HomeMy WebLinkAbout0167 UNIFQR\1 Co\'ENANTS. Borrower and lender covenant and agree a+ follows:
I. Payment of Principal and Interest. Burrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Nute, prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. 1Funds for Taxes and lnsuraaee. 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, until the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may auxin 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
time to time by Lender on the basis of assessments and hilts and reasonable estimates thereof.
The Funds shat! 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). tender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may not charge for so holding and 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
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 pa}• Borrower ;,ny interest or earnings on the Funds. [.ender
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 arc 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 taxes,
assessments, insurance premiums and ground tents as they tall due, such excess shall be, at Borrower's option, either
promptly repaid to Bormw•er of 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 premiums 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 requesting payment thereof.
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 lA 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
Lender 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 !.ender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to [_ender 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 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, di,ectly to the
payee thereof. Borrower shall promptly furnish to Lender al! 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 Rlortgagc; provided, that Borrower shall 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 hy, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the Gen or forfeiture of the Property or any part thereof.
S. Hazard Irsurs?nce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extende.i coverage", and such other hazards as [.ender ma}• require
and in such amounts and for such periods as Lender may require; provided: that Lender shall not regaire 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 unreasonahly 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 carrier. •
All insurance policies and renewals thereof shalt be tin fornt acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall hale the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premi,ms. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and lender. I_endrr may make proof of loss if not made promptly
by Burrower.
Unless lender and Borrower otherwise agree in writing. imurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economicalh• feasible and the security of this Mortgage is
n~~t ,hereby impaired. If such restoration or repair is not economically fcasihle 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, pa,d
to Borrower. If the Propert}• is abandoned by Borrower, or it Borrower fails to respond to Lcndcr within 30 da}•s from the
date notice is mailed by Linder 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 Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in venting, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Propert} is acquired M Lender, all right, title and interest of Bormv?°er
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 llfortgage immediate!}' prior tc• such sate or
acquisition.
6. Preservation and lfaintenance of Property; Leaseholds; Condominiums; Planned Unit Des-e4opments. Borrow•cr
shall keep the Properly in good repair and shad not co:zmi: a~asic .zr permit impairme^! ar deter!ora!!on of the property
and shall comply with the provisions of any lease if th!s Mortgage !s un a leasehold. If this ":Mortgage is on a unit in a
condominium or a planned unit Jcvclopment, Borrower shall perform all of Borrower's obligations under the declaration
ar covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documems. If a condominium or planned unit development
rider is executed by Borrower and recorded together w,th this ;1ortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of th!s 1tlortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. 1f Borrower fails to prrf«rm the covenants and agreements a.ntained in this
Mortgage, or if any action or proceeding is commenced which materialh~ aQccts tender's interest in the Pmpert} •
includ!ng, but not limited to, eminent domain, insuhency• axle enforcement, or arrangements or proceedings invols~ing a
bankrupt or decedent, then Lender at fender option, upon notice tee Borrower, ma}• make such appearances. dishurse such
sums and take such action as is necessary to protect Lender's !merest, including. but not limited to, disbursement of
reasonable attorney's fees and entry upon the Propcrt}• to make repairs. If Lcndcr required mortgage insurance as a
condition of making the loan secured b} this Mortgage. Harrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such !nsurance terminates in accordance whh Borrowers and
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