HomeMy WebLinkAbout1775UN~FORM COVFNANTS. BOffOWt~ aO1~ I.CI1~Itf Cl-vena~t and agree as faUows:
1. Ptytneal o~ Princlpal aad lateresl. Horn~wct shall pmmplly pay whcn duc thc principal of and interesl on the
imiebtedncu evidenceJ by Ihc Notc, prcpayment and late cha~ges •rs pruviJed in Ihe Nate, and the principal of and in~ercs~
on any Future Advancec secured by Ihis Mor~gage.
2. Fuads tor Taxes an~ Iawnace. Subject to applicablo law o~ to a written waiver by l.ende~, Barrower shall pay
to l.e~der an ~he day monthly installmen~s ot principal and intere~t are payablc undc~ Ihe Note, unti) Ihe Note is paid in full,
a sum (herein "FunJs") equa) ta ane-tweltth of Ihe yearly ta~cec ynd assessmeols w~ich may attain prioriiy over this
Mortgage, and ground rents on the Pnnperty. it any, plus one-twel(th of yearly premium ins~allmcros for hazard insurance,
plus one-twelfth of yearly p~emium installments (or martgage insurance, i( any, all ac reasonably estimated ini~ially and trom
time !a timc by l.ender on the basis ot assessments and bills and rcawnable es~imates thercat.
'Ilrc Funds shall he held in an institutian the deposits or accaunts af which are insurcd or guaranteal by a Federal or
state agency lincluding Lender if l.ender is such an ins~itution). t.ender shall apply ~ho Funds to ~y said taxes, asussments,
insurance prcmiums and ground rents. 1_ender may not cha~ge far so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and hills, unleu 1 eoder pays Borrower interest on the Funds a~d applicable law
permits I.ende~ to make such a charge. Borrower and Lender may agree in writing al ~he time of execution of this
Mortgage that interest on the Funds shall be paid to Borrowe~, and untess such agreemen~ is made or applicable law
rcquiros such intercst to be paid, l.ender shall ~ot bc required to pay Barrower any interest or earnings on the Funds. I.cnder
shall give to Barrower, without charge, an annual acci~unting af the Funds showing credi~s and Jebits to Ihe Funds and the
purpose for which each debit to the Funds was made. The Funds are pleciged as additional security for the sums secured
by this Mortgage. • .
If Ihe amount of the Funds hcld by IxnJer, tagelher N•ith the futurc monthly installments of Fu~ds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay saic~ taxes,
assessments, insurance premiums and ground rents as they (all due, such excecs shall be, at Barrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. I( the amount of the Funds
held by Lender shall not be suti'icient to pay taxa, assessments, insurance premiums and ground rents as ~hey fall due,
Borrower shall pay to Lender any amount necessary to make up the ~ieficiency within 30 days trom the date notice is mailed
by 1_ender to Borrower rcquesting payment Ihereo(. ' ~
Upon payment in full of all sums securcd by this Mor~gage, t.ender sball promptly refund to Borrower any Funds
held by IxnJer. lf under paragraph 18 hereof the Propeny es sold or the Propcrty is othenvisc acqwrcd by I.endcr, Lender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Funds held by
Lender :~t the time of application as a crcdit against the sums secured by this Mongage.
3. Applicatioa oE Payments. Unless applicable law provides otherwise, all payments received by I.ender unJer the
Note and paragraphs 1 and 2 hereof shalt be applied by I.cnJer firs~ in payment ot amounts payable ta Lcnder by Borrower
under paragraph 2 hereof, then to interest payablc on the Note, then to the principal ot the Note, and then to interest and
principal on any Future Advances.
4. Cbarges; Lie~. Borrower shall pay all ta~ec, acsessments and other charges, finex and imFx~sitions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or gmund rc~ts, if any, in `the manner
pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dircctly to ihe
payce thereof. Borrower shall promptly furnish to LenJer all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly fumish to Lender receip~s evidencing such p~yments.
