HomeMy WebLinkAbout2963UN~FORM CoveN~NTS. Bo~~ower and LenJer covenant and ag~~~e as (allows:
1. Psymeat of Priac[pal aod lateresf. Borrawe~ shall promptly pay when due the principal ~f and interest on the
iadebtedness e~~idenced by the Note, prepayme~t and late char~ees as pruvided in the Nate, and the principal of and intercst
on any Future Advances secured by this Mortgage.
2. Rnods fo~ Ts~[es and lnsuraace. Subject to applirable law or to a written waiver by I_ender, Borrower shall pay
to I.ender on the day mo~thly installments of principal and mter~st are payahle under the Note, until the hote is paid in full,
a aum (herein "Funds") equal to one•twelfth of the yearly ta~es and ascessmenls v-~hich may at~ain priority over this
Mortgaa~e, and ground rents an the Pt~operty, if any. plus a~c-twelf~h of ~~rasly premium inslallments for hazard insurance,
plus one-tweltth of yearly premium installments tar mar~gage insurancr, if any, all as reas~~nably ectimatcJ initially and from
time to time by Le~der on the basis ot assessmcros and bills and rea~onable es~imates thereof.
"Il~e Funds shall t~e held in an institution ~hr deposits or accounts of which are insured or guaranteed b~• a Federal or
state agency (including Lender if l_ender is such an inslitution). I.ender shall appl}~ ~he Funds to pa~• said taxes, assessments,
insurance prcmiums and graund rents. I_ender ma~~ not charge for ~o holding •rnd apply~ng the Funds, analpzing said account,
or verifying and compiling said assessme~ts anJ bills, unless I_ender paps Borrawer interest on the FunJs and applicable law
permits Le~der to make such a charge. Borrower and Lender may agrec in writing at the time ot ezecutio~ ot this
Mortgage that interest on the Funds shall he paid to Borruwcr, and unless such agrcement is made or applicable law
requires such ~nterest to be paid, Lender shall not he reyuired to pa~• B~~rrow•er an~• interest or ea~nings on the Funds. Lcnder
shall give to Borrower, without charge, an annual aca~unting of the Funds shov-•ing credi~s and debits to the Funds and ihe
purpose far which each debit to Ihe Funds was madc. The Funds are pledged ai adJitional security for ~he sums secured
by this Mortgage.
If thc amount of the Funds held by Lender, toge~hcr with ~hc future mon~hly~ installmentc of FunJs payablc prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired ~o pa~• said taxes,
assessments, insurance premiums and ground rents ac thcy fall due, such excess shall be, a~ Borrow~er s option, either
promptly repaid to Borrower or credited to Borrower on monthl~~ installmcnts of Fundti. If the amount of thc Funds
held by Lender shall not be sufficient to pay taxes, assessmems, in~urancc premn~mc anJ ground rents as thcy fall due.
Borrower 3ha11 pay to Lender any amount necessary to make up the deficienc~~ within 30 da~~s from the date notice is mailed
by Lender to Borrower requesting payment thercof. '
Upon payment in full of all sums sec:ured by this Mur~gage, Lender shall promptly rctund to Borro~ver any Funds
held by Lender. If under paragraph 1R hereof the Propen}• ~~ .old ~~r the Proper~y is othenciu acquired bp l.ender, Lender
shall apply, no later than immediately prior to the sale of thc Propen~• or its acquisition b}~ I.cnder, any Funds held by
Lender at the time ot application as a credit against the sumti secured b~• Ihn Mortgage.
3. Application oE Payments. Unless applicable law• pmviJes ~~therwise, all payments received by Lender under ihe
Note and paragraphs 1 and 2 hereof shall bc applied by I.cndcr fir~t in pa~•mem of amounts payable to I.endcr by Borrower
under paragraph 2 hereot, then to intcrest payable on the Notc, then to the principal of the Note, and then to interest and
principal on any Future Advances. ~
4. Charges; Lkns. Borrower shall pay all taxcs, atsessmems and other charges. fines anJ im~x:tions attribulahle to
the Property ~hich may attain a priority over thic A1or~gagc, and leaschold paymerts or ground rents, if any, in the manner
provided unJer paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereol. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrow•er shall make payment directly. BorroN~er shall promptly furnish to l.ender receipts evidencing such payments.
Borrower shall prompUy discharge any lien which has pnonty over ehis Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrov-•er shall agrec in writing to the pa}~ment of the obligation secured by
such lien in a manner accepiable to Lender, or shall in gc~d faith contcu such lien by, or defenJ enforeement of such lien in,
legal proceedings which operate to prevent the enforcement of the hen or for[eiwrc o( the Property or an}~ part thereof.
