HomeMy WebLinkAbout1117 UNIFOIIM CoveN~rtTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal turd laterest. 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 Taxes and lnsunace. Subject to applicable law ar 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
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. if any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessntenti and hills 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 ma}• not charge (or so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and hills, unless 1_ender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and (.ender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
reyuircs such interest to he paid, Lender shall not be required to pay Borrower an}• interest or earnings on the Funds. 1_ender
shall give to Borrower, without charge, an anmtal accounting of the Funds showing credits and dehits to the Funds and the
purpose far which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
by this Mortgage..
If the amount of the Funds held by Lcndcr, 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 pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Horrower'c option, either
promptly repaid to Borrower or credited to Burrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, imurance premiums and ground rents as they fall due.
Borrower shall pay to lender any amount necessary to make up the deficiency within 30 Jays from the date notice is mailed
by Lender to Borrower requesting payment thereat.
Upon payment in full of all sums secured by thic Mortgage. I-ender shall promptly refund to Borrower any Funds
held by Lender. !f under paragraph 1K hereof the Property is sold or the Pmpcrt) is otherwise acquired by Lender, Lender
shall apply, no later than immcdiatcl}• prior to the sale of the Property or its acquisition by Lender, any Funds l+eW by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by lender un.ler the
Nate and paragraphs 1 and 2 hereof shall be applied by I-ender first in payment of amounts payable to Lcndcr by Borrower
under paragraph 2 hereof, then to interest payable on the Nate, then a+ the principal of the tiute, and then to interest and
principal on any Future Advances.
4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and imlxxitions aunbutable 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 m such manner, by Borrower making payment, when due. directly to.the
payee thereat. Borrower shall promptly furnish to t_endcr all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Bormw•rr shall promptly furnish to Lcndcr receipts evidencing such payments.
Borrower shall promptly discharge any lien which has pnonty user this Mortgage: provided, that Borrower shall not be
regwred to discharge any such lien so long as Borrower shall ague in writing to the payment of the obligation secured by
such lien in a rnanner acceptable to Lender, or shall in gaud faith rnntest such lien by, or defend enforcement of such lien in,
legal prex:eedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements noN misting or hereafter erected on the Property insured
against Inns b}• Ere, hazards included within the term ".;Mended coverage", anJ such other hazards as Lender may reyuire
and in such amounts and for such periods as Lcndcr may reyuire; provided, that Lender shall not reyuire that the amount of
' wch coverage exceed that amount of coverage regwred to pay the wins secured by th~c Mortgage.
The insurance carrier providing the insurance shall he chosen b)• Borrower subject M approval by Lender, provided,
that sue:~ approval shall not be unreasonably withheld. All premiums on insurance policies shall t?e 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
~ insurance carrier.
All insurance policies anJ renewals thereof shall tx~ in fornt acceptable to Lender and shall include a standard mortgage
clause in favor of and in farm acceptable to (.ender. Lcndcr shall have the right w hold the policies and renewals thereof,
and Harrower shall promptly furnish to lender all renewal notices anJ all receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the inwrance earner and Lender. I_endrr ma}• make prcx?I of loss if not made promptly
by Borrower_
Unless lender and Borrower otherwise agree in wnt~ng. inwrance proceeds shall be applied to rector:+tion or repair of
the Property damaged, provided such restoratu?n or repair ro economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not ernnomically feasible ar i( the securit}• of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the exceu, if any, paid
to Borrower. If the Property is abandoned by Borrower, or if Harrower fait to respond to Lender within 30 days Tram the
date notice is mailed by Lender to Borrower that the insurance carrier ofTers to s~ule a claim for insurance benefits, 1_ender
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
or postpone the due date of the monthly installments referred to in paragraphs I 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 the sale
or acquisition shall pass to Lender to the extent of the sums secured by this h1ortgagc immediately prior to such sale or
acquisition.
~ 6. Preservation and Maintenance of Propert}; Leaseholds; ('ondominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
i and shall comply with the provisions of any lease if this Mortgage n on a leasehold. If this Mortgage is on ,a unit in a i
t ;
condominium or a planned unit development, Borrower shall perform all of Borrowers obbgat~ons under the declaration ;
or covenants creating or governing ilia condominium er planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. 1f a condominium or planned umt des•elopment
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 anJ agreements of this Mortgage as if the rider
~ were a part hereof.
7. Profeclion of Lender'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 Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disburxment of
reasonable auotncy's fees and entry upon the Property to make repairs. If (.ender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premtums required to maintain such -
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
OR
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