HomeMy WebLinkAbout1506 UNIFORM CovaN,NTS. Borrower and lender covenant and agree as follows:
1. >raymeat of Principal r.sd lateral. 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.
2. Funds for Ta:es sell losaraace. 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") oqual 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, it any. ap ss 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). tender 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 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 credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged az 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 required to day said taxes.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
hdd 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 necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof. ,
Upon payment is full of all sums secured by this Mortgage, tender shall promptly refund to Borrower. any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Properly is otherwise 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 by this Mortgage.
3. Application of Psyments. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by l.cnder 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 to interest and
principal on any Future Advantxs.
4. Cinrga; Liens. Borrower shall pay all taxes, 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, if not paid iA such manner, by Borrower 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
Borrower shall make payment directly, Borrower shall promptly tumish to Lender receipts evidencing such paymenu.
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 accxptabk to Lender, or shall in good faith contest such lien by, or defend enforrement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Nasard Insttiance. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured
against loss by lire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods az Lender may require; provided, that Lender shall not require that the amount of
such coverage excced that amount of coverage required to pay the arms secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, providedt
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the
inwrance carrier. • .
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. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall pramptly 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 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 feasible and the security of this Mortgage is
not thereby impaired. It such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired. the insurance proceeds shall tie applied to the sums secured by this Mortgage, with the excess if any, paid
to Borrower. If the Property is abandoned 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 iruurance 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 of the Property
or to the sums secured by this Mortgage. ,
_ Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend i
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 heroof 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 acquisitian shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or j
acquisition. - )
6. Preservation sad Maioteoaoce of Property; Leaseholds; Condominiums; PWtotd Ualt Devebpmeats. Borrower j
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 lease if this Mortgage is on a leasehold. If this Mortgage is on a unit 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
condominium or planned unit development. and constituent documents. It 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 if the rider
were a part hereof.
7. Protection of Leode~s Security. If Borrower fails to perform the covenants and agreements contained in this }
Mortgage, or if any action or 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 decedent, then Lender at Lender's option, upon notice to i;orrower, Aiay make such appearances, disburse such f
sutras and take such action az is necessary to protect Lenders interest. including, but not limited to, disbursement of
reasonable attorney's tees and entry upon the Property to make repairs. 1f Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in eftoct until such time as the requirement for such insurance terminates in accordance with Borrower's and
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