HomeMy WebLinkAbout0385UNIFORM COVENANTS. Bormw•er and Lender covenant and agrce as falluw•s: , • ~
1. Ihymeat of Pirincipd aad Interetl. Barma•er shall promptly pay v-~hen due 'the .'prinripal ;uxl i~tcrest in-
debtedness evidenced by the Note and late charges as pmvided in the Note.
2. Funds for Ta~ces and lasurance. Subject to applicable law• or a~•ritlen w~aiver b~~ l.rndrr, Borrow~cr shall pay tu
l.ender on ti~e day monthly payments•of principal and interest are payable under the Nate, until the Notc is paid in full.
a sum (herein "Funds") equal to one-twelRh of the ~early taxes and assessments (including condomi~ium and planned
unit development assessments, if a~y) which may attain priority aver this MortgaKe and ground rents on the P~operty, il
any, plus one-twelfth of yearly premium instaliments for hazard insurance, plus one-twelfth of yearly premium in-
stallments for mortgage insurance, if any, all as reasona~ly estimated initialiy and `rom time to time by L,ender on the
basis of assessments aad bills and reasonable estimates the~eof. Borcow~er shall not be obligated to make such payments
of Funds to Lender to the extent that Burrower makes such payments to the holder of a prior morlgage ar deed of trust ii'
such holder is an institutional lender.
!f Borrow~er pays Funds to Lender, the Funds shall be held in an instiwticm the drpusih or accounts oi~w•hich are in-
s~red or guaranteed by a Federa! or state agency (including Lcnder !! !_ender is s~ich an in~titulionl. Lender chall applv
the Funds to pay said taxes. assessments, insurance premiums and groun~i rents. Lender may not charge for so holding
and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unl~ss Lender
pars Bonower interest on the Funds and applicable law• permits [.ender to make such a charge. Borrow~er and l.gnder
may agree in w~riting at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrow•er, and
unless such agreement is made or applicable la~:• requires such interest to be paid. L.ender shall not be required to pay
Bormwer any interest or earnings on the Funds. L.ender shall give to BorroWer. N~ithout charge, a~ annual accounting of
the Funds show•ing credits and debits to the Funds and the purpose for w•hich each debit to the Funds w•as made. Thc
Funds are pledged as additional security for the sums secured by this Nlortgage.
Ifthe amount~ofthe Funds held by Lender, together with the future monthly installments of Funds pa}able prior to
the due dates of taxes, assessments, insurance prcmiums and ground rents, shall exceed the amount required to pay said
taxes, assessments, insurance premiums and ground rents as the}~ fall duc, such excess shall be, at Born~~•er's option.
either promptly repaid to Borrower or credited to Borrower on monthl~ instaliments of Funds. lf th~ amount ot~ the
Funds held by Lender 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 re~uire. '
Upon payment in ful! of all sums secured by this Mortgage, L.ender shall promptly refund to Borrower any Funds
held by [.ender. If under paragraph 17 hereof the Property is sold or the Property is othe~v-ise acquired by [.ender,
l.ender sh~ll apply, no later than immediately prior to the sale of the Yroperty or its acquisition by Lender, anp Funds
held by Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Applicatioa of PsYmen4. Unless applicable law• provides otherw•ise, all payments received hy Lender under
the iVote and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts pa}~able to L.ender b~•
Borrower under paragraph 2 hereof, then to interest pa~able on the Note, and then to the principal of the Note.
4. Prlor Mortgagea u~d Deeds oi Tnut; Charges; L'tens. Borrow~er shall perform all of Borrower's obligations
under any mortgage, deed of trust or other security agreement w~ith a lien W hich has priorit_r• over this Mortgage, in-
cluding Borrawer's covenants to make payments when due. Borrow•er shall pa}• or cause to be paid all taxes, assessments
and other charges, fines and impositions attributable to the Propert}• w~hich may attain a priority o~•er this Mortgage.
and leasehold payments or ground rents, if any.
S. 1f~uard i~si.r:n~e. Sorrouer shali keep the impro~-~ments now~ exisiing an c~rcaltcr crcric3 .:. i::;. Prapert}•
insured against loss by fire, hazards included w•ithin the term "extended coverzge", and such other hazards as Lender
may require and in such amounts and for such periods as Lender may require.
The insurance carrier pro~iding the insurance shall be chosen t~~• B~irn~wer subject to appro~•al b~~ Lender: pro~ided.
that such appro~•al shall not be unreasunabl~ w~ithheld. All insurance policies and renewak thereof shall he in a form
acceptable to Lender and shall include a standard mortgage rl~use in fa~•or of and in a fc-rm acceptable to Lcnder.
l.ender shall have the right to hold the po:icies and renew~als thereof, sub;~ect to the ternis of any mortgage. deed of trust
or other security agreement w~ith a lien which has priority o~~er this Mortgage.
In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender ma~• make
proof of ioss if not made promptly by Borrow~er.
If the Property is abandoned by Borrow~er. or if Borrow~er fails to respond ro Lender w~ithin ~ da~•s from the date
notice is mailed bv Lender to Borrow•er that the insurance carrier offers to settle a rlaim fix insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Prop-
erty or to the sums secured by this Mortgage.
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shall keep the Property in good repair and shall not commit w~aste or permit impairment or drterioration of the Property
and shall compiy with the provisions of any lease if this Mortgage is on a leasehold. IF this Mortgage is on a unit in a con-
dominium or a planned unit development, Borrower shall perform al! of Borrow•er's obligations under thc declaration or
covenants creating or governing the condominium or planned unit development. the br•-IaN~s an~' regulations of the con-
dominium or planned unit development. and consiituent documents.
7. Protectlon of Lender's SecurltY. If Borcow~er fails to perform the co~•enants and agreements contained in this
Mortgage, or if any action or proceeding is commenced w•hich materially affects Lender's interest in the Property. then
Lender. at Lender's option, upon notice to Bortower: may make such appearances, disburse such sums, including
reasonable attorneys' fees, and take such action as is necessary to protect Ixnder's interest. If Lender required mortgage
insurance as a condition of making the loan secured b}• this Mortgage. Borrower shall pa} the premiums required to
maintain such insurance in effect until such time as the requirement for such insurance terrninates in accordance w~ith
Borrower's and Lender's written agreement or applicable law~.
Any amounts disbursed by L.ender pursuant to this paragraph 7, w~ith interest thcreon. at the Note rate. shall
become additional indebtedness of Borrow•er secured by this Mortgage. Unless Borrow•er and Lender agree t~ other
terms of payment, such amounts shall be pay~ble upon notice from Lender to Borrow•er requesting pa~~ment thereof.
Nothing contained in this paragraph 7 shall require i.ender to ineur any expense or take any action hereunder.
8. lnspectbn. Lender may make or cause to be made reasonable entries upon and inspections of the Pro~ rt~•. pro-
~~ided that Lender shali give Borrow•er notice prior to any such inspection specif}'ing rcasonable cause therefor related to
[.ender's interest in the Property.
9. Condemnatlon. The proceeds of an}• aw~ard or claim for damages. direct or consequcntial, in connection w~ith any
condemnation or other taking of the Propcrty, or part thereof, or •for conveyance in lieu of condemnation, are hcreb~•
assigned and shall be paid to Lender. subject to the tetms of any mortgage, deed of trast or other securit~• agreement
w~ith a lien w•hich has priority oc~er i~is MortgaRe.
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