HomeMy WebLinkAbout2670 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal and InbnstL 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 and interest
on any Future Advances secured by this Mortgage.
Z. Funds forTsxes and Insunnce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments Ot 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 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 reasaonablyestimated initiallyand from
time to time by lender on the basis of assessments and bills 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 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 requjred to pay Borrower anX interest or earnings~pr the Funds. i.~nder
shall give to Borrower, without charge, an annualr#cc0unting of the Funds showing credits and debilslo the Funds and-the
purposetor 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 month~l(~~nstallments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall e~tc~tf tht~~dlric~MCagyjr, ~d taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at~Rf~Owe s o o~tL~ither
promptly repaid to Borrover or credited to Borrower on monthly installments of Founds. If't e'?t14?~tlfltahe Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and groiN~tf t$flts es•tppyfal4 ~ue.
Borrower shall pay to Lenderany amount n~essary to make up the deficiency within 30 days from tge~ate notice is ma 1i~1'
by Lender to Borrower requesting payment thereof .
Upon payment in full of all. s~Ums 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 tateh than irt~mediately prior to'tlie sale nt the Property or its acquisition by Lender, any Funds held by
Lender at the time of application es~a crBdit against:trie suits. secured by this Mortgage.
3. AppNcation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2•hereot shall. tie 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 t_o interest and
principal on any Future Advances. • I
4.. ;Charges; Liens. Borrows[ stiaU pay all taxes asseSSrnents anc~ other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage,,-ar~~7easehOld payments of gound rents, if any, in the manner
provided ender paragraph 2~hereof or, if not paid in~such mariner, by Borrower making payirier?t, when due, directly to the
payee thereof. Borrower shalCpromptly furnish !o Lender all notices of amounts due-under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly fumish 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, or shalt in,good faith contest such lien by, or defend enfor ement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or'~orfeiture of=the F~lope'ri~y or any`part thereof.
5._ Hatrsrtl Insunnoe: Borrower shall keep the improv~errients rtoYV existing or' hereafter erected oti the Property insured
against Toss by Gre, hazards included within the term "extended conle?a~e';artd such other hazards~s Lender~may regwre
and in such amoun?s:and for such_periode as ~end@r require; provided: Ihat;lender Shah. not.requHe that the amount of
such coverage exceed that amount of coverage re4Uired Zo pay the sum secured by this .lu~brtgage..
The insurance carrier providing the~insurance shalt tx chosen by Borrower subject to approval by Lender, provided.
that such approval shall not be unreasonably withhettt`.All premiums on insurance pbticies shaall be paid in the manner
provided under paragraph 2 hereof.dr, if not paid:ir?_~h manner, by BorroWetanaking payment,~whan due; directly to the
i insurance carries
All insurance polices and renewals thereol shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in torm acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
~ and Borrower shall promptly fumish to Lender ail renewal notices and all receipts of paid premiums. In the event of toss,
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss it not made-promptly
by 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 teasible and the seCUrity of this Mortgage is
not thereby impaired. If such restoration or repair is not economically (easibte 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. It the Property is abangoned 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 oi~the Property
or to the sums secured by this Mortgage. . ~ _
~ Unless Lender and Borrower otherwise egree•in writing, arty 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 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. Prsservatlon and Maintenance of Property; Leaseholds; Condominlums; Plsnned Unit Developments.
Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Pro-
party and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a urnt in a
condominium or a planned unit development. Borrower shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
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condominium or planned unit development• and constituent documents. 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 supplerhent the cotenants and agreements of this Mortgage as it the rider
were a part hereof.
T. Protection of Lenders Security. It Borrower fails to perform the covenants and agreements contained in this
' Mortgage. or if any action or proceeding ~s ~pmmenced which materially affects Lenders interest in the Property,
including, bui not limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then Lender at Lenders option, upon notice to Borrower, may make such appearances, disburse such
1 sums and take such action as is necessary to protect Lenders interest, including, but not limited to, disbursements of
reasonable attorneys fees and entry upon the Property to make repairs. It Lender required mortgage insurance as a
cond~t~on of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
E insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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