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Home My WebLink About2777 UNIFORM CA~'ENAA'ls. Borrower artd Lender covenant and agree as follows: 1. Payment of Prtn~ipal and 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 Nute, and the principal of and inter- est on any Future Advances secured by this Mortgage. 2 flrnds for Taxes and Insurance. 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 sum (herein "Funds") equal to one-twelfth o[ the yearly taxes and assessments which ma}• attain priority over this Mortgage, and ground rents on the Property, if any. plus one-twelfth of }'early premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as rrautuably estimated initially and from time to time by Lender on the basis o[ assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts o[ which are insured or guaranteed by a Federal or state agency (including Lender i[ Lender is such aft institution). Lender shall apply ttte Funds to pay said taxes, assessmenu, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said ac- count, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and ap• plicable 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 requiras such interest to be paid, Lender shall rtot be required to pay Borrower any interest or earrtirtgs ort the Funds. Lender shall give to Borrower, without charge, an annual attounting o[ the Funds showing credits and debits to the Funds and the purpose for which each debit to the Furtds was made. "The Funds are pledged as aelditiortal secvrit}• for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funcls 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 premiums artd ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthl}• installments of Furtds. It the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and grourtci 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. Uport payment in full o[ all sums secured by this ;lforigage, Lender shall promptly' refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Proper[}• is otherwise acquired b}• Leader, 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 Payments. 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 hereof, then to interest parable on the Note, then to the principal o[ 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 priori[}' over this Mortgage, and leasehold payments or ground rents, if :uty-, in the man' nee provided under paragraph 2 hereof or, if trot paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amowtts due under this paragraph. and in the event Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrosder shall promptly discharge an}• lien which has priority m-er this Mortgage: provided, that Borrower shall not be re- quired to discharge any such lien so long as Borrower shall agree in writing to the pa}•ment of the obligation secured b}' such lien in a manner acceptable to Lender. or shall in g«x1 faith contest such lien by, or defend entorcc•ment of such lien in, le- gal pr«eedings which operate to prevent the enforcement o[ the lien or forfeiture of the Property or arty hart thereof. 5. Harzrd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property in- sured against loss by tire, hazards included within the term "extended coverage", and wch other hazards as Lender may re- quire and in such amounts and [or such periods as bender 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. The insurance carrier providing the insurance shalt be chosen by Borrower subject to approval by fender: provided, that such approval shall not be unreaurnably withheld. .~11 pre•miums mt insurance Ixtlicies shall he 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. I All insurance policies and renewals thereof shall be in form acceptable to Lender aad shall include a standard wort- ; gage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies :u?d renewals thereof, and Borrower shall pn,mpth• tarnish to Lender all renewal notices and all receipts of paid premiums. Lt the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender mac make prcxtf of loss if not made promptly by $orrower. 3 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 economicalh• feasible and the security of this Mortgage is not thereby impaired. I[ such restoration or repair is not economically feasible or if the security of this \(ortj;age would be im- p paired, the insurance pr«eeds shall be applied to the sums secured by this Jortgage, with the excess, if anc, paid to Bor- rower. IF the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 clays from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim [or inwrance benefits, Lender is i 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 \iortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date at the monthh• installments referred a. in paragraphs I and 2 he•reoi or change the amount o[ such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title :uul interest of Borrower in g and to am• insurance policies and in and to the pr«eeds thereof resulting tram 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. Preservation and '.liaintenance of Property; Leaseholds: Condominiums; Planned Ltnit Developments. Borrower shall keep the Property in good repair and shall not commit waste ctr permit impairment or deterioration of the Property and shall comph• with the provisions of any lease if this \lortgage is on a leasehold. It this Mortgage is on a unit in a condominium or a planned unit development. Borrower shall perform all of Bormwer's obligations under the declaration - or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condo- minium or planned unit development, and constituent documents. If a condominium nr planned unit development rider is executed by Borrower and recorded together with this Mortgage, the rnyenants and agreements of such rider shall be in- corporated into and shall amend and supplement the covenants and agreements of this Mortgage as it the rider were a part hereof. a _ Protection of Lender's Security. If Borrower fails to perform the cos•euants and a~;reementc contained in this Mortgage, or if am• action or proceeding is commenced which materially affects Lender's interest in the 1'rol?erty. including, but not limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings imohing a bankrupt or decedent, then Lender at Lender's option, upon notice to Rorrowcr. may make such appearances, disburse wch sums and take such action as is necessary to protect Lender's interest, including, but not limited to. disbursement of reasonable j attorney's tees and entry upon the Proper[}• to make repairs. if Lender required mortKaRe insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in ef- fect until such time as the requirement for wch inwrance terminates in accordance with Bormwer's and Lender's written • - 3 ~K, 307 2776 - ~