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HomeMy WebLinkAbout1784UN~FORM CovEN~NTS. Bo~rowe~ anJ l_enJer rovenant anJ agrce as taliaws: 1. Tayment of P~incipal aad lalerest. B~~rrower shall pmmptly pay when due the prinripal ot and intcrest on the inJebtedness evide~ceJ hy the No~e, p~epayment a~d late charge~ a~ pravided ~~ the Note, and the principal ot and i~tercst on any Future Advancec secured by thix Mortgage. 2. Fuads to~ Taxes and lusuraace. Subject to applicable law or to a writte~ waiver by l.ender. Borrower shall pay to l.cnckr on ihc day monthly installments ot principal and interes~ arc payable under the Note. until tht Note is paid i~ (ull, a aum (herein "Funds") equal ta o~e-twelfth o( the yearly laxec and ascessmcnls which may attain priority over this Mongage, a~d ground rents on Ihe Pmperty. it any, plus one-tweltth of yearly premium inslallments for hazard i~surance, plus one-~welfth of yearly premium installments tor mongage insura~cc, if any, all as reuanably estimated initially and irom time to time by I.endcr on the basis ot assessments and hills and reasonable estimata thereot. The Funds shal) be held in an institution 1he dep~sits or accounts o( which are insured or guaranteed by a Federal or state agency lincluding Lender if 1_ender is such an institution). l_ender shatl apply the Funds to pay said taxes. assessments, insurance premiums and g~ound re~ts. I.ender may not charge for so holding and applying the Funds, analyzing said account, or verifying a~d compiling said assessments and bills, unless l.endcr pays Borrower intcrest on Ihe Funds and applicable law permits Lender ta make such a charge. Borrower and Lender may agree in writing at the time of execution of ihis Mortgage that interest on the Fu~ds shall he paid to BOffOWtf, and unless such ag~eement is made ur applicable law rcquircs such interat to be paid, Lender shall not be required to pay Borrawer any interest or earnings on the Funds. l.ender shall give to Borrower, without charge, an annual accuunting of the Funds showi~g credits and debits to the Funds and the purpose !ar which each debit to the Funds was made. The Funds are pledged as additional security tor the sums secured by this Mortgage. - If the amount of the Funds held by Lender, toge~her vvilh ~he futurc monthly installments o[ Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shaU exceed the amount rcquired to pay said taxa. assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Barrawer s option, either promptly repaid to Borrower or credited to Borrower on monthly installments af Funds. If the amount o( the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiumc anJ ground rents as they fall due, Borrower shall pay to Lender any amount necessa~y to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upo~ payment in full of all sums secured by this Mor~gage. 1_ender shall promptly refund to Borrower any Funds held by I.ende~. If under paragraph 18 hercof the Property ix sold or the Property is otherwise acquired by I.ender, 1_ender shall apply. no later than immediately prior to the sale af the Property or its acquisition by i_ender. any Funds held by Lender at Ihe time ot application as a credit against the sums secured by this Mortgage. 3. ApplicNion of Paymeats. Unless applicable law proviJes otherwise, all payments received by 1_ender unJer the Note and paragraphs 1 and 2 hereot shall be appliec! by I.ender first in payment of amounts payable to I_ender by Borrower under paragraph 2 hereof, then to interest payablc on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. C6ar~es; Lkas. Borrower shall pay all laxes, acsessmcnts and other rharges, fines and imFx~sitions attributable to the Property which may attain a priority over this Mortgage, a~d leasehold payments ar ground rcnts, if a~ny, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Barrower maki~g payment, ~vhen due, directly to tbe payee ther~eof_ 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 turnish to l.enckr 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 the obligalion~ secured by such lien in a manner acceptable to Lender. or shall in gooei faith contest sach lien by, or defend enforcement of such lien in, legal proceedings which operale to prevent the enforcement of the lien or torfeiture of the Property or any part thereof. S. Hazard I~urance. Borruwer shall keep the improvements nov-• existing or hereafter erected 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 reyuire: provideJ, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured hy this Mortgage. "[1~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided. that such approval shall not be unreasonably withheld. Al! premiums on insurance policies shall be paid ~n the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to ihe insurance carrier. All insurance policies and renewals thereof shall be in form accept~ble to Lender and shall include a standard mortgage clause in favor ot 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 prcmiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make prcw?f of loss if not made promptly by Borrower. Unless Lender and Bonower otherwise agree in w•riting, insurance proceeds shall be applied to restoration or repair o[ the Property damageJ, 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 economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with ~he excess, if any, paid to Borrower. If the Property is abandonecl by Borrower, or if Borrower fails to respo~d to 1_ender within 30 days from ihe date notice is mailed by l.ender to Borrower that the insurance carrier offers ~o setlle a claim for insurance benefits, Lender is authoriud to collect and apply the insurance proceeds at Lender's option either to restoralion or repair of the Propeny or to the sums secured by this Mortgage. Untess Lender and Borrower otherwise agree in writing, any such application of proceeds to pnncipaf shall not extend or postpone the due date of the monthly installmcnts referred to in paragraphs I and 2 hereof or chanae the amount of suct~ installments. If under paragraph 18 hereof the Property is acyuired by l.ender, all right, title and interest of Rorrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to ~he 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. Preservatioa and Mtintenance of Properiy~; Leaseholds; Condominiums; Planned Unit Developmc~ts. Borrower shall keep the Propeny in good repair and shall not commit waste or permit impairment or deterioralion of the Property and shall comply with the provisions of any lease if this Martg:~ge is on a Ieasehold. li this Mortgage is on a unit in a condominium or a planned unit Jevelopmenl, Borrower shall perform all of Borrower s obligations under the declarat~on or covenants creating or governing the condominium or planned unit development, the by-laws and regulatians of the condominium or planned unit development, and constituent documents. I( a conJominium or planned -mit development riJer is executed by Borrower and recorded together w~th thic Mortgage, the covenants and agreements o( such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as it the rider vvere a part hereof. 7. Profection of Leade~s Security. It Borrower failc to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding ~s commenceJ w•hich materially aBects I.ender's interest in the Propert~~. including, but not limited to, eminent domain, insolvency, code enforrement, or arrangements or Proceedings involving a bankrupt or decedenl, then Lender at 1_ender's option, upon notice to Borrower, may make such appearances. Jisburse such sums and take such action as is necessary to protect Lender's ~nterest, including, but not limited to, dicbursement of reasonablc attorney's fees and en~ry upon the Propcrty to makc repairs. If Lcnder required mortgage insurance as a condition ot making the loan securecl by this Mortgage, Borrow•er sh~ll pay the pr•_miums required to maintain such insurance in effect until such time as the reyuirement for such ~nsura~ce terminates in accordance with Borrower s and ~ • ~ F . i^!'~.i-~' . ,_ ~ ,~ ._ . ,.- gr7X•J~V PACE1~3 - ~ ,.- l .. .."z-. . °~`~'.