HomeMy WebLinkAbout0872• r
:~ <~.:~
UNtFURM CoyttN.1\T$. Borrower and lender covenant and agree as follows:
1. Payment of Prlaclpal aad Interest. Burrower shall promptly pay when due the principal of and interest on the
indebtedneu evidenced by the Note, prepayment and late charge. as provided in the Note, and the principal of and interest
on any Future Advaticcs secured by this Mortgage. '
T. Funds for Toes and Insurance. 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 arc 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,
alas 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 assessments and hills and reasonable estimates thereof.
The Funds shall he held in an institution the dep+uits or :-ccounts of which are insured or guaranteed by a Federal or
state agency lincluding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lcndcr may not charge for x- holding and applying the Funds, analysing said account,
or verifying and compiling sail assessments and hills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lcndcr to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest un the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
rcyuires such interest to be paid, Lender shall not he reyuir+Kl to pay Borrower am• 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 l=ands was made. The funds are pledg+xl as additional security fur 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 reyuircd 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 of the Funds
held by 1_ender shall not be sufficient to pay taxes, assessments, imurance premiums and ground rents as they fall due,
Borrower shall pa)• to Lcndcr any amount necessary to make up the deficiency within ;0 da)s from the date notice is mailed
by Leader to Borrower rcyucsting paymem thereof.
-Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lcndcr. If under paragraph IR hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
shall apply. no safer than immcdiatel}• prior to the sale of the Property or its acquisition by Lcndcr, any Funds held by
Lender at the dine of application as a credit against the Bunn secured by this \1ortgage.
3. Application of Pa3larents. Unless apphcahlc law provides otherwise. all payments received by Lcndcr under the
Note and paragraphs I and 2 hereof shall be applied by Lcndcr fist in payment of amounts payable to Lcndcr by Borrower
under paragraph 2 hcrcof, then to interest payable un the Kotc. then to the principal of the Note, :-nd then to interest :-nd
principal an an)• Fuulre Advances.
a. Charges; Liens. Borrower ,hall pay all taxes, assessments and other charges. fines and impusitiuns 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 in wch 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 tarnish to Lcndcr receipts evidencing such payments.
Borrower shall promptly discharge any lien ++hirh has priority over this Mortgage: pruviJcd. that Borrower shall nut be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation scoured by
such lien in a manner acceptable to Lender, or shall in g+xx1 frith contest such lien hy, or defend enforcement of such lien in,
legal pn-ccedings which operate to prevent the enfurocmcnt of the hen or forfeiture of the Property or any part thereof.
5. Hazard insurance. Burrower shall keep the Improvements now cxisung or hereafter erected on the Property insured
against loss M• fire. hazards included within the term "evtendcd coverage°. and such other hazards as Lender ma} require
and in such amounts and for such peri/,xls as Lender may require: provided. that Lcndcr ,hall nut require that the amount of
such an•crage exceed that amount of coverage reyulred to pay the sums .enured by this Mortgage.
71te insurance carrier providing the inwrance sh:dl Ix chosen by Borrower subject tx- approval h}~ Lcndcr: provided,
that such approval shall not be unreawnahly withheld. :III prrmnlms on insurance policies shall be paid in the manner
provided under paragraph 2 hcrcuf or. if nut paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall tx in form acceptable to Lcndcr and shall include a st:-n.lard mortgage
clause in favor of and in form acceptable to Lender. Lender .hall have the right to hold the policies and renewals thereof.
and Borrower shall promptly furnish to Lcndcr all renewal notices and all receipts of paid premium.. In the event of loss.
Borrower sh:dl glue prompt nonce to the insurance carrier and Lcndcr. Lender may make pr+wf of loss it not made pn-mpti}
by Borrower.
Unless Lendor and BOrluwel otherwise agree in wntn-g. insurance pr+-«-+ds shall be applied to restoration +u repair of
the Property damaged. provided such restorahun ur sepals Is economically feasible and the security of this Mortgage is
nut thereby impaired. It such restoration or repair is not econumic:dly feasible or i( the security of this Mortgage would
be impaired. the insurance prucreds shall be applied to the cams secure.l by this l~lortgage. with the erects, if any, paid
to Born-w•er. If the Property is abandoned by Borrower. or if Borrower fails to respond to (.ender within 3U days from the
date notice is mailed by Lender to Borrower that the insurance carrier olfen to settle a claim for insurance benefits, Lender
u authorized to collect and appl} the insurance proceeds at Lenders option either to restoration or repair of the Property
ur to the sums xcured h}- this Mortgage.
Unless Lender and Borrower otherwise agree In canting. any such application of pn-ceeds to principal shall not extend
or p.xtpeme the due date of the monthly installments referred to in paragraph 1 and 2 hcrcof or change the amount of
wch imtallments. It under paragraph Its hereof the Properh• is acquired by Lender, all right, title and interest of Borrower
in and to am insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acyuisiuun shall pass to Lender to the estent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presenation and Maintenance of Properly: Leaseholds; ('ondominilrn-s: Planned knit Developments. Borrower
shall keep the Propcrt}• in good repair and shall not commit waste or permit impairment or deterioration of the Properq•
and shall comply with the provisions of an)• lease if this Mortgage Is on a leasehold. If this Mortgage is on a unit in a
cundomimum era planned unit development. Borrower shall perform all of Borrower's obllgauons under the declaraUun
ur covenanh 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 w exeouted by Borrower and recorded together with this Mortgage, the rnvenants and agreements of such rider
shall t>,: Incorporated Into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hcrcof.
7. Protection of Lenders Security. I( Borrower fails to perform the covenants and agreements rnntained in this
Mortgage. ur if any action or proceeding Is commenced which materially atkots Lender's interest in the Property,
mciuding. but not hmrtcd to. eminent domain. insohency. code cnforocmcnt• or arrangements or pr+-ceedings involving a
bankrupt ur decedent. then Lender at Lenders option. upon notice to Borrower, may make such appearances. dlshurse such
sums and take such action as Is necessary n- protect Lenders intrrest. including. but not limited to. dlshursement of
reasonahl~ attorney's tees and entry upon the Property to make repairs. I( Lcndcr reyuircd mortgage imurance as a
cundiUon of making the loan scoured by this Mortgage. Borrower shall pay the premiums required to mainl:un such
insurance in etTect until wch time as the rcyuirement for such Insurance terminates Inaceordance w•Ith Borrower's and
__ __
~f~.
g~~x 344 p~E 872