HomeMy WebLinkAbout1782 UNIFORM COVENANTS. Horrower and Lender covenant and agree as follows:
1. Payment of Ptinclpal and lnterest. Harrower 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 Insurance. Subject to applicable law ar to a written waiver by Lender, Borrower shall pay
to Lender an 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-tw•tlfth at the yearly taxes and assessments which may attain priarity 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 basic of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an instttutian the deposits or accaunts o1 which are insured ar guaranteed by a Fedora! ar
state agency (including Lender if (.ender is such an institutianl. Lender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may nat charge for sa balding and applying the Funds, analyzing said account,
or verifying anJ compiling said assessments and bills, unless lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Harrower and tender may agree in writing at the time of execution of this
Mortgage that interest an the Funds shall he paid to Harrower, and unless such agreement is made ar applicable law
requires such interest to be paid, Lender shall nat be reyuired to pay Borrower any interest ar earnings stn 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 fur which each debit to the Funds wa+ made. The Funds arc pledged as additional security far the sums secured
by this 1~lortgage.
If the amount of the Funds held by Lender, ;agether with the future monthly installments of Funds payable pricer to
the due dates of taxes, assessments, insurance premiums and ground rent,, shall exceed the amount reyuired to pay said taxes,
assessment,, insurance premiums and ground rents as they fall due, +uch exce+s shall he, at Borrower's option, either
promptly repaid to Borrower or credited to Harrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay fates, assessments, insurance premium, and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 daps from the date natice is mailed
by Lender to Harrower requesting payment thereat.
Upon payment in full of all sums secured by thi+ Mortgage, I ender shall promptly refund to Harrower any Funds
held by Lender. !f under paragraph 18 hereof the Property i+ Bald ar the Property a atherwi+c acquired by Lender, Lender
shall apply, no later than immediately pricer to the ,ale of the Property ar its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sum, secured by thn Mortgage.
3. Application of Payments. Unlc+s applicable law provides atherwi+c. all payments received by Lcndcr under the
Note and paragraph, 1 and 2 hereof shall be apphcd by Lcndcr fins m payment of amounts payable to Lcndcr by Borrower
under paragraph 2 hereof, then to interest payable on the Nutt, then a. the principal of the Note. and then a, interest and
principal an any Future Advances.
4. C harRes; Liens. Harrower ,hall pay all tart,, a++cs+mcnts and e.thcr charge,. fine, and imlxxiUUns attributable to
the Property which may attain a priority aver thi+ Mortgage, and Iea+ehokl payments ar ground rents, if any, in the manner
provided under paragraph 2 hereaf or, if nut pail to such manner, by Borrower making payment, when due, directly to the
payee thereat. Borrower shall promptly furnish to !.ender all notices of amounts due under this paragraph, and in the event
Horrower shall make payment directly, Borrower ,hall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien ++hich has pnanty o+•er thi+ Mortgage: provided, that Harrower ,hall nat be
required to discharge any wch lien so long as Harrower shall agree in writing to the payment of the obligatian secured by
such hen in a manner acceptable to !.ender, or ,hall in gcxxl faith cantc+t arch lien by; ar defend enforcement of such lien in,
legal proceeding, which operate to prevent the en(urccmcnt of the Iicn or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall Deep the impro+cmcnt+ rice,, cti+ting ar hereafter erected on the Property insured
against lass by fire, hazards included within the term "c~tendcd coverage". and such other hazards a+ Lender may require
anJ in such amounts and for such periods a+ 1_ender may require; provided, that lender shall nat require that the amount of
such coverage exceed that amount of cavcrage regwred to pay the +um+ +ecured by this Mortgage.
The insurance carrier providing the insurance shall he chosen by Harrower subject to approval by Lender: provided,
that such approval ,hall not be unrea+anably withheld. All premutm+ 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
insurance carrier.
j All insurance policie+ and renewals thereto shall tx in farm acceptable to 1_ender and shall inchide a standard mortgage
clause :n favor of and in form acceptable to Lcndcr. Lender ,hall ha+e the right to bald the pc?licics and renewah thereof,
and Harrower ,hall promptly furnish to Lender all renewal notices and all receipts of paid premium,. In the event of loss,
Borrower ,hall give prompt naticr to the insurance carrier and !.ender. I.endrr may make pnx~: of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwi+e agree in writing, insurance pn?ceed+ shall be applied to re+taratian ar repair of
the Property damaged, provided such re+toratwn or repair is ecanamically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is nat rrnnumically feasible or if the security of this Mortgage wauld
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
~ to Borrower. If the Property is abandaned by Borrower, ar it Harrower fails to respand to (.ender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier afTen to settle a claim for insurance benefits, Ixnder
is authorized to collect and apply the insurance proceeds at Lender's uptwr. either to restoration or repair of the Property
t or to the sums secured by this Mortgage.
Unless Lender and Borrower atherwi+e agree in writing, any such application of proceeds to principa! shall not extend
( or postpone the due date of the monthly installments referred to in paragraph, 1 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 pricer to the salt
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sal or
j acquisition.
6. Preservation and :slaiotenance of Property; I.ea_ceholds; ('ondominiums; Planned Unit [hvelopments. Harrower
t shall keep the Property in good repair and shall not commit waste ar permit impairment or deterioration of the Property
e and shall comply with the provisions of any lease if thrs Mortgage a un a Icaichald. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform a!I of Borrower's obligaUans under the declaration
or covenants creating or governing the condominium or planned amt development, the by-laws and regulatian+ of the
condominium or planned unit development, and constituent dcx:uments. If a condominium or planned amt deveMpment
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 T.ender's Security. 1f Barro+ver fails Ice perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced whtch materially affects Lender's interest in the Properly,
inciuding, but nat limited to, eminent domain, insalvency, code enforcement, or arrangements or praceedings involving a
bankrupt or decedent, then Lender at Lender s option, upon notice to Harrower, may make such apxarances, disburse such
sums and take such action as is necessary to prated Lender's interest, including, but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
i condition of making the loan secured by this Mortgage; Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
a~~x3~3 PacE1780
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