HomeMy WebLinkAbout1996UNIFORM COVENANTS. Bormwe~ and l.ende~ covenant and ag~ee as follows:
1. P~ymeat of Prlnciptl ~od latecaf. Borrower shall p~omptly pay when due the principal ot and interest o~ the
indebtedr~eu evidenad by the Note. prepayment and late charges as provided io the Notc, and thc principal ot a~d interest
on any Future Advances secured by this Mortgage. '
2. Fnoi~ tor Tua aai lr~ce. Subject to applicabk law or to s written waiver by Leoder. Borrower shall pay
to I.ender on the day monthly installments of principal an~ intcrest are payablc u~der the Note. until the Note is paid in full,
a tum (herein "Fundi") equal to one-twelfth of the yearly ~taxes and assessments which msy attain priority over t6is
Mortgage. aed ground rents on tbe Pmpcrty. if any, plus oae•twel[~h of yearty p~emium installrnents for hazard insurance.
plus oue-twelfth of yearly pnmium installme~ts tor mongAge insurance, if any, all as ~euonably estimated ini~ially and from
time to time by I.eader on the basis of assessments and bills and reasonabk estimates thereof.
'Il~e Funds shall be 6eld in an institution the depoaits or accounts of which are insurod or guaraMe~d by ~ Federal or
state agency (i~cluding Lender if Lender is such an iastitution). l.ender shall apply the Funds to pay said taxes. auessments.
iasurance premiums and grouad rents. Lender may not charge (or so holding and applying the Funds, analyzing said account,
or verifying aad compiling said assessments and bills, unkss Lender pays Borrower interest on the Funds and applicable law
permits l.ender to make such a charge. Borrower and Lender may ag~ee in writing at the time ot execution of ihis
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or appficable law
requira sucl~ interest to be paid~ Lender shall not be required to pay 8orrower a~y interest or earni~gs on the Fuads. Lender
shall give to Borrower. without charge, a~ annual accounting of the Funds showing credits and debits to the Fur~ds and the
purpose tor which eac6 debit to the Fuads was made. T6e Funds are pledged as additional security for the sums socured
by this Mortgage.
If the amount of tbe Funds held by Lender, together with the tuture monthly installments of Funds payable prior to
the due data of taxes. auessmeau. inaurance premiums and ground rents, shall exceod the annount reyuirod to pay said taxes.
a:sesunents. insurance premiums and ground rents as they fall due. such excess shall be, at Borrower's option, either
prompQy repaid to Borrower or crcdited to Bormwer oa moathly installrnents of Funds. If the amount 'of the Fun~
held by Lender shall not be su6iciwt to pay taxes. assessments, insurance premiums and ground rents aa they fall due,
Borrowe~ shall pay to Lender any amount aecessary to make up the deficiency within 30 days trom ~he date notice is mailed
by Le~er W Borrower requestiag payment thereof.
Upoo paymeat in full of all swna ~cured by this Mortgage, t.ender shall promptly refund to Borrower any Funds
held by Leader. If unda paragraph 18 heroof the Property is sold or the Propeny is otherwise acquired by Lender. Lender
shall apply. no later than imanediately prior to the sak of the Properiy or its acquisition by Lender, any Funds held by
I.eader at the time of applicatioa as a credit against the sums xcured by this Mortgage.
3. A~licatb~ of Psymeats. Unless applicable law provides otherwise, all paymenls received by Lender uader the
Note aad paragraphs 1 aad 2 hereof shall be applied by Lendcr first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to iMerest payable on the Nwe, lhen to the principal of the Note. and the~n to interest and
principal on any Future Advauoes.
4. CYfrta; Lie~s. Borrower shali pay all taxes, assessments and other charges, fines and impositions attributabk to
the Property which may attain a prioriry over this Mortgage. and leasehold payments or ground rents, if soy. in the manner
provided under puagraph 2 t~ereof or. if not paid in such manner, by Borrower making payment, w1~eo due. diroctly to the
payee t6ercof. Bonower s6a11 prompdy furnish to Lender all.noticas of amounts due under this paragrapD, and ia t6e-eveat
Borrower shall make paymeat directly, Borrower shall promptly furnish to l.ender raeipts evideocing such. paymeqts•
Borcower shall promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be
required to discharge aay such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptabk to I.ender. or shall in good faith contest such lien by. or defend enforcement o[ auch lieo in.
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard I~wra~ce. Borrower shall koep the improvements now existing or hereafter erected on the Property insured
again~t loss by 6re. hazards includod within the term "extended coverage". and such other hazards u I,ender may require
and in wch amounta aad for auch periods as Leader.may require: provided. that Lender shall not require that the amount of
such coverage excood that amount of coverage required to pay the sums secured by this Mortgage. '
T6e inwrance carrier providing tbe insurance shall be chosen by ~orrower subjoct to approval by Lender. provided,
t6at such appmval shall not be unreasonably witht~eld. All premiums on insurance policies shall be paid in the manaer
providod under paragtapt~ 2 heroof or, if not paid in such man~ur. by Borrower making payment, when due. directly to the
iaturance carrier.
All ituutance polici~s and reuewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form uceptable to Leoder. Lender shall have the rig6t to hold the policies and renewals thereof,
and Borrower shall proroptly 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 proof of loss if not made promptly
by Borrower.
Unlesa Lender and Borrower otherwise agree in writing. insurance procceds shall be applied to restoration or npair of
the Propetty damaged. provided such restoration or repair is economically (easible and the security of this Mortgage is
not thereby i[npairtd. If such restoration or rcpair is not economically feasible or if the security of this Mortgage would
be impaired, ttie insurance procxeds shall be applied to the sutns secured by this Mortgage, with the excess. if any. paid
to Borrower. If the Property is abandoaed by Borrower. or if Borrower fails to respond to Lender within 30 days from tlx
date notice is mailod by I.euder to Borrower that the insurance carrier oHers to settle a claim for insurance beae8ts. I.ender
is aut6orizod to collect arzd apply t6e insurance proooeds at L.ender's option either to restoration or repair of the Property
or to t6e wms secured by t6is Mortgage.
Unless L.ender and Borrower otherwise agrce in writing, any such application of proceeds to principal shall not extet~d
or postpone the due date of ihe monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragrap6 l8 6ereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to wy insurance policies aad in and to the proceeds thereof resultiag from damage to t6e Property prior to the sak
or acquisition shall pass to I.ender to tl~e extent of the sums securod by this 1Nortgage immediately prior to such sak or
acquisition.
6. Prrservadoo aad Mai,terwace of Property; Leasebolds; Condomieiums; Planued Uoit Devebpmeots. Borrower
shal! keep the Property in good repair and, shall not commit wute or pormit impairment or deterioration of the Property
and shall comply with the provi~iona of aay 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. the by-lsws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenanis and agrcements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if ihe rider
were a part hereof. .
9. Protectioa of Le~de~'s Securit~r. If Bortower fails to perform the covenants and agrcementa contained in this
Mortgage. or if aay action or procecding is commenced which materially aftects Lender's interest in the Property.
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceodinga involving a
bankrupt or decedent. ~hen Lender at Lender's option, upon notice to Borrower.. may make such appearances. d'uburse such
swns and take iuch ution as is neceuary to protect L.ender s interest, including, but not ~ limited to. • disbursement of
reasonabk attomey's fees and entry upon the Propeny to make repairy. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgagc, Bqrrower shall pay the premiums required to maintain such
inswance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's aad
` . B~ ~x 348 Pd~f 1995
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