HomeMy WebLinkAbout1486UNIFOAM COVBNANTS. Borrower a~d Lende~ covenant and agree as fall~ws:
1. Mnneot ot Piriacfpal aod Iaterest. Borrowe~ shall p~omptly pay Nhen due the principal of and ioterest on the
iadebtedness evidenced by the Note, prepayment and lale charge~ ac pravided ~n the Nate, and the principal of and i~tercst
on aay Future Advances secured by this Mortgage.
2. RYt11LS ~O~ TaZlf SIId It1SUfapCt. Subject to applicable law ~r to a writlen waiver by I_ende~, Harrnv-~er shall pay
to l.ender on the day monlhly installmenls of principal and interect are payahle unde~ the Note, unlil ~he'dote ~c paid i~ tull,
a aum (herein "Runds") equal to one-twelfth 'o( the yearly ta~ec and ac~escments w•hich may attain priority over ~his
Mortgagc, and ground rents on the Pooper~y, if any, plus one-twclfth of ~•carly premium ins~allments for hazard insurance,
plus one-tw•elfth af yea~ly premium installments tor mortgage insurancr, i( any, all as rcasonably estim•ated initially and from
time to time by Lender on the basis of assessments and hills and reas~~nable estimates thereof.
'Il~e Funds shall be held in an institution the deposits or acc~~unts of which are insured ar guaranteed hy a Federal u;
state agency (including Lender ~f l.ender is such an institution). I.ender shall appl~• the Funds to pa~• said taxes, as~essments,
insurance premiums and ground rents. (.ender ma~• not charge for ~o hoWing and applping the FunJs, analyzing said account,
or veri[ying and compiling said ass~ssments and hills, unless I_ender p•r}•s Borrow~er interest on the FunJs and applicable law
permits Lende~ to make such a charge. Borrower and I.ender may agree in writing at the time af execution of this
Mortgage that interest on the Funds shall be paid to Bormwer, and unless such agrecment is maJe or applicable law
requira such mterest to be paid, t_ender shall not he required to pa1~ Rorrow•er any intcrest or earnings on the Funds. Lender
shall give to Borrower, without cha~ge, an annual accounting of the Funds showing credits and debits to Ihe Funds and the
purpou for whirh each debit to the Funds w~as made. The Funds are pled~d as 3dditiunal ~ecurity (or ~he sums secured
by this Mortgage.
If ttte amount of the Funds held by Lende~, together with the future mon~hly installments af Funds pa~•able prior to
the due dates of Iaxts, assessments, insurance premiums and ground rents, shall excreci Ihe amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such exress shall be, at Horrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funde. If thc amount cf the Funds
held by Lender shall not be sufficient to pay taxes, assessments, imur~nce prcmiuma and ground rents as they f:~ll due,
Borrower shall pay to I_ender any amount necessar}~ ta make up the defic~ency within 30 days from the date notice i~ mailed
by Lender to Borrower rcquesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. 1_endcr shall promptly refund to Borrower any Funds
held by Lender. If under paragraph l8 hereof the Property ic ~aW or thc Propcr~p is otherwi~c :~cquircd by t.endcr, Lender
shall apply, no later than immediatelv prior ta the sale of the Property or its acquisrtian hy I_ender, any Fundc held by
Lender at ~he time ot application as a credit aga~nst the sumt secureJ b}~ th~ti ~tortgagr.
3. Application of Paymeats. Unless applirable law• prrnides otherwitic. all payments reccived by I.cnder under the
Note and paragraphs 1 and 2 hereof shall bc applied by Lcndcr first in pa~mcnt of amuunts pa~~:~ble to Lcnder by Born~wer
under paragraph 2 hereof, then to interest payable on thr No~c, thcn t~. thc principal ot the Note, and thcn to interest and
pnncipal on any Future Advances.
4. Charges; Lkas. Borrower shall pay all taxet, a.u~smrnts and uthrr charge~, fines anJ imM-tiitions aitnbutablC to
the Property vvhich may attain a priority over thic Mortgage, and leaschold paymcnts ~~r ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, b~~ Borrower making payment, when due, direclly to the
payee thereof. Borrower shall promptly furoish to Lendcr all notices of amounts Juc under this paragraph, and in the event
Borrower shall make payment direcU~~. Borrc~wer shall promptly (urnish ta Lendcr receipts evidencing such payments.
Borrower shall promptly discharge any lien which has prioriry over thic Mortgage; prov~ded, that Borrower chall not be
required to discharge any such lien so long :~s Borrower shall :~gree in writing to the payment o( the obligation secured b~~
such lien in a manner acceptable to Lender, or shall in gcHxi faith contec~ such lien by, or defend enforcement of such lien in,
legal proceedings v-•hich operate to prerent the enfurcement of the lien or torfeiture of the Propenp or an~• par~ thereof.
