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HomeMy WebLinkAbout0796 1 R , "~~3~~ E .1~ UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Prtnelpil and Interest. Borrower shall prompty pay when due the principal of and interest on the indebtedness 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. 2. Runde 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, until the Note is paid in full, 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, it any, plus one•tweltth of yearly premium installments for hazard insurance. plusone•twelfthotyearlypremiuminstallmentslormortgageinsurance,itany,ailasreasaonabtyestimatedinitialtyandfrom 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 agencyf including Lender ii 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 verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits tender to make such a charge. Borrower and Lender may agree in writing at the time et execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable taw requires such interest to be paid, Lender shalt not be required to pay Borrowerany interest orearnings or the Funds. Lender shall 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. If the amount of the Funds held by Lender, together with the future monthly installments of Fun~1s payable prior to the due dates of taxes, assessments, insurance premiums and ground rents shall e c the amount required to pay said taxes, assessments: insurance premiums and ground rents as they fall due;~i`~ft~~~~~R~all t~e,'afi~rt6lv`etrl!'option, either promptly repaid to Borrower or credited to Borrower on monthly installments of f-unds:itt3Zhftl~l8ount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insuFancepterniurl~s: aAd rou~? rq tall due. Borrower shall pay to Lender any amount necessary to make up the detie~ency.withjri 3Q d~y~~~o~~~ ~~i~o~ ~ sled by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Leif ~T~itflF`promp~y rel"un'"attbbt~bl~fBMlee.tta~inds 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 Payments. Unless applicable law provides oihenvise, all payments received 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; Liens. Borrower shell 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 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 ties 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. 5. Hazard Insutnce. Borrower shall keep the improvements now existing a 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 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 rin.insurance policies shall be paid in ttie manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower rhaking payment, when due, directly to the insurance carrier. Ati 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 shaft 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 Property 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 o? if the security of this Mortgage would be rmpaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess. if 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 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 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 ,nand to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior 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 acquisition. 6. Preservation and Maintenance of Property; Le~saholds; Condominiums; Planned Unit Developments. Borrower shah keep the Property,n good repairand shat) not commit waste or permit impairment or deterioration of the Pro- party and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit an a condominium or a planned ur•~it 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 dxuments. If a condominium or planned snit 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 it the rider were a part hereof. 7. Protection of Lender's Security. I! Borrower tails to perform the covenants and agreements conta,ned rn this Mortgage. or if any action or proceeding is commenced which materially affects Lender's interest in the Property, ,nclud,ng, but not limited to, eminent domain. insolvency. code enforcement. or arrangements or proceedings involv,ng 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 condiUOn of making the loan secured by this Mortgage, BorTOwer shall, pay the prem,ums required to maintain such ,nsurance ,n effect until such time as the requirement for such insurance terminates in accordance with Borrowers and g~~~q '~6