HomeMy WebLinkAbout1983 UNIr'OSSM COVENANTS. BOrrOwer and L,ettder COVenanl and agree ss fOlk+ws:
lywsy of lriae4al tt1tN lMereM. borrower shall promptly pay when due the principal of acrd interest on the
indebtedness evidenced by the Note, prepayment and late charges ac provided in the Note, and the principal of and interest
oa soy Future Advances secured by this Mortgage.
2. Ftttttri ter Taataa ttwtl Irtwnoee. Stitbject to applicabk law rx to a written waiver by Lender. Borrower shall pay
to Lender On the day monthly installments of principal and interest ~rc payabk under the Note, until the Note is paid in full,
a start (herein "Fund:"~ equal to one-twelfth of the yearly rases aril 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 one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
tirtre to time by Lender on the basis of assessments and hills and reasonabk estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an irtstitutionl. I-ender shall apply the Funds to pay said taxes. assessments.
instrraaoe premiums and ground rents. 1_ender may not charge for so holding and applying the Funds. analyzing said account,
or verifying-and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Linder 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 Borrower. and unless such agreement a made or applicable Isw
requires such interest to be paid, Lertder shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower. without charge, an annual accounting 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 tha Mortgage.
If the atZrotrnt of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments. inswarrce premiums and ground rents, shall exceed the amount required to pay said taxes.
asseaments, insurance premiums and ground rents as they tall due, such excess shall be. at Borrowers option, either
proomptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be strd'icieat to pay taxes. assessments, insurance premiums and ground rents ss they fall due.
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days tram the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of a0 strms secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Linder. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender. Lender
shall apply, no later than immedutely prior to the sale of the Property or its acquisition by Lender. any Funds held by
L.eoder at the time of application as a credit against the sums secured by this Mortgage. `
3. Applkatiora of Paytosetrds. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payabk on the Note,-then to the principal of the Note, and then to interest and
principal on any Future Advances.
d, C6srges: LieRS. Borrower 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 ground rents, if any, in the manner
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 al{ notices of amounts due under this paragraph. and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall 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 thereof.
S. Hazsr>3 Iasnraaer. Borrower shall 4eep. !ht iml+rovementc nnw ezisrin¢ 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 Eby this Mortgage.
j 11re insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shad be paid in the manner
provided 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 and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
E 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 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
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
1 the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
1 not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance procceds 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 Lender within 30 days from the
f date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
~ or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
• in and to any Arsurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
~i or acquisition shall pass to Lender to the extent of the sums secured by this I~tortgage immediately prior to such sale or
~ acquisition.
6. Praerratlon and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
r shalt keep the Property in good repair and shall not comrpit yr•aste 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 Borrowers 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. 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 rote and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
T. Protection of Leader's Security. If Borrower fads t~• perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is commenced which materially aflects Lender's imerest in the Property.
including. but not limited to, eminent domain. inx~lvencp, code enforcement. or arrangements or proceedings invoh~ing a
bankrupt or decedent, then lender at I.ender'~ option, ulxm notice to Borrower, map make such appearances, disburse such
sums and take such action a+ is necessary to protect Lender's interest, including. but not limbed to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. If 1_endcr required mortgage insurance as a
condition of making the loan secured h}• this M~~rtgage. B~~rn.wcr shall pap the premiwnc required to maintain such
insurance in rifest until such time as the requirement for wch mcurance terminates m accordance with Borr~~wer's and
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' ~ _ AC'S ..,1y79
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