HomeMy WebLinkAbout0523UN~FORM CoveN~N~rs. Borrowe~ and l.eoder cavenunt and agree as [ollows:
1. P~111tp~ OE P~IOCIwI ilp(I IAIlftSl. Born~wer shall p~omptly pay a~he~ due the principal of and interest on the
indeb~edness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
on a~y Futurc Advances secured by this Mortgage.
2. Friads [or Tues and lasurance. Subject to applicable law or to a wrilten waiver by Lender. Barrower shall pay
to I.ender on thc day monthly installments of principal an~ interest are payable undcr the Note. until the Notc is paid in tull,
a sum (herein "Funds") equal to one-twelfth ot the yearly taxes and assessme~ts which may attain priority over this
Mortgage, and ground rents on the Property. if any. plus one-twelfth of yearly prcmium installments for hazard insurance,
plus o~e-twelfth of.yearly premium installmc~ts for martgage insurance, if a~y, all as reasonably estimated inilialiy aod from
time to time by Le~der on the basis of assessments and hills and reasonablc estimates thcreof.
The Funds shall be held in an institulion the deposits or accounts a( which are insured or guaranteed by a Federal or
state agency (including Lender if Lende~ is such an institution). I.ender shall apply ihe Funds to pay said taxes, assessments,
insurance premiums and ground rents. l.ender may nat charge for sa holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless !_ender pays Borrower interest o~ the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mongage that i~terest on tht Funds shall be paid t~ Borrower, and unless such agreement is made or applicable law
rcquires sucti interest to be paid. Lender ~hall not be required to pay Borrower any interest ot earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Furtds are pledged as additional security for the sums secured
by Ihis Mortgage.
If the amount of the Funds held by Lenckr, tagether with the future monthly installments of Funds payablc prior ta
the due dates of taxes. assessments, insurance premiums and gro~nd rents, shall exceed the amount required to pay said taxes.
asses.unents, insurance premiums and grnund rents rs they fall due, such excess shall be, at Borrower s option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shal! not be sufficie~t 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 within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. I_ender stiall promptly refund to Borrower any Funds
held by Ixnckr. If under paragraph !8 hereof the Property is seld or the Property is otherwise acquired by I_ender. Lender
shall apply, no later than immediately prior to the sale of thc Property or i~s acquisition by Lcnder, any Funds held by
Leader at the time of application as a credit against the sums secured by this Mortgage.
3. Appllc~lon of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by (_ender first i~ payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. tl~en to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arges; Lkas. Borrower shall pay all taxes, assessments and other charges, fines and impasitions attributable 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
payee 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 shall promptly (umish to I.encier receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provicled, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in w~riting to the payment of the obligation secured by
suc6 lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
lega! proceedings which operate to pre~ent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazud Insarance. Borrowcr shall keep the improvements now existing or hereafter erected on thc Property insured
againat loss by fire. hazards included within the term "extended coverage", and such other 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 exceed that amount of coverage required to pay the sums secured by this Mongage.
'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
provided 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 forn~ acceptable to LenJer and shall include x s~andard mortgage
clause in favor of and in form accep~able to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and Lender_ Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Properiy damagecl, 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 economic~lly feasible or if the security of this Mortgage would
be impaired, the insurance procceds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
to Borrower. If the Propeny is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that ~he insurance carrier ofTers ~o settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless L.ender 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 I and 2 hereof or change the amount ot
such installments. If under paragraph 18 hereof the Property is acyuired by Lender, all right. title and interest of Borrower
in and to any insuraoce policies and in and to the proceeds thereof resultiag (rcm damage to the Property priur to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservatioo aod lllaintenaace of Property; Leaseholds; Condominiums; Planned Uni! Devebpmenis. 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 ihe provisions of any lease if thi~ 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 planned unit development, and constituent documents. If a condominium or planned unit Jevelopment
rider is eaecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend anJ supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lende~s Security. If Borrower fails to pertorm the covenants and agreements contain~d in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender'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 Leader 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, including, but not limited to, disbursement of
reasonable attorney's tees and entry upon the Property to makc repairs. If [.ender required mortgage insurance as a
condition of making the loan secuted by this Mortgage. Borrow~er sl~all pay the Fremiums reguireei to maintain such
insurance in ef~ect until such time as the requirement for such ~nsurance terminates in aceordance with Borrower s and
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