hercafter crected on the Property insured
agairut loss by Bre, hazards included within the term "ex~ended covcrage", and such other hazards ax I.ender may require
and in such amounts and for such periods as Lender may rcquirc; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage reyuired to pay the sum~ securcd hy ihis Mortgage.
"Che insurance carrier providing tiie insurance shali be chosen by Borrower subjcct 1u appruraS by Len:fer: pravidcd, .
that such approva! shall not be unreasonably withheld. All premium. on insuranee policies shall be paiJ in the manner
pruvided 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 anc! renewals th~reo( shall be in form accepl:~ble to Lender and shall indude a standard mortgage
clause in favor of and in form aeceptable to l.ender. Lender shall have the right to hold the policies and renewals thereof.
and Borrower shall prompily furnish to Le~der 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 l.ender. Lender may make prex?f of loss if not made promplty
by 8orrowtr.
Unless 1_ender and Borrower otherwise agree in wriling, insurance pro~:eeds sha11 be applied to restoration or repair of
the Property Jamaged, provided such restorat~on or repair is ecanomically (easible and the security of this Mortgage is
not ihereby impaired. tt such restoration or repair is not econumically feasible or if the security of this Mortgage would
be impaired, the insuranee proceeds shall be applied to the sums securcd by this Morigage, with the excess, if any, paid
to Borrower_ If the Property is abandoned by Borrower, ur il Borrower fails to respond to Lender within 3U days from the
date notice is mailed by Lxnder to Borrower thrt ~he insurance carrier ofiers to settte a ctaim for insurance benefits, I.ender
is authoriud ~ collect and appty the insurance proceeds at Lender's option either to resloration or repair of the Property
or to the sums secured by this Mortgage.
Unless lxnder and Borrower otherwise agree in writing, any such application of proceeds to prineipal shall not extend
or postpone the due date of the monthly instal(ments referrcd to in paragraphs i and 2 hereof or change thc amount of
such installment~. I( uoder paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest of Borrower
in and to any insuranre policies and in and to the proceecis thereof resulting fram damage to the Property prior to the sale
or acyuisition shall pass to Lender to the eztent of the sums ~ecurecl by this htortgage immediatcly prior to such sale or
acquisition.
6. Presercalioa and lfsiiatenance of Properly; l,easehulds; Condominiums; Planned Unit Devtlopments. Borrower
shall keep thc Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with thc provisions of any lease i( this Mortgage is on a leasehold. I[ this Mortgage is on a unit in a
condominium or a planned unit Jevetopment, Borrower shall perfarm ait of Borrower's obligations under the declaration
or covenants creatrng or governing the condominium or planned unit development, the by-laws and rcgulations o( the
condominium or planned unit development, and constitucnt Jocuments. If a conduminium or planned unit development
riJer is executed by f3orrower and recorded together whh this Mortgage, the covenants and agreements of such rider
shall be ~ncorporated into and shalt amend and supplement the covenants and agretments of this Mortgage as if the rider
were a part hereof.
7. Proleclion of I.ender's Security. I( Borrow~er fails lo perfnrm ihe covenants and agreements contained in this
Mortgage, or if any action or proc:eeJing is commenceJ which materially aBects Lender's interes: in ~he Property,
including, but not limited to, eminent domain, insotvency, code enforcement, or arrangemer~ls or proceedings involving a
bankrupt or decedent, then I.ender at l.ender's option, upon notice to Borrower, may make such appearances, Jisburse such
sums and take such action as is necessary to protect l.ender's interest, including, but not limited to, disbursement of
reasonable attomey's fecs and emry upon the Property to make repair~. If [xnder required mortgage insurance as a
condition of making the ba~ su:urecl by this Mortgage. 8orrower shall pay the premiums required to maintain such
insurance in effut uniil such time as the requirement for such insurance terminates in accordance with Borrower s and
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