HomeMy WebLinkAbout1742UN~FORM CoveNSNTS. Bo«owe~ and l.endsf covenant and agrce as foflovvs:
1. raymeat ot P~incipal sod Inf~cest. Bo~rower sh;~ll p~omptly pay whcn due the ptincipa! ot and interest oo the
indebtedncu evidenced by the Notc, prepayment aod latc chargcs os provickd ~n the No~e, and the principal ot and imercst
on any Future Advances secured by this Mortgage.
2. Fnads for Tua sai It~suraacs. Subjecl to applicable law or to a wrillen waiver by ! ender. Borrower shall pay
to Lender on ~he day monthly installments of p~incipal aad i~tuest a~e payable unckr the Note, unl~{ the Note is paid in (ulf,
a:um (hercin "Funds") equal to one-twelfth of th~ yearly tazes and asussments which may at~ain priority over this
Mortgage, and ground rents on thc Prupeny, if any, plus one-twelfth of ycarly premium installments tor haxard insurance.
plus o~e-twel[th oE yearly premium instalfinents for mortgage insurance, if any, a11 as rcuo~ably es~imated initially and irom
time to time by Lender on the basis o( assessmentS and bills and reasonable estimates thereot.
'[l~e Funds shall be held i~ an ins~itWion the dtposits or aca~unts of which are insurai or guaranteed by a Federal or
state agoncy (including Lender if LenJer is such an inslitwion). I.e~der shall apply ~he Funds tn pay said laxes, assessments,
insurance premiums and grou~d ~eats. t_ender may not charge for so holding and applying the Funds, ana{yzing said account,
or verifying and compiling said assessments and bills, unless l.ender pay~ Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and I.ender may ag~ee in wriling al Ihe time o( execution ot this
Mortgage that inte~at on Ihe F~nds shall t+e paid ta Borrawer, and unless such agreement is madc or applicable law
requires such interest to be paid, l.ender shall not be requireci to p:-y S~~rawer s~y interest or earnings on the Funds. l.ender
shall give to Borrowe~, without charge, an annual accaunting af the FunJs showing credits and debi~s to ~he Funds and the
purpose for which each debit to the Funds was made. The Funds are pleclged as additional stcurily fot ~he sums secured
by this Mortgaga
If the amount of the Funds held hy l.ender, together with the (uture monthly installments of Fundt payable priar to
the due dates of taxes, assessments, insurance premiums and ground rents, shal~ exceed the amount reyuired to pay said ~axa,
assessments, insurance premiums and ground rents as they iall due, such excecs shall he, at Borrow•er's opt~on, either
promptly repaid to Borrower or credi~ed ta Borrowe[ an monthly installments of Funds. If thc amount of tfic i~unds
held by Lender shall not be sufficient to pay taxes, assessments, incu~ancc prcmiumc and ground rents as ~hey fall due,
Borrower shalt pay to Lender any amount necessar}• ~o make up the deficiency within 30 da~s trom ihe date notice is n,ailed
by Lender to Borrower seques-ing payment thereof.
Upon payment in full of all sums secured hy ~his Mar~gagc, 1_cnder shall p~omptly ret~~nd to Borroveer any Funds
held by Lender. It under paragraph 1R hereof ~he Propcny ic u~ld or ~hc Propcr~y ~s otherwi~c acquircd by I:endcr, LcnJer
shal{ apply. no tater than immediately prior ~o the sale of thc Propcrty or iis acquisition by l.ender, any Fundt held by
Lender at the time o[ application as a credit against ~he sums securcd by th~s Mortgage.
3. Application of Paymeats. Unless applicable law pro.•ides otherwi~. all paymentc received by I_ender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.enJer first in payment oi amounts payable to 1_cnde~ hy Borrow•er
under paragraph 2 hereoi. then to inlcrest payable on ~hc Notc. ~hen to thc principal ot the Nate, and then to interest and
principal on any Future Advances.
1. Charges; Lkas. Borrower shall pay ap iaxes, a~ses~ments and other-charges. fi~les as-d ~mpositians at~ributable to
the Property which may attain a priority over this hlortgagc, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Barrowcr making payment, when due, directly to the
payee thereof. Borrowec s~al! promptly furnisfi to Lender a11 notices of amounts due under this paragraph, and in the event
Borrower shall make payment direclly, Borrower shall promptly (umish to Lender receipts evidencing such payments.
