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HomeMy WebLinkAbout1242 - UNIFORM CovartAt+». Borrower and Lender covenant and agree as follows: 1. ttgnweN a< hiaelrl tmtl IWes~ettl. Borrower shall promptly pay when due the principal of and interest on the indttbtedness evideaocd by the Note, prepayment and late charges as provided in the Note, and the principal of and interest oa any Future Advances sectrr+ed by this Mortgage. II~i ter'lluaa feral hnrrr+aKY. Subject to applicable law ar to a written waiver by Lender. Botrrower shall pay to Lendw on the day monthly inutallments of principal and interest arc. payable under the Note, until the Note is paid in full, a sum (herein "Funds'q equal to one-twelfth of the yearl~~ 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 u reasonably estimated initially and from i time to time by Leader on the buffs of assessments and hills and reasonable estimates thereof. The Funds shall be beW in an institution the deposits or accounts of which arc ittsttred or guaranteed by a Federal of state agency (including Leader if Lender is such an irutitutionl. 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 Fttnds. analyzing said account, or verifying~ad compiling said assessments and bilk, 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 o[ execution of this ' Mortgage flat 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 shill 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 wu made. The Funds arc 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. assearrtents, insurance premiums and ground rents u they tall due, such excess shall be, at Borrowers option, either promptly repaid to Borrower ar credited to Borrower on monthly installments of Funds. If the amount of the 1:unds held by Leader shall not be suf6cieat to pay taxes. assessments, insurance premiums 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 payment thereof. Upat payment in fop of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under pusgraph 18 hereof the Property is sold or the Property rs 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 Leader at the tune of application as a credit against the sums secured by this Mortgage. 3. Atplicatios o[ PayrneNs. Unless applicable law provides otherwise, all payments tticeived 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 payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Lkas. 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 ground 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 amounts 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 required 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 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. S. Hazard Insurawce. Borrower shall kcep 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 u 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 such coverage exceed that amount of coverage required to pay the- sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Under, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner f provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. ' 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 by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of ~ the Properly damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if 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 If the Properly is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice 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 procceds_ at Lender's option either to restoration or repair of the Propene 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 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 Properly prior to the sale 3 or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Presenatioo and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Ik~elopments. Borrower shall keep the Properly in good repair and shall not commit yvaste or permit impairment or deterioration of the Property 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 condominium 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 atxi 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 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 rifer were a part hereof. f 7. Protection of Lender's 5ecurlty. If Borrower fads to perform the covenants and agreements contained in this _ Mortgage, or if any action ur proceeding is commenced which materially affects (-ender's interest in the Properly, including. but not bmited to, eminent domain. insolvency, c~xle enforcement, or arrangements or proceedings involving a bankrupt or decedent. then 1_ender at Lender's option, upon notice to Borrower. ma} make such appearances, dishurse such sums and take such action as is necrssary w protect Lender's interest, including. but not limited to, disbursement of s reasonahle attorney's fees and emry upon the Property to make repair. I( I-coder required mortgage insurance as a condrt~on ~~f making the loan acured by this Mortgage. B~~rr~~wer shall pay the premiums required to maintain such insurance in elfect until such time as the requirement for wch insurance terminates ro accordance with Bormwer'sand _