HomeMy WebLinkAbout1040 UNtFORM CoveN~Nrs. iorrower and LenJer cave~ant and agrce as follows:
1. P~ymeat of Pdnclpal and Interest. Bo~rower shall promptly pay when due thc principal of and interest on the
indebtedncss evidenced by the Note. prepayment a~d late charges as proviJ~d in the Notc. and the principal of and interest
on any Future Advanccs secured by this Mortgage.
2. Fuads for Tues aad Iosurance. Subject to applicable law or to a writte~ waiver by Lender, Borrower shall pay
to I.ender on the day monthly installments of pri~cipal and interest are payable under the Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus or~e-twelfth of yearly premium installments for mortgage insurancc, if any. all as reasonably estimated initially and from
timc to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
'il~e Funds shall be held in an institution the depwits or accounts of which are insured or guaranteed by a Federal or
state agcncy (inzluding Lendtr if Lender is such an institution). Lender shall apply the Funds to pay said taza, asseuments, .
insurance premiums and ground rents. I_ender may not charge for so holding and applying the Funds, analyzing said account,
or v~rifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrowcr, and unless such agrcement is made or applicable law
requires such interest to be paid. Lender shall not be required to pap Barrower any intertst or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual ~ccounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. 'I~e 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 monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance prrmiums and ground rents, shall exceed the amount required to pay said taxes,
assessments. 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 n~onthly installments of Funds. If the amount of thc Funds
held by Lender shall not be suf~cient to pay tanes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly refu~d to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of the Prope{ty or its acquisition by Lender, any Funds held by~
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Paymeats. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I_ender first in payment of amounts payabie to Lcnder by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arges; Lk~. Borcower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or gtnund rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
payee thereof. Borrower shall promptly furnish to Lender aq notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments.
Borrower shall promptty discfiarge any lien which has priority over this Mortgage; proviJed, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in W~riting to the payment of the obligation secured by
such lien in a manner acceptable to L.ender, 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 thereof.
5. Ha~srd Insarance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended 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 Mortgage.
'I~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
val shall not be unreasonabl withheld. All remiums on insurance policies shall be paid in the manner
that such appro y P
~ provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance cazrier.
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 renew~als 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 Lender. Lender may make proof of loss if not made promptly
j by Borrower.
~ Unless Lender and Borrower othen+~ise agree in w•riting, 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 is
not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sutns secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Propert)• is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is maited by l.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
~ is authorized to collect and apply the insurance proceeds at LenJer's option either to restoration or repair of the Property
0 or to the sums secured by this Mortgage.
~ Unless Lender and Borrower othervvise agree in wrrting, anp such application of proceeds to principal shait not extend
~ or postpone the duc date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
~ such installments. If under paragraph IS hereof the Property is acyuired by Lender, all right, title and interest of Borrower
} in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
~ or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ acquisition. -
~ 6. Presen~ati~n and ~iaintenance of Properly; i.e~eholds; Condominiums; Planned Unit Developments. Bortower
shall keep thc Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
~ and shall comply with the provisions of any lease if this Mortgage is on a leasehold. 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 creating or governing the condominium or planned unit development, the by-laws and regulations of the
~ ~condominium or planned unit development, and constituent documents. I[ a condominium or planned unit development
~ rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of siich rider
j shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
i were a part hereof.
( Protectioo of Leader's $ecurity. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
~ including, but not limited to, eminent domain, insolvency, code enforcrcement, or arrangements or proceedings involving a
~ bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
~ sums and take such actiun as is necessary to protect ~ender s interest, including, but not limited to, disbursement of
reasonable attomey's fees and entry upon the Property to make repairs. If Lender reqaired mortgage insurance as a
~ cortdition of making the loan secured by this Mortgage, Borrower ~hall pay the premiums required to maintain such
insurance in efiect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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