HomeMy WebLinkAbout0041 K3~a ~.=M
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Prlnclpal and Imtenst. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepaymentand latecharges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
Funds brTaxes and IrutrranCe. 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'1 equal to one•twelith of the yearly taxes 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 one•lwelflh of yearly premium installments for mortgage insurance, it any, all as reasaonablyestimated initially and Irom
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 it 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 law
requires such interest to bepait~4~ndVr,~ha(I~n¢tb~(egVire~dSopaY,l~orroyr~/,ar~yiptece gle;~r~ingsof!(hpFunds.Lender
shall give to Borrower, without charge, an an u adcoUnting At the Funds shows g cr tS antl (debits to he 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.
II 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, shalt exceed the amount required to pay 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
held by lender shalt not~bei sutficienl to pay taxes, assessments, insurance premiums and ground rents as they tart due.
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting.paytnent~ther~,Qt.~ ; ~ r
Upon payment - lull pt all s rgs sepyred by this ~Mpriga9e, Lender shall prpr~npUy refund to Borrower any Funds
held by Lender. If undei-grap~"18 hereof the Propeily~i~sold or•the Property is'otheiwise acquired by Lender. Lender
shall apply, no later than ~rmm~iately prior to the sates of the Property or its acquisition by lender, any Funds held by
Lender at the time of 8pplic~tiof?:as a'credit agairtst~tNg•t:umssecured by this Mortgage.
3. Appllcatlon of Payments. Unless applicable law provides otherwise, all payments reserved by Lender under the
Note and paragraphs 1 and 2 hereof shall be applies! by Lender 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 Advances.
4. Charges; Liens. Borrower shall pay all taxes, assessments and othercharges, tines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or Bound rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to lender all noticas of amounts due under this paragraph, and ir? 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 shaft in good faith contest such lien by. or defend enforcement of_such lien rn.
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by tire, hazards included within the term "extended coverage",and such other hazards as Lender may requ:re
and in suctiamounts and for such periods as Lender require: provided. that Lender shall not require that the amount of
such coverage exceed that amount ~f coverage; requited to pay the sum.,secpred by this Mortgage: . .
j The insurance caNier Pbviding the insuran~£ shall be ChosEn by Bolrbwer subject to apprbyal fiy Lender, provided.
that such ap~Sioval shall not 6e unreasonatsly withheld: AN~premiums on insurance policies shall be paid m the manner
provided under paragraph 2 hereof or, it not~paid in such rtifinner. by Borrower making payment, when due. directly to the
insurance carrier.
All insurance poliaiesaiidrenewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and inform 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 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, rnsurance proceeds shall be applied to restoration or repair of
. the ?roperty damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not ;~~areby 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 excess, if any. paid
to Borrower. !t the Property Is abandoned by Borrower, or if Borrower tails to respond to Lender within 30 days from the
date notice is mailed by lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
is autttorized to collect and apply the insurance proceeds at Lenders opaon either to restoration or repair of the Property
or to the~sy~ms secured by this Mprt~ge, , , . ~ , ; ,
t1nleSs Lender and BorrOwertittt'erwiseaBree in writing, any such application of Proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs t 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 prio? to the sate
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prror to such sate or
acquisition.
6. Prsservatlon and Maintenance of Property; Leaseholds; Condominiums; Planned Unlt Developments.
Borrower shall keep the Property in good repair and shalt not commit waste or permit impairment or deterioration of the Pro-
perty and shall comply with the provisions of any lease it this Mortgage is on a leasehold. It this Mortgage is on a unit in a
condominium or a planned unit development. Borrower shall perform aft of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit development. the by-laws and regulations of the
cqn ominwm.pf planned,unjt,deve~pmenL and constituent documents. If a condominium or planned unit development
ride~is executed by t3orrt7are~ anA r~cordr±d together with this Mortgage. the covenants and agreements of such rider
shall be incorporated into Arid stifill amend find supplernent the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lenders Security. If Borrower faits to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Cenders interest in the Property.
including, but not hmded to, eminent domain, insolvency. code enforcement. or arrangements or proceedings involving a
bankrupt or decedent. then Lender at Lenders option, upon notice to Borrower, may make such appearances. disburse such
sums and take such action as is necessary to protect lenders interest, including, but not limited to. disbursements of
reasonable attorneys fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to ma+ntain such
insurance in effect until such time as the requirement for such insurance terminates rn accordance with Borrowers and
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