HomeMy WebLinkAbout0542UNiFORt-t Cov~N~NTS. Borrowcr and l.en~e~ a~venant a~d agrcc :~s tallows:
l. Payment of Priacipal and laterest. Bc~rn~wer shall promplly pay w~hen due the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and iMeres~
on any Future Advances securcd by this Mortgage.
2. Fuodi for TaYa and 1a~unnce. Subject to applicable law or to a written waiver by I_ender, BoROwer shall pay
to [.ender on the day mor~thly installments of principal an~ inte~est are payable under the Note, until the Note is paid in full,
a sum (herein "Fu~da") equal to o~e-twelfth of ~he yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents oa tht Prapcrty, it any, plus one-tw~clfth of yeariy premium installments for hazard insurancc.
plus one-twelfth of ycarly premium installments for mongage insurance, if any, all as reuonably estimated initially and trom
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
The Funds shal) be held in an institution the deposits or accounts af which are insured or guaranteed by a Federal or
state agency (including Lender if l.ender is such an institution). t_ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. I_ender may not charge for sa holding and applying 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 Lender to make such a charge. Borrower and Lender may agree in writing at ~he time of execution of this
~Tortgage ihat interest on the ~unds shall be paid to Borrower, and unless such agreement is made or applicable law
requires sucti i~terest to be paid. Leoder ~hall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting o[ the Funds showing credits and d~bits to the Funds and the
purpoae [or which eaeh debit to the Fuads was made. The Funds are pledged as additional security for the sums secured
by this Mongage.
If the amount of the Funds held by Lender, together with the future monthly ins~allments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed ~he amount rcquircd to pay said taxes.
assessments. insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly rcpaid to Borrower or credited to Borrower on monthly installments of Funds. lf the amount of the Funds
held by l.eader shall not be suf&cient to pay taxes, asseuments, insurance premiums and ground rents u ~hey fall due.
Borrower shall pay to l.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by I.ender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, I.ender shall promptly refund to Borrower any Funds
held by L.cnder. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
s6a11 apply. «o later than immediately prior to the sale of the Property or its acquisition by [.eader, any Funds held by
Leader at the time o( application as a credit against the sums secured by this Mongage.
3. Appikatbn of Paya~ents. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_ender 6rst in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of ihe Note. and then to interest and
principal on any Future Advances,
4. C~es; Lkos. Borrower shall pay all taxes, asses~ments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leaschold payments or ground rents, if any, in the manoer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payce thereof. Borrower shall prumptly furnish to Lender all.notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts e~•idencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mongage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
suc6lien in a manner acceptable to L.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or fodeiture of the Property or any•part thereof.
S• Hanrd lnsnrance. Borrower shall keep the improvements n~w• existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such wher hazards as Lender may require
and in such amounts and for such periods as Lender may require: provided, that Lender shall not require that the amount of
such coverage excced that amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
t6at such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy 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 Lender. Lender shall have the right to hold the policies and renewals thereof.
and Borr~wer shafl promptly furniah to Lender all renewal notices and all receipts o[ paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and I_ender. Lender may make proof of loss if not made promptly
by Borrower.
Unle~ Lender and Borrower otherwise agree in writing, 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 economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from ihe
date notice is mailed by Lender to Borrower that the insurance carrier otiers to settle a claim for insurance benefits, Lender
is authorizod to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to ihe sums secured by this Morigage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Leader, all right. tide and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to l.ender to tt~e extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservadoo and Maintenance of Property; Leaseholds; Condominiums; Planned Uoit Derebpmeots. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the Frovisions uf any lease if this Mortgage 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 obligations under the declaration
or covenants creating or governing the condominium or planned unit development. the by-laws and regulations of the
condominium or planoed unit development, and constituent documents. If a condominium or planned unit cievelopment
rider is executed by Borrower and recorded together with this Mortgage, the covenants a:xl agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protectfon of Leader's Security. If Borrower fads to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced w~hich materially aftects Lender's interest in the Property.
including, but not limited to, emineni domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at C.eadet's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender s interut, including. but not limited to, disbursement of
reasonable attomey's fees and entry upon the Property to make repairs. If Lender required mortgage insurancc as a
condition of making the loan secured by this Morigage, Borrower shall pay the premiums required to maintain such
insurance in effoct until such time as the requirement for such insurance terminates in accordance with Borrower s and
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