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HomeMy WebLinkAbout2329 - > i t~C~ ~ ~ it:i C~ UNIFORM COYENAN73. Borrower and Lender covenant and ague as follows: w • 1. Payment o~ Priaclpal sad Interest. 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 the principal of and interest on any Future Advances secured by this Mortgage. . Z. Funds for Tara and Insttnace. Subject to applicable law or to a written waiver by Lender. Borrower shall 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 stun (herein "Funda'~ equal 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 [or hazard insurance. plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. 71te Funds shall he held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said 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 hills, unless Lender pays Borrower interest on tha 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 (or which each debit to the Funds was made. The Funds arc 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 payable prior to the due dates of taxes, assessments. insurance prentiunu and ground rents, shall exceed the amount reyuired 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 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 an}• amount necessar}• to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower reyuesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Ixnder. 1t under paragraph 18 hereof the Property is xld or the Proper[}• is otherwise acquired by Lender, lender shall apply, no later than immediately prior to the sale of the Property or its acquisition b}• Lender, any Funds held by Lender 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 payments received by 1_ender under the Note and paragraph. 1 and 2 hereof shall be applied by Lender first in pa}•ment of amounts payable to l.endcr by Borrower under paragraph 2 herrof, then to interest payable on the Notc, then to the principal of the Notc, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shat) pay all taxes, assessments and other charges, fines anJ impinitions attributahle to the Property which may attain a priority over this lllortgagc, and leasehold payments or ground rents, if any, in the manner provrded under paragraph 2 hereof or. if not paid in such manner, by Borrower making pa}•ment, 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: proyiJecj, that Borrower. shall not be required to discharge any such lien so long as Borrower shall agree in writing to-the'paj•rrient of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien hy, or defeiid'chfori~cment of such lien in, legal proceeding. which operate to prevent the enforcement of the hen or for[eiture of the Property or any part thereof. S. Hazard Insurance. Borrower shall keep the rmpruvements now v>,isting or hereafter eructed on the Property insured against loss by fire, hatards included within the term "extended coverage'. and such other hazards as Lender ma)• require and in such amounts and fur such periods as Lender may require: pnwideA. that Lender shall not reyuirc that the amount of such coverage exceed that amount of rnverage reyuired to pay the sums secured h}' this Mortgage. The insurancrcarrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonahly withheld. All premiums on insurance policies shall he paid in the manner provided under paragraph 2 hereof ur, if not pail in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall Ix in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Under. Lcndcr shall have the right to hold the polirics and renewals thereof, and Burrower shalt prompt)}• furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, Burrower shall give prompt notice to the insurance carrier and Lender. Lender ma}' rnake proof of loss if not made promptly by Burrower. Unless Lender and Borrower othcn+rse agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such rcstoratwn or repair is economically feasible and the security of this Mortgage is ! not thereby impaired. If such restoration or repair is not ecunomi~all}• 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. 1( the Property is abandoned h}• Burrower, ~~r if Borr.~wer fails to respond to Lender within 30 da}•s from the ~ date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authoriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums ~ccured by this Mortgage. Unless Lender and $orrowcr otherwise agree in writing, any such application of pnxeeds to principal shall not extend i or postpone the due date of the monthly installments referred to in parrgraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acy?rired by Lender,rll 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 q or acyuisition shall pass to Lender to the eaten[ of the sums Secure) b}• this Mortgage immediate)}• prior to such sale or acquisition. ~ 6. Presen~ation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit Haste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage rs un 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 ur planned unit development, and constituent 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 amend anJ supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of i.tnder's Secerity. 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 s bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disbutx 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. !f [xnder required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in eBect until such time as the reytrirement for such insurance terminates in accordance with Borrowers and i t ~ ~ 1 • ~~A, - # 3