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HomeMy WebLinkAbout0418 eAV ''~::F ~7 UNIFORM COVENANTS. borrower and Lender covenant and agree as follows: t . Payment of IPriealpal and Interrst. Borrower shall promptly pay when due the principal of and interest on the ,ndebtedngss evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. Z. funds torTaxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shalt pay to Lender on the day monthly installments of principal and interest are payable under the Noie, until the Note is paid in full, a sum (herein ••Funds'7 equal to one•tweltth of the yearly takes 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 reasaonablyestimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates !hereof. The Funds shall be held in an institution the deposits or accounts of which are insured a guaranteed by a Federal or state agency including Lender it Lender is such an institutiony. 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 verifying and compiling said assessments and gills, unless l-ender pays Borrower interest on the Funds anti applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time o1 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 orearnrngs orthe i=unds. 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 call due, such excess shall tie, at Borrower's option, either promptly repaid to Borrower or credited to borrower on monthly installments of Funds. tf the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due. Borrower shat! 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. Upon payment in full qt_ all sums secured by. this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender If u ;de; ;,a;agrurti f f3 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. Appllcatlon of Payments. Unless applicable law provides otherwise, al! payments received by Lender under the Note and paragraphs t and 2 hereof shalt 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; Liens. 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 gound rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payrnenl, tivhen 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, Borrov~er shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shaft 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 enforgement of tde lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shalt 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 covetage 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, provrded. shat such approval shalt not be unreasonably withheld. All premiums on insurance policies shat) be paid in the manner provrded under paragraph 2 hereof or, it 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 inform 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. to the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of toss 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. tl 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. it any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower tails 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 proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree rn writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs f and 2 hereof or change the amount of such installments. li under paragraph 18 hereof the Property is acquired by Lender. all right. title and interest of Borrower rn and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition shaft pass to Lender to the extent of the sums secured by this Mortgage immediately error to such sate or acgwsition. 6. Preservation and Maintenance of Property; Leaseholds; CondomiNums; Planned Unft Developments. Borrower shall keep the Property rn 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 ii this Mortgage is on a leasehold. If this Mortgage rs on a unit m a condominium or a planned unit development. Borrower shall pertorrr: a!! of Borrower's obligations under the declaration - or covenants creating or goverrnng the condominium or planned urnt development. the by-laws and regulations of the condominium or panned unit development. and constituent documents. It a condominium or planned unit development rider is executed by Borrower and recorded together wrih this Mortgage. the covenants and agreements of such rrder shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as rf the rrder were a part hereof. 7. Protection of Lender's Security. It Borrower farts to perform the covenants and agreements contained rn this Mortgage. or if any action or proceeding ,s 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. fhen Lender at Lenders option, upon notice to Borrower. may make such appearances. disburse such sums and take such 3cti0^ as is necessary trJ protect Lend9,r5 intr?re52, inrlc;ding. ti{~r r1t): limited tr;. drst2::tserrleniS C! reasonab~e attorney's tees and entry upon the Property to make repairs. If Lender required mortgage ,nsurance as a condition of making the loan secured by this Mortgage„Borrower shall pay the premiums required to maintain such insurance rn etlect until such time as the requirement for such insurance terminates rn accordance wrih Borrowers and ~i~6 ~~41. ' '1.~,' / { Zy_ i l ~S8