HomeMy WebLinkAbout2861UNIFORM CovEN~NT8. Borrower and L.enJer covenant a~J agrce as follaws:
l. P~mcol ot Pdaclpl wd latenst. Borrower shall promp~ly pay when due the p~incipal of and interest on thc
indebtedness evidenced by the Note. prepayment and late charges as provicied in the Note, and the principal of snd interest
on say Future Advances sa;ured by this Mortgage.
Z. Fbnds tor Tues aad Iasuraece. Subject to applicable law or to a written waive~ by [.ender. Borrowe~ shall pay
to Lender oo the day monthly installments of principal and interest are payabic u~der thc Note. until the Note is paid in tull.
a sum (hercin "Funcis") equal to one-Iwelfth ot the yearly taxes and assessments which may attain priority over this
Mortgagc. a~d grouod rents on the Pmpeny. it any. plus one-tweltth of yearly premium installments for hazard insu~ancc.
plus o~e-twelfth of yearly premium i~stallments [or mongage insurancc, if any, all as rcasonably estimated initially and (mm
time to time by Lender on thc basis of assessments and bills and reasonable estimates thereof.
'ILe Fu~ds shall be held in an institution the depoaits or accounts of which are ir-sured or guarantcod by a Federal or
state agency (including Lender if Lende~ is such an institution). l.ender shall apply th~ Funds to pay said taxes. assassmeots.
insurance premiums and ground rents. Lender may not charge for so holding and applying the Fun~is, analyzi~g said account,
or verifying and compiling said asses.oments and bills. unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and [.ender may agree in writing at the time of execution ot thia
Mortgage that interest on the F~nds shall be paid to Borrower. and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrowef, without charge, an annual accounting of ~he Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional socurity for the sums socured
by this Mortgage.
lf the amount of the Funds held by LenJer, together with the future monthly installme~ts of Funds payable prior to
the due dates of taxes. assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as ~hey fall due, such excess shall be. at Borrower's option. either
pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amouM of the Funds
held by l.eader shall not be suf6cient to pay taxes, assessments, insurance premiums and grornd rents as they fall due,
Borrower shall pay to Lende~ any amount necessary to make up the deficiency within 30 days irom the date notice is mailed
by l.ender to Borrower requesting payment thereof. -
Upon payment in full of all sums securod by this Mortgage, t.ende~ shall promptly refund to Borrower any Funds
held by l.ender. If under paragraph 18 hereof the Propeny is sold or the Property is otherwise acquired by Lender. I.ender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by l.ender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provicies otherwise. all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by t_ender 6rst in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principa! of the Note. and then. to interest and
principal on any Futuce Advances.
4. Charges; Lkns. B~rrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payce thereof. Borrower shall pmmptly furnish to Lender all notices of amounts due under this paragraph, and in the svent
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this MoNgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment o( the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Huard lasurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by 6re. hazards included within the term "extended coverage", and such other hazards as l.ender may require
and in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'I7~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
that such approval shal! 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, directly to the
insurance carrier.
All insurance policies and renewals thereof shal! be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender I_ender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices anJ all receipts of paid premwms. 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.
Unless Lender and Bonower otherwise agree in w~iting, insurance proceeds shall be applied to restoration or repair of
the Properiy Jamaged. provided such restoration or repair is economi:ally 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 Morigage would
be impaired, the insurance proceeds shall be applieJ to the sums secured by this Martgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to [.ender within 30 days from the
date notice is mailed by l.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Properiy
or to the sums secured by this Mortgage.
Untess I.ender and Borrower otherwise agree in W riting, any such application of proceeds to principal shall not extend
or postpone the due date oE the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph l8 hereof the Property is acyuired by L.ender. all righi. lide and interest of Borrower
in and to any insurance policies and in and to the proceecis thereof resulting from damage to ihe Property prior to the sale
or acquisition shall pass to l.ender to the extent of the sums secured by this Mortgage immediately prior to such sak or
acquisition.
6. Preservalba and Maintenance of Property; Leaseholds; Condominiums; Planned Uoit Devdopments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage ~s on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall per(orm all of Borrower s obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent Jocuments. If a conJominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements of such rider
ahall be incorporated into' and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Profection of Lender's Security. If Borrower fails to perform the covenants and agreemenls contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearanca. disburse such ~
sums and take such action as ia nexe~ssary to protect Lender s interest, including, but not limited to. disbursement of
reasonable attomey's fees and entry ~upon the-Property to make repairs. It Lender required mortgage insurance u a
condition of making the loan secured by this Morigage. Borrower shal) pay the premiums requirai to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowe~s and
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~~~x 348 eAGE 2~59
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