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HomeMy WebLinkAbout0108 w~ UNIFPRM COVEN~NTS. Borrower and L.ende~ covenant and agree as foltows: ' 1. Payment ot Pdacip~d and Intecat. Borrower shall promptly pay when due the principal of and interest on the iadebtedneu evidenced by the Note. Qrepayment acid late charges as provickd in the Note, a~d the principal of and interest on any Future Advances secured by this Mortgage. 2. FLads tor Tua ~nd Inwance. Subjecl to applicable law or to a written waiver by Lender. Aocrower shall pay to Lender on the day monthly i~stallments of pri~cipal and interest are payable under the Note, until the Note is paid in full, a aum (herein "Fu~ds") equal to o~e-twelfth ot the yearly taxes and assessments which may at!ain priority over this Mortgage, and ground renta on the Pmperty, if a~y. plus one-tweltth of yearly prcmium installments for hazard insurance, plus one-twellth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and [rom time to time by L.e~der on the basis of assessments and bills and reasonable estimates thereof. 'i?~e Funds shal! be held in an institution the deposits or accounts of which are insured or guaranteed by a Foderal 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. Lender m~y not cha~ge for so holding and applying !he Funds, analyzing said account. or verifying and compiling said assessments and bills, unleu Lender pays Borrowe~ interest o~ the Funds and applicabte law permits Lender ta make such a ch~rge. Borrowe~ and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law rcquira such interest to be paid. Lender shall not be required to pay Barrower any inter~st or earnings on the Funds. Lender shall gi~e to Borrower, without charge, an annual a:,counting of the 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 security for the sums secured by this Mortgage. ' If the amount of the Funds held by l.e~der, together with the future monthly installments of Funds payable prior to the due dates of ta~ces, 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 Borrow•er or credited to Borrower on monthly installments of Funds. If the amount o[ the Funds held by Lender shall not be sufficient to pay tares, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 Jays from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrower any Funds held by l.ender. If under paragraph 18 hereof the Property is sold or thc Property is otherwise acquired by Lender. Lender shall apply, no later than immediately prior to the sale of the Propert~ or its acquisition b~~ I.ender, any Funds held by Lender at the time of apptication as a credit against the sums secured by this Mortgagc. 3. Application of Payments. Unless applicable law provides otherH•ise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applicd by l.ender fint in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payablc on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Clwrges; Lkns. Borrower shall pay all taxes. assessments and othcr charges, fines and impositiuns attributabfe ta the Property w~hich may attain a priority over this Alortgage, and leasehold payments or ground rents. if any, in the manaer ptovided under paragraph 2 hereof ~r, 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 of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrow~er shall promptly fum~sh to Lender receipts evi~ncing such payments. Borrower shall promptly diuharge any lien which has priority over this Mortgage: provided, that Borrower shall not be required to discharge any such lien w 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 good faith contest such lien by. or defend enforcemtnt of such lien in, legal proceedings which operate to prevent the enforcement of the lien or fodawre of the Properiy or any part thereof. S. Hazard l~uurance. Borrower shall keep the improvements now existin or hereafter erec~ed on the Property insured ~ against loss by 6re, hazards included within the term "extended coverage", an such other hazards as Lender may require and in such amounts and for such periods as Lender may_ require; provided, that Lender shall not tequire that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. 'Il~e 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 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 i insurance carrier. ~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard 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 promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss. i Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly ~ by Borrower. f Unless Lender and Borrower otherw~ise agree in w•riting, insurance proceeds shall be applied to restoration or repair of the Propeny damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economicall~~ feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applieJ to the sums secured by this Mortgage, with the eacess, if any, paid to Borrower. ff the Propert}• is abandoned b~~ Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by L.ender to Borrower that the insurance carrier ofien to setNe a claim for insurance benefits, L.ender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the duc date of the monthl} 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 b}~ l.ender, all right, 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 acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or ~ acquisition. ~ 6. Prrservation and ~taintenance of Propert}; Leaseholds; Condominiums; Planned Uoit De~elopments. Borrower ~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property F:: and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit de~~elopment, Borrower shall perform 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 planued unit development, and constituent ciocuments. If a condominium or planned ~mit development riJer is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider ~ shall be incorporated into and shall amend and supplement the covenants and agreemeats of this Mortgage as if the rider were a part hereof. ~ ~ 7. Proteclion of Le~er's Security. If Borroµ~er fails to perform the covenants and agreements contained in this ~ Mortgage, or if any action or proceeding ;s commenced w~hich materially afiects Lender's interest in the Property. ~ including, but not limited to. eminent domain. insolvencp. code enforcement, or arrangements or proceedings involving a bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, ma~~ make such appearances, disburse such sums and take such action as is necessary to protect Lender s interest, including. but not limited to, disbursement of ~ reasonable attomey's fces and entry upon thc Properry to make repairs. If Lendcr required mortgage insurance as a Y~a condition of making the loan secured bp this M~ngage. Borrowcr shal! pay the premiums required to maintain such insurance in efiect until such time as the requirement (or such insurance terminates in accotdance with Borrower's and ~ . ~ ~ ~ - - - ° ` ,5..~ j - "~~,.T"~~ .a ~,..e.:..-~'i~.r?~...~ ~ .r ..r.. r . . . . _ ti ~'.ke. ~ ~~h._ _