HomeMy WebLinkAbout0977UN~FORtN Cov~N~NTS. Borrowe~ and l.ender covenanl anJ agree as (allows:
1. Paymeat of P~incipal sod late~at. Born~w•er shall promp~ly pay when duc thc priocipal of and inicrest ~n the
indebtedness evidenced by the Note. p~epayme~t and late charges as pravidcd in the Note, and the pri~cipal of and intcrcst
on any Future Adva~ces securcd by this Mor~gage.
2. Fnads tor Tua and lasurance. Subject to applicable law or to a written waiver by l.ender, Borrowcr shall pay
to Lender on Ihe day monthly instaUments af principal and interest are payablc under the Note, until the Natc is paid in (ull,
a sum (herein "Funds") equal to une-tw•el[th o( the yearly taxes and assessments which may attain priori~y over this
Morigage. and g~ou~d rents on the Pr+operty, if any, plus one-twelfth of yearly premium installments for hazard insurance,
plus one-twelfth of yearly premium installmenls for mortgage insurance, i( any, all as reasonably estimated initially and (~om
time to time by Lender on the basis of assessmentS and bills anJ reasonable estima~es thertot.
The Funds shall be held in an institution ~he deposits or accounts of which are insured ar guaranteed by a Federal o~
state agency (including Lender if l.ender is such an institutian). l.ender shall apply the Funds ta pay said taxes, assessments,
insurance premiums and grou~d rents. I.ender may~ nat charge for sa holding and applying the Fundc, anal~~zing said account,
or verifying and compiling said assessments and bills, unless l.ender pays Borrawcr intcresl o~ the FunJs anci applicahle law
permits Lende~ to make such a charge. Borrower and l.ender ~iay agrce in writing a~ the time of execwion ot Ihis
Mortgage that interest on the Funds shall be paid ta Bormwe~, and unless such ag~eement is made or applicable law
requircs such interest to be paid. Lender shall no~ be reyuired to pay Borrawer any intcrest or earnings on the Funds. I.ender
shall give to Borrower, without charge, an annual accounting of the F=unJs showing credits anJ dehits ta the Funds and the
purpose f~r which each debit to the Funds was maJe. The 1=unds are pledged as additional security tor the sums secured
by this Mortgage_
If the amount of the Funds hcld by I.enJer, together Nith thc (uture monthly in~t~llments of Funds payablc prior to
the due dates of taxes, asscssments, insurance premiumc and ground rents, shall exceed the amount reyuired to pa~• said taxa,
assessments, insurance premiums and ground rentc as they fall Jue, xirch excecs shall be, at Borrower's option, either
promplly repaid to Borrower or credited to B~~rrower on monthly installments of Funds. I( thc amount of 1hc Funds
held by Lender shall not be suff'icient to pay taxes, assessments, intur:~ncc premiums anJ ground rents as ~hey (all due.
Borrowe~ shall pay to Lender any amount necessary to make up ~he deficiency within 30 da~•s from the date natice is mailed
by Lender to Borrower reyuesting paymcnt therco(. _
Upon payment in [ull of all sums secured by this Mor~gagc. 1 cndcr shall promptly rctund ta Bormv-•er any Funds
held by LenJer. 1[ under paragraph !8 hereof ~he Propcrty ic sold a~ thc Propcrty rs otherwicc acquircd by I.enJer, LenJer
shall apply, no later Ihan immediately prior lo the sale of the Property ar its acquisitian by I.endcr, any Fundc hctJ by
Lender at the time o( application as a credi~ against the sumc secuted by this Martgage_
3. Applicalion of Psyments. linlecs applicable law• providcs othc~wiu, all payments receivcd by I.cnder unJcr the
Note and paragraphs 1 and 2 hereof shall be applicd h}• LcnJc~ fir+t ~n pa}•mcnt of amounts payablc to Lendcr hy Borrower
under paragraph 2 hereof, then to interes~ payablc on the Note, Ihen to thc principal ot the Note, anJ th~n to intcrest anJ
principal on any Future Advances.