9orrower shall prompUy discharge any lien which has prionty over ~his Mortgage: provided, that Borrower• shall not be
required to discharge any such lien so tong as Borrower shall agree in writmg ta ~he payment of the ob6ga~ic~n secured by
sucli lien in a manner acceptable to Lender, or shall in good faith contest such lien hy, or deftnd enforcement of sucfi lien in,
legal proceedingc which operate to prevent the en(arcement of ~he lien or for(eiture of the Property or any part thereof_
S. Hazard Insurance. Borrower shall keep the improvemcnts now exis~ing or hereafter erected on the Property insured
against_ loss by fire, fiazards inciuded within the term "extendeJ coverage", and such other hazards ac l.ender may require
and in such amounts and [or such periods as Lender may rcyuire; provided, that Lender shal{ not require that ~he amount of
such coverage execed that amount of coverage required to pay the sum~ secured by ihis Mortgage. ~
The insurance carrier providing the insurance shall be chosen by Borrow~er subject to approval by CenJer; provided,
that such approval sfiall not be ~mreasonably withheld. All premiums on insurance policies shatl be paid in the manner
provided under paragraph 2 hereof or, i[ not paid in such ma~ner, by Borrower making payment, when due, direc~ly to tix
insurance carrier.
All insurance policies and renewals thereof shall be in form accep~abte to Lender aoJ shal) include a standard mortgage
clause m favor o! aod in form accep~ahle to Lender_ Lender +hall have the right 1o hold the policies and reneKals thereof.
and Borrower shall promptly furnish to Lerider all renewal notices aad all receipts of 'paid prcmi«ms. In the event o( ioss.
Borrower sfiall give prompt notiee to Ihe insurance carner and I.enJer. I.ender may make prcx~f b~ bss if not made promptly
by Sorrower.
Untess Lender and Borrower otherv~•~se agrce in wriung, imurance proceeds shall bc applied to resroration or rcpair of
the Property damaged, pruvided such restoraUon or :epa~r ~s economically (easible and the security of th~s Mortgage is
not ~hereby impaired. If such restoration or repair is not economically feasihle or it the security of this Mortgage would
be impa~red, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the eacess, if any, paid
to Borrower. If the Prope~ty is abandoned b~• &+rrower, or it Borrower fails to respond to 1_ender within 30 days from the
date notice is mailed by Lender to Borrower that ~he insurance rarrier ofiers ro setlle a claim for insurance benefits, 1_ender
is authorized to collect and apply the inwrance proceeds at Lender's option either to ratoratinn or repair o( the Property
or to the sums secured by this Mortgage.
Unless l.ender and Borrower olherwise agree io writing, any such application o[ proceeds to principa{ shall not extend
or postpone the due date of the monthly installments referred ta in paragraphs I and 2 hercof or change the amount of
such installments. It under paragraph 18 hereof the Property is acquired by l.ender, all righ~. title and interest of Borrower
in and to any insurance policies and in and to the proceedc thereof resulting from damage to ~he Property prior to the sale
or acquisition shall pass to Lender to the ex~ent ot ~he sums secured by this Mortgage immediately prior to such sak or
acquisition.
6. Pratrvation aud :~laintenance of Property; I.easeholds; Condominiums; Pl;nned Unit Derebpments. Bc~rrower
shall keep the Propeny in good repair and sfiall not commit was~e or permit impairmem or deteriora~ion of the Property
and shall comply with the provisions ot any leax it this Mortgage ~~ on a leasehold. !( this Mortgagc is on a un~t in a
condominium or a planned unit development, Borrow•er shall pertorm all o[ Borrower's obligations under Ihe declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of ~he
condominium or planoed unit development, and constituent documentt. Ii a condominium. or planned unit development
rider is executed by Borrower and recorded together w~th this Mortgage, the cove~ants and agreements o( such rider
shall be incorporated into and shall amend and supplcment ~he covenants and agreements of Ihis Mortgage as if the rider
were a part hereof.
T. Proteclion oE Lendt~'s Securitp. ~f Borrower tads to perform the covenants and agreemenls contained in this
Mortgage, or if any action or proceeding is commenceJ which materially aHects 1_ender's intecest in the Propeny,
including, but not limited to, eminent domain. insolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, Ihen Lender at Lender's option, upon notice ~o Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protcct Lender s imerest, including. -but no~ limited to, disbursement ot
reuonable altorney's (ees and entry upon the Proper~y to make rcpairs. If [.endcr rcqui~ed mongage insurance as a
condition of making the loan secured by ~his Mortgage. Borrower shall pay ~he premiums required to mainta~n such
iraurance in effat until such time as the requirement for such msurance terminates m aecordance with Borrower s and
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