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HomeMy WebLinkAbout1154 UNIFORM CoVBNANTa. Borrower and Lender covenant and agree as follows: 1. Pgrreat M PrMclMl aril INerait. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prcpayment_and late charges as provided in the Note, and the principal of and interest ors any Future Advances secured by this Mortgage. 2. Fr.INa for Tatty atsi Ittwrtnce. Subject to applicable law car to a written waiver by Lender. Borrower shall pay to Lender on_ the day monthly installments of principal anJ intcrcct arc payable under the Note. until the Note is paid in full, a sum (herein "Funds' equal to one-twelfth o1 the yearly taxc. 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 one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tune by Lender on the basis 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 guaranteed by a Federal otr 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. 1_ender may riot charge for so holding and applying the Frtrtds. analyzing said account. or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lsnder 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 sash 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 wu made. The Funds arc plodged as additional security for the sums sceured 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, aasestttnents, 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. If 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 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, lender shall promptly refund to Borrower any Funds held by Lender. If under parsgraph 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 Properly 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. Applicititioa of Payttoeats. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hertof. 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; Lfieds. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to the Properiy 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, and 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 good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the Gen or forfeiture of the Property or any part thereof. S. Hazard Insurance. 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 reyuirc; provided, that Lender shall not require that the amount of j such coverage exceed that amount of coverage required to pay the aims secured ~by this Mortgage. 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 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 the Property 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 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 if Borrower fails to respond to Lender within 30 days from the date notice is marled by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Ixnder 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 due date of the monthh• installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acywred h} Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale s or acquisition shall pass to Lender to the extent of the sums xcured b} this Mortgage immediately prior to such sale or acquisition. a ~ 6. Preservation and Maintenance of Property; i_easeholds; ('ondominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not comrvit yvaste or permit impairment or deterioration of the Property = and shall comph with the provisions of any lease if this Mortgage is tin a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, 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 planned unit development. and constituent documenrs. If a condominium or planned unit development rider is executed by Borrower and recorded n~gether w+th thn 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 rifer were a part hereof. 7. Protection of Lenders Security. If Borrower f:+ils to perform the covenants and agreements contained in this ;K Mortgage, ur if any action ur prcxeedrng is commenced which materially affects Lender's interest in the Propert}'. including. but not limited to. eminent domain. insolvency. rude erilorrement. ar arrangements or proceedings invoking a bankrupt or decedent, then Lender at Lender's option, ulxvn notice to Borrower, ma} make such appearances, disburse such ~ sums and take such action as rs necessan to protect Lender's interest. including. but not limited to, disbursement of reasonahle attorney's tees and entry upon the Properl} to make repairs. It Linder required mortgage insurance as a condition u( making the loan secured b} this Mortgage. Burrower shall pa}• the premiums required to maintain such ~ Insurance in effect ?sntil such time as the reynirrment for such inwranre terminates m accordance with Borrower's and I f ( (