HomeMy WebLinkAbout2667 UNIFORM COVENAN7'3. Borrower and Lender covenant and agree u follows:
1. hljretq of hiadMl tt~i 1Nerast. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of attd interest
on say Future Advances secured by this Mortgage.
2, F'uai for Toss tturd lttnraace. Subject to applicabk law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and intercct are payable under the Note. until the Note is paid in full,
a suta? (herein "Funds") egwl 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 installrntnts for mortgage insiirancc, if any, all as reasonably estimated initially and from
tune to time by Lender on the buffs of assessments and hills and reasonable estimates thereof.
'Ibe 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 institution). Lender shall apply the Funds to pay said taxes. assessments,
irtsut~nce premiums and ground rents. lender may not charge for sn 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 wu made. The Funds are pledged u 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, 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 >+unds
held by Lender shall not be sufficient to pay toes, assessments, insurance premiums and ground rents u they fall 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 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 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
Lender at the tune of application as a credit against the sums secured by this Mortgage.
3. Applicatlos 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 Lender by Borrower
under paragraph 2 hereof, then to intercct payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions auributahle 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 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 Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, ur shall in g~x~d faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the Iron or forfeiture of the Property or any part thereof.
S. Hiuard.Irrsurance. 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 in such amounts and fur such periods as Lender may require; provided, that [_ender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured Eby 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 Burrower making payment, when due, directly to the
inwrance carrier. -
All insurance policies anJ renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause m 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 shall give prompt nonce w the insurance earner and lender. Lender may makb proof of loss if not made promptly
by Borrower.
E Unless Lender and Borrower otherwise agree in venting, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration ur repair is economically feasible and the security of this Mortgage is
E not thereby impaired. If such resnxauon or repair is nut eainomically feasible or if the secunty 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 Properq• is abandoned by Burrower, or it Borrower fails to respond to Lender within 30 days from the
I date notice is mailed by Lender to Borrower that the insurance earner offers to scale 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 xcurcd by this Mortgage.
Unless Lender and Burrower otherwise agree in venting. am such application of pnx:eeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
~ such installments. I[ under paragraph I8 hereof the Property n acquired h} I~:nder, all right, title and interest of Borrower
in and to any Insurance policies and in and ui the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the wens secured by this Mortgage immediately prior to such sale or
acquisition.
6. Prcsen~alion and ~taiotemnce of Property: Leaseholds; ('ondominiums: Planned Unit ihs•elopments. Borrower
s shall keep the Property in gixid repair and shall not commit Kaste ur permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on -a unit in a
condominium or a planned amt development, Borrower shalt perform all of Borrower's obligations under the declaration
or covenants creating ur guvermng the condominium or planned amt development, the by-laws and regulations of the
condominium or planned amt development..ind constituent documents. !f a condominium or planned amt development
rider is executed by Borrower and recorded together wish this Mortgage, the covenants end agreements of such rider
shall be incorporated into and shall amend and wpplement the cosenants and agreements of this Mortgage as if the rider
~ ere a part hereof.
7. Protection of Lenders Security. if Born,wer fails to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding is eomnienced which materially affects Lenders interest in the Property,
including. but not limited to. crosnent domain. insohcsic}. rods enlorccment. or arrangements or pnxccdings involving a
bankrupt ur decedent. then Lender at l ender's option, ufx.n notice to Burrower, may make wrh appearances, dishurse such
sums end take such action as is neces.an to protect Lender's interest, including. but nut limited to. disbursement of
reasonable attorney's tees and enrry upon the Property to make repairs. I( Lender reyuircd mortgage insurance as a
rundihon of making the loan ,cooed by this ~1~irtgagr. B~~rrowcr shill pay the premiums rcyuired to maintain such
rrourance m etfe~t until such time as the reyuirenient for ,uch imuranre terminates in accordance with Borrower's and
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~f ~ 327 PacE 26'66 .
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