HomeMy WebLinkAbout1605• ~ i;
~- ~ ~ .L;y
UN/FORM CovBNANTti. Borrower and Lender covenant and agree as follows:
>l. hy^reut of hiae4R1 aui lNetnyl. 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
ors say Future Advances secured by this Mortgage. .
2. lhnis for Tara and Ittiwrtuce. Subja:t to applicable law ar to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and inti•rest arc payable under the Note. until the Note is paid in full,
a stem (herein "Funds") equal to one-twelfth of the yearly talc. 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-twelfth of yearly premium installments for mortgage instirancc, 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 be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of
:fate agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments.
irtsurartce premiums and ground rents. lender may not charge for so holding and applying the Fiiridc. 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 tbat 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 arc pledged as additional security for the sums secured
by this Mortgage.
If the amount of thti 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 pay said taxes,
assessments, insurance premiums and ground rents as they tall 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 shall not be suf6cieat to pay taxes. asstaisments, insurance premiums and ground rents ss they fall due,
Borrower shall pay to Leader 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, lender shall promptly refund to Borrower any Funds
held by Leader. If under paragraph 1R hereof the Property is sold or the Property 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. A~plicatlort of Paymeads. Unless applicable law provides otherwise, all payments received by Lender under the
Note sad paragraphs 1 sad 2 hereof shall be applied by 1_ender 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; Lkas. 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 in such manner, by Borrower making payment, whin 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 furnish to Ixnder receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over thts 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 shall in good faith contest such lien hy, or defend enforcement of such lien in,
legal proceedings which operate to-prevent the enforcement of the lien or forfeiture of the Property or any pan thereof.
S. Hatted Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as 1_ender may require: provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'Ilse insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
tbat 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
insurance 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,
sad 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 otherw•isr agree in wnting, 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. If such restoration or repair is not economically feasible or it 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. If 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 authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propem•
or to the sums secured by this Mortgage.
Unless Lender and Burrower otherwise agree in wnting, any such application of proceeds to principal 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. I[ under paragraph 18 hereof this Property is acywred by Lender, all right. title and interest of Borrower
in sad to any Risurance policies and in and to the proceeds thereo[ 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 kiortgage immediately prior to such sale or
acquisition.
6. Preservation sad '.1laiotenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not comrpit Kastr or permit impairment or deterioration of the Property
sad shall comply with the provisions of any lease i( this Mortgage n on a IeaschoW. It this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's 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. I(a condominium or planned umt 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 co~cnants and agreements of this Mortgage as if the rider
were a part t.reof.
7. Protection of Lender's Security. It Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is a-mmenreil which 'materially .effects Lender's interest in the Property.
including, but nut limited to, eminent domain. insoh~ency, cuefe rnhxcement. fir arrangements or pnmredings invoh•ing 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 ^ot limited to, disbursement of
reasonable attorney's ices and entry upim the Property to make repaus. If Lender rryuircd mortgage insurance as a
cundrtron of making the loan secured h}• this Atorigage. Burn:wee shill pay the premiums required to maintain such
insurance in rlkct until such time as the reyuirernem for wch in;urame terminates m accordance with Borrower's and
`~' _ ~~.n- . - -
Bf~ K J~~ PaGE~UIJJ