HomeMy WebLinkAbout0099UNiPORM COVENAN'1'S. Borrower and Lender covenant and ag~ee- as follows:
l. tiymeat ot Pdacipal and laten~st. Borrower shall promptly pay when due the principal of and i~terest on the
indebtednesa evidenced by the Note. prepayment and late charges as provided in the Note, and th~ principal of and intercst
on aay Futurc Advances secured by this Mortgage.
2. Ruods to~ Tues aad Iasurance. Subject to applicabie law or to a written waiver by Lender, Borrower shall pay
to l.ender on the dag monthly installments of principal and interest arc payable unde~ the Noto, until thc Note is paid in tull,
a aum (hercin "Funds") equal to one-twelfth ot ~he yearly tarec and assessments which may attaio priority over this
Mongage, and ground re~ts on the Pruperty, if any, plus one-twelfth o! yearly premium installments for hazard insu~ance,
plus one-twelfth of yearly premium installmtnts tar mortgage insurance, if any, all as reas~~nably cstimated initially a~d from
time to time by EenJer on lhe basis o[ auessments and hills and reasonable es~imates thereof.
'[lie Funds shall be held in an institution the deposits or accounls of which are insured or guaranteeJ by a Fede~al or
state agency (including Lender if Lender is such an institu~ion), l.ender shall apply 1he Fun~s to pay said taxes, assessments.
insurance premiums and ground rents. Ltnder may not charge for so holding and apply~ing 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 Lende~ to make such a charge. BorroKer and Leoder may agree in writing at the time ot execution of this
Mortgage that interat on the Funds shall be paid to Barrower, and unless such agreement is made or applicable law
requires such interest to be paid. Lender shall not be required to pa~• Borrower :~n~~ interest or earnings on the Funds. l.ender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits anJ debits to the Funds and the
purpox fo- ~:~~~i~ tni~ ueoi~ w ~i~c Funds was maae. IAe tun~s are pleclged as addUional secunty tor the sums securecl
by this Mort~aae.
If the amount ot the Funds held by Lender, toge~hcr with the future monthly installments of Funds payable prior to
the due data of taxa. assessments, insurance premiums anJ ground rents, shall eiceed the amount reyuired to pay~ said taxes.
usessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bnrrower s optia~, either
promptly repaid to Bormwtr or credited to Borrower on mon~hly installments of Funds. If the amount of the Funds
held by Lender shall not be suflicient to pay taxes, assessmen~s, insurancc premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requuti~g payment thereof.
Upo~ payment in full of all sums securcd by this Mortgage, l.ender shall promptly retunJ to Borrower a~y Funds
held by [.ender. If under paragraph 18 hereof the Property is snld or thc Property is athenvise acquired by I.ender, Lender
shall apply, no later than immediately prior to the sale oi the Property or i~s acquisition by l.ender, any Funds held by
Lender at the time o[ application as a credit against ~he sums secured by this Mortgage.
3. Applicatioa of Paymeats. Unless applicable law provides otherwise, all payments received by l_ender under the
hote and paragraphs 1 and 2 hereof shall be applied by I.cnder first in paymeot af amounts payablc to LenJer by BorroNer
under paragraph 2 hereof, then to interest payable on the tiote, then lo thc principal of the Note, and then to intcrest and
principal on any Future Advances.
4. Cl~rges; Lkns. Borrower shall pay all t~xes. acsessmcnts ~nd othcr charges, fines and im~x:tions atlributable 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
~ay=e 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 shal) promptiy furnish to Lender receipts evidencing such payments_
Borrower shall promplly dixharge any lien which has priority ovcr this Mortgage; provided, that Barrower shall not be
required to discharge any such lien so long as Borrower shall agree in wriling to the pa~ment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in goocf faith ronte~t such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enfarcement of the I~en or forfeiture of the Properry or any part thereof_
S. Hszard lnsuraece. Borrower shall keep the ~mprovements now existing or hereaftcr crccted on the Properry insured
against loss by fire, hazards included within the term "c~tended coverage", and such other hazards as Lender may reyuire
and ~n such amounts and for such periods as Lender may reyuire; provided, that Lender shall not reyuire that the amount of
such coverage exceed that amount of coverage required to pa~• the ~ums secured by this Mortgage_
"Il~e insurance carrier providing the insurance shall be chosen by Borrow•er subject to approval by l.ender; provided,
that such approva) 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 carrier. '
All insurance policies and renewals thereof shall tx in form acceptable to [_ender and shall include a stanJard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renew~als thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall gi~~e prompt notice to the inwrance carrier and I.ender. Lender may make prcx~f of loss if not made promptly
by Borrower.
Unless LenJer and Borrower athen+•ise agree in w•riting, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economirally f~asible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applieJ to the sums secured by this Mortgage, w•ith the excess, if ~ny, paid
to Borrow~er_ If the Propert~~ is abandoned b}• Borrowcr, o~ if Borrower tails to respond to l.ender within 30 days from the
date notice is mailed by Lender to Borrow•er that ~he insurance carrier ofTers to setde a claim for insurance henefits, l.ender
is aWhanzed Io collect and apply the insprance proceeds at Lender's option either to restoration or repair of the Propert~~
or to the sums secured by this Mortgage.
Unless 1_ender and Borrow~er otherveise agree m w•riting, an~• such applic~tion of proceeds ro pnncipal shall not extend
or postpone the due date of the monthl}• installments referred to in paragraphs I and 2 hereof or changr the amount of
such installments. If under paragraph 18 hereof the Property is acywred by Lender, all right, title and interest of Borrower
in and to an}~ insurance policies and in and to the proceeds thereot resulting from Jamage to the Property prior to the sale
or acyuisition shall pass to Lender to the e~tent of the sums secured by this l~tortgagc immediately pnor to such sale or
acquisition.
6. Presenalion and \taintenance oi Property: [.easeholds: ('ondominiums; Pl~nned Unit Developments. Borrow•er
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 of any lease ~f this :~iortgage is on a leaschold. )f ihis l~fortgage is on a unit in a
rondomin~um or a planned unit developmcnt, Borrowcr shall perform all of Borruwer's obligaUOns undcr the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, :+nd constituent documents. If a condominium or planned unit de~~elopment
riJer is eaecuted by Borrower and recorded together wi~h Ihis Mortgage, the covenants and agreements o( such rider
shall be incorporated into and shall amend and suppiement the co~enants and agreements of this Mor~gage as i( the rider
were a part hereof.
7. Protection of Leoder's Security. If Borrow•er fails to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding is commenced ahich materially affects Lender's interest in the Property,
including. but not limited to, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a
ba~krupt or decedent, then Lender at Leoder's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender s interesl, including. but not limited to, disbursemenl of
reasonable attomey's fees and entry upon the Property to make repairs. It Lcnder required mongage insurance as a
condition of making the loan secured b~• this Mortgage. Borrower shall pay the premiums requireJ to maintain such
insurance in efiect until such time as the requirement for such msurance terminates ~n accordance with Borrower s and
~-»K 349 F~~E 99
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