HomeMy WebLinkAbout0648UNIFOIIM COVENAN7S. Bo~rower a~d Lender covenant and agree as follows:
1. Paymeat of Pdncipai snd late~esl. Borrower shall promptly pay when due the principal of and interest on the
indebtedneu evidenced by the Note, prepayment and late chargec as provided in the Note, and the principal of and intercst
on any Future Advances, secured by this Mortgage.
2. Fnads for Tues and Insunace. Subject to applicable law or to a written waiver by l.ender, Borrower shall pay
to Lender on ~he day monlhly installments of principal and interest a~e payable under the Note, until the No~c is paid in full.
a sum (herein "Funds") equa) to one-twel[th o( the yearly taxes anJ assessments which may atlaio priority over this
Mortgage, anJ ground rents on Ihe Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
plus one-twelfth of yearly premium installments tor mortgage insurancc, if any, all as reasonably estimated initially and from
time to time by Lender on the basis o( assessmentS and bills and reasonable atimatts the~eof.
'I?~e Funds shall be held 'en an institution the deposits ar accounts of which are insured or guaranteed by a Federal or
state agency (including Lende~ if l.eneier is such a~ institution). l.ender shall apply the Funds ta pay said taxes, asscssments,
insurance premiums and ground rents. l_ender may not charge tor ~o holding and applying the Funds, analyzing said account,
or verifying and compiling said aue~sments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and I.ender may agree in writing at the time o[ execution ot this
Mortgage that interest o~ the Funds shall be paid tv Borrower, and unlcss such agreement is made or applicable law
requires such interest to be paiJ. I_ender shall not be required to pay Borrower any interest or earnings an the Funds. I.ender
shall give to Borrower, without charge, an annual accaunting ot the Funds shawing credits and debits to the Funds and the
purpose for which each debit to the Funds was madr. The F=unds are pleJged as additional securily for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly inslallmenls of FunJs payablc prior ta
the due dates of taxes, assessmems, insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxts,
assessments, insu~aace premiums and gmund rents as they fall due, such e~cecs shall be, at Horrowe~'s optioo, either
promplly repaid to Borrower or credited to Borrower on monthly installments of Funds. !f the amount of thc Funds
held by Lender shall not be sufficient to pay taxes, assessments, incurance premium~ and graund reots as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from ~he date natice is mailed
by Lender to Borrower requesling paymcnt thereof.
Upon payment in full of aU sums secured by this Mortgag~, I.cnder shall prompUy re(und to Borrovver any Funds
held hy LenJer. If under paragraph IR hereof ~he Propeny ~c ~old or ~he Pioperty ~s otherwi~e acq~ured by I.enJer, 1_enJer
shall apply, no later than immediatcly prior to the ~ale of Ihc Property or i~s arquisit~on by Lender, any Funds held by
Lender at the time ot application as a credi~ against the sumc secured by th~s Mortgagc_
3. AppJieation of Payments. Unlecs applicable law• proviJes other~ ice, all pa~memc received by Lender undcr the
Note and paragraphc I and 2 h.;reof sh~ll be applicd by I.cnJer fir~t in pa~mem of amounts payable to l.ender by Borrower
under paragraph 2 hereof, then to interes~ payablc on the Nutc, thrn ta ~he principal of the Notc, rnd ~hcn t~~ interest anJ
pnncipal on any Futurc Advances.
4. Char~es; Litns. Borrower ~hali pay all ta~ec, a~~rstirneMs and o~hcr chargrti. fincti anJ im~siti~ms aunbutahle to
the Propert~~ w~hich may attain a pnority over this Mortgagc, and Icaschold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not pa~d in such manner, h~~ Bc~rrower making payment, when due, directly to the
payee thercof_ Borrower shall promptly furnish to LenJer al! not~res af amounts duc under thic paragraph, aod in the event
Bo~rower shall make pa~~ment directly, Borr~wer shall prompNy furnish to LenJer receipts evidencmg such payments.
