HomeMy WebLinkAbout0010 UNIFORM COYF:NANTS. Borrower and Lcndcr covenant and agrcc :u follows:
1. Payment of Principal anti Interest. Borrower shall promptly pay when efuc the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the }•earl}• 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 one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to time by 1_ender on the basis of assessments and hills :+nd reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. tender ma}• 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 oti 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 Borrower, and unless such agreement is made or applicable law
requires such interest to tie paid, Lcndcr shall not he reyuired to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual acrnunting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds w;ss made. The Fiends are pledged as additional security for the sums secured
by this Mortgage.
if the amount of the Fiends held by I_endcr, together with the future monthly installments of Funds pa}•ablc prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired 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 monthly installments of Funds. If the amount of the Funds
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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. Lcndcr shall promptly refund to Borrower any Funds ;
held by Lender. If under paragraph IS 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 Property or its acquisition by Lcndcr, any Funds held by i
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_ender first in pa}•ment of amounts payable to Lcndcr by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principa) of the Note, and then to interest and _
principal on any Future Advances.
4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Propert}• which may attain a priority over this Mortgage, and leasehold payments or ground rents, if an}•, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, b)• Borrower making payment, when due, directly to the
payee thereof. Borrower shat! promptly furnish to Lender all nMicec of amounts due under this paraeraph, 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 lone as Borrower shall agrcc in writing 'to the payment of the obligation secured b}•
such lien in a manner acceptable to Lender, or shall in gcxxl faith contra such lien by, or defend enforcement of such lien in,
legal praxedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss b~• fire, hazards included within the term "extended coverage", and such other hazards as Lender may reyuire
and in such amounts and for su.h periods as Lcndcr may reyuire; provided, that Lender shall not reyuire that the amount of
such coverage exceed that amount of coverage required ro pa}• the sum, secured by this Mortgage.
The 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 shall be paid in the manner
f 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 tx in fornt 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 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 1_ender- 1-ender ma}• make proof of loss if not made promptly
by Borrower.
Unless Lcndcr and Borrower otherwise agrcc in writing, insurance prexeeds 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. I( such restoration or repair is not economically feasible or if the securit}• 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 Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier o(Ten to settle a claim for irsurance 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 nxinthh• installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph I8 hereof the Property is acquired 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.
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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, Borrower shall perform all of Borrower's obligations under the declaration
1 or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituem 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 into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Ixnders Security. 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 enforcement. or arrangements or proceedings involving a
bankrupt or decedent, then Lender at I-ender's option, upon notice to Borrower, may 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 fees and entry upon the Property to make repairs. If Lender reyuired mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and _
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