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HomeMy WebLinkAbout1148 UNIFORM COVENANT!. Borrower and Lender covenant and agree u [allows: 1. hyttttteat M TriuclMl ttttM IMesest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and late charges ac provided in the Note, and the principsl of and interest on say Future Advances secured by this Mortgage. 2. Ftuds tx Totes suti I~wrdee. Subject to applicable law ar to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and intcrcxt are payahk under the Note, until the Note is paid in full, a sum (herein "Funds'q sgwl to one-twelfth of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property. if any. plus one-twelfth of yearly premium installments for hazard insurance. plus oae-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the buffs of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or gwranteed by a Federal or state agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments. insurance premiums and ground rents. lender may not charge for so holding and applying the Frtnds. analyzing said account, or verifying and compiling 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 execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings 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 u 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 prcmiutns and ground roots as they tall due, such excess shall be, at Borrowers option, either . praaptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall tint be sttf6cieat to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrowrer shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. upon payment in full of all sums secured by this Mortgage, !.ender shall promptly refund to Borrower any Funds held by [.ender. If under puagraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender :ball apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payttaeals. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 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. 4. Charges; Liens. Borrower shall pay all taxes, 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 thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad in 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 goad 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 Inavraace. Borrower shall keep the improvements now• existing or hereafter erected on the Property insurod 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 by this Mortgage. 'Rte insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided, tbat 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 pail 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 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 writing, insurance proceeds shall be applied to restoration or repair of t the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is i not thereby impaired. If such restoration or repair is not economically feasible ur 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 1 to Borrower. if the Property is abandoned by Borrower, or if Borrower fails to respond to 1_ender within 30 days from the 5 date notice is marled by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender 5 is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propem• or to the sums secured by this Mortgage. Unless Lender and Burrower otherwise agree m writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. if under paragraph I8 hereof the Property is acquired h} Lender, all right, title and interest of Borrower in and to any Arsurance 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 thu Mortgage immediately prior to such sale or j acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit yi•aste ar permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a trait in a condominium or a planned umt development, Borrower shall perform all of Borrower's obligations under the declaration _ or covenants creating or governing the rnndaminium or planned unit development, the by-laws and regulations of the condominium or planned unit development, ;rod :onstiwent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall emend and supplement the cu~enants and agreements of this Mortgage as if the rifer were a part hereof. 7. Protection of Lenders Security. If Harrower f;uh to perform the covenants and agreements contained in this Mortgage, or if any acUOn or proceeding rs commence.! which materially affects Lender's interest in the Property, including. but not horded to. eminent domain, insolvency. code enforcement. or arrangements or proceedings involving a ~ banknipt or decedent, then Lender at Lender's optran, upon notice to Harrower, mss make such appearances, dishurse such sums and take such action as is necessary to protect Lender's rmerest. including. but not limned to, disbursement of reasonable attorney's fees -and entry uprm the Property to make repairs. If Lrndcr «yuired mortgage insurance as a g condruon of making the loan secured by thu ;llortgagr. Hormtier shall pay the premiums required ta~ maintain such insurance in. effect until such time as the «yui«ment for uich insurance terminates m accordance with Borrower's and ~~~r~ ~U5 :1146