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HomeMy WebLinkAbout2562 UNtIORM COVeNAPtTti. Borrower and Lender covenant and agree u follows: 1. Pmt of PriaclMl soli IMeraf. Borrower shall promptly pay when due the principal of and interest on the ittdebtednas evidettced by the Note, prepayment and late charges ac provided in the Note, and the principal of and interest tnt any Future Advances sceured by this Mortgage. Rwds for Tatty ttati Ittatrtttace. Subject to applicable law ar to a written waiver by Lender, Borrower shall pay to Lettder on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in Lull, a sleet (herein "Fund:") egwl to one-twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and grottnd rents on the Property, if any. plus one-twelfth of yearly premium installments for hazard insurance. plus Otte-twelfth of yearly premium installments for mortgage ittstrrance, if any, all u reasonably estimated initially and from time to tithe by Lettder on the buffs of assessments and hills and reawnabk estimates thereof. 'llte Funds shall be held in an institution the depacits 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 set holding and applying the Frrnds. analyzing said account. 'nor 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 o[ this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such intetesl 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- 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 payable prior to the due dates of taxes. assessments. itnurance premiums and ground rents, shall exceed the amount required to pay said taxes, asses>s~nts, irtsurattce premiums and ground rents u 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 sttfficieat to pay taxes, assessments, insurance premiums and ground rents as they tall due, Borrower shall pay to Lender any amount ntcessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upat payment in full of all sttrrts secured by this Mortgage, !.ender 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 Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Paymeets. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs I and 2 hereof shall be applied by tender 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. I. Charges; Lkat. 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. 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 enktrcement of the Iren or forfeiture of the Property or any part thereof. S. Hazed Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazuds 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. -Ilte 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 shill 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 I insurance carrier. All insurance policies and renewals thereof shall tx 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 restoratron or repair is economically feasible and the security of this Mortgage is E not thereby impaired. If such restoration or repair is hat economically (easibh: 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 rs marled by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender i is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property 6 or to the sums secured by this Mortgage. Unless Lcndcr 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 Proferty is acywred by Lcndcr. all right, title and interest of Borrower • in and to any Assurance 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 this Mortgage immediately prior to such sale or acquisition. 6. Presen•ation and tifaintenance of Property; I.easehulds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not comrpit ys•aste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if the Mortgage rs tin a leaxhold. 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 dctcumems. If a condominium or planned unit development rider is executed by Borrower and recorded together wrth thrs Mortgage, the covenants and agreements of such rider shall be incorporated rnto and shall amend and supplement the cos-e:sants and agreements of thn Mortgage as if the rider were a part hereof. 7. Protection of [.ender's Security. If 13omrwer (arts to pertorm the covenants and agreements contained in this Mortgage. or if any action or proceeding n consmenced whrrh materially affects 1 ender', rnterest in the Property. ~ including. but not limned to. cmrnent domain. insohenc}. code enforcement. err :urangements or proceedings mvolvmg a bankrupt or decedent. then Lcndcr at 1 ender', option, uprrn notice kr Borrower. mat make such appearances, disburse such sums and take such action as rs necessary to protect Lender's interest. including. but not limited to. disbursement of reasonable attorney's tees and entry ulxm the Property to make repaus. It I.rnder required mortgage insurance as a condition n( making the loan secured by this Mortga?~e. B~~rrosser shall pay the premuutn required to maintain such insurance in elfect until such time as the reyuirentent for such insurance termutates m accordance with Borrower's and ~a~r 3U`T ~ac~ 561 f ?5