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HomeMy WebLinkAbout2339 .:~ji3 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: . 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced bythe Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds 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, unlit the Note is paid in lull, a sum Therein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this iviviiyay~, di'iu yiiiuii~ iaiil5 vii it'ie rr+;i~viiy, it any, pivS viid-i~iciitii of y~aiiji pretnitirt iiijid~~i~ly:+iS ~tlr:~a~a~ i~ijurtiiii.e, plus one-twelfth Of yearly premium installments for mortgage insurance, if any, ell as reasaonabty estimated initially and f rom time to time by Lender on the basis of assessments aril bills and reasonable estimates thereof. The Funds shat) beheld 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 renf5.'Lender may not charge 1pr 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. Bom~wer 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 regwres such interest to be paid, Lender shall not be required to pay Borroweranyinterest oreamings on the Funds. Lender shalt 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. It 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 tall 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 premwms 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 by lender to Borrower requesting pay+rent thereof. Upon payment in 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 Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Paymenb. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs t and 2 hereof shall be applied by Lender lust 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. , 4. Charyes; Uens. Borrower shall pay all taxes, assessments end other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or gound rents. it 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 promptty furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shalt make payment directly. Borrower shall promptly fumish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be regwred 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 !aith 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.. 5. Ha=ard Insurance. Borrower shall keep the improvements now ewsGng or hereafter erected on the Property insured against toss by tire, 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 require: provided. that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sum secured by this Mortgage. The 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 i provided under paragraph 2 hereof or, it not paid in such manner, by Borrower making payment, when due, directly to the insurance career. ~ -All insurance policies and renewals thereof shall be in form acceptable to Lender and shalt 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.ln the event of loss. I Borrower shall give prompt notice to the insurance career 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 ar repair of r the Property damaged, provided such restoration or repair ~s economically feasible and the security of this Mortgage is not thereby impaired. I( such restoration or repair is not economically feasible or it 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. li the Property is abandoned by Borrower, or ii Borrower fads to respond to Lender within 30 days from the date nonce 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 to the sums secured by this Mortgage. Unless Lenderand 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 Property is acquired by Lender. 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 t or acqu~s~tion shall pass to lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condomintums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Pro- perry and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage ~s on a unit in a condominwm or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration ~ or covenants creating or governing the condommwm or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condomirnum or planned unit development rider ~s executed by Borrower and recorded together with this Mortgage. the covenants and agreements of such rider shalt be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as ~f the rider were a part hereof. 7. Protection of lenders Security. It Borrower fails to perform the covenants and agreements contained in this ~ Mortgage. or d any action or proceeding is commenced which materially allects Lenders interest in the Property. ~nctuding. but not limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings involving a bankrupt or decedent then Lender at Lenders option. upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lenders interest, including, but not limited to, disbursements of reasonable attorneys 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. shalt pay the premwms required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and • ~