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HomeMy WebLinkAbout0440 . 1 : UNIFORM COVENANTS. Borrower and Lender covenant and agree as Iollows: 1. Payment of PNnclpal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepaymentand late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. Funds forTaxes 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 ~s paid rn full, a sum (herain "Funds") equal to one•tweltth 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 for hazard insurance, plus one-twelfth of yeariypremium instdllrrients for mortgage insurance, it any, all as reasaonably estimated initialy and from time to time by Lender on the basis of assessment's and bills and reasonable estimates thereof. The Funds shall be 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 veritying 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 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~ot 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. 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 tall due, such excess shall be, at~orrowers 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 tall due. Borrower shall pay to Lender any amount necessary to make up the deficlencyvvithin 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. ' Upon payment in lull of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds held by Lerfder. tt urSde~ paragraph 18 heTeot the f~ropert is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale ~f the Property or its acquisition by Lender, any Funds held by Ler~~et~-t the tjrrre of applicatiorl_as a Credit against the sums secured by this Mortgage. 3. - Appllcatlon of Payments., Unless applicable law. provides otherwise, all payments received by Lender under the Noter 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 payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Uens. 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 Bound 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 atfiounts 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 requrred to discharge any such lien sp long as Borrower shall agree in writing to the payment of the obligation secured by such lieh"in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend 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. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected 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 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 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 pOl~cies 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 tight 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 it not made-promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair o1 4 the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not theretiy impaired- If such restoration or repair is not economically feasible or if the security of this Mortgage would ae impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess. if any, paid to Borrower. It the Property is abandoned ley Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice ~s 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 Lenders option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless lender 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 t and 2 hereof or change the amount of I£ such installments. It under paragraph 18 hereof the Property is acquired by Lender, all right. title and interest of Borrower in and to any insurance polices and in and to the proceeds thereof resulting from damage to the Property peon 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 acquis~tion- 6. Preservation end Mslntenancs of Property; Leaseholds; Condominiums; Planned Unlt Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Pro- perty and shall comply with the provisions of any lease if this Mortgage rs on a leasehold. If this Mortgage is on a unit in a condomirnum or a planned unit development. Borrower shall perform all of Borrowers 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 documents. If a condominwm or planned unit development rider ~s executed by Borrower and recorded together 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 were a part hereof. ~ 7. Protection of Lender's Security. If Borrower tails to perform the covenants and agreements contained in this i Mortgage. or if any action or proceeding is commenced which materially affects Lenders 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 Lenders op!~on, 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 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 shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and f ~ . - r~r ~n~ nom-.