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 thc obliga~ion securcd by
such tien in a manner acceptable to Lender, or shall in gocxi faith contest such lien by, or defend enfor~ement of such lien in,
legal proceedings which operate to prevent the enforcement of the 6en o~ for[eiture of the Property or any part thercof.
S. Huud Insurance. Borrower shall keep the improvements now~ existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", anJ such other hazards as 1_ender may require
and in such amounts and for such periods as Lender may reyuirc; provided, that LenJer shall not require that the amount of
such coverage excced that amount of coverage required to pay the sumc secured by this Mor~gage.
'Il~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Londer; provided,
that such approval shall not be unreasonably withheld. All premiumc 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 dNe, directly to ihe
insurance c~rrier. ~ .
All insurance policies anJ renew~als thereo( shall be in (orm acceptable to (_ender and shall include a standard morlgage
ctause in favor of and in form acceptable to l.ender. 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 prcmiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and l_ender_ 1_ender may make prcx~f ot loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwisc agree in .rriting, in~urance procccds shalt be applied to restoration or repair of
the Property damaged, provided such restorat~on oR r~pair is economically feasible and the ucurity of ihis Mortgage is
not ~hercby impaired. If such restoration or repair is not ~conomically fcasiMe or if the xcurity of this Mortgage would
be impaired, the insurance proceeds shall be apptied to the sums srcureJ by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or if Borrowtr fails to respond to I.ender within 30 days (rom the
date notice is mailed by l.e~der to Borrower that the insurance carrier o(fers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at 1_ender's oplion eilher to resloration or repair of the Prqperty
or to the sums secured by this Morigage.
Unlexc l.ender and Borrower otherwise agree in wnting, any such application of proceeds to principal shall not extend
or postpone ~he due date of the monlhly installments referred to in paragraphti 1 and 2 hercof or change ~hc amount of
sucfi installments. If unJer paragraph 18 hereof the Property° is acyuired b~ Lender, all right, title and interest ot Borr~wer
in and to any insurance policies and in and to the proceeds thereo( resulting from damage to the Properly prior to the sale
or acyuisition shall pass to l.ender to the extent ot the sums secureJ by this Mortgage immediately pnor to such sale or
acquisition. ,
6. Pceservatlon and ll1aintenance of Property; I.eaceholds; Condominiums; Planned Unit Ik~•elopments. Borrouer
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Proper~y
and shall comply with the provisions of any lease if this Mortgagc ~s ~~n a Icasehold. If Ihis Morigagc is on a unit in a
condominium or a planned unit Jevelopment, Borrower ~hall perform all of Borrower's o~ligations under the declaration
or covenants creatmg or governing the condom~nium or planned umt devrlopment, the by-laws anJ rcgulationc of the
conJominium or planned unit developmem, and constituent documents. It a conJominium or planned un~t Je.•elopment
rider ~s executed by Borrower and recorded together w~th ~hic Mortgage, the covenants and agreements c,( such'rider
shall be incorporated mto and shall amend and supplement the co~•enants anJ agreements of Ihis Mortgage as i( Ihe riJer
were a part hereof.
'f. Protection of Lender's Securify. If Borrower failc to E+crform the covenanls anJ agreements contained in ~hic
Mortgage, or if any action or proceeding ~s commenceJ which ma~erially aliects I.ender's interest in the Property,
including, but not limited to, eminent domain, insolvency, code enforcemenl, ar arrangements or proceedings involving a
banlcrupt or decedent, ~hen l.enJer a~ 1_ender's option, upe~n notice to Borrower, ma~~ make such appearances, disburse such
sums and take such action as is necessary to protect Ixnder'x interest, including, bul not limited to. disbursement of
reuonable attomey's fces and cntry upon ~he Proper~y to makc repairc. If [_endcr required mortgage insurance at a
condition of making the loan secureJ by this Mongage. Born~wer shall pay the premiums required ~o maintain such
insurance in eBect un~il such time as the reyuirement for such ~nsurance terminates in accordance with Borruwer s and
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