HomeMy WebLinkAbout2003 UNlPOaM COVENANT!. Borrower and Lender covenant and agree u follows:
1. Payr~sat of Priucipa! atsd lstlcrad. Borrower steal! promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges ac provided in the Note, and the principal o[ and interest
on aay Future Advances secured by this Mortgage.
~ Foa>dt for Taxes and Insaratoce. Subject to applicaAlt: law ur to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in.full,
a sum (herein "Funds' equal to one-twelfth of the yearly ta>,c~. and assessments which may attain priority over this
Mortgage. and ground rents on the Property, it any, plus one-twelfth of yearly premium installments for hazard insurance.
plus orte-twelfth of yearly premium installments /or mortgage insurance, it any, all u reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
71te 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 sn holding and applying the Funds, analyzing uid account,
or verifying and compiling said usessments 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 steal! be paid to Borrower. and unless such agreertnent 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 craiits and debits to the Funds and rtes
purpose !or 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 rho Funds held by Lender, together with the future monthly instalitnents of Funds payable prior to
the due data of taxes, assessmenu, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, .
assessments, iruunnce premiums and ground rents as they fall due, such excess shall be. at Borrower's option, either
prowptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lettder-shall not be sutficieat to pay taxes, assessments, iruurance premiums and ground rents as they fall due,
Bort+osrer shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof,
Upon payttneat is 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 rs otherwise acquired by Lender. Lender
shall apply. tto later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Linder ai the tithe of application ss a credit against the sums secured by this Mortgage.
3. Application of Payateats. Unless applicable law 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
wader 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,
I. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which tttay 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, wheat dot, directly to the ;
payee thereof. Borrower shall promptly furnish to Lender aU 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, or shall in good faith contest wch lien by, or defend enforcement of such lien in, j
legal proceedings which operate to prevent the enforcement of the lion or forfeiture of the Property or any part thereof. t'
S. HarcaM Inwt~,sce. Borrower shall keep the improvements now existing or htreafter erected on the Property insured •
against loss by fire, hazuds included within the term "extended coverage", and such other hazards as Lender may require
sad in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. ~
'Rteaituurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided,
!bat such approval shall not be unreasonably withheld. All premiums on insunrce policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manntr, by Borrower making payment, when due, directly to the
irouratxe curler.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Linder shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender al! 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
by Borrower. -
' Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to ratoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the stxurity 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 raccess. if any, paid
to Borrower. If the Property is abandoned by Borcower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the ituurartce carrier offers to settle a claim for insurance benefits, Lender
is autl>rriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Properly
or to the strtns secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly instalments 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 rtes sale
or acgtisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
•acquisition.
6. Preservation and titaintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
shall keep the Property in good repair and shalt not commit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. )f this Mortgage is on a unit in a ~
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration j
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
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
steal! be incorporated into and shall amend and .upplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. If BOROwCr fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is cummenceJ which materially aficc[s I_enJer's interest in the Property,
including, but not limited to, eminent domain. i„solvency, code enforcement, or arrangements or proceedings in.ol.;ng a
bankrupt or decedent, then 1_ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, incl,tcling, but not limited to, disbursement of
reasonable auomey's fees and entry upon the Property to make repairs. if Lender required mortgage insurance as a ~
condition o/ making the loan secured by this Mortgage. Borrower steal! pay the premiums required to mainta,n .,.ch
insurance in_etfect until Bach time as the rcyuirertxnt for ,wch insurance term,nates in accordance with Born~r.ers and
BQOKJJ3 P~GE~,1