S. Hazard Insurance. Borrower shall keep ~he ~mpro~•cmcntti now existing i,r hercafter ererted un the Pm{xrty insured
against loss bp fire, hazards included within the term "extendeJ coverage", and such other hazards as Lender may reyuire
anJ in such amounts anJ for such periocis as Lender may reyuire: pro~•ided, that LenJer shall not reyuire that ~he amount of
such coveragc exceed that amount of coverage required to pa}~ the sum< <ecured by this Mortgage;
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; providtd,
that such approval shall not be unreasonably withheld. All premiumc on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Bor~ow~er making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to IxnJer and shall ~nclude a uanJard mortgage
clause in favor of and in form acceptable w Lender Lender shall have the right to hold ~he policies and reneK•al~ thereof,
and Borrow•er shall promptly furnish to Lender all renewal notices anJ all receipts of paid premiumti. In the e~•ent of lots,
Borrower shall gi~~e prompt notice to the insurance rarricr and Lender. Lender may make proot of loss if not made pmmpd}~
by Borrower.
Unless Lender and Borrower otherwik agre~ in vrnting, insuranre proceeds sh~ll be applied to restoration ur repair of
the Property damaged, provided such restorat~on or repair is economically feasible and the security of Ihis Mortgage is
not thereby impaired. I[ su~h restoratum or repair is n~•t cronumirally fcasible or i( the security o( this Mortgage would
be impaired. the insurance proceeds chall be applieJ to the sums secureJ by this Mortgage, w~i~h ~he excess, if any, paid
to Borrower. If the Propert~ is abanJoned b~ Borruwer, or it Borrc+wer failti to res~md to I.ender w~thin 30 days from the
Jate notice is m:~iled by Lender to Borrower that the insurance rarrier otTers to ~etUe a cla~m for insurance benefits, Lender
i~ ~uthorized to collect and apply the insurance proceeds at I,en~er's uption either to restoration or repair of the Propert}•
or to the sum> >ecureJ by~ this Mortgage.
Unless Lender and Burrower otherv-ite agree in writing, an~ such applic~tion of proceeds ~o pnncipal shall not extend
or postpone the due date of the monthly installmentc referred to in paragraphs 1 anJ 2 hereof or change the amount of
such installments. If under patagraph 18 hereof the Property is acyu~reJ hy~ Lender, all right, title and interest of Rorrewer
~n and to anp insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acyuisition shalt pass to Lender to the extent of the sum~ ~ccured by this !1lortgagr immediately prior to ~uch sale or
acquisition.
6. Presenalion and ~t~iatenance of Property; I.eaSeholds; Condominiums; Planned Unit Developments. Borrow•cr
sh~ll keep tHe Properry in good repair and shall not commit waste ur permit impa~rmcnt or deterioration of the Property
and shall .^omply aith the provis~ons of any lease it thu ~t~~rtgage n on a Icasehold. If this i4fortgagc is on a imit in a
rondominwm or a planned unrt devclopment. Borrower ,haU pcrform all uf Borrower's obligations under thc declaration
ur co~•enants cre:+t~nR or governing ~he conJommium or planncd umt developmcnt, the by-laws and regulalions of the
condominium or planneJ unit development, and constituen~ documems. If a condominium or planned umt de~•elopment
nJer is executed by Botrower and recorded together with th~~ Mortgage, ~he coven~nts and agreements o( such rider
shall be incorporated into and shall amend and supplement the co~enants and agreemenls of this Mortgage as if the rider
W~ere a part hereof.
7. Proteclion of Lender's Security. !f Borrow~er fail~ to perfurm the covenants and agreements contained in ihis
Mortgage. or if any action or proceCding ~s commenced which materially ~fiects t_ender's interest in the Propeny,
including. but n~~t hmited to, eminent domain. insolvene}~, code enforcement, or arrangements or proceedings involving a
bankrupt or Jecedent, then Lender at Lender ~ option, upon notice to Borrower, ma~• male such appearances, d~shurse such
sums and take such action as is necessary to protect Lender's interest, incluJing, but not limited to, disbursement of
reasonabie attorney's fees and emry upon the Property to make repairc. lf l_cnder required mortgage insurance as a
condition of making the loan secured b}• this Mortgage. B~rrower shal! pay the premiums req~ired to maintain such
insurance in eRect u~~il such time as the requirement for such msurance terminates ~n accordance with $orrower's and
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',~ 349 P~~rt 148f
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