HomeMy WebLinkAbout1670UNIFOR~,t COVENANTS. Borrower and Lender covenant and agree as lollows.
1. Payment of Principal and Interest. Borrower shall promptly pay when due the pr+nc+pat of and +nterest on the
+ndebtedness evidenced by the Note, prepayment and late charges as provided rn the Note, and the princ+pal of and interest
on any Future Advances secured by this Mortgage.
2. Funds forTaxes and Insurance. Sub~ecl to applicable taw or to a wr+tten waver 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 (here+n "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over th+s
Mortgage. and ground rents on the Property, it any, plus one-twelfth of yearly prem+um installments lo- hazard +nsurance.
plus one•twellth of yearly premium installments for mortgage insurance, if any, all as reasaonablyestimaled initially and Irom
t+me to time by Lender on the basis of assessments and bUls 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 agencytmcluding Lender it Lender.is such an institution) Lender shall apply the Funds to pay said taxes, assessments.
+nsurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyz-ng said account.
or venlying and compiling sa+d assessments and bias, 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 be pa+d. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower. w+thout charge, an annual accounting of the Funds show+ng credits and debits to the 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.
It the amount of the Funds held by lender. together with the future monthly +nslallments of Funds payable prior to
the due dates of taxes. assessments. +nsurance premiums and ground rents. shall exceed the amount required to pay sa+d taxes.
assessments. +nsurance premiums and ground rents as they tall due. such excess shall be, al Borrowers option, either
promptly repa+d to Borrower or credited to Borrower on monthly +nslallments of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes. assessments. insurance premiums and ground rents as they fall 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 payment thereof. '
Upon payment in full of al! sums secured by, th+s Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. It under paragraph 18 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. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs t and 2 hereof shall be applied 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 +nterest and
principal on any.Future Advances. ,
4. Chsrges; Uens. Borrower shall pay alt taxes. assessments and other charges, hoes and impositions attributable to
the Property vKhich may attain a pr+ority 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 aft notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any l+en which has prior+ty over this Mortgage: provided, that Borrower shalt 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 by. or defend enforcement of such lien in.
legal iSroceedings which operate to prevent the enforcement of the lien or forfeiture o! the Property or any part thereof.
5. Hazard Insuance. 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 Lender require: provided. that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sum secured by this Mortgage.
The insurance carrier providing the insurance shat) be chosen by Borrower subtect to approval by Lender, provided.
that such approval shalt not he unreasonably w+thheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not pa+d in such manner. by Borrower making payment. when due. directly to the
insurance earner.
At! +nsurance policies and renewals thereof shall be in Corm acceptable to Lender and shall +nclude a standard mortgage
clause in favor of and +n form 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 g+ve prompt notice to the +nsurance carrier and Lender Lender may make proof of loss +f not made-promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing. insurance proceeds shat) be applied to restoration or repair of
the Property damaged, provided such restorat+on or repair is economically feasible and the security of this Mortgage +s
not thereby impaired. li such restoration or repa+r is not economically feasible or it the security a1 this Mortgage would
be Impaired. the +nsurance proceeds shall be applied to the sums secured by th+s Mortgage. with the excess. if any. paid
to Borrower. It the Property is abandoned by Borrower. or +f Borrower fails to respond to Lender within 30 days from the
date notice is ma+led by Lender to Borrower that the +nsurance carrier offers to settle a claim (or +nsurance benefits. lender
is authorized to collect and apply the +nsurance 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 wr+t+ng. any such application of proceeds to principal shalt not extend
or postpone the due date of the monthly installments referred to +n paragraphs 1 and 2 hereof or change the amount of
such +nstatlments If under paragraph 18 hereof the Property +s acqu+red by Lender, all right. title and +nterest o! Borrower
in and to any +nsurance policies and +n and to the proceeds thereof result+ng from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Cond~p~f~Unit ve o~e Pro-
Borrower shall keep the Property +n giwd repair and shall not comm+t waste or ~~RT~1~~11
perty and shall comply with the provis+ons of any lease +t this Mortgage is on a leasehold. If t~t~~n a unit in a
COndOminium or a planned snit development. Borrower shall erfOrm all of Bger 1~ Q~ 4p ~~1~i1s`r i
or covenaMS creating or governing the condominwm or planned un+t developmMent~ite~y-ia~ws~hd~
condomin+um or planned un+t development. and const+tuent documents- If a conddtrnnilirn•as•pt8Mr1+~1MidlA~lr~~t~Af<ttl•'
rider is executed by Borrcvver and recorded together w+th this Mortgage. the covenants and agreements.of•rufrh~i~a~
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 Lender's 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 Lenders +nterest in the Property.
+ncluding. but not limited 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 tees and entry upon the Property to make repairs. If Lender required mortg ge insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums requ+r~d to maintain such
+nsurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and