HomeMy WebLinkAbout0831 UNIFOtttM CoveNarm. Borrower and Lender covenant and agree as follows:
1. lraywer.t of hiaeiMl trrti ItNeratt. Borrower shall promptly pay when due 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.
Ftuis for Ta:a sad lagra*ce. Subjsct to applicat+k law ur to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and inicrest arc payahk under the Note. until the Note is paid in full,
a stun (herein "Funds' equal to one-twelfth of the year)} eases and assessments which may attain priority over this
Mottgase. and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hszard insurance,
plus ores-twelfth of yearly premium installments for mortgage insttrancc, it any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be heW in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
Mate agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments.
insurance premiums and ground rents. Lender may not charge for so holding and applying the Frrndc, 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. 8arrower and Lender may agree in writing ai 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 be paid. Lender 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 this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payablt prior to
the due dates of taxes, assessments. insurance premiums and ground rents. shat! exceed the amount rsquired 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
held by Leader shall not be sufficient 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 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by thts Mortgage, i.ender soaii prumpiiy re:.;~~d to ;:,cc:,~c: a F::::Js
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall apply, rte later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Leader 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 Lender first in payment of amounts payable to Lender by Borrower
uadcr p~?agraph 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.
Charges; Lktas. Borrower shall pay all taxes, assessments and other charges. fines and impositions attebutahle 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 all notices of amounts due under this paragraph, sad 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 Burrower shall agree in writrng 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 I~en ur [orfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the impn?vements now existing ur 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 rn 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.
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
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance career.
Att insurance policies and renewals thereof shalt he in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. 1_ender shall have the right to hold the policies and renewals thereof.
and Borruw•er 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 it not made promptly
by Borrower.
Unless 1_ender and Borrower otherwrx; agree in writing, 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 nut economically feasible or if the security of this Mortgage would
be impaired, the insurance proxeeds shall be applied to the sums secured by this Mortgage. with the excess, if an}•, paid
to Borrower !f the Propert}• is abandoned by Borrower, or it Burrower fails to respond to Lender within 30 daps from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, 1_ender
is authorized to ctaltect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propene
ur to the sums secured by this Mortgage.
Unless fender and Borrower otherwise agree m writing. any such application of pro:eeds to principal shall not extend
or postpone the due date of the monthh• installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph IS hereof the ProFerty is acquired h} 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. Preservation and Maintenance of Property; t.easehulds; Condominiums; Planned Unit Developments. Burrower
shall keep the Property in good repair and shall not comrpit ytiastc ur permrt impairment or deterioration of the Property
and shall comply with the provisions of any lease ~f this Mungage n 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 guvernrng the condominium or planned unit development, the by-laws and regulations of the
condominium or planned rmit development. and constituent documems. !f a condominium or planned unit development
rider is executed by Borrower and recorded together with thi, Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall emend and supplement the covenants and agreements of this Mortgage as ii the ri.ler
were a part hereof. f
7. Protection of bender's Security. If Borrower fads to perform the covenants and agreements contained in this
Mortgage, or if any action or proreedmg is commenre+l whrch materially affects Lender's interest in the Property.
including. tint nut limned to, eminent domain. nrsolvenc}. axle rnforcemcnt. or arranRemcros or proceedings involving a
bankrupt or decedent. then Lender at 1 ender's option, ulxin notice to Borrower, m:+~ make such appearances, dishurse such
sums and take such action as rs necessary to protect Lender's interest. includmc. but not limned tu, disbursement of
reasonahle at?omcy's tees and entry ufx~n the Propcrts~ to make repairs. It I.rrdcr required mortgage insurance as a
cund~nun ..f making the loan secured by this Aortgage. Buriow~r shall pas" the premiums required to maintain such
• insurance in retest until such time as the rcyuurment for .rr_h msurrnce tcrmni:rtcs m accordance with Bormvser's and
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