HomeMy WebLinkAbout2281UNIFO~M COVBNANT3. Borrower and Le~der covenant and agree as follows:
1. la~nneat o[ Priactp~l aod laterat. Borrower shall p~omptly pay when due the principal ot and i~terest on the
iudebtedneu evidenced by the Nole, prepayment and late cha-ges as provided in the Note, and the pri~cipal of and interest
0o any Futurc Advances secured by this Mortgage.
2. Rrnds tor Tua aad lawniace. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of p~i~cipal and interest are payable unde~ the Note, until the Note is paid i~ tull,
a sum (hercin "Funds") equal to one-twelfth ot the yearly taxes and asscssments which may a~tain priority over this
Mortgage. and g~ou~d renta on the Prope~ty, if any, plus ont-twel(th of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mor~gage insurance, if any, all as reasonably estimated initially and from
time to time by Lender on the buis of assessments and bills and reasonable estimates therco[.
71fe Funds shal) be held in an institution the deposits or accounts of which are insured or guarantcctii by a Federal or
state agency (including Ler~der if Lender is such an institution). l_ender shall apply the Funds to pay said taxa, assessments,
insurance premiums and ground rcnts. Lender may not charge for so holding and applyi~g the Funds, 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 ot execution of this
Mortgage that interat on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid. Le~der shall ~ot be required to pay Bo~rower any i~terest or earnings on the Funds. I_ender
shall give to Borrower, without charge, an annual accaunting of ~he FunJs showing credits and debits io the Funds and the
purpose for which each debit to the Funds was made. The Funds a~c pleciged as additional security for ~he sums secured
by this Mortgage.
If the amour.t of the Funds held by Lende~, togethe~ with the future monthly installments of FunJs payable prior to
the due dates of taxa, assessments, insurance premiums and ground rents, shall e+cceed the amount required to pay said taxes.
asseuments, insurance prcmiums and ground rents as they fall due, such excess shall be, at Borrower's opfion. either
protnpQy repaid to Bormwer or crodited to Borrower on monthly installmcnts of Funds. If the amount of the Funds
held by Lender shall not be sufficieat to pay taxa, assessments, insurance premiums and ground ~ents u they fall due.
Borrower shall pay to Lend~r any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requating payment thereof. -
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly retund to Borrower any Funds
held by l.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by l.ender. Lender
s6a11 apply. no later than immediately prior to the sale of the Property or its acquisition by [_ender, any Fu~ds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Applicstlon ot Paymeats. Unless applicable law provieies otherwise, all payments received by Lender unJer the
Note and paragraphs 1 and 2 hereof sha11 be applied by 1_ender first in payment o[ amounts payable to Lender by Borrower
under puagraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Futurc Advances.
4. Cbuges; Lkus. Borrower shall pay all taxes, assessmcnts 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, when 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 (urnish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provieied, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in vvriting to the payment of the obligation secured by
such lien in a manner acceptable to [xnder. or shall in good faith contest such lien by, or defenJ enforcement ot surh lien in,
legal proceedings which operate to prevent the enforcement of the I~en or forfeiture of the Property or any part thercof.
S. Hanrd Insurance. Borrower shall keep the improvements noM existing or hereafter erec~ed on the Property insured
against loss by firc, hazards included within the term "extended coverage", and such other hazards as Lender may require
aad in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums sec~:red by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
t6at 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 curier.
All insurance policies and rtnewals thereof shall be in form acceptable to Lender and shal! include a stanJard mortgage
clause in favor of and in 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 premiumx. In the event of loss,
Borrower shall gi~e prompt notice to the insurance carrier and Lender_ Lender may make proo( of loss if not made promptly
by Borrower_
Unless Lender and Borrower otherwise agree in w•riting, insurance proceeds shall be applied to restoration or repair of
th~ Property damaged, provicled such restoration or repair is economically feasible and the security of this Mortgage is
not ~hereby impaired. I[ such restoration or repair is not economically- feasible or i( the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums ~ecureJ by this Mortgage. v-•ith the excess, if any, paid
to Borrower. !f the Propert)~ is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, l.ender
is authoriud to collect and apply the insurance proceeds at t_ender'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 application of proceeds to principal shall not extend
or postpone ihe due date of the monthly installments referred to in paragraphs 1 and 2 hereof or changc the amount of
such installments. If under paragraph 18 hercof 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 resulting from damage to the Prop~rty prior to the sale
or acquisition shall pass to Lender to the extent of the sums secureci by this hiortgage immediately prior to such sale or
acquisition.
6. Presen~ation aod ~taintenance of Property; Leueholds; Condominiums; Planned Unit De~ebpments. Borrovrer
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease i( this Mortgage is on a leaschold. If this Mortgage is on a unit in a
condominium or a planned unit development. Burrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condommium or planned unit development, the by-laws and regulations of the
condominium or planoed unit development, and constituent documents. If a condominium or planned unit de~•elopment
rider is executed by Borrower and recorded together w~th ~his Mortgage, the covenants and agreements of such riJer
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. Protectioa of Leoder's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage. or if any action or proceCding is commenced which materially affects LenJer's interest in the Property.
including, but not lim~ted to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving 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 Lenders interest, including, but not limited to, disbursement of
reasonable attomey's tees and emry upon the Property to make repairs. If Lender required mortgage insurance u a
condition of making the loan secured b)• this Mongage. Barrower shall pay the premiums required to maintain such
insurance in eBect until such time as the requirement [or such msurance terminates in accordance with ~orrower s and
gp jj(~~~ PaGE ~OU
~
_. _.~