HomeMy WebLinkAbout0156 UNIFORM Cavt'N.~NT$. Borrower and lender covenant and agree as follows:
1. Payttneat of Principal nets laterest. BoffOwer 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.
2. Funds for Toes and letsurawce. 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 arc payable under the Note, until the Note is paid in full,
a sum (herein "Funds"1 equal to one-twelfth of the yearly tams and assessments which may attain priority aver this
Mortgage, and ground rents on the Property. if any, plus ane-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 an the hasis o[ asicssmrnts and hills and reasonable estimates thereof.
The Funds shall he held in an institution the Jepcnih or accounts of which are insured or guaranteed by a Federal or
state agency !including Lender if Lender is such an institution). I-ruder shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may nut charge for su holding and applying the Funds, analysing said account,
or verifying and compiling said assessments and hills, unless Lender pays Borrower interest nn 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 un the Funds shall he paid to Borrower, and unless such agreement is made or applicahle law
requires such interest to be paid, Lender shall not b+: rcyuircJ to pay Borrower any interest or earnings un the Funds. Lender
shall give to Borrower, without charge, an~annual accounting of the l=ands showing credits anJ debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds arc pledged as additional security far the sums secured
by this Mortgage.
If the amount of the Funds held by !.ender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground ants, shall excecJ the amount rcyuircd to pap said taxes,
assessments, insurance premium, and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower ar credited to &?rrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes, asu;ssments, imurance premiunx and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the Jeticicncy within 30 days from the Jate notice is mailed
by Lender to Borrower rcyucsting payment thereof.
Upon payment in full of all sums sccurcd by this Mortgage. Lender shall promptly refund to Borrower any Funds
held hp Lender. If under paragraph lti hereof the Property is sold ur 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 Lcndcr, any Funds held by
Lender at the time of application as a credit against the sums sccurcd by this Mortgage.
3. Application of Payments. Unless applicahle la+v provides otherwise, all payments received by Lcndcr under the
~iotc and paragraphs 1 and 2 hcreuf shall be applied h}' 1_enJer first in payment of amounts payable to Lcndcr by Borrower
under paragraph 2 hereof, then to interest payable on the Nute. then to the principal of the Note, and then to interest and
principal on any, Future Advances.
4. Charges: Liens. Borrower shall pay all talcs, 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. it not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Bornwcr shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directh•, Burrower shall promptly furnish to Lcndcr receipts evidencing such payments.
Borrower shall pmmpth• discharge any, lien which has priurit}• over this Mortgage: provided, that Borrower shall not be
required to discharge any, arch lien w long as Borrower shall agree in writing to the payment of the obligation secured M•
such lien in a manner acceptable to Lcndcr, or shall in gixnl faith contest such lien hy, or defend enforcement of such lien in,
legal proceeding. which operate to prevent the cnfurcement of the lien or forfeiture of the 1'rolSerty or any part thereof.
5. Hazard Insurance. Borro+vcr shall keep the improvements now esisting or hereafter erected on the Property insured
against los; h+• fire. hazards included within the term "extendc.t ruvrrrgc". and such other hazards as Lcndcr may require
and in such amount: and for such pcrisxls as Lcndcr may require: pravidcd. that Lender shall nut require that the amount of
such coverage exceed that amount of coverage required to pay the vims sccurcd by this :llurtgage.
The insurance carrier providing the insurance shall b+: chum by Borrauer subject to approval by Len.ler, provided,
that such approval .hall n+~t be unrcasunably withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof ur. if nut paid in such manner, by Harrower making payment, when due, directly to the
f insurance carrier.
All insurance policies and renewals thereof shall txr in form acceptable to Lender and shall iiycluJt a standard mortgage
clause in fa+or of and in form acceptahlc to I.rndcr. Lcndcr shall have the right to hold the policies and renewals thereof.
~ and Borrower shall promptly furnish ~u 1_ender all renewal notices and all receipts of paid premiums. In the event of loss,
Burrower ,hall gne prompt nottcc to the insurance carrier anJ 1_ender. 1_ender may make proof of loss if not made promptly
by Hormwcr.
Unless I_endcr and Borrower otherwise agree in writing. insurance pnxecds shall be applied to restoration or repair of
the Property damaged. provided such resturaUan or repair is economically feasible and the security of this Mortgage is
~ not thereby impaired. If such restoration or repair is not econumicalh~ fusible or if the security of this lfortgagc would
be impaired, the insurance proceeds shall be applieJ to the sums sccurcd by this Mortgage. with the excess, if any, paid
to Born.wer. If the Property is ahandoned by Borrower, or it Harrower fails M respond to 1_ender within 30 days from the
1 date notice is mailed by Lender to Horrowcr that the insurance carrier afters to settle a claim far insurance benefits, Lender
is authorized to collect and apply the insuranrc proceeds at Lender's option either to restoration or repair of the Property
ur to the sums secure) by this ~tortgagc.
[ Unless Lcndcr and Burrower othen+ix agree in writing, any such application of proceeds to principal shall nut extend
ur postpunc the due date of the monthh• installments referred to in paragraphs 1 and 2 hcreuf or change the amount of
such installments. If under paragraph lS hereof the Property is acquired by Lcndcr. all right, title and interest of Borrower
in and to am imuran:e policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acywsition shall pass to Lender to the extent of the sums sccurcd by this Mortgage immediately prior to such sale or
acquisition.
6. Presenalion and Maintenance of Property: Leaseholds: Condominiums: Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any least i( this Mortgage is un a tcasehald. If this hlortgagc is on a unit in a
condominium ur a planned unit Jc+•elopment, Borrower shall perform all of Borrower's obligations under the declaration
t ur covenants creating ur governing the condominium or planned unit develdpment. the by-laws and regulation, of the
condominium or planned unit Jcvclopment. and constituent Documents. If a condominium or planned unit development t
r rider is executed by Horruwerand recordeJ together with this Mortgage, the covenants and agreements of such rider
a shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
i Isere a part hereof.
7. Protection of Lenders Security. If Borrower fails to perform the covenants and agreements cuntaincd in this
Mortgage, or if 'any action or proccedrng is commenced which materially affects I.endcr's interest in the Property,
including. but not limited to. eminent domain. insohcncc, c+xlc enforcement. or arrangements or proceedings m+•olving a
bankrupt ur decedent. then LcnJer at Lender's option, upon notice to Burrower. may make such appearances. duhurse such
sums anJ take such action as is necessary to profess Lender's interest. including. but nut limits) to. disbursement of
reasonable attorney's tees and entry ufxm the Property to make repairs. If I.enJer rcyuircd mortgage imurince as
~ cundruon of making the loan sccurcd M thn Mortgage. Borrower shall pay the premiums rcyuircd to maintain such
insurance in effect until such time as the reyuircment for such msuranre terminates in accordance with Borrower's and
BUOK c~.~1JU PMGE 156
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