HomeMy WebLinkAbout0924 UNiFORt~ Covetv~NTS. $orrower and Lender covenant and agree as fallow3:
I. Paymeat of Ptiacipal aod lntertst. Borrower shall pr.~mptly pay when due the princip:+l of and interest on the
indebtedness evidenced by the Note, prepayment and late charges as provided in the Nore, and the principal of and interest
on any Future Advances secured by this Mortgage. .
2. Fuadc tor Tues and lasurwce. Subject to applicable lau~ or to a written waiver by [.ender, Borrower shall pay
to Lender on the day monthiy instailments of principal and interest are payable under the Note, until the Note is paid in full,
, a sum (herein "Funds") equal to one-twelfth of the yearly taxes anJ assessments which may attain priority over this
Mortgage, and ground rents on the Proptrty, if any, plus one-twelfih of yearly premium installments for hazard insurance,
plus one-twelfth of yearly premiurri installments for mortgage insurance, if any, all as reasonably estimattd initially and from
time to time by Lender on the basis af assessmentS and bills and reasonabie estimates thereot.
The Funds shall be hetd in an institution the deposits or accounts af which are insuted or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). l.ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. I_ender may not charge for ~o holding and appiying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless l.ender pa}s Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and 1_ender ma~ agree in writing at the time ot execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicahle law
requires such interest to be paid, Lender shall not be required to pay Borrow•er an}• interest ar earnings on the Funds. l_ender
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 made. The Fur.ds are pledged as additior~al security for the sums secured
by this Mortgage.
If the amount ~f the Funds held by Lender, together with the fuwre monthly installmems of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pap said taxes,
assessments, insurance premiums and ground rents as the)• fall due, sucfi excess shall be, at Borrower's aption, either
promptl~• repaid to Sorrower or credited to Borrower on monthly installments c~f Funds. 1f thc amaunt of thc Funds
held by Lender shall not be sufficieat to pay taxes, assessmcnls, imur~ncc premiumc and ground rents as thcy fall due,
Borrower shall pay to Lender an}• amount necessar~• to make up the deficiencp within 30 da~•s from the date nntire is mailed
by Lender to Borrower requesting paymcnt thereof.
Upon payment in full of all sums secured bp this Murtgagc. Lender shall promptly rcfund to BorroHCr an}' Funds
held by Lender. If under paragraph 1R hereof the Propcrt~~ i< <old or ihe Property ~s otherw•icc arqwrcd b}~ Lender, l.ender
shall apply, no later than immediately prior to the sale c~f th~ Propcrty or iis acquisitian h~~ I.ender, any Funds helJ by
Lender at the time o[ application as a credit against the sums secured b~ thi. Mortgage.
3. Application af Payments. Unless applicable lau~ pro~•iJes otherwise, all payments recei~•ed by l.ender un~ler the
Note and paragraphs I and 2 hereof shall be applied b~~ Lender fint ~n pa~ment uf amounts pay:~ble to l.ender by Borro«er
under paragraph 2 hereof, then to interest payable on the Note, then to thc principal of the Note, and thrn to interest and
principal on any Future Advances. I
4. C6arges; Liens. Borrower sh:~ll pay ali ta~cs, atses~m~nts ~nd othcr rh:~rges, fines an~ impositions attributable to ~
the Propert}• which may attain a prioriry over this Mortgage; and leasehold payu~ents or ground rents, if any, in the manner ~
! provided under paragraph 2 hereof or, if not paid in such manner. b~ Borrow~er making payment, when due, directly to the I
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event i
Borro~?~er shall make Fayment direcUy. Borrowrr shall promptly furnish to Lendcr receipt, e~idenring such payments.
