HomeMy WebLinkAbout0916 UNiFORr~ CovEN.+rv~s. Burrower and Lender c.~venant and agree as follows:
1. Paymeol of P~Incipd and Interest. Borrower shall promptl~ pry when due the principal ot and interest on the
indebtedness eviden~cd by the Note, prepayment and late charges as provided the Notc, and the prin~ipal of and interest
on any Future Advances secured b}~ this Mor~gage.
2. Funds for Ta~es and lnsurance. Subject to applicable law ar ~o a written waive~ by l.ender, Borrower shall pay
to I,ender nn Ihe day monthly ~nctallments of principal and interect are payabie unJer the Note, until the Note is paid in full,
a sum (herein "Funds") equal t~~ one-twelfth of the yearly tares ~nd assessments which may attain priority over this
Martgage, an~ ground rents on the Property, if any, plus onc-twelfth ot ~~early premium instaliments for hazard insurance,
plus one-twelfth of yearly premium installments tor mortgage ins~~rance, ~f any, all as reasonabty estimated initiall~• and from
time to time by Lender on the basis of assessmen~s and bills and reasonable estimates thereof.
'Il~,; Funds shall he held in an institution the depusits or accounts ot which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institutionl. •I.ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender ma~~ nM charge ior so holding and applying the Funds, anal~•zing said account,
or verifying and compiling said assessments and bills, unless l.ender p~ys Borrower interest on the Fands and applicable law
permits I_ender to make such a charge. Borrower and !.ender may agree ~n wriiing at ~he time of execution of this
Mortgage that inte~est on the Funds shall be paid to Bormw•er, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be required to pay Barrower any interest earnings the Funds. Lender
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. 'il~e Funds are pledged as additional security for the sums secured
by this ;~4ortgage.
If the amount of the Funds held by Lender, together with the future monthly installments 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 they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. lf the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessar~• to make up the deficiency within 30 da~•s from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by th~s Mortgage. Lcnder shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Propcn~~ is ~old or thc Propcrtp is otherwisc acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by I_ender, any Funds held by
Lender at the time of application as a credit against the sum~ securPd by th~s htortgage.
3. Application of Payments. Unless applicable law pro~ iJes otherwise, all payments received by t.ender under the
Note and paragraphs I and 2 hereof shall bc applicd by I.cnder first in pay~ment of amuunts payable to Lcnder by Borrower
under paragraph 2 hereuf, then to interest payable on the Notc, then to thc principal of the Note, and then to interest and
principal on any Future Advances.
4. Charges; Liens. Borrower shall pay all ta~ec, ac:essmcnts and other ~hargec, fines and ~mpasitions attributable to
~ the Property which may attain a priority over this :~iortgagc, and leaschold 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
payee thereof. Borrower shall promptly furnish to Lender all notices o[ amounts due under this paragraph, and in the event
Borrower shall make payment directl~•. Borrower tihall prompUy furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien ~hich has pnont}~ ~~~rr thi~ Mortgagr, provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in "riting to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contr.t such lien by, or defend enforcement of such lien in,
i legal proceedings which operate to prevent the enforcement o( the I~en or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the ~mpro~ement~ no.. csisting or hercafter erected on the Property insured
against loss by fire, hazards induded within the term "~~tenJeJ cuv~rage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may reyuirc: pra~ided, that LenJer shall not requirc that the amount of
' such coverage exceed that amount of coverage required to pay the sum. secured by this Mortgage.
~ "Ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
, that such approval shall not be unreasonably withheld. All premium~ 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 shall be in form acceptable to Len~er anJ shall indude a standard mortgage
' clause in favor of and in form acceptable tu 1_ender. Lender tih:,ll ha~e the right to hold the policies •and renewals thereof,
` and Borrower shall prompdy furnish to Lender all renewal notices anJ all rcceipts of paid premium~. In the event of loss,
Borrower shall give prompt notice to the insur:~nce carner and Lender. Lendcr map make proot of loss if not made prompUy
; by Borrower.
~ Unless Lender and Borrower otherwuc agrec in writing. insurance pnkeeds shall be applied to restoration or repair of
: the Property damaged, provided such restoration or repair ~s economically feasible and the securiry of this Mortgage is
not thereby impaired. If such restoration or repair is nut econumi~~lly frasibl~ or if the securiry of this Mortgage would
( be impaired, the insurance proceeds shall be :~pplied to the sums secured by this Mortgage, wrth the excess, if any, paid
E to Borrowcr. If the Property is abandoncd b~ Aorrowcr. or it Bormwer fails to respond to Lender within 3U days from the
~ date notice is mailed by Lender to Borrower that the insurance carrier otTers to settle a claim fvr insurance benefits, Lender
; is authorized to collect and apply the ~nsurance proceeds at Lender's option either to restoration or repair of the Property
€ or to the sum~ secured b}' this Mortgage.
Unless Lender and Borrower otherwise agree m wnting, an} such application of proceeds to principal shall not extend
~ or postpone the due date of the monthly instaflmcnts referred to in paragraph~ i end 2 hcreof or change the amount of
= such installments. If under paragraph 18 hereof the Yropert}~ is acyuired h~ Lender, all right, title and interest of Borrower
= in and to any insurance policies and in and to the proceeds thereof resulting irom damage to the Property prior to the sale
~ or acquisition shall pass to Lender to the extent of the sums secured b~ this Mortgage immediately prior to such sale or
acquisition.
3 6. Preservation and ~taintenance of Propert~; Leaseholds; Condominiums; Planned Unit De~•elopments. Borrower
shall keep the Yroperty 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 Icasehold. 1( this Mortgagc is on a unit in a
condomin~um or a planned unit development, Borrower shall Fnrfe~rm all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or plannrd unit development, the by-laws and regulations of the
, condominium or planoed unit de~•elopment, and comtituent Jocumen~s. If a condominium or planned unit developmeni
riJer is executed by Borrower and recorded toge~her with ~his Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend anJ supplement the co~enants and agreements of this Mortgage as if the riJer
were a par[ hereof.
7. Protection of [,ender's Security. If Borrower (ails to perf~rm the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commence~ whirh materially aRccts Lender's interest in the Property,
including, but nat limited to, em~nent domain, insolvenc)~, cude enforcement, or arrangements or proceedings involving a
y bankrupt or decedent, then 1_ender at Lender's option, upon notice to Borrow•er, may make such appearances, disburse such
~ sums and lake such action as is necessary to protect Lender's mterest, including. but not limited to, disbursement of
reasonable attomey's fees and entry upon the Properry to m:~ke repairs. If Lender reyuired mortgage insurance as a
condrtion of making the loan secareJ by this Mortgage. Borro~rr shall pay the premiums requireJ to maintain such
insurance in eflect until such time as the reyuirement for such msurance terminates in accordance with Borrower's and
. . ~~K 413 Pa~E 91~
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