HomeMy WebLinkAbout2407Un~FORM CovFN.~NTS. Borrower and 1.enJer covenanl anif agret as (allows:
1. Paymeat o~ P~tocipal aad lnterest. B~xrowcr shall p~omp~ly pay whcn duc the principal of and inlerost on the
indcbtedneu cvidc~ccd by Ihc Note, prcpayment and latc charges ax provided in the Na1c, and thc princ~pal of and intcrcst
on aoy Future Advancec secured by this Mortgage.
2. Fuads tor Tues snd Iasuance. Subjecl ta applicable law or to a written waiver by l.ender, Borrowe~ shall pay
to Ix~dcr on the day monthly inslallmen~s of principal and ioterest are paysble under the Note. unti) the Notc is paid in full,
a sum (herein "Fu~ds") equal ~o one-twcltth of ~he yea~ly ~axes and ~ssessmcnts which may attain priori~y over this
Mortgage, and ground rents an the Pr~perty, if any, plus one-tweltth ot yearly premium ins~allmcnts tor haza~d insurance,
plus one-twelfth of yea~ly prcmium installmenls (or mortgage insurance, it any, all as reasonably ectimated initially anJ from
timc to time by I_ender on thc basis of assessments and hills and reasanable estimates thereof.
The Funds shall tx held i~ an institu~ia~ the deposits or accaunts of which are insured or guaranteed by a Federal or
state agency (includi~g Lender if I.ender is such an institution). I.ender shall apply Ihe Funds to pay said taxa, assessments,
insurance prcmiums and g~ound re~ts. I.ende~ may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless l.ender pays Barrower interest on Ihe Funds and applicable law
permits Lender to make such a charge. Bc~rrower and LenJer may agree i~ writing at the time of execution of this
Mortgage that interest on thc Fu~ds shalt he paid to Borrower, and unless such agrecmeM is madc or applicable law
requires such i~terest to be paid. 1_ender shall not he required to pay Borrawer any interest or earnings on the Funds. I.ende~
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was maJe. The Funds are pledged as additional security for the sums secured
by this Mortgage. ~
If the amount of the Funds held by Lender, t~~gether w~ith the future monthlp installments of Funds payable prior to
~he due dates of ~axes, ascessments, insurance premiums :~od g~aund re~ts, shall exceed the amount required to pay said taxes,
asxssments, insurance premiums and ground rents as they fall due, such excess shall be, ~t Borrower's option, either
promptly rcpaid to Borrower or crcdited tu Borrower on monthly installments of Funds. lf thc amount o( the Funds
held by Lender shall not be sutf'icient to pay taxes, assessments, insurance premiums anJ ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up ~he deficiency within 30 days irom Ihe date notice is mailed
by Lender to Borrowe~ rcquesting payment thereof.
Upon payment in full of all sums secured by this Mor~gage, l.ender shall prompfly retund to Borrower any Funds
held by l.ender. If under paragraph 18 hereof the Property ~s sold or thc Property is otherwise acqu~red by l.ender, Lender
shall apply. no later than immediately prior to the sale of thc PropeAy or its acqui~ition by l.ender, any Funds held by
Lender at the lime of applicatio~ as a credit against the sums secured by this Mortgage.
3. Applicalion ot Payments. Unlecc applicablt law proviJes o~herwise, all payments received by 1_ender under the
Note and paragraphs I and 2 hereof shall be applied by 1_ender first in payment of amounts payable to ~ender by Borrower
under paragraph 2 hercof, then to interest payable on the Note, then to the principal of the No1e. and then to interest and
principa) on any Future Advances.
4. C6arges; Lkras. Borrower shall pay all t•rxc~, a~scscments and o~hcr charges. fines and imp~xitions attributable to
tfie Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, 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 the
payee theneof.• Borrower shall promp~ly furnish to Lender all notica of amounts due under this paragraph, and in the event
Bormwer shall make payment directly, Borrower shall promptly fumish to I.ender receipts evidenc~ng 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 obligation secured by
such lien in a manner acceptable to Lender. or shall in gocxi faith contest such lien hy, or defend enforcement of such lien in,
legal proceedings which operate to preve~t the entorcement o( the lien or for(eiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the ~mprovements now existing ur hereafter erec~ed on the Property insured
against loss hy fire, hazards included within the term "extendeJ coverage", and si~ch other hazards as 1_ender may reyuire
and i~ such amounts and tor such periods as Lender may reyuirc; provided, that Lender shall not req~ire that the amount of
such coverage-exceed that amount of co3erage required to pay the sums secured by this Mortgage.
