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HomeMy WebLinkAbout0127 UNtFORM CovEN.~Nrs. Borrower and Lender cuvenant and agree as tollows: l. Paymeat of Principai aod interat. Bo~rower shall promptly pay when due the principal of and interest on the indebtedness `viderued by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on aay Future Advances secured by this Mortgage. Z. Fbnds tor Tua aad Im~rasce. Stibject to applicable law or to a written waiver by Lender. Borrower sh~ll pay to Lender on the day monthly instaliments of principal and i~terest are payable under the Note. u~til the Note is paid in full, a:um (hereiR "Fundi") equal to one-twelfth of the yea~ly taxes and asxssments which may attain priority ovor this Mortgage. and g~ound rents on the Pmperty, if any, plus one-tweltth of yearly p~emium installments for hazard insurance, plus one-twelfth of yearly premium iastallments 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. 'I~e Funds shall b~ held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including I.ender if L.ender is such an institution). Lender shall apply ihe Funds to pay said taxes. assessments, irtsurance premiums and ground ren~s. [.ender may ~ot charge for so holding and applying the Funds. analyzing said account, or verifying and compiling said assessments and bills, unleu 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 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 shalt give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funcls and the ' purpose for which each debit to the Funds was made. The Fun~s 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. insurance 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, eilher promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. I[ the amount of the Funds held by Leader shall not be sufficient to pay taxes. assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amounE 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, l.ender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 1R hereof the Property is sotd or thc Property is otherwise acquired by Lender. Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lcnder, any Funds held by Lender at the time of application as a credit against the sums secured by this Mongage. 3. Application of Psymeats. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by 1_ender first in payment o( amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Notc, then to the princ~pal of the Note, anJ then to interest and principal on any Future Advances. 4. Charges; Lieas. Borrower shall pay all Iaxes, assessments and other charges, fines anJ impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee theteof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shaU promptly fumish to l.ender receipts evidencing such payments. Borrower shall promptly discharge any lien w•hich has priority over this Mortgage; provided, that Borrower shall not be required to dixharge any such lien so long as Borrower sha0 agree in writing to the payment of the obligation secured by , such lien in a manner acceptable to Lender, or shall in goud faith contest such lien by, or defend enforcement of such lien in, fegal proceedings which operate to prevent the enfurcement of the lien or forfeiture of the Property br any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now• existing or hereafter erccted 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 I such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. ~ T7~e 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 herrs~f or, if not paid in such manner, by Borrower making payment, when due, direcdy to the ~ . ; insurance cazrier. ~ 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 i by Borrower. ~ Unless Lender and Borrow•er otherw ise agree in writing, insurance proceeds shall be applied to restoration or repair of t the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is p not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would s be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage: with the excess, if any, paid g to Borrower. If the Property is abandoned by Borrower, or if Borrower fails ro respond to Lender within 30 days from the ~ date notice is mailed by Lender to Borrower that ~he insurance carrier ofiers to settle a claim for insurance benefits, l.ender ~ is authorized to collect and apply the inwrance proceeds at Lender's option either to restoration or repair of the Property ~ or to the sums secured by this Mortgage. a Unless L.ender and Borrower otherveise agree in writing, any such application of proceeds to principal shall not extend ~ or postpone the due date of the monthly installmcnts referred to in paragraphs I and 2 hereof or change the amount of ~ '~such installmedts. If under paragraph IS hereof the Property is acyuired by I.ender, 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 ; or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immrdiately prior to such sale or acquisition. ~ _ 6. Presenation and hiaintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower ~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shaU comply with the provisions of any lease if this Mortgage is on a leaschold. If this Mortgage is on a unit in a ` condominium or a planned unit development, Borrower sha~l perform all of Borrower's obligations under the declaration ~ or covenants creating or governing the condominium or Qlanned unit development, the by-laws and regulations of the ` condominium or planned unit development, and constituent documents. If a condominium or planned unit development - rider is executed by Borrower and recorded togelher with this 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 rider F were a part hereof. ' Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proc:eeding is commenced which materially afiects 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 Borrawer, ma}~ make such appearances, disburse such ~ sums and take such action as is necessar}• to protect Lender s imerest, 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 ahall pay the premiums required to maintain such : insurance in efiect until such time a~ the reyuirement for such insurance terminates in accordance with Borrower's and ' ~V ~r 1z7 ~ _ _ . ~