HomeMy WebLinkAbout1616UntFORM CovtN~Nrs. Borrower anJ l.endcr a~venant anJ agree as fallows:
1. Paymeat of Princtpal aad [aterest. Horrower shall promptiy pay when duc the principal of and interest un the
indebtedness evidenced by thc Note, prcpayment and lalc chargcs ac provided in ~he Note, and thc principal of and intercsl
on any Futuro Advances secured by thic Mortgage.
2. Funds for Tues aad lowraace. Subject to applicable law or to a written waivcr by I.ender, Borrower shall pay
to l.cnder on thc day monthly installments of principal and interect are payablc under the Note, until the Note is paid in [ull.
a sum (hercin "Fu~c1s") cqual to one-twel[th of thc ycarly laxcc anJ ssscssments which may attain priority over this
Mortgage, anJ graund rents on the Property, if any, plus one-twclf~h of ycarly premium installmcnts for hazard insurance,
plus one-twclflh of yearly premium installments tor mortgage insurancc, if any, all as reasonably extimeted initially and from
time to time by Lender on the basis of asstssmenls and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or rccounts of which are insured or guarantee~i by a Federal or
state age~icy (including Lender if Lender is such an institution). l.e~der shall apply the Funds to pay said taxes. assessments.
iasutance premiums and ground rents. 1_e~der may not cha~ge for so holding and applyins the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless 1_ender pays Borrower interest un the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may •rgree in writing at the time of executic-n of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires suc:~ interest to be paid. Lcnder shall not he reyuired to pay Borrower any intcrest or earnings an the Funds. l.ender
shall give to Borrower, without charge, an an~ual accoun~ing of the Funds shawing credits and debits to the FunJs and the
purpose [or which each dehit to the Fuods was made. "fhe Funds are piedged as additionai socurity (ur tt-r sum~ szc.urzci
by this Mortgage_
If the amount of the Funds held by Lendcr, together with the tuture monthly inst•rllments of Funds payablc prior to
the due date~ o[ taxes, assessments, insurance premiums and grou~d rents, shall exceed the amount required to pay said taxes,
assesstnents, 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 Borrower on mon~hly ins~allments oE Funds. If the amount of the Funds
held by Lender shall not be sufficieat to pay taxes, assessments, insurance premiums and groand 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 rcquesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. 1_cndcr shall promptly re(und to Borrower any Funds
held by L.encier. If under paragraph 18 hereof the Property is sc~ld or the Property is otherwise acquired by l_ender, I_ender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of PaymeaRs. Unless applicable law proviJes otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applicd by I.ender. first in payment of amounts payable to [_ender by Borrower
under paragraph 2 hereof, then to interest payablc on the Notc, then to the principal of the Note. and then to interest and
principal on any Futurc Advances. .
4. C6ar~es; Lie~. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manoer
pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payce thereof. Borrower shall promptly furnish to Lender all.notices o[ amounts due under this paragraph. aad in the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority 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 tfie obligation secured by
suc6lien in a manner acceptable to Lender. or shall in good faith contest such lien by, or ckfend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement o( the lien or forfeiture of the Property or any part thereof.
S. Huard Insnrance. Borrower shall keep the improvements nov-• existing or hereafter erected on the Property insured
againtt loss by fire, hazards included within the term "extended coverage". and such other hazards as Ixnder may require
and in such amounts and for such periods as Lender may reyuire: provided, that [_ender shall not require that the amount of
such coverage exceed that amount of coverage required to pa}• the sums secured by this Mortgage.
'Il~e insura~e 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 accep~able to LenJer and shall include a stanJard mortgage
clause in favor of and in [orm acceptable to l.ender. Lender shall have the right to hold the policies and renewals thereof.
and Borrower shall promptly furnish to LenJer all renevval notices and all receipts of paid premiums. In the event of loss.
Borrowe~ shall give prompt notice to the insurance carrier and Lender. Lender may make proc~f of loss if not made promptty
by Borrower.
Unless Lender and Borrower otherwise agree in ~~riting, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provicled such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired_ If such restoration or repair is not economically feasible or d the security of this Mortgage would
be impaired, the insuratue proceeds shal! be applied to the sums secured by this Mortgage. with the excess, if any. paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by l,ender to Bc+rrower that the insurance carrier ofiers to settle a claim for insurance benefiu, Lender
is aut6orized to collect and apply the insurance proceeds at I_ender's optiun either to restoration or repair ot the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing. an)~ 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 of
such installments_ If under paragraph I S hereof the Property is acyuired by l.ender, all right, title and interest of Borrower
in and to any insuraa.e palicics and in and to the proceeds lherec-f resulting fmm damage to the Property prior 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. Presenat~on and Maintenaace of Properly; Lease6olds; Condominiums; Planoed Uuit Devebpmeats. Borrower
shall Iceep 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 Mortgagc is on a unit in a
condominium or a planned unit development. Borrawer ~h:,ll 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
conJominium or planned unit development, and constituent documents. If a condominium or planned unit development
riJer is executed by Borrower and recorded together w~th this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
aere a part hereof.
7. Protection of Ltoder's Security. If Borrower fails to perfcirm the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s commenced which materially aflects LenJer's interest in the Property.
including, but not limited to, eminent domain, insalvency, code eniorcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, ma~~ make such appearances, disburse such
sums and take such action as is necessary to protect l.ender's interest, including. but not limited to, disbursement of
reasonable attorney's fees and entry upon the Proper~y to makc repairs. It l.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 efiect until such time a~ ~he requirement for such insurance terminates in accordance with Borrower s and
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