HomeMy WebLinkAbout0071 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. ff'aymeat of Priuclpal and Interest. 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 aay Future Advances secured by this Mortgage.
2. I?nads for Ta:es and Irastrraace. Subject to applicable law or to a written waiver by Lender, Borrower shalt 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 aum (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 reasonably estimated initially and from
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
'Rte 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 prcntiums 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 interut un the Funds shall hr paid to Borrow•rr, and unless such agreement is made or applicable law
requires such interest to be paid. Lender shall not be reyuired to pay Borrower any interest or earnings un the Funds. Lender
shall give to Borrower, without charge, an annual acarunting of the Funds showing credits and debits to the Funds and the
purpose for which rack 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 reyuired to pay said taxes,
assessments, insurance premiums and ground rents as the}• 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 sufficient to pay taxis, assessments, insurance premiums and ground rents as they fall due,
Burrower shall pay to Lender any amount nrcessan• to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower rryuesting payment thrreoC.
Upon payment in full of all sums secured by this Mortgage, Lcndcr shall promptly refund to Borrower any Funds
held by 1_rndcr. If under paragraph !S hereof the Property is sold ur the Propcrt}• is otherwise acquired by Lender, Linder
shall apply, no later than immediate)}• prior to the sale of the Property or its acquisition by ).ender, any Fundc held by
Lender at the time of application as a credit against the sums secured b}• this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise. all payments recri+•ed by Linder under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender fiat 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 Notr. and then to interest and
principal on any Future Advances.
4. Charges; Liens. Borrower shall pay all taxes, assessmems and .other charges. fines and impositions attributahle 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, b}• Borrower making pa}~ment. when due, directly to the
payee thereof. Borrua+er shall promptly foolish to Lender all nouccs of amounts due under this paragraph, and in the event
Borrower shall make pa}~men1 directly, Borrower shall promptly furnish to Lender receipts evidencing such pa}ments.
Borrower shall promptly discharge any lien which has priority aver this Mortgage: provided. that Borrower shall not be
required to diuharge any such lien su long as Borrower shall agree in writing to the pa}ment of the obligation secured by
such lien in a manner acceptable to 1_ender, or shall in gaud faith contest such lien hy, or defend enforcement of such lien in,
legal pnkcedings ++hich oper.+tc to prevent the enhrrccment of the hen or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements no++ existing or hereafter erected on the Property insured
against lost by fire, hazards included within the teen "e+tendrd coverage", and such other hazards as Lcndcr may rryuire
and in such amounts and for such periods as Lender may require: provided. that Lender shall not reyiiire that Ihr amount of
such un•erage exceed that amount of coverage reyuired to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall tx: chosen by Borrower subject to approval by Lender, provided,
that such approval shall not tx: unreasonably withheld. All premiums nn insurance policies shall be paid in the manner
provided imdcr paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, w•hcn due, directly to the
insurance earner.
All insurance policies and renewals thereol shall fk in form accent:+ble to 1_en.ler and shall include a standard mortgage
clawe 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 lender all renewal notices and all receipts of paid premium,. In the event of loss,
~ Borrower sh:,Jl give prompt notice to the insurutce career :mil Lender. 1_ender ma} .make proof of loss it not made promptly
's be Borrower. -
Unless Lcndcr and Born~wer otherwise agree in wndng, insurance proceeds shall br applied to restoration or repair of
the Propert}• damaged, provided such restoration or repair is ecunomicall}• feasible and the security of this bi~rtgage is
r not thereto impaired. If each restoration or repair is not econ:.micalh~ feasihlr or if the securit}' of this Mortgage would
be impaired, the insurance pnxeeds shall be applied to the sums secured b}• this Mortgage. with the excess. if any, paid
to Borrower. If the Propern is a.~andoned h~ Borrower, or if Borrower fails to respond to I_rndcr within 30 days from the
date notice is mailed by Lender t~ Borrower that the insurance carrier otTen to settle a claim for insurance benefits, Lender
a authorized to collect and appl+° the insurance proceeds at Lender's option either to restoration or repair of the Property
ur to the sums secured h}• this Mortgage.
Unless I ender and Borrower otherwix agree in ++ri~ing, an} such application of proceeds 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. if under paragraph IS hereof the Property is acquired M• Lender, all right, title and interest of Borrower
in and to am insurance policies and in and to the proceeds thereof n-sulting from damage to the Property prior to the sale
or acquisition shall pass to Lemdcr to the extent of the soon secured b} this '~lortgagc immediately prior to such sale or
acquisition. •
6. Preservation and 1laintenance of Proper)}; Leaseholds; Condominiums; Planned knit Des•elopments. Borrower
shall keep the Property in good repair and shall not commit +vastr nr permit impairment or deterioration of the Property
and shall comply with the provis,uns of any lease if this Mortgage is on leasehold. If this Mortgage is on a unit in a
- condominium ur a planned unit development, Borrower shall perform all of Borrower s obligations under the declaration
k~ or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium ur planned unit drvrlupmrnt, :+nd constituent documents. If a condominium or planried 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 amd supplement the covenants and agreements of this Mortgage as if the rider
~ ++crr a part hereof.
~ 7. Protection of Lender's Security. If Burrov+er fails to perform the covenants and agreements contained in this
Mortgage, nr if any action or proceeeling w commrncrJ which materially affects Lender's interest in the Property.
including, but n.,t limucd to. eminent domain, insolvrnc}-. axle enforcement. or arrangements or proceedings invoh•ing a
bankrupt or decedent, then Lcndcr at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take su.h action as is mecessary to protect Lender's interest. including, but not limited to, disbursement of i
reasonable attorney's fees and entry upon the 1'ropert}' to make repairs. If I.cnder reyuired mortgage insurance as a ;
condition of making the loan srwred be this Mortgage, Burn.wer shall pay the premiums reyuired to maintain such }
insurance in etTect until such time at ttir reyuiremrnt for such insurance terminates inaccordancr with Borrower's and
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