HomeMy WebLinkAbout0225 UNIFORM CovEN~NTS. Borrower at?d Leoder cuvenanl and •ag~re a~ (olluws:
1. tayment of Priacipd aal taleresi. Burmwer ~h:d) promptl) pay Nhen due the princip~l of aod interest on the
~adebtedness evidenced by the Note, prepayment anJ latc chargr. n. pruvided ip Ihe Nole, and the principa) of and intercst
on any Futurc Advances sccurcd by ~his Mortgagc.
2. Ruads for Tues aad Inwranca Subject ~a appli~ahlc IaN t~ a written waiver by l.ender, Borrawer shall pay
to l.ender on ~he day monthly installments of principal and ~uu•~r.i .~rr p~yahlc under Ihc NMe, until the Note is paid in full,
a sum (hercin "Funds") equal to one-taelt~h ot ~he ycarl~ ~a~~• and asa:ssntent~ v?hich may attain priority over this
Motigage, a~d g~ound renta on the Pooperty, if any, plus onc-twr~fth ot yrarly premium installments for hazard insurance,
plus one-tweltth of yearly premium installmenis for mo~~gagc insurancc. i( any, all a~ reasonably cstimated initially and trom ~
time to time by I.ender on the basis of a~scs~mrnts ~nJ hills and re•r~unable estimates thercof.
The Funds shall be held in an institwi~~n thc de~+it~ ar accuunts ~it which are insurcd or guaranteed by a Federal or
state agency (including Lender if Lender is ~uch an institution I ender ~hall apply the Funds ta pay said ~axes, asxssments.
insurance premiums and ground rents. 1 ender ma}• n~~ charge lor s~ holding and applying the Fnndc. analy~zing caid account.
or verifying and compiling said assessments and bitl~, unless I.ender pay. Borrower interest on ihe Funds and applicable law
permits l.ender to make such a charge. Bcxruwe~ and l.ender may agrce in writing at Ihe time o( execution ot this
Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
rcquires such interest to b~ paid. l.ender shall not ~e requircd to pay Borrowcr any intcrest or earnings on the Funds. 1_ender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to ~he Funds and the
purpose fot which eaeh debit to the Funds was made. The Funds are pleciged as additional security for the sums secuted
by this Mortgage. .
If the amount of the Funds held by Lender, togeth~r with the iuwre monthly installments of Funds payablc prior to
the due dates of iaxes. assessments. insurance premiums and ground rents, shall erceed the amou~t required to pay said taxes.
sssessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amoun~ of thc Funds
heW by Lender shall not be sutTicitnt to pay taxes, assessments, insurancc premiums anJ ground rents as they fall due,
Borrower shall pay to l.ender any amount nocessary to make up the deficiency within 30 da}~s from the date notice is mailed .
by Lender to Borrower requesting payment ~hereof. ~
Upon payment in full of all sums secured by this Mortgage, I_ender shall promptly refund to Borrovver any Funds
held by Leader. If under paragraph 18 hereo( the Property is sold or the Propcrry is otherwisc acquired by l.ender, Lender
s6a11 apply, no later than immediately prior to the sale of the Propeny or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Nongage.
3. Application ot Paymeats. Unless applicable law provides othervvise. all payments received by Lender under the
Note and paragraphs I and 2 hereo( shall be applied by 1_ender 6rst in payment af amounts payable to I_enJer by Borrower
under paragraph 2 hereof, then to interest payable on the Note, thcn to the principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arges; I3eas. Borrower shalf pay aU taxes, assessmcnts and othcr chargcs. fines and impositions attributable to
t6e Property which may attain a priority over this Mortgage, and lea~ehold payments or ground rents, if any, in the manaer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Botrower shall make payment direcQy, Borrower shall prompQy furnish to l~nder receipts evidencing such payments_
Borrower shall pcomptly discharge any lien which has priority over this Mongage; proviJed, that Borrower shall not be
requircd to discharge any such lien so long as Borrower shall agree in writing to the payment of ihe obligatiun secured by .
such lien in a manner acceptable ro L.ender, or shall in gcx~d faith contest such lien by, or defenJ enforcement of sueh lien in, :
legal proce~dings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof_
S. Huud Insurance. Borrower shall keep the improvements now~ existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "rxtended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not require that the amount of
I~ such coverage exceed that amount of coverage required to pay the sumc secured ~by this Mortgage.
f 'I7~e insurance carrier providing the insurance shall be chosen by Borrower s~bject to approval by Lender, provided,
f that wch approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner ~
~ provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, diractly to the
; insurance carrier.
~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
~ clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
~ and Borrower shall promplly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
~ Borrower shall give prompt notice io the insurance carrier and l_ender. Lender may make proof of loss if not made promptly
€ by Borrower.
Unless Lender and Borrower otherK•ise agree in wntmg, insurance proceeds shall be applied to restoration or repair of
~ the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage ic
not ~hereby impaired. lf such restoration or repair is not economically feasible or if the security of this Mortgage w~uld
' 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 abandoned by Borrower, or if Borrower fails to respond to I~nder within 30 days from the
~ date notice is mailed by L.ender to Borrower that ~he insurance carrier ofiers to setde a claim for insurance benefits, Lender
~ is authorized to collect and apply the insurance proceeds at LenJer's option either to restoration or repaer of Ihe Propem•
" or to the sums secured by this Morigage.
~ Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
~
~ or postpons the due date of the monthly installmcnts referred to in paragraphs I and 2 hereof or change the amount of
~ such installments. If under paragraph I8 hereof the Property is acquireci by l.ender, all right, title and interest of Borrower
in aad to any insurance~policies and in and to the proceeds thereof resulting from damage to the Property prior to th~ sale
or acquisition shall pass to Lender to the extent of the sums secured by this htortgage immediately prior to such sale or
' acquisition.
6. Preservation and 1lsintenance of Properly; Leaseholds; Condominiums; Planned Unit Developments. Borrowcr
c shall keep the Property in good repair and shall not comrqit waste or permit impairment or deterioration of the Property
= and shall comply with the provisions of any lease if this Mor~gage is on a leaschold. If 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 creatiag or governing the condominium or planned unit development, the by-laws and regulations of the
~ condominium or planned unit development, and constituent documents. If a condominium or planned unit development
~ rider is executed by Borrower and recorded together with thi~ Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants anJ agreements of this Mortgage as if the riJer
were a part hereof.
7, protectioa of Lende~'s Securfty. If Borrower fails to perform ihe covenants anJ agreements contained in this
Mortgage, or if any action or proceeding is commence~! which materially afircts LenJer'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 Borrower, may make such appearances, Jisburse such
sums and take such action as is necessary~ to prote~t l~ender's interest. including. but not limited to, disbursement of
=s; rt~sonable attomey's fees and entry upon the Property to makc rcpairs. lf Lcndcr rey~iircd mortgage insurance as a
condition of making the loan secureJ by this Mortgage, B~rr.~NCr shall p~y the premiums required to maintain such
insurance in efiect until such time as the reyuirement for wch msurance terminates in accordanee with Bormwer s and
~ ~'~~K 301.~~~ 225
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