S. Hazard Insurance. Borrow•er shall keep ~he impro.~emem. now cxisting or here~ftcr erc~ted on the Propcrty insured
against loss by fire, hazards included within the term "e~tended coveragc ', and such other hazards ac Lender may reyuire
and in such amounts and for such periods as Lender may reyuire; provideJ, that Lender shall not reyuire that the amount of
such coverage ezceed that amount of coverage required to pay the cumc secured b} this Mortgsge.
The insurance carrier providing the insurance shall be chosen by Borrow~er subject to approval by Lender; provided.
that such approvai shall not be unreasonahly withheld. All premiumc on insurance policies shall t-e paid in the manner
provided under paragraph 2 hereof or, if not paid in such ~manner, by Borrow-er,making payment, when due, directly to the
~nsura~e carrier. '
AQ insurance policies and renewals thereo( shall be in form xceptable to Lender and shall includr a ttandard mortgage
clause in favor of and in form acceptable to l:ender. Lcnder shall have the right to hold the policies ~nd renew•als thereof.
and Borrower shall promptl~• furnish to Lender all renewal notices and all receipts oi paid premiume. In the event of loss.
Borrower shall gi~•e prompt notice to the insurance carrier and Lender. Lender may make prcx~f of loss if not made prompUy
by Borrower. .
Unless LenJer and Borrower otherv-ise agree in w~riting, inwrance procecds shall~be applied to restoration or repair of
the Property damaged, provided such resrorat~on or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not ernn~~micall~~ feasible or ~[ the securi~y of this Mor~gage wo~ld
be impaired, the insurance proceeds shall be applieJ to the sums secured by this Mortgage, w•i~h Ihe excess, if an~, paid
to Borrower. I( the Property is abandoned t,~ Borruwer, ar it Borrower faib ro res~nd to l.ender within 3U days from the
date notice is mailed by Lender to Borrow~er ~hat the insurance rarrier ofier~ to seule a claim for insurance benefits, Lender
is authorized to collect and apply ~he insurance proceeds at Lender's optiun either to restoration or repair of the Property
or to the sums secured by this Mortgage. -
Unless I_ender and Borrow•er atherv-ise agree in writing, an~• such application of proceeds to pnncipal shall not extend
or ~stpone ~he due date of the mon~hly installments referred ~o in paragraphs I and 2 hereof or ~hange the amount ot
such installments. If unJer paragraph 18 hereof the Property is acywreJ b}• LenJer, all right, title and interest of Borrower
in and to am insurance~policies and in and to thc proceeds thrreot result6ng from damage to the Property prior to •the sale
or acquisition sh~ll pass to Lender to the extem ot the sums secured by this ~1~~rtgag~ immediately p~ior to such sale or
acquisition.
6. Presenation and ~faintenance of Properi~; I.easeholds; ('ondominiums: Planned Unit Developments. Borrow•er
shrll keep the Property in good repair and shall not commit v-aste or permit imp~irment or detcrioration of the Property
and shall comply w•ith the provisions o[ any lease if thi~ ~tortgage ~c on a tc~schuld. If this Mortgage is on a unit in a
rondomimum or a planned unrt devrlopment. Borrow~er chall perform all of Borrower's obl~gations under the declaration
or covenants creating or governing the condominiiim or planned unit development, the by-laws and regulations of the
condominium or planned unit development, end constituent dcxumentc. If a condominium or planned unit dcrelopment
nder is executed by Borrower and recorded together with this 111ortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend anJ supplement the co~•enants and agreemenis of this Mortgage as i( the rider
~ere a part hereof.
7. Protection of Lender's Security. If Borrower fads to perform the covenants anJ agreements contained in this
Mortgage. or if any action or proceedmg is commenced Khich materiaUy afiects LenJer's interest in the Propeny,
includsng. but n~~t lim~ted to, eminent domain, insol~~e~uy~. code enforcement, or arrangements or proceedings invol.•ing a
bankrupt or Jecedent, then I_ender at Lender's option, upon notice to Borrower, ma~• make sucfi appearances, disburse such
sums and take such action as is necessar}• to protect Lender's interesl, including, but not Iimiled to, disbursement of
reasonable at~omey's fees and entry upon the Property to make repair~. If I_cndcr required mortgage insurance as a
condition of making the loan secured b}' ~his Mongage, Borro~cr shall pay the premiums requireJ to mainta~n such
insurance in efTect until such time as the reyuirement for such ~nsurance ~erminates ~n accordance with Borrower s and
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