HomeMy WebLinkAbout0481 UN~FORM CoveN~rvTS. Bonower a~d 1.enJer covenant and agree as follows:
1. Taymeat ot Principd and l~iterest. Bo~rawer shall promptl~~ pay when due ~he principal of and interest on the
indebtedneu evideoced by the Note, prepayment and late charges as pruviJed in the Note, a~d the principal of and interest
on aay Futurc /ldvances secured by this Mortgage. -
2. Funds tor Tua snd Insuraace. Subject to applicable law or to a writte~ waiver by Lender, Borrawer shall pay
to Le~der on the day mmthly installments of principal and_intcrest are payahle under the Note, until the hote is paid in full,
a sum (herein "Funds") equal to one-twclfth o[ thc >~ear{y tate~ and ascessmen~s which may auain priority over ~his
Mortgage, and ground rents on the Property, if any, plus one-twel(th of ~•early premium installments for hacard in~urance,-
plus one-twelfth of yearly premium installments tor mo~tgage msurance. if any, all as reasunably estimated initially and from
time to time by Lender on the basis of assessments and bills and reason•rble eslimates the~eof.
'il~e Funds shall be held in an instituti~n the deposits or acrnunts of which :~re insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). l.ender shall apply the Funds to pay said taxes, assessmentS,
insurance pnmiums and ground rents. I_ender may not charge for so holding and apply~ing the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless I_ender pays Borrower interest on the Funds a~d applicable law
permits Lender to make such a charge. Borrower ~ and Lender may agree in writing at ~he time of execution ot this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such ag~eement is made or applicable law
requires such interest to tx paid, Lender shall not he required to pa~• Borrower anp interest or earnings on'the Funds. Lender
shall give to 8orrower, without charge, an annual accaunting 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 Mortsa~c. ~ ,
If tAe amount o[ the Funds held by Lender, together with the future monthly installments of FunJs payabie prior to
the due dates of taxes. assessments. insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes.
asseasments, 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. lf the amount of the Funds
held by Lender shall not be suff'icient to pay tares, assessments, insur•rncc premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up ~he deficiency within 30 da}~s from the date notice is mailed.
by Lender to BorrQwer requesting payment ~hereof.
Upon~ payment in full of al) sums secured bp this Mortgage, I.endcr shall promptly retund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or ehe Properry is other.~isc acquired by Lender, Lender
shall apply, no later than immediatcly prior to the sale of th~ Property ar i~s acquisition by 1_ender, any Funds held by
Lender at the time ot application as a credit against the sums secured by this Ttortgage.
3. Application of Paymeats. Unless applicable law provides otherwise, all payments received by I_ender under ihe •
Note and paragraphs 1 and 2 hereof shall be applied by Lcnder first in pa~ment of amounts payable to LcnJer by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to• the principal of the Note, anJ thcn to interest and '
principal on any Future Advances.
4. Charges; Lkns. Borrower shall pay all taxcc, assessments and other charges. fines and impos:tions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground renis, 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 all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly (umish to Len~er receipts evidencing such payments.
Borrower shall prompdy 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 gcwd faith contesi such lien by, or defenJ enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the I~en or forfeiture of the Property or any part thereof.
S. Hazi?rd Insurance. Borrower shall keep thc impro.~emcnts noW cxisting or hereafter crerted on the Pr..perty insured
against loss by fire, hazards inctuded within the term "extended coverage". and surh other hazards as Lender ma}~ reyuire
' and in such amounts and for such perials 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 Mor~gage_
i 'ihe 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 premiumc on insurance policies shall be paici in the manner
E 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
; clause in favor of and in form acceptable to Lender. Lendcr shall have the right to hold the policies and renewals thereof,
€ and Borrow•er shall promptly furnish to Lender all renewal notices and al{ receipts of paid premiums. In the e~•ent of loss,
~ Borrower shall gi~~e prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
M by Borrower.
s Unless Lender and Borrower othen+~ise agree in writing, insurance proceeds shall be applied to restoration or repair of
; the Property damaged, provided such restoraUon or repair is economically feasible and the security of this Mortgage is
~ not thereby impaired. If such restoration or repair is not economirally ieasible or if the security of this Mortgage wuuld
be impaired, the insurance proceeJs shall be applied to the sums secureJ by this Mortgage. w~ith the excess, if any, paid
~ to Borrower. If the Propert~ is abandoned b~• Borrower, or if Borrower fails to respond to ~endcr within 30 days from the
' date notice is mailed b~~ Lender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, I.ender
a is authorized ta rnllect 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 otherv?ise agree ~n w•riting, an}• such application of proceeds to pnncipal ~hall not extend
r or postpone thc due date of the monthly installments referred tu in paragraphs 1 anJ 2 hereof or change thc amount of
P such installments. If under paragraph 18 hereof the Property is acyuired b} Lender, all right, title and interest of Borrower
; in and to an~ insurance policies and in and to the proceeds thrreof resulting from damage to thr Propert~~ prior to the sale
or acyuisition shall pass to Lender to the e~tent of the sums secured b}~ this Afortgagr immediatel~ prior to such sale or
~ acquisition.
7 6. Presenalion and ~taintenance of Propert~; Leaseholds: ('ondominiums; Pl~nned Unit Developments. Borrow•cr
~ shall kcep thc Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions o( any lease if thu :~1~~rtgage is on a leaschold. If this Morigage is on a unit in a
_ rondominium or a planned unit development, Borrower sh~ll pcrform all of Bormwer's obligations under the decL•~ration
or covenants creating or governing the condominium or planncd unit development, the by-laws and regulations of the
~ ~ondominium or planned unit development, and constituent Jocuments. If a condominium or planned unit de~elopment
nder is executed by Borrower and recorded together with this Mortgage, the co~•enants and agreements of such rider
shall be incorporated into and shall amend and supplcment the co~enants and agreements of this Mortgage as if the rider
a ~ere a part hereof.
7. ProtecNon of I.enders Seeurity. lf Borrow~er fails ro perform the covenants and agreements contained in this
~ Mortgage, or if any action or proceeding is commenred wh~ch materiaUy afTects Lender's interest in the Property.
~ including, but n~~t limited •to. eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a
z bankrupt or decedent, ~hen Lender at Lender's option, upon notice to Borrower, ma}~ make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney's fces and entry upon the Property to makc repair~. If Lcndcr required mortgage insurance as a
: condition of making the loan secured b}~ this Mongage. Borrower shall pa}• the premiums required to maintain such
insurance in efiect until such time as ~he reyuirement for such insurance terminates in accordance with Borrowei s and
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. . °aGE 48~
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