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HomeMy WebLinkAbout0433 . UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: t . Payment of Princlpatl and Intanst. 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. Z. Funds fotrTax~s and Insuance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender or1 the day monthly installments of principal and interest are payable under the Note, until the Note is paid in lull, a sum (herein "Funds'? equal to one-twelfth 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 yearly premium installments for mortgage insurance, if any, all as reasaonabfyestimatetl initially and from time to time by Lender on the basis of assessments 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, anatyzing 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. 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, Lendq~ shall pp~requir~ to pay Borrovyec~ny interest or eacnings or.the Funds. lender shall give to Borrower, without charge, anannuataccounting of the Funds sho ing credits and`debitsto 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 Borrowers option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. I1 the amount of the Funds held by Lender shall no) bA sufficient la pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shat l pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to BorrOw_ er regttesting,payment thereof,: - Upon payment ir1 full ofall sums >;eCNre~ by this fNorlg~ge, Lender shall promptly refund to Borrower any Funds held by Lender. II urltiBr Paragraph T8 n'eTeot ttie Property is spld~or the Property is otherwise acquired by Lender, Lender shall apply, no Jater-ihan=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 r}rebit agiifihst the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Ncte and paragraphs t and 2 hereof shat) 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. Chargfes; Liens. Borrower shat) 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, 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 promptly Iurnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall, promptly fumish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has pnority over this Mortgage: provided, that Borrower shall not be required to discharge any such lien so tong 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 enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazat~ Insurance. Borrower shalt keep the improvements now existing or hereafter erected on the Property insured against loss by tire, hazards included within the term "extended coverage", and such other hazards as Lender may require and in suCRamounts 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 1his~Mortgage.. ; The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender provided. that such approval shall r?ot bA unreasonably withhefd.'All premiums on insurance poticies~shall be paid irrthe manner I; provided under paragraph 2 hereof or, if not paid in Such manner, byBbrrower making payment, when due. directly to the insurance carver. All insurance polices 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 fumish 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 restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. It such restoration or repair ~s not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall tie applied to the sums secured by this Mortgage. with the excess. it any, paid to Borrower. If the Property is abandoned by Borrower. or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrowerthat the insurance carrier offers to settle a claim for insurance benefits: lender _ ~s author¢ed to collect and apply the insurance proceeds at Lenders op__UAn 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 pnnc~pal shoo 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 m and to any insurance pol~c~es and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisitbn shall pass to lender to the extent of the sums secured by this Mortgage immediately prior to such sale or ) acquisition. t 8. PreNrvation and Maintenance of Property; L~asehoids; Condominiums; Planned Ui1it Developments. 1 Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Pro- perry and shalt comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a ~ condominwrn or a planned unit development. Borrower shall perform allot Borrowers obligations under the declaration f or covenants creating or governing the condominium or planned urnt development, the by-laws and regulations of the condominium or planned unit development. and constituent documents. If a condominium or planned unit development nder is executed by Borrower and recorded together with this Mortgage. the covenants and agreements of such nder sflatl be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as ~f the nder were a part hereof- 7. Protection of Bender's Security. It Borrower fails to perform the covenants and agreements contained in this Mortgage, or it 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 option, upon nonce to Borrower. may make such appearances. disburse such sums and lake such action as is necessary to protect Lenders interest including. but not I~mited 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 t insurance m effect until such time as the requirement for such insurance terminates in accordance with Borrowers and _ 3,2 2 Pve 4 3