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HomeMy WebLinkAbout0815 • - f UNIFORM COVENANTS. BOrrowcr and Lcndcr cuvcnant :+nd :+grec a~ fol10KS: 1. Payment of Principal and Interest. Bcuruwer shall promptly pay when due the principal of and intcrest on the indebtedness evidenced by the Notc, prepayment and late charfcs as provided in the Note, and the principal of and intcrest f on any Future Advances secured by this Mortgage. i 2. Fnnds for Ta:es and lnsurattca. Subject to applKable law or to a written waiver by Lender. Borrower shall pay to Lender on the day momhly installments of principal and intcrest arc payahlc under the Note, until the Notc is prid 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 tents on the Property, if any. plus one-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments tar mortgage insurance, if any, all as reasonably estimated initially and from + time to time by Lender on the basis of assessments and hilts :+nd rcax~nablc estimates thereof. i 'i7re Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Fecie+al or ~ state agency (including Lender if Lender is such an institutionl. 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, i or verifying and compiling said assessments and hills, unless !-ender pays Borrower interes! 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 o[ this Mortgage that interest on .the Funds shall he paid to &~rrower, and unless such agreement is made or applicahte law i requira such interest to be paid, Lcndcr shall not he required to p;+y Borrower an}• interest or earnings on the Funds. Lender t shalt give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and the I purpose for which each debit to the Funds was made. The Fundy 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 lost:+Ilments of Funds payable prior to ~ , the due dates of taxes, assessn~enis, insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's 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 fie sufficient to pay taxes, assessments. insur.+ncc premiems and ground rents as they fall due, t Borrower shall pay to I_endcr any amount necessan• to make ++p the deficiency within 30 days from the date notice is mailed 'r by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mongagc. Lcndcr shall promptly refund to Bormwer any Funds held by Lender. If under paragraph Ift hereof the Property is sold or the Property is otherwise acquired by Lcndcr. Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by 1_ender, 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 applicahte law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lcndcr first in payment of amounts payahlc to !-ender by Borrower under paragraph 2 hereof, then to intcrest 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. asessmcnts and other chargeR fines ahd imlxxitions attributahle 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 m:+nner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender ail notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lcndcr 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 6 such lien in a manner acceptable to Lender, or shall in good faith conte,t such lien by,,or defend enforcement of such lien in, legal pnxeedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hazard Insurance. Borrower shall keep the impros•cments now existing or hereafter erected on the Property insured against loss by Ere, hazards included within the term. "extended coverage", and such other hazards as Lender may rcyuire and in such amo+rnts and for such periods as 1_ender may rcyuire: 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 Lender; provided, that such approval shall not be urtreasonahly withheld. All prcmi++mc on insurance policies shall be paid in the manner ~ 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 anJ 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. Lcndcr 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 Lcndcr and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of s 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 or i( 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 Propert}• is abandoned by Borrower, or it Bormwer fails to respcind to Lcndcr within 30 days from the date notice is mailed by Lender to Borrower that the. insurance carrier otTers 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 Lcndcr and Borrower otherwise agree in writing, any such application of prcx:eeds to principal shall not extend ~ or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments: If under paragraph 18 hereof the Property is acquired by Lcndcr, 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 Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this ~lortgagc immediately prior to such sale or acquisition. 6. Preservation and Alaintenance of Properly; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's 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 condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider t 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 Lerder's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property. i including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's 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, disbursement 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 etTect until such time as the requirement for such insurance terminates in accordance with Borrowers and Ir . 6~3~'9 P~~E 81~