HomeMy WebLinkAbout2450UNIFORM COVFt~ANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal and lnteresl. Harrower shall promptly pay when due the principal of and interest an the
indebtedness evidence) by the Note, prepayment and late charges as provided in the Nat^, and the principal of and interest
on any Future Advances secured by this Mortgage.
T. Funds for Tua and Insurance. Subject to applicable law or to a written waiver by Lender, Harrower shall pay
to Lender an the day monthly installments of principal and interest are payable under the Note, until the Nate 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 reasanably estimated initially and from
time to time by lender on the basis of assessments and hills and reasonable estimates !hereof.
The Funds shall be held in an institutian the deposits or accaunts of which are insured or guaranteed by a Federal or
state agency (including Lender if lender is such an institutian). lender shall apply the Funds to pa}• said saxes, assessments,
insurance premiums and ground rents. Lender may not charge for sa halding and applying the Funds, analyzing said account,
ar verifying and campiling said assessments and bills, unless Lender pays Borrower ,nterest on the Funds and applicable law
permits Lender to make such a charge. Harrower and lender may agree in writing at the time of execution of this
Mortgage that interest an the Funds shall be paid to Borrawer, and unless such agreement is made or applicable law
requires such interest to be paid. lender shall nat be required to pay Borrower any interest or earnings on the Funds. lender
shall give to Harrower, without charge, an annual aca~unting of the Funds showing credits and debits to the Funds and the
purpose far which each debit to the Funds was made. The Funds are pledged as additional security far the sums secured
by this Mortgage.
1f the amount of the 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 fall due, such excess shall be, 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 taxes, assessments, insurance premiums and ground rents u 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 all sums secured by this Mortgage. Lender shall promptly refund to Barrawer any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acqu,red by 1_ender, 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. AppGcstion of Payetents. Unless applicable law pravides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to I.cnder by Borraw•er
under paragraph 2 hereof, then to interest payable on the Nate, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. Charges; I.ietu. Borrower shall pay all taxes. asu;ssments and ather charges. fines and imlxxitians 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 Barrower making payment, when due, directly to the
payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment direct)}•, Borrower shall promptly furnish to !.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority aver this Mortgage; provided, that Barrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the abligation secured by
such lien in a manner acceptable to Lender, ar shall in good faith contest such lien by, or defenJ enfarcement of such lien in,
legal proceedings which operate to prevent the enfarcement of the lien ar forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the impravcments naw existing ar hereafter erected on the Pmperty 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 may reyuirc; 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.
The insurance carrier providing the insurance shall be chosen by Borrawer subject to approval by Lender; provided,
that 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 thereaf,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts o[ paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrierrnd lender. Lender ma}• make pros( a( loss if nat made pramptly
by Borrower.
Unless Lender-and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ar repair of
the Property damaged, provided such restorat,on or repair is ecanamically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not cconamically 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 abandoned by Borrowcr, ar if Borrawer fails to respand to Lender within 30 da}•s tram the
date notice is mailed by Lender to Borrower that the insurance carrier otters to settle a claim far insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Prapert}•
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of praceeds to pnncipa) 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 I8 hereof the Propert} is acquired by Lender, all right, title and interest of Borrawer
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property pricer 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 ~laiatenance of Property; Leaseholds; ('ondominiums; Planned Unif Ikrelopments. Harrower
shall keep the Property in good repair and shall not commit waste ar permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage ,s un a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit developmem, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned umt development, the by-laws and regulations of the
condominium or planned unit development, end constituent documents. I(a condominium or planned unit Development
rider is executed by Sorrower and recorded together w,th 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 Leader's Security. If Harrower false to per(arm the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially aflecb Lender's interest in the Prapen}•.
including, but not limited to, eminent domain, insahency, cxxle en(arcement, ar arrangements ar proceedings involving a
bankrupt or decede:tt, then Lender at Lender's option, upan notice to Barraw•er, ma}• make such appearances, dishurse such
sums and take such action as is necessary to protect Lender's ,merest, including. but not limited to. disbursement of
reasonable attorney's fees and entry upan the Property to make repairs. If lender required mortgage insurance as a
condrtian of making the loan secured h}• this Mortgage, Borrowcr shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates ,n accordance with Borrower's and
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