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HomeMy WebLinkAbout1888 .;3~i~ ~ ! r~~~~ UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late chargesas provided in the Note. and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Taxes 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•tweltth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, it 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 Irom time to time by Lender on the basis of assessments and bills and reasonable estimates thereof: The ~`unds shall beheld in an institution the deposits or accounts bt which are insured or guaranteed by a Federal or state agency(inctuding Lender if Lender is such an institution). Lender shall apptythe 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 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 pain, Lender shall not tie required to pay Borrower any interest or earnings. or the Funds. Lender shall give to Borrower, without charge, an annual accounting of the funds showing credits and debits to the Funds antl 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 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. 11 the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due. Borrower shall pay to Lenderany amount necessary to make up the deficiency within 30 days Irom the date notice is mailed by lender to Borrower raquestirtg payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund. to Borrower any Funds held by Lender. It under paragraph~t 8 hereof the Property is sold or the Property is otherwise acquired by lender, Lender shalt apply, no later then 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 surhs secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs t and 2 hergof 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. t.:, 4. Charges; Usns., Borrower shall pay all tangs, 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 peftl in Mich manner; by Borrower making payment; when due, directly to the payee thereof. Borrowei shall promptly:iUrnish to lender all notices of.amounts due (miler 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'obli~atfon secured by such lien in a manner a(cceptatile to Lender, or shall m good faith contest such lien by. or defend enforcement of such lien in. legal proceedings wtticti.operate to prevent the enforcement of the lien or forfeiture of the Property or Any part thereof. 5, HaXrlyd Insurpnw. Borrower shall keep the improvements rtovi+ existing of hereafter erected on the Property insured against loss by sire, hazards includedwithin the term "extended coverage', and such.other hazards as Lender may require and in such amounts-and for such periods a$ 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 on insurance policies 5ha11 be paid in the manner prov~ded_under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the ` insurance carrier. I All insurance policies acrd renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of aril 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 maymake proof of loss it 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 ~s economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or it the security of this Mortgage would be impaired, the insurance proceeds shall be appt?ed to the sums secured by this Mortgage. with fhe excess. if 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 olfers to settle a claim for insurance benefits. Lender is authorized to collect and apply the insurance proceeds at Lenders 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 shah 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. It under paragraph t 8 hereof the Property is acquired by Lender. all right. title and interest of Borrower m and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sate or acgwsition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sate or acquisition. 6. Prsservatlon and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep fhe Property in good repair and shall not commit waste or permit impairment or deterioration of the Pro- party and shat) comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominwm or a planned unit development. Borrower shall perform all of Borrowers obligations under the declaration or covenants creating or governing the condominium or pianr+ed urnt development. the by-laws and regulations of the condominium or planned unit development, and constituent documents. It a condomirnum or planned urnt development rider is executed by Borrower and recorded together with this Mortgage. the covenants and agreements of such rider shalt 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 Lender's Security. If Borrower tails to perform the covenants and agreements contained in this Mortgage. or if any action or proceeding .is commenced which materially alfects Lenders interest in the Property. including. but not limited to. eminent domain, insolvency. code enforcement. or arrangements or proceedings mvolwng 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 ~s necessary to protect Lenders interest, including, b t t d o disbursements of reasonable attorney's fees and entry upon the Property to make repairs. If Lendb~i ~e~P~li'! ~a~ ally ~`a cond~t~on of making the loan secured by this. Mortgage, Borrower shall pay the premiums req)~~~1~ such ~~nsurance en effect until such lime as the requirement for such insurance termmatps~.fJ.t>~c~~~~~~ ~3Q'w O[ . - rook~2q pA~ 18th al~~..