HomeMy WebLinkAbout1097 UNIFORM COYBNANTS. Borrower and Lender covenant and agree as follows:
1. Pavmertt of Pdnclpal and Interest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges as pn?vided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Funds for Taxes and Incurance. Subject to applicable law• or to a written waiver by Lender. Borrower shall pay
to Lender on the day momhly installments of principal and interest are payable under the Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth o[ 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 Lender on the basis of assessments and bills and reasonable estimates thereof.
The Funds shall bt: 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 pa}• said taxes, assessments,
insurance premiums and ground trots. lender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless (.ender pays Harrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and (-ender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borruw•er, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be reyuired 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 ar?d the
purpose for which each debit to the Funds ++•as made. The Funds arc pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with the fuwre monthly installments of Funds pa}•able 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 (al! due, such excess shall be. a1 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 Lender shall not be sufficient to pay taxes, assessments, insurance prcr.:iums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 da}s from the date notice is mailed
by Lender to Borrower reyucsting payment thereof.
Upon payment in full of all sums secured by this Mortgage. Lcndcr shall promptly refund to Borrower an}• Funds
held ha• 1 ender, If render 1?~r3gra~h It herQpf the PMpertS is ~~.1~1 nr rh.- Prnnert+ is ntherwiv: acquired by Lcndcr. (.ender
shall apply, no later than immediate(}• prior to the sale of the Property or its acquisition by Lender, any Funds heW by
Lender at the time ut application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law• pro+ides otherwise, all p:+}'ments received b}• Lender under the
Note and paragraphs I and 2 hereof shall be applied by I.cnder first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then m the principal of the Note, and shop tc• interest and
principal on any Future Advances.
a. Charles; Liens. Burrower :hall pay all trues, asessments and other charge,. fines and ~mpo,itions 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. Borro+ver shall promptly furnish to (-ender all notices of amounts due under this paragraph, and in the event
Borrower ,hall make payment directly, Borrower shall prompt(}• furnish to 1_ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Burrower shall not be
required to discharge any such lien su long .+s Borrower shall agree in writing to the payment o! the obligation secured- by
wch lien in a m:mner acceptable to Lender, or shall in f;cxrd faith contest such lien hy, or defend enforcement of such lien in,
tegai prvccedrng, which operate to prevent the enforcement of the fen or forfeiture of the Property or any part thereof.
5. Hazard Insuranec. BOrrOwef shall keep the improvement, nn.+ c+i,ting nr hereafter erected on slit Pn~perq• insured
.+gainst loss by fire. hazard, include.: within the term "cstended coverage', and such other hazards as Lcndcr may require
and in su.-F, amounts and for such periods as I_cnder may require: petty ided. that Lcndcr shall not require that the amount of
;uch rnyera~e exceed that atnc,unt of coverage required to pay the ,unt, ,ecured by this ~longaee.
The insurance .artier providing the inwranc.: shall be chosen by Bornnyer subject to approval h}• (-ender, provided,
that such approval shall nut be unrea,onahly withheld. :Vi premium, on insurance policies shall he paid ui the manner
arovided under parlgr:+ph 2 hereof or. +f nut paid in such manner, M~ Borrower making payment, when due, ciircctly to the
insurance caterer.
~ All insurance politic: and renewals thereof shall Ir_• +n form acrrl•table to Lender and shall include. a ,tandard mortgage
~ clause m favor of and in form acceptable to (.ender. 1_ender ,haft have the right to hold the policies and renewals thereof.
and Bormyrer .hall prornptl~~ furu+h to Lender all renewal notices anJ all receipts of paid premiums. In the event of loss,
Borrower shall give pmntpt notice to the rnsur.+nce carrier and Lender. Lcndcr may make proof of loss if not made promptly
M• Borrower.
Unless Lender and Borrower etherwi,e agree in writinb, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such re,turat++~a or repair is economi. ally feasible and the securit}• of this Mortgage is
~ not !hereby impaired- It such restoration or repair is nut economically feasihle or if the security of this Mortgage would
I be rmpaired. the insurance pmrced; ,hail be applied to the sums secured M this Mortgage, with the excess, if any, paid
to Borrower. If the Pmpern is :~h:,ndoncd by Hormwr. or if Borrower fails to respond to [.ender within 30 days from the
date notice is mailed by Lender to Bnrrow•er that the insurance carrier ofTers to settle a claim for insurance benefits, 1_ender
i, authorized to ayllect and apply the imuranre proceeds at Lender's option either to restoration or repair of the Propert}•
ur to the sums secured h}- this !liurtgage.
1.°nless lender and Borrower othcrwi,c agree m wr+t,nc. an} such applicauion of pm.eeds to pnnc+pal shall not extend
or postpone the dire date of the monthly installments referred to in paragraphs t and 2 hereof or change the amount of
such installments. If under paragraph l8 hereof the Property rs acquired by Lender, all right, title and interest of Borrower
in and is art}• insurance politics as:d in and to the proceeds shcre~t res::long (rem damage tr, the Property prior to the sale
or acyuisiUon sh:+tl pass to Lender to the extent of slit sums secure) b}' this Mortgage immediately prior to such sale or
~ acquisition.
6. Preservation and ~faiotenance of Propertc: Leaseholds; ('ondominiums; Planned Lnit Developments. Borrower
shall keep the Property in good repair and shall not commit waste er permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this `4fortgagc is on a unit in a ~
condominium ur a planned unit deyelopment, Borrower shall perform all of Borrower's obhg:,tions under the declaration
ur covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, anti constituent document;. If a condominium or planned unit development
rider is e+ecuted by Borrower and reu•rded together with this Mortgage, the covenants and agreements of wch rider
shall be +ncorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
i were a part hereof.
_ 7. Protection of Lenders Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, ur if any action o~ proceeding i commenced which materially affects Lender's interest in the Property,
r includinb, but not limited to. eminent domain. in,oh•enc}, code enforcement. or arrangements or prcxeedings involving a
bankrrpt or decedent, then lender at lender's option, upon notice to Borrower, may make such appearances. disburse such
k sums and take such action as is necessan~ to protect Lender's interest, including. but not limited to, disbursement of
reasonahle attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
cond+titi•n of making the loan secured b} this :Mortgage. Borrower shall pay the premiums required to maintain such ;
s insurance in etTect until such time as the requirement for such rnsurance terminates in accordance with Borrower's and
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