HomeMy WebLinkAbout0566 UNIloaA1 COVeNANis. Borrower and i.ender covenant and agree as follows:
1~werrt of IhtLclpsr atstl IWsrest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evrdeutxd by the Note. prepayment and late charges as provided in the Note, and the principal o[ and interest
oa say Future Advances secured by.this Mortgage.
)ltlsais for Tatty tnwtl Itttwraaee. Subject to applicable law or to a written waiver by lender. Borrower shall pay
to Lender on the day morithty installments of principal and intrrect arc payable under the Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the yearly ta>,cs 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
tirrre 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 of
state agency (including Lender if Lender is such an institutiony. Lender shall apply the Funds to pay said taxes, assessments.
iasurattoe premiums and ground rents. !.ender may not charge for sn holding and applying the Fiends. analyzing said account,
or vettifying and rnmpiling 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
requites 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 tht 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 dates of taxes, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxa.
a:set>tatents, 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 Lender shall not be sutiiciwt to pay taxes. assessments, insurance premiums and ground rents as they fall due,
Borro~arer tthall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof.
' Upon payment in full of all wins secured by this Mortgage, !.ender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, i.enaer
sball apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. A~icatioa d l~asei. 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
under paragraph 2 het+eof. theft to interest payable on the Note, then to the principal of the Note, and then to interest and
pritcipal on any Future Advances.
4. Citafger, Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions 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. 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 famish 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 litn 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 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 lien or forfeiture of the Property or any part thereof.
S. Hazard lnsrrtutce. Borrower shalt kcep 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 in such amounts and for such periods as Lender may require; provided, that Lender shall not tequirc 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
inswance 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 (.ender alt 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 if not made promptly
by Borrower..
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Froperty 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 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 if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propert.•
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 monthly instaifinents referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph I$ 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.
6. Presenatron and Maintenance of Property; Leaseholds; Condominiums; Planntd Unit Developments. Borrower
shall keep the Property in good repair and shall not commit ;caste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage a on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall pcrfnrm all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development. and constituent dos:uments. 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 Lenders Security. If Bc.rros.er fair tip perform the covenants and agreements contained in this
Mortgage, ur if any action ur proceeding is commenced K•hi~h materially affects Lender's interest in the Property,
including. but nut limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings invol~•ing a
~ bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower. map make such appearances. dishurse 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 ulx~n the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by thn Mortgage. BurroHCr shall pay the premiums required to maintain such
inuurance in effect until uich time as the reyuirement for wch insurance terminates in accordance wish Bormwer's and
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