HomeMy WebLinkAbout0112 UNtFORt?t CovFtv.~N~rs. Borrower and Lender covenant and agree as follows:
l. Payment of Prtncipal and Interest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, pmpayment and late charges as provided in the Note, and the principal of and interest
on aay Future Advances secured by this Mortgage.
2. Fhnds for Tues and Insutwce. Subject to applicable law or to a v?ritten waiver by Lender, Borrower shall pay
to I.ender on the day monthly installments of principal and interest are payable ~mder the Note, until the Note es paid in full,
a sum (herein "Funds") equal to onatwelfth of the yearly taxes and assessmc~ts which may attain priority over this
Mortgage, and ground re~ts on the Pmperty, if any, plus one-twelfth o[ yearly Premium installments for hazard insurance,
plus one-twelfth of yearly premium installments [or mortgage insurance, i[ any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
7~e Funds shall be held in an institution tht deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lendtr if I.ender is such an institution). Lender shall apply tht Funds to pay said taxes, assessments.
insurance pnmiums and ground rents. Lender 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 Lender to make such a charge. Borrower aad 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 snch agreement is made or applicable law
requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. l.ender
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 securit~• for the sums secured
by this Mortgage.
lf the amount of the Funds held by Lender, together with the future monthly installments of Furtds payablc prior to
the due dates of taxes, assessments, insurance premiums 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 mon~hly installments of Funds. If the amount of the Funds
held by Lender shall not be suf~icient to pay taxes, 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 daps [rom the date netice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrowcr any Funds
held by LenJer. If under paragraph 18 hereof the Property is sold or~}he ~Aroperty is otherwise at•quired by Lender, Lender
sha11 apply, no later than immediately prior to the sale of t~e Prnperty-or its a~quisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums s~cured by this Mortgage.
3. Applicsttion of Paymeats. L;nless applicable law provides otherwise, all payments receir•ed by 1_ender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in psyment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the No~e, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arges; Lkns. Borrower shall pay all t:~~cs, assessments and othcr charges, fines and impositions attributabte to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
pmvided 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 du~ under this paragraph, and in the event
Borrower shall make payment directly, Borro~•er 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 shail in good faith contcst such lien by, or defend enforcement of such lien in. -
legal proceedings which operate to prevent the enforcement of the I~en or forfeiture of the Property or any pan thereof.
' S. Huud Insurance. Borrower shali keep the improvemcnts now existing or hereafter erccted on the Properry insured
i against loss oy fire, hazards included within the term "eatendeJ coverage", and such other hazards as Lender may require
~ and in such amounts and for such periods as Lender may reyuirc; provided, that Lender shall not requim that the amount of
; such coverage exceed that amount of coverage required to pay the. sums secured by this Mortgage.
; The insurance carrier providing the insurance shall be chosen by Borrower subject _to_apgroval by Lender. provided,
s that such approval shall not be unreasonably withheld. All prcmiums 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, directly to the
; insurance carrier.
i All insurance policies and renewals thereof shall be in form acceptable to LenJer and shall include a standard mortgage
~ clause in favor of and in fotm acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
~ and Borrower shall promptiy furnish to Lender all renew•al notices and all receipts of paid prentiums. In the event of loss,
~ Borrower shall give prompt notice to the insurancc carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
~ Unless Lender and Borrow~cr othervvisc agrce in writing, insurance proceeds shall be applied to restoration or repair of
~ the Property damaged, provided such resroration or repair ~s economically feasible and the seeurity of this Mortgage is
~ not thereby impaired. It 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 sums secured by this Mortgage. with the excess, if any, paid
~ to Borrower. If the Propert}~ is abandoned b} B~rrower, or if Borrower fails to respond to Lender within 30 days from the
~ date notice is mailed by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, L.ender
~ is aut6orized to collect and applp 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 otherwix: agree ;n writing, any such application of proceeds to principal shall not e!ctend
a or postpone the due date of the monthl~ installments referred to in paragraphs 1 and 2 hereof or change the amount of
' such installments. If under paragraph I S hereof the Property is acyuired by L.ender, all right, tiNe and interest of Borrower
~ in and to an~~ insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale ~
~ or aoquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to wch sale or
~ acquisition. ~
~ 6. Preservation and ~taintenance of Propert~; Leaseholds; Condominiums; Planned Unit Developments. Borrower
- shall keep the 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, Borrow•er shall perform all of Borrower's obl~gations under the declaration
er covenants creating or governing the condominium or planned unit development, the by-laws and regolations of the
' condominium or planoed unit development. and constituent documents. If a condominium or Planned unit de~•elopment
= rider ~s executed by Bortower and reccrded together with this blortgage, the covenants and agreements of such rider
h
s shall be incorporateJ into and shail amend and supplement the covenants and agreements of this Mortgage as if the rider
t were a part hereof.
7. Protection of Lende~s Security. If BorroNer fails to pcrform the covenants and agreements contained in this
~ Mortgage, or if any action ur proceeding is commenced w~hich materially afTects Lender's interest in :he Property,
including. but not limited to, eminent domain. insol~•ency. cocie enforcement. ~r arrangements or proceedings invol~•ing a
~ bankrupt or decedent. then I.ender at Lender's option, upon notice to Borrower, ma~ make such appearances, disburse such
' sums and take such action as is necessar~• tu protect Lender's ~nterest. ~ncluding, but not limited to, disbursement of
reasonable attomey's fees and entry opon the Property to make repairc. If Lcnder required mortgage insurance as a
; condition of making the loan secured b} this Mortgace. B~~rro«er shall pay the premiums required to maintain such
~ insurance in eftect until such time as the reyuirement for tiuch msurance terminates in aceordance with Borrower's and
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