4. Clwrges; Lkns. Borrower shall pay all Iaxc~, a~us~mcnts and ather chargec, fines and im~sitions altributable to
the Property which'may attain a priority over this Mortgagc, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereo[ or, it 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 duc under this paragraph, and in the event
Borrower shall make payment directly. Borrowrr chall promptly furnish to l.ender receipts evidencing such payments.
Borrower shall promptly dixharge any lien which has prionty avcr this Mortgage; providcd, tha~ Borrower ~hall not be
required to diuharge any such lien so long as Borrower shall agree in wri~~ng to Ihe payment o( the obligation secured by
such lien in a manner acceptable Io Lender, or shall in gooel faith contect such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the I~en or forfeiture of the Property or any part thereof.
5. Hazard Insu~ance, Borrow•er shall keep the ~mprovemcnts now cxisting or hercafter erccted on the Property insured
against loss by 6re, hazards included with~n the term "ex~ended coverage", and such other hazards ac I_ender may reyuire
and in such amounts and for such periods at Lcnder may reyuirr, provideJ, that LenJer shall not require that the amount of
such coverage exceed that amount of co~erage required to pay the sum~ secured by ~his Mongage.
The insurance carrier providing Ihe insurance shall be chosen by Borrower subject to approval by Lender, provided,-
that such approvat shall not be imreasonably withheld. All premiumc on insurance policies shall be paid in the manner
provided under paragraph 2 hereo( or, if not paid in such manner, by Borrower making payment, when due, directl}• 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 I.ender. 1_ender ~hall have the ~ight to hold the policies and renewatc thereaf.
and Borrower shall promptly furnish to Lender all renewal notices anJ all receipts of paid premiumti. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and I.ender_ I.ender may make proot of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherv-•ise agree in v-•rilmg, insurance prc~ceedc shall be applied Io restoration or repair of
the Property damageJ, provided such restoraUon or repair is cc~~nomically feasible and the security of th~s Mortgage is
not ~hereby impaired. I( such restoration or repair is not economically fcasible or if the security of this Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage, wrth Ihe excess, if any, paid
to Borrower. lf Ihe Property is abandoned by Borrower, or if Borrowe~ fails ~o respond to I_enJer within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carner ofiers to set~le-a claim for insurance benefits, I~nder
is authorized to collect and apply the insurance proceeds at I_ender's op~ion either to restoration or repair of the Property
or to the sums secured by this hiortgage_
Unless Lender and Borrower otherwise agree in writing, any such applica~ion of proceeds to pnncipal shall not extend
or postpone Ihe due date of the monthly ins~allments referred ta in paragraphc I and 2 herco( or change thc amount of
such installments. If under paragraph !8 hercof the Praperty is acyuired by Lender, all right, tiUe and interest ot Borrower
in and to any insurance policies and in an~ to the proceeds thereof resulling from damage to the Property prior to the sale
or acquisition shall pass to Lender to the ex~ent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Praenalloa and ~tainten~nce ot Property; Ltaceholds; ('ondominiums; Planned U~il Devetopments. Borrower
shall keep the Property in good repair and shall not commi~ waste or permit impairment or deterioralion of the Property
and shall comply with the provisions of any lease if th~s Mor~gage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obl~gations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulation> of the
conJominium or planned unit development, and constitucnt documems. If a condominium or planned umt Jevelopment
rider is eaecuted by Borrower and recorded toge~her wilh Ihis Mortgage, the cavenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the ricier
were a paR hereof.
~. Profection of Lender's Securitr. If Borrower fails to perform ~he covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenceJ which materially aflects I.ender's interest in the Propeny,
including, but nnt limrted to, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon no~ice to Borrower, may make such appearances, distwrse such
sums and take such action as is necessary to protect l.ender s inlerest, including, bul not limited to, disburxment of
reuonabte attomey's fees and entry upon the Proper~y lo make repairs. I( [.ender required mortgage insurance as a
condition of making the loan secured by this Mongage. Bonower shall pay the premiums required to maintain such
insurance in eftect until such time as ~he requirement (or such insurance terminates in accordance with Borrower s and
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Ro~K 347 PaGE 9~4
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