HomeMy WebLinkAbout2480UNIFORM COVENANTS Borrower and Lender covenant and agree as follows:
1. Payment of PNncipal and Interest. Borrower shall promptly pay when due the principal of and +nterest on the
indebtedness evidenced by the Note. prepayment and late charges as provided rn the Note, and the principal of and interest
on any Future Advances secured by Ihrs Mortgage.
2. Funds forTaxes and Insurance. Subject to applicable law or to a written 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 rs pa+d rn full,
a sum (herein ~~Funds') equal to one•Iwelllh of the yearly taxes and assessments which may attain priority over th+s
Mortgage, and ground rents on the Property, if any, plus one•twellth of yearly premium rnstallmenls for hazard insurance,
plus one-twelfth of yearly prem+um installments for mortgage insurance, +t any, all as reasaonablyest+mated initiallyand from
time to time by Lender on the basis of assessments and bills 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 agency frncluding Lender rf lender rs such an rnstitulron- Lender shall apply the Funds to pay said taxes,assassments.
+nsurance prem+ums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing Bard account,
or verifying and comp+ling sa+d 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 rn 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 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 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 installments of Funds payable prior to
the due dates of taxes. assessments, +nsurance 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 Borrower on monthly installments of Funds. If the amount of the Funds.
held by Lender shall not be sulfrcient to pay taxes. assessments. +nsurance premiums and ground rents as they fall due.
Borrower shall pay to lender any amount necessary to make up the deficiency within 30 days Irom the date notice is mailed
by Lender to Borrower request+ng payment thereof.
Upon payment rn full of all sums secured by this Mortgage. Lender shat) promptly refund to Borrower any Funds
held by Lender. It under paragraph 18 hereof the Property rs sold or the Property is otherwise acquired by Lender. Lender
shall apply. no later than rmmed+ately prior to the sate 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 area 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to rnterest payable on the Note. then to the principal of the Note. and Ihen to interest and
principal on any Future Advances.
4. Charges; Uens. 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 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 tnereOf. 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 Lender receipts evidencing such payments.
Borrower shall promptly d+scharge any lien which has priority ove! t-iis Mortgage: provided. that Borrower shall not be
required to discharge any such hen so long as Borrower shall agree rn writing to the payment of the oblrgat+on secured by
such lien in a manner acceptable to lender. or shall in good faith contest such lien by. or defenb enforcement of such Iren in.
legal jroceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by tire. hazards included within the term "extended coverage', and such other hazards as Lender may require
and +n 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 !o pay the sum secured by this Mortgage.
The insurance carrier providing the +nsurance shall be chosen by Borrower subject to approval by Lender: provided.
that such approva! shall not be unreasonably withheld. All premiums on +nsurance policies shat) be paid in the manner
provided under paragraph 2 hereof or. ii not paid +n such manner. by Borrower making payment, when due. directly to the
insurance career.
Alt insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard morgage
clause in favor o! and inform acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
and Borrower shall promptly furnish to Lender all renewal not+ces and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the +nsurance carrier and Lender. Lender may make proof of loss !f not made-promptly
by Borrower.
Unless Lender and Borrower otnerwise agree in wasting. insirance proceeds shah be applied to restoration or repair of
the Property damaged, provided such restorat+on or repair is economically feasible and the security of th+s Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or d the security of this Mortgage would
be impaired. the +nsurance proceeds shall be applied to the sums secured by this Mortgage. with the excess. d any, paid
to Borrower. If the Property is abandoned by Borrower. or it Borrower fails to respond to Lender within 30 days from the
date notice is malted by lender to Borrower that the +nsurance carrier offers to settle a claim for insurance benefits. lender
is authorized to collect and apply the +nsurance proceeds at Lender's option either to restoration or repair of the Property
o- to the Burns secured by this Mortgage
Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend
or postpone the due date of the monthly +nstatiments referred to +n paragraphs t and 2 hereof or change the amount of
such installment. If under paragraph 18 hereof the Property is acqu+red by lender, alt right. title and rnterest of Borrower
in and ro any insurance polices and rn and to the proceeds thereof resulting from damage to the Property poor 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; Condominiums; Planned Unlt Developments.
Borrower shall keep the Property +n good repair and shall not commit waste or permit impairment or deterioration of the Pro-
perty and shall comply with the prov+srons of any lease if this Mortgage is on a leasehold. tt this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform alt of Borrower's obligations under the decfarat+on
or covenants creating or goverrnng the condominr~rn or planned urnt development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider +s executed by Borrower and recorded togethe 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 it the rider
were a part hereof
~. Protection of Lender's Security. If Borrower fails [o perform the covenants and agreements conta+ned rn this
Mortgage. or if any action or proceeding is commenced which materially affects Lenders interest in the Property.
including, but not limited to. eminent domain. insolvency. code enforcement, or arrangements or proceedings revolving 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 rnterest including, but not limited. to, disbursements of
reasonable attorney's tees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
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 requ+rement for such insurance Iermrnates in accordance with Borrowers and
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~~344 P~247'9
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