HomeMy WebLinkAbout0973UNIFORM COVFNANTS. BO~~OWB~ anJ l.cnder cuvcnant and agree as follaws:
1. Psymcnt of Principal and Inleresf. Rarn~wer shal) pmmptly pay w•hcn duc ihc principal ot and interest un the
indebtedness cvidcnceJ by thc Notc. prcpayment and latc chargec ac provided in ~he No~c, and ~hc principal ot and intercst
on any Future Advanc~s secured by ~his Martgage.
2. Fuads for Tua and lnsuraace. Subject to applicable law or to a wri~ten waiver by I.ender. Borrower shall pay
to l,e~der an the day mo~thly installments of principal and intercst are payablc under the Notc. until the Notc is paid in full,
a sum (herein "Funds") equal to onc-twelfth o( the yearly taxes and asscssments which may attain priority over ~his
Mortgage, and ground rents on the Ymperty, if any, plus ane-tv-•clith of yearly premium installments for hazard insurance.
plus one-twellth of yearly premium installments for mortgage insurance, if any, all as reuonably estimated initially and from
time to time by Lender on the basis at assessmcnts ~nd bills and reasonable eslimates thereof.
"Il~e Funds shall be held in an inslitution the depasits or accounts of which are insured or guaranteal by a Federal or
state agency (i~cluding Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments.
insurance premiums and grou~d rents. I.ender ma~• not charge for so halding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unlcss l_ender pays Borrower interest o~ the Funds and applicable law
permits Lende~ ta make such a charge. Borrower and l.ender may agree in writing at the time ot execution of this
Mortgage that interest on the Fu~ds shall be paid to Borrower, and unless such agreeme~t is made or applicable law
requires sucS interest to be paid. l.ender shall not he required to pay Borrower any~ interest or 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 madc. The Funds are pledged as additional socurity for the sums secured
by this Mortgage.
If the amount of the Funds held by l.ender, together with the future monthly installments of Funds payable prior to
the due Jates of taxes~ assessments, insurance premiums and ground rcnts, shall exceed the amount required to pay said taYes.
asxssments, insurance premiums and ground rents as they (all due, such e~cess shall be, at Barrower s option, either
promptly repaid to Borrower or crcdited to 13orrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be suli'icient to pay taxes, assessments, insurance premiums and. ground rents as they (all due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from ~he date notice is mailed
by Lender to Borrower requesting paymcnt thereof.
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrower any Funds
held by [.ender. If under paragraph 18 hereo[ the Property is celd or the Property is otherwise acquired by Lender, Lender
shall apply, no later than immediately prior ta the sale ot the P~openy or its acquisition by l.ender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. ApplicWbe of Payments. Unless applicable law proviJes otherwise, all payments received by Lender under the
Note and paragnphs 1 aad 2 hereof shall be applied by I.ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to interest payablc on the No~e, thcn to the principal of the Note, and then to interest and
principal on any Future Advances. _
4. C6arges; Liens. Borrower shall pay all taxes, assessmcnts and othcr charges, fines anJ impositions attribulable to
the Property which may attain a priority over this Mongage, and leasehold payments or ground rents, if any, io the manner
proviJed uncier paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the
payce thereof. Borrower shall promptly [urnish to I.enJer all_notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to l.enckr receipts evidencing such payments.
Borrower shall promptly discharge any lien which has prionty over this Mortgage; 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 Le~der, 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 [orfeiture of the Property or any part thereof.
S. Harard Inwrance. Borrower shall keep the improvements now~ exis~ing or hereafter erec~ed on the Property insured
against 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 Le~cler shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'Ilie insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided,
that 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, directly to the
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to I.ender and shall include a standard mortgage
clause in favar of and in form acceptable 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 l.ender. Lender may make proof of loss if not made promptly
by Borrowcr.
Un(ess 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 economicall~ 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 ~his Mortgage, with the excess, if any. paid
to Borrower. It ~he Property is abandoned by Borrower, or if Borrower tails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier ofiers lo settle a claim for insurance bene6ts, 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 [.ender and Borrower otherwise agree in writing, any such applicatian of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs I anJ 2 hereof or change the amount of
such installments. (f under paragraph 18 hereof the Propeny is acquired b}• l.ender, all right, title 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 Lender to the extent of the sums securecf by ihis Mortgage immediately prior to sueh sale or
acquisition.
6. Preservation and Maiotenance of Properfy; Leaseholds; Condominiums; Planned Unit Devebpments. 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 provisions of 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. Ihe by-laws and regulations of ihe
conJominium or planned unit development, and constituent documents. I( a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements o( such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of ~his Mortgage as if the rider
were a part hereof.
7. Proltctan of Lender's Security. If Borrower fails to perfarm the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects [_ender's interest in the Property.
including, but not limited to, eminent domain, insolvency, code enfarcement, or arrangements or proceedings involving a
bankrupt or decedent, then 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 I.ender s interest, incluciing, but not limited to, disbursement of
reasonable attomey's fees and entry upon the Proper~y to make repairs. I( [.ender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums requi~ed to maintain such
insurance in effect until such time as the reyuirement for such insurance terminates in accordance with Borrower s ar~d
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