HomeMy WebLinkAbout2840UNIFORM COVENANT3, Botrowe~ a~d Lende~ covenant and agree as follows:
1. taya~eat ot PAaclpal soi Islerest. Borrowe~ shall promp~ly pay when due the principal o( and intercst on the
indebtedr~eu evidenced by the Note. prepayment and late charga as provided in the Note. and the principal ot and interest
on aay Futurc Adva~ces secured by ~his Mort`aje.
2. Fdnds tor Tua ana lu~M~asce. Subject to applicabk law or to a written waiver by l.ender. Borrovre~ shall pay
to I.ender on the day monthly installments of principal and intercst are payable under the Note. until the Note is paid in tull.
a sum (herein "Funds") equal to one•twel[th ot the yearly laxes anJ assessments which may atlai~ priority over this
Mortga~e, and ground rents on the Property. it any, plus ooe•twelGh of yea~ly premium installments tor huard insunnce.
plus one-tweltth of ycarly premium installments for mortgage iosurance, it sny. all as rcssonably estimated initially aod trom
time to time by Lender on the basis ot assessmen~s and bills and reasonabk a~imata thereof.
'Il~e Funds shall be held in an.institution the depoaits or accaunts ot which are insurcd o~ guannteed by a Fedenl or
state agency (including Lender if Leoder is such an inslitution). l.ende~ shall apply the Funds to pay said taxes. assessments.
insurance prcmiums and ground rcnts. ~ender may nat charge for so holding and applying the Funds, analyzing aaid account,
or veritying a~d compiling said assessments and bills. unlas Lender pays Borrower intercst on the Fuods and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at ~he time ot ezecutio~ ot this
Mortgage that interest oo Ihe Funds shall tx paid to Borrowe~, and unless such agreement is made or applicable law
requira such interest to be paid. Lender shall not be required ta pay Barrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, a~ annual accounting ot ~he Funds showing ctedits and debits to the Funds and the
purpox for which each debi~ to the Funds was made. The Funds are pleclged as additional security tor the sums secured
by this Mortgage. ~
If the amou~t af the Funds held by Lender, together with the future mon~hly installmonts of Funds payable prior to
the due dates o! taxes, asxssments, insuranEe premiums and g~ound rents, shall exceed the amount requircd to pay said taxa,
assessments, insurance premiums and ground rents as they (all due, such excess shall be, at Borrower's option. either
promptly repaid to Borrower or crodi~ed to Borrower on monthly installments of Funds. If the amount o[ the Funds
held by Le~der shall not bo sufl'icient to pay'taxes. assessments, iniurance prcmiums and ground reots as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from ~he date notice is mailed
by Lender to Borrower rcquesting payment ~hereof.
Upon payment in full of aU sums secured by this Mortgage. l.ender shall promptly retund !o Borrower any Funds
held by I.ender. If under paragraph 18 hereof ~he Propeny is sc~ld or the Property is wherwice acquircd by I_ende~, Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit agamst Ihe sums secureJ b~y this Mortgage.
3. Applicalion of Paymeats. Unless applicable law proviJes otherw~ise, a!! payments received by t_ender umler the
Note and paragraphs 1 and 2 hereof shall be applicd by I.enJer first in paymcnt af amounts payable lo I.enJer by Borrower
under paragraph 2 hereof, then to interest payablc on the No~r, then to thc principal of the Note, and then to interest and
principal on any Future Advances.
~. Clwry~es; I,iens. Barrower shall pay all ~axes, acsc:s~ments and other charges, fines anJ impositions aUributable to
the Property which may attaio a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereot or, if not paid in such manner, by Borrower making payment, when due, directly to ihe
payee thereof. Bbrrower shall promptly furnish to Lemier 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 paymtnts.
Borrower shall promp~ly dixharge any lien which has prio~ity over this Mortgage: proviJed, that Borrower shall not be
reqwred to discharge any such lien so long as Borrower shall agree in writmg ~o ~he payment of the obligation secured by
such lien in a manner acceptahle to Lender, or shall in good faith come~~ such lien by, or defend enforcement of such lien in.
legal proceedingc which operate to prevent the enforcement of the I~en or for(eiture of the Property or any part thereof.
S. Hazard lnsurance. Borrower shall keep the impro~emems nov-• existing or hereaf~er ercc~ed on the Propenv insured
against loss by 6re, hazards included within the term "extended coverage", and such other hazards as [.ender may require
and in such amounts anJ for such periods as Lender may reyuire: provided, that Lender shall not require that ~he amount of
such coverage exceed ~hat amount of co.~erage required to pay the sums secured by ~his Mortgage.
'ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
that such approval shall not be unreasonably withheld. All premiumc on insurance poticies shall Me paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower mak~ng payment, when due, directly to ihe
insurance carrier. '
All insurance policies anJ renewals thereof shall be in form accep~able to LenJer and shall include a standard mortgage
clause in favor of and in Eorm acceptable ~o Lender Lender ~hall have the right to hold the policies and renewals Ihercof;
and Borrower shall promptly furnish ta Lender all ren~wal notices and all receipts of paid prcmiumc. In the event of loss.
Borrower shall give prompt notice to the insurance rarner and Lender. Lender map make proof of loss if not made promptly
by Borrower. .
Unless I_ender and Borrower otherw~ise agrec in wri~ing, insurance procceds shali be applied to restoration or repair of
the Property damaged, provided such restora~ion 3r repa~r ~s economically feasible and ~he security of this Mortgage is
not ~hereby impaired. If such restoration or repair is nol ecanomically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mottgage, with the excess, if any, paid
to Borrower_ If the Property is abandoned by Borrawer, or it Borrower fails to respond to Lender within 30 days trom the
date notice is mailed by Lender to Borrower thal ~he insurance carrier ofiers ~o settle a claim for insurance benefits, l~nder
~s authorized to collect and apply the insurance proceeds at I_ender's option either to restora~ion or repair of the Properiy
or to the sums secured by this Mottgage.
Unless L.ender and Borrower othcrwise agrce in writing, any such application of proceeds to principal shall not extend
or pcutpone the due date of the monthly installments referrcd to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to ~t~e Property prior to the sak
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sak or
acquisition.
6. Presen•ation and Mainfenance of Property; Leaseholds; Condominiums; Planned Unit Devebpmenls. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deteriotation of the Property
and shall comply with the provisions o[ any lease if this Mongage is on a leaxhoid_ If this Mortgage is on a unit in a
condomimum or a planned unit development, Borrower shall per(orm all of Borrower s obligations under the declaration
or coven:nts creating or governing the condommium or planned unit development, the by-laws and rcgulations of the
condominium or planned unit development, arsd constituent documeo~s. If a condominium or planned unit ckvelopment
rider is executed by Borrower and recorded together wi~h this Mortgage, the covenants and agrcements o( such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of ~his Mortgage u if the rider
were a part hereof.
7. Proleclion of Lender's Security. If Borrower tads to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s commenceJ which materially affects t.ender's interat in the Property.
including, but not limitod to. eminent domain, insolvency, code en(orcement, or arrangements or proceedings involving a
bankrupt or decedent. ~hen Lender at Lender's option, upon notice ~o Borrower, may make such appearances, disburse such
sums and take :uch action as is nocessary to protect Lender's interesl, including, but not limited to, disburxment at
reasonable altorney's feu and en~ry upon the Property to make repairs. If Lender requircd mongage insurance u a
condition of making the 3oan secured by this Mortgage, Borrowe~ shall pay Ihe Premiums requircd to maintain such
insuranex in eBect until such time u ~he requirement tor such insurance terminates in accordance with Borrower's and
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