HomeMy WebLinkAbout0088UNiFORM CovEtv~t~tTS. Borcowc~ and L,ender covcnant and agrer as fulluws:
l. Payeaeat oI P~lacipd ~ud laterest. Borrowcr shall promptly pay w•hcn due the principal and interest in•
debtedness evidenced by the Note and late charges as provided in the Note.
2. Etiad~ for Tua and la~orance. Subject to applicable law or a written w•aiver by L,ender, Borrowrr shall pay to
Lender on the day monthly payments of principal and interest are payable undrr the Note, until the Note is paid in full,
a sum (herci~ "Funds") equal to one-twelRh of the yearly taxes and assessments lincluding condaminium and planned
unit development assessments. if any) which may attain priority over this Mortgage and ground rents on the Property, if
any, plus one•twelRh of yearly prcmium installments for hazard insurance, pius one-twelfth of yeariy premium i~-
stallments for mottgage insurance, if any, a!! as reasonably estimated initially and from time ta time by L.ender an the
basis of assessments and bills and reasonable estimata thercof. Borrower shall not be obligated to make such payments
of Funds to Lender to the erient that Borrow~er makes'such payments to the holder of a prior mortgage or deed of Irust if
such holde~ is an institutional lender.
If Borrower pays Funds to L,ender, the Funds shall be held in an institution the deposits or accounts of which are in-
sured or guaranteed by a Federal or state agency (including l.ender if Lender is such an institutionl. Lender shall apply
the Funds to pay said taxes. assessments. insurance premiums and ground rents. Lender may not charge for so holding
and appl}ing the Funds, analyzing said account or verifying and compiling said assessme~ts and bills, unless Lender
pays Borrower iaterest on the Funds and applicable !aw pernnits Le~der to make such a charge. Borrower and L,ender
may agree in wtiting at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and
unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay
Borrower any interest or earnings on the Funds. I.ender shall give to Borrower, v-ithout charge, an annual acrnunting of .
the Funds showing credits and debits to the Funds and the purpose for w•hich each debit to the Funds was made. The
Funds are pledged as additiona! security for the sums secured by this Mortgage.
!f the aryiount of the Fur.ds held by Lender, togrther with the future monthly installments of Funds payable prior to
the due dates of ta:es, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said
taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option,
either promptly repaid to Borrower or credited to Borrow~er on monthly installments of Funds. If the amount of the
Funds held by l.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall
due. Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender
may require.
Upon payment in full of all sums secured by this Mortgage, L,ender shall promptly refund to Bocrower any Funds
held by Lender. lf under paragraph 17 hereof the Property is sold or the Property is othen-~ise acquired b} l.ender,
Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition b} L.ender, any Funds
held by Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provides otherv~•ise, all payments received by Lender under
the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by
Borcower under paragraph 2 hereof, then to interest payable on the Note. and then to the principal of the Note.
4. Prior Mort~es aad Deeds of Tro~t; C6arQa; Liens. Borrower shall perform all of Borrow•er's obligations
under any mottgage, deed of trust or other security agreement with a lien w•hich has priority over this Mortgage, in-
cluding Botrower's covenants to m~ke payments when due. Borrower shall pay or cause to be paid all taxes, assessments
and other charges, fines and impositions attributable to the Property which may attain a priority o.er this Mortgage,
and leasehold payments or gtound rents, if any.
5. Hazard Insoraace. Borrower shal) keep the improvements now eaisting or hereafter erected on the Property
insured against loss by fire, hazards included w•ithin the term "extended coverage", and such other hazards as I.ender
may require and in such amounts and for such periods as Lender may require.
The insurance carrier pro~7ding the insurance shall be chcxen by Borrow~er subject to approval by Lendcr, pro~•ided,
that such approval shall not be unreasonably K~ithheld. All insurance policies and reneK~als thereof shali be in a form
acceptable to Lender and shall include a standard mortgage clause in Favor of and +.n a form acceptable to Lender.
L.ender shall have the right to hold ihe policies and renea~als thereof, subject to the terrrs of any mortgage, deed of trust
or other security agteement with a lien which haz priority ~ver this M~rtgage.
In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. [,ender mav makc
proof of loss if not made promptly by Borrower.
lf thr Property is abandoned by Borrower, or if Borrow~er fails to respond to Lender w~ithin 30 days from the date
notice is mailed by L.ender to Barrower thai the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lendrr's option either to restoration or repair of the Prop-
etty or to the sums secured by this Mortgage.
6. Preservation aad Mainteaaace of PropertY; Lease6olds; Condominlums; Planned Unit De.elopments. Borrow~er
shall keep the Property in good repair and shall not commit w•aste or permit impairment ar deterioration of the Property
and shall rnmply with the pro~~isions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a con-
dominium or a plannod unit development. Borrower shall perform all of Borrow•er's obligations under the declaration or
covenants creating or governing the condominium or planned unit development, the by-law~s and regulations of the con-
dominium or planned unit development, and constituent documents.
7. Protectbn of Lender's Secartty. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which matetially affects l.ender's interest in the Property, then
I.ender, at Lender's option, upon notice to Borrower. may make such appeatances, disburse such sums, including
reasonable attorneys' fees, and take such action as is necessary to proteci Lender's interest. If Lender required mortgage
insurance az a condition of making the loan secured by this Mortgage. BorroWer shall pay the premiums required to
maintain such insurance in et~ect until such time as the requirement for such insurance terminates in accordance w~th
Borrower's and Lender's written agreement or applicable law•.
Any amounts disbursed by i.ender punuant t~~ this paragraph 7, with interest thereon, at the Note rate, shall
become additional indebtedness of Borrower secured by this Mortgage. Unless Borrow•er and Lender agree to other
terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof.
Nothing contained in this paragraph 7 shall require Lender to incur any expense or take any action hereunder.
8. Inspectbn. l,ender may make or cause to be made reasonable entries upon and inspections of the Propcrty, pro-
vided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause thercfor related to
Lender's interest in the Property. ~
9. Condemndbn. The proceeds of any aw~ard or claim for damages, direct or consequential, in connection with any
condemnation or other taking of the Property, or part thercof, or for conveyance in lieu of condemnation, arc hereb~
as~ignecl and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or othet security agreement
with a lien which has priority over this Mortgage. ,
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