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HomeMy WebLinkAbout1843 ' UNIFORM Covetvxrv~ts. Borrower and Lender covenant and agree u follows: 1. >TMyusetst of lrriaclpftl sari Werest. Borrower shall promptly pay when due the principal of and interest on the incbbtedneaa evidenced by the Note, prepayment and late charges u provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. Ftt~ds tort Tares atati Ice. Subject to applicable law or to a written waiver by Lender. Borrower drap pay to Lender on the day monthly installments of principal and interest are payable under the Note._until the Note is paid in full, a sum (herein "Funds' equal to one•twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on t Property, if any, plus one-twelfth of yearly premium installments for hazard insurance. i plus one-twelfth of yearly premiu~ri installments for mortgage insurance, if any, all as reasonably estimated initially and from time to titre by Lender on the. bass of assessments and bills and reasonable estimates thereof. ! 'ilte Funds shall be held in an institution the deposits or accounts of which are insured or guaranteesd .by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay satd taxes. assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, 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 sad 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 applicabk 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 as additional security for the sums secured , by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payabk prior to the due dates of taxes, assessments, iruurance 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 f promptly repaid to Bor~+ower or credited to Borrower on monthly installments of Funds. If the amount o[ the Funds held by Lender shall not be sutficieat to pay razes, 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 j by Lender to Borrower requesting payment thereof. - Upon payment is full 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 is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lander at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise,:all~paymen s, received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by [_ender first in payment of amouYt~s able to Lender by Borrower- under paragraph 2 hereof, then to interest payable on the Note, then to the principaj oli•Are Note, and then to interest and principal on any Future Advances. , ~ ; 4. Charges; Li+etas. Borrower shall pay all taxes, assessments and other charges, fits an~'tjRf){ositions attributable to _ the Property which may attain a priority over this Mongage, ahd leasehold-payments of gintitld t+GM~:M'any. in the manner provided under paragraph 2 hereof or, if not paid in such manner, by )4Orrower makjita ~ayttsead~, vtr~adue, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices o amounts due under this paragraph, and io 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 Iasnrance. Borrower shall keep 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 by this Mortgage. 'Ilre 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. AU 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 tv 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 j 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 i( Borrower fails to respond to Leader within 30 days from the E date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender ~ is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or t~ 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 monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of . j such installments. If under paragraph 18 hereof the P perry is acquired by Lender, all right, title and interest of Borrower ` in sad to any insurance policies and in and to the pros thereof resulting from damage to the Property prior to the sale c or acquisition shall pass to Lender to the extent of the ums secured by this Mortgage immediately prior to such sak or acquisition. 6. Preservation and Maintenance of Property; Le holds; Condominiurrrx Planned Unit Developments. Borrower shall keep the Property is good repair and shall not com it waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this ortgage is on,a leasehold. if this Mortgage is on a unit in a condominium or a planned unit development, Borrower sh II perform all 1if Borrower's obligations under the declaration or covenants creating or governing the condominium or nned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent ocuments. if a condominium or planned unit development rider is executed by Borrower and recorded together with t ~s Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the ovenants and agreements of this Mortgage u if the rider were a part hereof. t 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may 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 attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall ,pay the premiums required to maintain such inuurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and • J~.Lr •..JVV 1V~~ . ~ a • _