Borrower shall promptlp discharge any lien Khich has priont~• ~~ver this Mortgage: provided. ~hat Borrower ~hall not be
required to discharge any such lien so lung as Borrower shall agree in writing to the payment o( the obligatii~n secured b}'
such lien in a manner acceptable to Lender, or shall in good faith rnntest such lien b~~, or defend enforcement of such lien in,
legal proceedings which operate to prevent the cnforcement af thc Gen or forfeitur~ of the Property or any part thcreof. ~
S. Hazard lnsurance. Borrower shail keep the impro~cments no~ c~isting or hercaftcr erected on the Pmperty insured '
against loss by fire, hazards included w~ithin the term "~~tendeJ coverage", and such other hazards as l.ender ma}~ reyuire
and in such amounts and for such periods as I_ender may reyuire; provided, that Lender shall not reyuire that the amuunt of
such coverage eYCeed that amuunt of co~•erage reqwred to pa~~ the sums secured b~~ this Mor~gage.
The insurance carrier providing the insurance shall be chosen b.• Borrow~er subject to approval by Lender, provided,
that such approval shall not be i~nreasanably withheld. All prcrrziumt on insurance policies shal! be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by B~rrower making payment, when due, direcN}~ to the
; insurance carrier.
' All insurance policies and renewals therec.f shall bc in form arce~iable to Len~ier and shall include a stan~ard mortgage
i clause in fa~~or of and in form acceptahle to I.ender. L~nder tihall ha~c the right tr hold thr policies and rene~als there~f,
i and Borro~ver shall promptl}' furnish to Lender all renewal notices and all receipts of paid premium~. In the e~•ent of Ioss,
Borrower shall gi~•e prompt notice to the insurance carrier and l.ender. Lender ma} make proof of I~ss if not made pn~mptly
by Borrower.
~ Unless Lender and Borrower otherwise agree in w ri!ing, insurance proceec)c shall be applied to restoration or repair of
~ the Property damaged, provided such restoration or repair is economicallp feasible and the securit}~ of th~s Mortgage is
p not thereby impaired. If such restoration or repair is n~~t economicall~• feasiMe or if the security o: this 1~lortgage would
4 be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
~ to Borrower. If the Propert}~ is abandoned b} Borrower, or it Borr~w~er fails to respond to I_endcr within 3U da}'s from the
~ date notice is mailed by Lender to Borrower that ~he insurance carrier ofTers to settle a claim for insurance henefits, Lender
is authorized to collect and ap~ly the insurance proceeds at Lender's option either tu restoration or repair of the Propert}•
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such appiication of proceeds to principal shall ~ot ertend
or postpo~e ~he due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
~ such installments. If under paragraph 18 hereof the Property is acyuired h~ Ixnder, all right, title and interest of Borrower
E in and to any insurance policies and in and to the prckeeds thereof resulting from damage to the Property prior to the sale
~ or acquisition shall pass to Lender to the e~tent of the sum~ Secured b} this t~iortgage immediately prior tc• such sale or
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~ acquisition.
€ 6. Presenation and ~ltintenance of Property; Leaseholds, Condominiums; Planned Unit De~•elopmenls. Borrow•er '
~ shall keep the P:operty in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shatl comply with the urovisions oi any lease if th~s Mortgage on a Icasehold. !f rhis Mortgagc is un a unit in a
condominium or a planned unit development, Borrower shall periorm aU of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unrt development, the by-law•s and regulations of the
condominium or planned unit development, and constituent documems. If a condominium or planned unit de~elopment
rider is executed by Borrower and recorded together w~ith ~his Mortgage, the covenants and agreements of such rider '
shall be incorPorated into and shalf amend and supplement the :ovcnants and agreements of this Mortgage if the ri~ier
were a part hereof.
7. Prohction of L,ender's Security. If Borrower faiis to perform the covenants and agreements contained in this
~ Mortgage, or if any action ar proceeding is commenced which materially afTec~s Lender's interest in the Property,
a including, but not limited to, eminent domain, insolvenc~~, code enforcement, or arrangements or proceedings involving a
~ bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, map make such appc;arances, dishurse such
~ sums and take such action as is necessary to protect Lender's interest, including, but not limired to, disbursement of
reasonable attorney's fees and en:ry upon the Property to make repairs. If [_ender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in eHect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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