HomeMy WebLinkAbout0850 ' a
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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follotnre: -
1. Pay,nent of f~rinoipal and Interest. Borrower shall promptly pay when due the principal 01 and interest on the
indebtedness evidenced by the N4te~ prepayment and late Charges as provided to the N ore, and the principal of and interest. •
on any Future Advances secured by this Mortgage:
Z. Funds torTaxes 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 are payable under the Note, unfit the Note is paid in lull,
a sum (herein "Funds") equal tp one•twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the.Property, if anK plus one-twelfth of yearly premium installments for hazard insurance,
plus one-twel fth qi yearly premium installments for mortgage insurance, if any, all as reasaonablyestimated initially and from
time to time by lender on the basis of assessments and bills and reasonable esiimates thereof:
The Funds shall be held in an institutbn the deposits or accounts of which are insured or guaranteed by a Federal or
state agency{including Lender it 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 so holding aril applying the Funds, analyzing said account.
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permUS lender to make such a charge. Borrower and Lender may agree in writing at the lime of execution of this
Mortgage that interest on th8 Fi;:~ds shall be paid to Borrower, and unless such agreement is made or applicable law
req:sires such interest to be paid, Le.^.cler shall not be required to pay Borrower arty interest or earnings or the Funds- lender
shall give to Borrower, without Clfaftje, aH~nriual eOCdiuttirig o'ttfit Kends showing credits and debits'to tde FS,iAt1s 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. - - - - - - -
li the amount of the Funds held by Lender, together with the future monthly installments of Funs payable 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 fall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shah _not ps Sufficient,t0 gay taxes, assessments, insurance premiums and ground rents as they tall 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 reg4estin~ pay~nent,thQrr<of~ ,
Upon payment in~ full Of all sums secureb by thf5 Mortgal~e, Lender shall promptly refund to Borrower any Funds
held by Lender. If underpar~gtaph~~8 t~er't3bf t~ie'P'ropertjr is'Shcr1 or the Rropertl/is dtherwise acquired by Lender, Lender
shall apply, no Iat8rltftstitirhmldtliatAly prioF to .the sale~of the: Property or its acquisition by Lender, any Funds held by
Lender at the ti(ned!~fjNiiG~t~nl i1~ p;rredit ag~j~3t {ire=stgtts~eeureii by ibis i,Aorigaye. -
3. Appllcation of Payment. Unless applicable taw 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 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; Llens. Borrower shall pay all taxes, assessments and other charges, fines artd impositions attributable to a
the Property which may attain a priority over this Mortgage, and leasehold payments or gound rents, if any, in the manner
Nrt)vided under. ~iatagraph, 2 her~f or, if not paid in such mariner, by Bprrpw~r making payrriant, when,due. directly to tl'iL
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 shalt-promptly furnish to Lender receipts evidencing such payments. -
Borrower shall promptly discharge any lien which has priority over thig Mortgage; provided. that Borrower shat) not be
required to discharge any such lien 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 enfArcement 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 by tire, hazards included within the term "extended coverage', and such other hazards as Lender may require
and in suc~amqunts a d for such periods. as Len. er require; provided, that Lender shat) not require that the amount of
such cover ge exceedlhat amount of coverage rC~quired to pay the sum secured by this Mortgage.
The insurance camel ~rblridiru,~ the iristlrance-shall be chosen by Borrower subjec4t0 approval by Lender, provided.
that sucff~pp[gtral stlafl nohDe urn~ea9ondbly vVatflt?~ld. AN preRtiurri3 on insurance pdicies shat!•be paid In the manner
provided.under paragraph:2; hereof or, if nQt=p~id ir~~uch manner, by borrower ltt~king paymenl,when due. directly to the
insurance carrier. ~ .
All insurance policies and renewals thereof shalt be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in~lortn 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 Lender. Lender may make proof of loss if not made-promptly
t-;y Borrower.
Unless Lender 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:Property!is abandortegl 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 al Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage. ~ -t ~ - -
Unless Lenderatid'fi<orrbvl~eibtltbiwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs t and 2 hereof a: change the a:s:ount o!
such installments. If under paragraph 18 hereof the Property is acgwred by Lender, all right, title and interest of Borrower
~n and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition SJtall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
k 6. Pnservatlon and Mslntsnance of Praperty; Leaseholds; Cortdominlums; Pltnnid Unit Developments.
g Borrower shall keep the Property in good repair and shall not commit waste or permit impairment orcleterioration ofthe Pro-
perty and shall comply with the provisions of any lease ~f this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condomirnum or a planned unit development. Borrower shall perform al! of Borrowers obligations under the dec!arataor.
~ or covenants creating or governing the condominium or planned urnt development, the by-laws and regulations o1 the
€ condominium or planned unit development. and constituent documents. It a condominwm or planned unit development
i nicer is executed by Borrower and recorded together with this Mortgage. the covenants and agreements of such nder
shall be inl:orporated inQe etttl sha11i3meAtl anif supplement the covenants arld agre~nents of this Mortgage as if ?he rider
were a part hereof.
7. Protection of Lenders Seeurlty. If Borrower tails to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding is commenced which materiatty affects;Lenders interest in the Property.
including, but not limited to. eminent c(omain. rnsolvency, code~entorceirent. or arrangements or proceedings involving a
bankrupt or decedent. then Lender at Lenders option, upon notice to Borrower, may make such appearances. disburse such
sums and take such action as ~s necessary to protect Lenders interest, including, but not limited to, disbursements of
reasonable attorneys fees and entry. upon the Property to ke repairs, If Lender required mortgage insurance as a
condit,on of making the loan secured by thig Mortgage,.B~r'iower shalt pay the premiums required to maintain such
insurance m effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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