HomeMy WebLinkAbout0961 UNIFORM COVFN.~~rs. Borrower and l.ender covenant ~nd :~g~re ~s folluws: ~
1. Payment of Prindpa! ~tad lnterest. Horrower shall pn~mptl~• pay whcn due the principal of and intrrut on the
indebtedness e~~idenced hy the Notc, prrpayment and late charge+ ~s prov;Jed in the Note, and the prinr?pal of and interest
on any Future Advances secureJ by lhis Mortgage.
2. Funds for Tues and Insurance. Subject to applirablr law or to a written waiver by I_ender, Borrower shall pay
to Lender on thc day .:~~nthly installments of principal and intcrest are payable under the Note, until the No~e is paid in (ull,
a sum (herein "Funds") equal to one-twelfth o( the yearly taxes anJ assessment~ w•hich may attain priority over this
~iortgage, and ground rents on the Froperty, if any, plus onc-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurancc, if any, all as reasonably estimated initially and from
time to time by Lender on ihc basis of assessments and bills and rea~onable es~imates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). 1_ender ~hall apply thc Funds to pay said taxes, assessments,
insurance premiums and grour~d rents. I_ender may~ not charge for so holding and apply+ng the Fun~is, analyzing said aceount,
or verifying and compiling said assessments and bills, unless l.ender pa~s Borrower interest on the Funds and applicable law
pet ~niGc Lender ta make such a charge. Borrower and [.ender may agree in w~riting at the time of execution of this
M~rtgage that interest on the Funds shali be paid to Borrower, and unless such agreement is made or applicabk law
requires such interest to be paid, I_ender shall not be required to pay Borrower any interest or earnings on the Funds. I_ender
shall give to Borrower, without charge, an a~nual acco~~nting of the Funds showing credits and deb:ts to the Funds and the
putpose for whizh each debit to the Funds was made. The Funds are pledged as additional security for the sums sccurtd
by this Mortgage.
If the amount of the Funds held by L:-nder, togethcr with the future monthly installmcnts of Funds payable prior to
the due dat~s of taxes, assessments, insurance premiums and ground rents, ~hall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rent~ as they fall due, such excess shall be, at BorroKer's option, either
promptly repaid to Borrower or credited to Borro~.•er on mon~nly installments of Funds. If the amount o[ thc Funds
held by Lender shall not be sufficient to pay taxes, assAssments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deflciency within 30 days from the date notice is mailed
by Lender to Berrower requesting payment thereof.
Upon payment in full of all sums secured by this Mongage, l.ender shall promptly refund to Borrow•er any Funds
held by L.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, L~nder
shall apply, no later than immediately pri~r to the sale of the Yropetiy or its acquisition by Lender, any Funds htld by
Lender at the time of application as a credit against the sums secured b}~ this Mortgage.
3. Ap~iication of Payments. Unless applicable law pror•ides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.cnder first in payment of amounts payable to Lender by Borrower
under paragraQh 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. C4araes; Lieas, Borrower shall pay all taxes, assessments and othcr chargcs, fines and impositions attributabk to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
pcovided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paymeni, when due, directljr to the
payee thereof_ Borrower shall promptiy furnish to Lender all notices of amounts due under this paragraph, aad in the event
Borrower shall make payment directl}•. Borrow~er shail promp~ly fumish to Lender receipts evidencing such payments.
Borrower shal! promptly discharge anp lien which has priority over this Mortgage; prov~ded, that Borrower shall not be
req?;ired to discharge any su.h lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such {ien 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 :he Property or any part thereof.
5. Huard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Properiy insured
against lass by fire. hazards includeJ witnin the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such pe[iods as Lender may reyuire: provided, that Len~er shall not require that the amount of
such coverage exceed that amount of coverage required to pay tiie sums secured by th~s Mortgage.
"Ihe insurance carrier providing the insurance shall be chosen by Borrow•er subject to approval by Lender; providetl,
'i that such approval sha11 not be unreasonab{y withheld. All premiumc on insuranc~ polici°s shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
II insurance carrier. .
~i All insurance policies and renewals thereof shail be in form acceptable to Lender and shall include a standard mortgage
~ clause in favor of and in form acceptable to Lender. Len~~_ shall ha~~e the right to hold the policies and renew~als thereof,
~ and Borrower shall prompdy furnish to Lender all renewal r:otices and all receipts of paid premiums. In the event of loss,
E Borrower shall give prompt notice to th~ insurance carrier and Lender. Lender ma}• make proof of ioas if not made promptly
F by Borrower.
Unless Lender and Borrewer other~•ise agree in w•riting, insuraece proceeds shall be applie~ to restoration or repair of
i the Property damaged, provided such restoration or repair is economicall~~ feasible and the security of this Mortgage is
; not thereby impai:ed. If such restoration or repai~ is not economirally fcasible or if the securitp of this Mortgage wouid
be impaired, the insurance proceeds shall be applied to the sums szcured b}• this ~iortgage. with the excess, if any, paid
to Borrower. If the Propert~~ is abandoned b}~ Borrower, or if Bormwer faiis io respond io Lender within 30 days from the
date notice is mailed by Lender to Borr.,w•er that the insurance :arner ofier to settle a claim for insuran~e benefits, I.ender
~ is aut6orized to collect and apply the insurance proceeds at Lender's option either to restoration or repair o' the Property
~ or to the sums secured by this Mortgage_ •
Unless I_en~er and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred ta in paragraphs 1 and 2 hereof or change the amount of
~ such insta!Iments. If under paragraFh 18 hereof the Property is acyuired b1~ Lender, all right, titte and interest of Borrower
in and to an}• insurance policies and in and to the proceeds thereof resulting from darnage to the Propen}° prior to the sale
~ or acquisitian shall pass t~ Lender to the extent of the sums secured by this ~iortgage immediate{}• prior to such sale or
acquisition.
6. Presen~alion aod titaintenance of Propert~; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Yroperty in good repair and shall not commit waste ur permit itr~pairment or deterioration of the Property
and shall comply with the provisions of any lease if this Martgage is on a leasehold. If this Morigage is r~n a iznit in a
~ condominium or a planned unit development, Borrower shall perform all of BoncK•er's obligations under the declaration
or covenants creatmg or governing tne condominium or planned unit de~elo~ment, the by-laws and regu;atians of the
~ condominium or planned unit development, :~nd constituent documents. If a condominium or planned unit development
~ rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements o[ such rider
~ sha11 bP incorporated into and shall amend and supplement the co~~enants and agreem~nts of this Mortgage as if the ri~er
; were a part hereof.
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7. Protection uf Lende~s Security. If Borrow•er fails to perform the covenants and agreements contained in this
i Mortgage, or if any action or proceeding is commenced w•hich materially afiects Lender's interest in tne Property,
~ induding, but not limited tn; em.nonf ;ns~lvency, zode enforcement, or arrangements or proc?edings involving a
bankrupt or decedent, then Lender at Lende~ s option, upon notice to ??crrowe~, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's ir.erest, incluwng, but not limi!ed to, disbursement of
reasonable attomey's fees and entry upon the Property to make ;epairs. If Lender required mortgage insurance as a
condition of making the luan sec~red b}• this Mortgage, Borrower shall pay the premiums required !o maintain such
insuranee in effect urtil such time as the requirement for such insurance terminates in accordance with Borro:~ver's and
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