HomeMy WebLinkAbout1024 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Pt~ymeat of Principal ttutd lnferest. 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. ltfiads for Tattea •ttd lrtsttt~ance. 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 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 I
Mortgage, and ground rent: on the Property. if any, plus_one•twelfth o[ yearly premium installments for hazard insurance.
plus otte•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.
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 taw
requires such interest to be paid. lender shall not be required to pay Burrower any interest or earnings nn the Funds. (.ender
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 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, assessrnenls, 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 Borrower's option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount o[ the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessar}• to make up the deficiency within 30 da}•s from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, I.endcr shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is xdd or the Property is otherw•isc 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 time of application as a credit against the sums secured b}• this Mortgage.
3. Application of Payments. 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 1_cndcr by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then tit interest and
principal on any Future Advances.
4. Charges; Liens. Burrower shall pay all taxes assessments and other charges, fines and -imp~xitiuns attributable to
the Property which may attain a priority aver this Mortgage, and leasehold payments s+r ground rents, if any, in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borrow•cr 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
Borro+t•er shall make pa)•ment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. j
Borrower shall promptly discharge any lien which has priority over this Mortgage; pn»idcd.-that Burrower shall nut 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 good faith contest such lien by. or defend enforcement of such lien in,
legal proceedings which operate to prevent the cnfurccment of the lien or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements now existing ur hereafter erected on the Property insured ;
against loss by fire. hazards included within the term "extended coverage°, and such other hazards as Lender ma}• reyuire i
and in such amounts and for such p~:riods as Lender may reyuire: provided, that 1_ender shall not reyuire that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing tin: insurance shall tx: chosen by Borrower subject to approval by 1_ender, provided,
that such approval shall not be unreasonahly withh~ad. All premiums on insurance policies shall he 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
insurance carrier. i
All insurance policies anJ renewals thereto shall tom: in form acceptable to Lcndcr and shall include a standard mortgage
clause in favor of and in form acceptable to fender. 1_ender shall ha+e the right to hold the policies and renewals thereof,
and Borrower shall prompt(} furnish to Lender all 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 Burrower.
Unless I_endcr and Borrower othcrw•ix: agree in writing, insurance proceeds shall be applied to restoration or repair of {
the Property damageJ, provided such restoration or repair is economically feasible and the security of this Mortgage is ~
not thereby impaired. If such restoration or repair is nut economically feasihle 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 Burrower. If the Property is abandoned M• 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 otters tb 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 of the Propert}•
or to the sums scoured by this hortgage_
Unless Lcndcr and Borrower otherwise agree in writing, any such application of proceeds to princi~l shall not extend
or postpoae the due Jate of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph l8 hereof the PropeFt}• is acquired b}• Lender, all right, title and interest o[ Borrower
in and to an}' 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 sak or ,
acquisition.
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6. Preservation and Maintenance of Property'; Leaseholds; Condominiums; Planned Unit Ue+•elopments. Borrower `
shall keep the Property in good •repair and shall not commit waste or permit impairment or deterioration of the Property
rnd shall comply with the provisions of any lease if this Mortgage is un leasehold. If 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
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
! shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as i( the rider
were a part hereof.
7. Protection of Lenders Securify. If Borrower faik to perform the covenants and agreements contained in this
Mortgage. or if any action ur proceeding is commenced which materially affects Lender's interest in the Property,
including. but not limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedem. then Lcndcr at Lender's option, upon notice to Borrower, ma}• m~ a {t)ch~aQpeasances. disburse such
sums and take such action as is necessary to protect Lender's interest, Including. bu~ nt~t hrrtited to, disbursement of
reasonable auomcy's tees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
conditiun,of making the loan secured b}• this Murtgagc. Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for su£ft~ nst~r~ce. te(rrjjnats;~ in accordance with Borrowers and
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