, 'il~e insurance carrier providing Ihc 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, dircctly to the
insurauce carrier.
All insurance policies and renewals thereof shall be in form accepiable to LenJer and shall include a ctanJard mortgage
clause 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 prompily furnish to Lender all renewal notices anJ all receipts of paid premiums. In the event of loss.
Borrower sha11 give prompt notice to the insurance carrier and Lender. Lender may make proot of loss if not made pmmpUy
by Borrowcr_
Unless Lender and Borrower otherwise agree in wriUng, inwrance pnxecds shall be applied to restoration or repair of
the Property damageJ, provideJ such restoration or repair is economically 'feasible and the securiry of this Mortgage is
not thereby impaired. It such restoration or repait is not cronomically tcasihle or it ~he security of this Mortgage would
be impaired, the insurance proceeds shall be applieJ to the sums secured by this Mortgage, wi~h the excess, if any, paid
Zto Borrowe~. It the Property is abandoned by Horrower, or il Borrower fails to respond to 1_ender within 30 days from ihr
date notice is mailed by l.ender to BorrovKer that ~he insurance carrier ofiers to setlle a claim for insurance benefits. Lender
is authorized to collect and apply the insurance proceeds at l.ender's op~ion either to restoration or repair of the Property
or to the sums securod by this Murtgage.
Unless I.ender and Borrower otherwise agree in writing, an}• such application of pr~xeeds to princiPa) shall not extend
or postpone the due date of the monthly installmcnts referred tu in paragraph~ I and 2 hertof or change thc amount of
suc#~ installmeots. If under paragraph l8 hereof the Property is acyuired by L.ender, ali nght, title and interest of Borrower
in and to an~ insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acyuisition shall pass to Lender to the extent of the sums securecl by this Mortgage immedia~ely prior to such sale or
acquisition.
6. Preservation and ~taintenance of Property; I.easeholds; Condominiums; Planned Uni1 Ikvelopments. Borroa~er
shall keep the Property in good repair and shall not commit Xaste or permit impairmen~ or deterioration of the Property
and shall comply with thc provisions of any lease ~f th~s Mor~gagc is on a leasehotd. If this !~lortgagc is on a unit in a
condominium or a planned unit dcvelopment, Borrower shall perform all of Botrower's obhgations under the declaration
or covenants creating or governing the condominium or planned unit development, Ihe by-laws and tegulations of ~he
conJominium or planned unit development, and consti~uent documents. I( a conJominium or planned umt Jc~•elopment
riJer is executed by Borrower and recorded ~ogether w~~th th~~ Mortgage, ~he covenants and agreements of such rider
shall be incorporated mto and shall amend and supplement the covenants arxl agreements of thic Mortgagc as if the riJer
were a part hercof. '
7. Protection of I.fnde~'s Securify. If Borrower failc to ~xrform the covenams and agreements contained in this
Mongage, or if any ac~ion c~r proceeding ~s commenced Khich materially afiects LenJer's ~nterest ~in the Proper~y.
including, but not limited to, eminent domain, insolvency, axle enforrement, or arrangements or proceedings invoh•ing a
bankrupt or decedent, ~hen 1_ender at LendePs option, upon notice to Borrower, ma~• m~ke.auch appearances. Ji~burse such
sums and take such action as ~s nece~sary to protect Ixnder s interest, including, but not limited to, disbursement of
reasonable attomey's tees and entry upon the Proper~y to make repair~. I( I_ender required mortgage incurance ac a
condition of making the loan secured b}• Ihis Mongage, Borrower shall pay the premiums requireJ to maintain such
insurance in efkct until such t~me as the reyuirement lor such msurance terminates in accordance with Borrower's and
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