Borrower shall promptly discharge any lien which has pnonty uvrr thi~ Murtgage: provided, that Borrower shall not be
reqwred to discharge any such lien so long.as Borrower shall agrer in writing to the payment o( the obliga~ion secured by
such lien in a manner acreptable to Lender, or tihall in gaxi fai~h ~ome.~ si~ch lien by, or Jefend enforcement of such lien in,
legal proceedingc which operate to prevenr thc entorcemcn~ of the I~cn or torfeiwre of the Properry or an~• part thereof.
S. Hazard Insurance. Borrower shall keep ~he impro~cment~ n~~N e~is!mg or hereaftcr erected on the Propcrty insured
against loss by fire. haza:ds included withm the term "rxtendeJ cover•rge", and such other hazards ac Lender may require
and ~n surh amounts anJ for such periodc as Lender may reyuire; provided. ~hat LenJer chall not reyuire that the amount• of
such coverage e~cceed that amount of roverage reqwred to pap the ~um, .ecured by ~his Mortgage.
The insurance carrier providing the insurance shall be chosen b}~ Borrower subject to approval by I.ender; provided,
that such approval shall not be unreasonably withheld. All premium~ oh ipsurance policies shall be uaid ~n the manner
prov~ded under paragraph 2 hereof or, if not paid in such manner, by Barrower makmg payment, when due, d-rectly to ihe
insurance carrier.
All insuranee polic~es and renewals there~~f shall tx: in form accep~eble to 1_enJer ~nd shall incliide a~tandard mortgage
clause in favor of and in form acceptable t~i Lender. Lcndcr ~hall havc the right tu hold ~hc policies :~nd renewals thereof,
and Borrov-•er shall prompU~• f~unish to I.ender all renrwal nohces and al! receipts of paid premium.. In the event of loss.
Borrower ~hall gi~•e prompt notice to the imurance carner and l.ender. 1_ender ma~• make prcx~f of loss if not made promptly
by Borrower_
l,`nless t.ender and Borrower otheru•ue agrec in v- rihng, imurance proceeJs shall be applied to retitoration or repair oE
the Property damaged, provideJ such re~torat~on or repair is economically feasible and the security of tha Mortgage is
not thereby impaired. If such restoration or repair is not economicalh• (casihle or if the security of ~h~s Mortgage would
be impa~red, the insurance proceeds shall be applied to the sums secured by this Mortgage, w~~h the excess, if any, paid
to Borrower. If the Property is abandoned by Borruwer, or it Borrower fails to res~nd to t_ender within 30 days from the
Jate notice is mailed b}' Lender to Borrower that ihe insurance carrier ofien to settle a claim for insurance txnefi~s, I.ender
is authorized to collect and apply the insurance ~+roceeds at 1_ender's option e~ther to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to pnncipal shall not extend
or postpone Ihe due date of the monthly installmems rcferred to in paragraphs I anJ 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by LenJe-, all right, litle and interest of Borrower
in and to any insurance policies and in and to the proceecis thereot resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the ertent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. ~reser~ation aod ~laintenance of Propert~•; [.easeholds; ('ondominiums; Planned Unit De~•elopments. Borrower
shall keep thc Propeny in good repair and shall not commit waste or pe~m~t impairment or deterioration of the Property
and shall comply with the provisions o( any lease i( this Mortgage ~i on a Icasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall per(orm all ot Berrower's obl~gations under the declaration
or covenants creating or governing the condommium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and cons~ituent documents. It a condominium or planned unit development
rider is executed by Borrower and recorded togelher with Ihis Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement ~he covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protectioa of Lender's Security. If Borrower fails to perform the covenan~s anJ agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially atiects I_ender's interest in the Property,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, ~hen Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, incluJing, but not limited to, disbursement o('
reuonable at~omey's fees and entry upon the Proper~y to make repairs. If I_ender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requiremenl for such insurance terminates in accordance with Borrower's and
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