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HomeMy WebLinkAbout1986 UNIIORM COVItlNANTa. BOrroWet and Lender covenant and agree u follows: >l P~yweat N lrloclMl tttrti IMerettt. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and fire principal of and interest oa any Future Advances sectuod by this Mortgage. 2. 14wti tot Tacos atrtl Inwrtree. Subject to applicalk law .u to a written waiver by Lender. Bortrower shall pay to Lender on the day monthly installments of principal and intcrcct rrc payable under the Note, until the Note is paid in full. s tram (herein "Funds'? cgwl to one-twelfth of the yearly taz~~ and assessments which taay attain priority over this Motlgase. and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance. plus one-twelfth of yearly prcmitrm installments for mortgage insurance, it any, all u reasonably estimated initially and from time to time by Lender on the basis of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the depasita or accounts of which are insured or gwrantced by a Federal of state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. asseuments. insurance premiums and ground rents. lender may not charge for sa holding and applying the Frtnds. analyzing said account, or verifying and compling said assessments and bills,.unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower •and Lender may agree. in writing at the time of exceution of this Mortgage that interat on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law regtriret such interat to be paid. Lender shall not be required to pay Borrower any interest or carvings on 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. The Funds are pledged as additional security for the sums secured by this Mortgage. ' If the amount o[ 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 u they fall due, such excess shall be, at Borrowers option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds held by Leorkr shall not be sufficient to pay taxes. assessments, insurance premiums and ground rents u they fall due, Borrow~et shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Leander to Borrower requesting payment thereof. Upon payment in fuU of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any Fund. held by Leader at the time of application u a credit against the sums secured by this Mortgage. 3. AppBcatiorr of Payeeds. Unless applicable law provides otherwise, all payments received by Lender under the Note and puagraphs 1 sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower , under paragraph 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. 1. t,;6arges; Lkos. Borrower shall pay all lazes, 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 payee thcr~eof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and is the event - 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 Mortgage; provided, that Borrower shall not be required to discharge any such lien so 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 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. S. Hazard Irrsurnwee. Borrower shall kcep the improvements now• existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require and in such amounts and for such periods as lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured py this Mor~age. The 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 &?rrower 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 Lender. 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, 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 Borrower otherwise agree in wntmg, insurance proceeds shall be applied to restoration or repair of g the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. 1( such restoration or repair is not economically feasible or if the security of this Mortgage would , 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 Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender • ; is autboriied to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propert< or to the sums secured by this Mortgage. t Unless 1_ender 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 to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Pro ferry is acquired by Lender, all right, title and interest of Borrower in and to any Insurance policies and in and to the proc:erds thereof resulting from damage to the Properly 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. Preservation and Maintenance of Properly: Leaseholds; Condominiums; Planned Uuit Devebpments. Borrower shall kcep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrowers 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 documents. If a condominium or planned rmit development rider is executed by Borrower and rernrded together with this Mortgage. the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider f were a part hereof. , 7. Protection of Lender's Security. If Borrower fads to perform the covenants and agreements contained in this Mortgage, or if any action ur proceeding is commenced which materially affects Lender's interest in the Property, - ~ I - including, but not limited to, eminent domain. inudsency. cx~de enforcement, or arrangements or proceedings invols•ing a bankrupt or decedent. then Lender at Lender's option, upm notice let Borrower, may make such appearances, disburse such sums and take such action as rs necessary to protect Lender's interest, including. but not limned to, disbursement of reasonable attorney's fees and entry uixm the Property to make repairs. If Lender required mortgage insurance as a i condition of making the loan secure) by this Mortgage. Borrower shall pay the premiums required to maintain such ~ insurance in eltect until such ume as the rcyuirement for such ~nsurancc terminates in accordance with Borrower's and ~ 301 i~a<<1981 6~:r