HomeMy WebLinkAbout2299 UNIFOrut COVENAtVTS. Borrower and Lender covenant and agree as follows:
1. T•ayaaed of hltsclMl anti Interred. Borrower shall promptly pay when due the principal of and interest on the
indebtedrxss evidenced by the Note, prepayment and late chargtc ac provided in the Note, and the principal of and interest
on my Future Advances secured by this Mortgage.
2. Fta~dis for Tattss artd Iwraoce. Subject to applicable law or to a written waiver by Lender. Borrower :hall pay
to Lender on the day monthly installments of principal and interest rrc payable under the Note. until the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the yearly taxc. and assessments which may attain priority over this
Mortgage. and ground rents on the Propeity, 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 Lender on the basis of assessments and hills and 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. lender may not charge for sr~ holding and applying the Fiindc. 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 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 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 payable prior to
the due data of taxes, assessments, inuurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower or crodited to Borrower on monthly inst.:!Iments of Funds. 1[ the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower sties!! pay to lender any amount necessary to make up the deficiency within 30 days from the date notice is steailed
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Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 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 Lender, any Funds held by
Letsder at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Paymests. 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 payment of amounts payable to Lender by Borrower
under paragraph 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.
4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions aUributable 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 nut paid in such manner, by Borrower making payment. when due, directly to the
payce 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 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 writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in gixxf faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements now existing or 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 m 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.
i 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 pai~J in such manner, by Borrower making payment, when due, directly to the
f 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. 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 ~h:;ll glee prompt notice to the insurance earner and lender. lender may make proof of loss if not made promptl~~
i by Borrower.
Unless tender and Borrower otherwise 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 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 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 btfers to scale a claim for insurance benefits, Lender
1 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.
Unle» Lender end Burrower otherwise agree in writing, any such application of pn.ceeds to principal shall not extend
or postpone the due date of the monthh installments referred to in paragraph. t and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acywred 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 acgwsition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presenation and Maintenance of Properi}; Lelceholdc; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not comrpit yiaste or permit impairment or deterioration of the Property
- and shall comply with the provisions at any lease if the. Mortgage is an a Icasehold. 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 governing the condominium or planned amt development, the by-laws and regulations of the
~ condomimum or planned unit development. and constituent dixuments. If a condominium or planned unit development
rider rc executed by Borrower and recorded together with the. Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the awenants and agreements of this Mortgage as if the rider
were a pan hereof.
7. Protection of Lenders Security. If Borrower fair to perform the covenants and agreements contained in this
Mortgage, ur if any action ur proceeding is commenced which materially attests I enders interest in the Property,
including, but n~H hrmted to. eminent domain. imolvency. axle enforcement. or arrangen:cnts or pr~xeedings mvohing a
E banknipt or decedent. then Lender at Lender', option, upi~n notice to Borrower, mess make such appearances, disburse such
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sums and take such action as is necessary rti protect Lender's interest, inclndinc. but not limned to, disbursement of
~ reasonable atti~rney•s tees and entry upon the Pmperts to make repairs. I( Lender required mortgage insurance as a
cundrtum of making the loan secured by this ~lortgaee. Bnrrowrr shall pay the prcmiumc required to maintain such
insurance in effect until uich umc as the reyuircnicnt for .uch insurance Icrminate~ m accordance with Borrower'. anJ
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