HomeMy WebLinkAbout1035UNtFORM CoveN~N'rs. Borrower a~d l.ender covcnant and agree as follows:
l. Paymeat of Principal aad laterat. Borrower shall promptly pay when due the pri~cipal of a~d intersst on the
indebtcdness evidenced by the Note. prepayment and late charges as p~ovided in tho Nole, and the principal of and intercsl
on any Future Advances secured by this Mortgage.
2. FWUds [or Tua aad lauesnce. Subject to applicable law or to a written waiver by Leoder. Borrower shall pay
to Lender o~ the day motithly installments of principal and interest are payable uoder the Note. until the Note is paid in full.
a sum (hercin "Funds") equal to one-twelfth o( the yea~ly taxes anJ auessments which may attain priority over this
Mortgage, a~d ground re~ta on thc Proper~y, it 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 reasc~nably estimated initially and from
time to time by l.endcr on the basis of assessme~ti and bills and reasonable estimata thereof.
The Funds shall be held in an ins~itutio~ the depcuits or accounts of which are insured or guarantced by a Federal or
state age~cy (including Lender if l_ende~ is such an institution). Lender shall apply the Funds to pay said taxa. assessments.
ir-surance premiums and ground rents. Lender may not charge for so halding and applying ~he Funds, analyzing said account.
or verifying and compiling said assessments and bills, u~less l.ender pays Borrower interest o~ the Funds and applicable law
permits Lender to make such a charge. Borrower and L.ender may ag~ee in writing at the time of execution ot this
htortgage that interest on the Funds shall be paid to Borrowe~, and unless such agreement is made or applicable law
reyuires such interest to be paid. l.ender shall not be required to pay Borrower any interest or earnings on the Funds. !_ender
shall givc to Borrower, without charge, an annual accaunting 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 for the sums secured
by this Mortgage.
If the amount of the Funds held by l.ender, tagett~er with thc (uture momhly installments of Funds payable prior to
~he due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes,
assessmentc, insuranre premiums and ground rents as the}~ fall due, such excess shall be, at Bnrrower s option, either
promptly repaid to Borrow~er or credi~ed to Borrower on monthly installmcnts of Funds. lf the amaunt of thc Funds
held by Lender shall not be suflicient to pay taxes, assessments, insurancc prem~ums and grou~d rents as they fall due,
Borrower shall pay to Lender any amount necessary ta make up the Jeficicncy wi~hin 30 days trom the date natice is mailed
by Lender to Borrower requesting payment thereof.
Upon payme~t in full of all sums secured by this Martgage. I_endcr shall pramp~lp refund to Barravver •rny Funds
held by 1.enJer. It under paragraph 1R hereof the Propert~~ is sold or the Property ~s otherwice acquired by t_ender, Lenckr
shall apply, no later than immediatcly prior to the salc of the Propcrty or its acquisition by Lender, any Funds held by
Lender at the time of application as a creJit aga~nst the sums secured by ~his Martgage.
3. Application of Payments. Unless applicable law proviJes otherwise, all payments received by I.ender under the
Note and paragraphs 1:u~d 2 hereof shall be applicd by l.e~der first in payment of amounts payable to l.cnder by Borrower
under paragraph 2 hcreof, then to intcrest payable on the Note, thcn ~o the principal of the Note, and then to interest and
principal on any Futurc Advances.
4. Cha~es; Lkns. Borrower shall pay all taxes, assessments and other chargex, fines anJ impositic~ns aUributable to
the Property which may attain a priority over Ihis Mortgage, and leasehold paymcnts or ground 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 prompUy furnish ta Lender all notices ot amounts due under this paragraph, and in the event
BorroN•er shall make payment directly, Borrower shall promptly furnish ta Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has prionty over this Mortgage; provided, that Borrower shaU not be
required to discharge any such iien so long as Borrow~er shall ~gree in Nri~ing to the payment of the obligalion securcd by
such lien in a manner acceptable to Lender, or shall in good faith contect such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement o( the 6ea or for[e~wre of the Property or any pa~t thereof.
S. Hazard Insurance. Borrow•er shall keep ~he ~mprovements now existing or herea[ter erected on the Properry insured
against Icxs by fire, hazards included within the term "extended cover~ge", and such other hazards as Lender may require
and in such amounts anJ for such periods as Lender may reyuire; provideJ, that Lender shall not require that the amount o[
such coverage exceed that amount of coverage required to pay the ~umc secured by this Mortgage.
The insurance rarrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
that such approval shall not be unreasonahly withheld. All premiumc on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, b~~ Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to LenJer and shall include a standard mongage
clause in favor of and in form acceptahle to 1_ender. Lcnder tihall have the right to hold the policies and renewals thereof,
and Borrower shall promptly [urnish to I_ender all rencwal notices anJ all receipts of paid premioms. In the event of loss,
Borrower shall give prompt notice to the insurance carner ~nd Lender. Lender may make prcx~f ot loss if not made prompUy
by Borrower.
llnless Lender and Borrow•er uther~~~sc agree in w•rit~ng, insurance proreeds shall be applied to restoration or repair of
the Property JamageJ, provided such restoration or repair is ecvnomically teasib{e and the security of this Mortgage is
not thereby impaired. lf su~h restoration or repair is not econom~cally feasible or if the security ot this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums srcured by this Mortgage, with the_ excess, if any, paid
to Borrower. If the Property is abandoned by Borrawer, or it Borrower fails to rapond to Lender within 30 days from ihe
Jate notice is mailed by Lender to Borrower that the insurance carrier oBers 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 Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such apptication of proceeds to principal shall not extend
or postpone the due date of the mon~hly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acyuired by L.ender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulling from damage to the Proper~y prior to the sale
or acquisition shall pass to Lender to the extent of the sums xcured by this Mortgage immedia~ely prior to such sale or
acquisition.
6. Presen•alion and :~laiotenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Propeny in good repair and shall not commi~ waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit developmenl, Borrower shall per(orm all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned onit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documems. If a condominium or planned unit development
riJer is executed by Borrower and recorded logether with this Mortgage, the covenants and agrcements 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 Lende~s Security. If Rorrower fails to pertorm the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lendor's option, upon notice to Borrower, may make such appearanees. disburse such
sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
reuonable altomey's (ees and entry upon the Proper~y to make repairs_ If Lender required monsage insurance u a
condition of making the loan secured by this _Mortgage, Borrower shall pay the premiums required to maintain such
insurance in effect unlil such time as the requirement (or such insurance terminates in accordaoce with Borrower's ~nd
B~x345 F~1t~3~
~
-~t,~-_.,.~~:~