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HomeMy WebLinkAbout0888 - t UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Paynnerat of Principal and lafiat+aat. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the N ote, 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 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•twelhh of the yearly taxes anti assessments which may €+tta,rr pr~airy Gvdr th,s 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, it any, all as reasaonablyestimated initially and f rom 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 agency including Lender it 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 veriying 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 paid, Lender shall not be 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 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. tf the amount of the Funds held by lender, together with the luture monthly installments of Funs payable prior to the due dates o1 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 opt,on, 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 be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due. Borrower shall pay fo 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 of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds 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 otherwise, alt payments received by Lender under the Note and paragraphs t 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,nterest and princ,pal on any Future Advances. 4. Charges; Uens. Borrower shalt 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, it not pa,d in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furn,sh to Lender all notices of amounts due under this paragraph, and in the event Borrower shalt 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. 5. Ha=ard Insurance. Borrower shall 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: prov,ded, 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 tie chosen by Borrower subject to approval by Lender, prov,ded. that such approval shall not be unreasonably withheld. All premiums on ,nsurance policies shall tie pa,d in the manner provided 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 ,nclude 2 standard mortgage clause in favor of and inform acceptable to Lender. Lender shall have the r,ght to hold the pot,c,es 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 insurancecarrier and Lender. Lender may make proof of loss if not made-promptly by Borrower. Unless Lender and Borrower otherwise agree in wnt,ng, insurance proceeds shall be appbed to restoration or repair of the Procertv damaged. provided such restoration or repair ,s econom,cally feas,ble and the security of th,s Mortgage ,s I not thereby impaired. If such restoration or repair is not economically feas,bce or if the security of this Mortgage would be ,mpaired. the insurance proceeds shall be applied to the sums secured by th,s Mortgage. with the excess. if any, pa,d ~ to Borrower. It the Property is abandoned by Borrower. or ,f Borrower fails to respond to Lender w,th,n 30 days from the ~ date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benef,ts. Lender is authorized to collect and apply the insurance proceeds at Lenders option ether to restorat,on o! repair of the Property or to tf:e sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing. any such applicaUan of proceeds to princ,pal shall not extend or postpone the due date of the monthly installments referred to ,n paragraphs 1 and 2 nereot or change the amount of such ,nstallments. If under paragraph t 8 hereof the Property ,s acqu,red by Lender, all r,ght. tale and ,merest of Borrower ~n and to any insurance pol,c,es and ,n and to the proceeds thereof resutt,ng from damage to the Property pr,or to the sale or acquis,tion shall pass to Lender to the extent of the sums secured by th,s Mortgage ,mmed!atety prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Lessehotds; Condominiums; Planned Unlt Developments. Borrower shall keep the Property in good repair and shat! not comma waste or permit impa,rment or deterioration of the Pro- perry and shall comply with the prov,srons of any lease if this Mortgages on a leasehold- It th,s Mortgages on aunit in a condom,n,um or a planned un,t development. Borrower shall perform all of Borrowers obl,gations under the dectarat,on or covenants creating or govern,ng the condomirnu:n or planned unit development. the by-laws and regulat,ons of the condomin,um or planned unit development. and constituent documents. It a condommwm or planned unit development rider ,s.executed by Borrower and recorded together w,th the Mortgage. the covenants and agreements of such rider ( shall be incorporated into and shall amend and supplement the covenants and agreements of th,s Mortgage as ,1 the rider were a part hereof. 7. Protection of Lenders Security. It Borrower fa,ls to perform the covenants and agreements conta,ned ,n th,s Mortgage. or if any action or proceeding ,s commenced which materially affects Lenders ,merest in the Property. ~nclud,ng. but not I,mded to. eminent domain, insolvency. Code enforcement. or arrangements or proceed,ngs ,nvolv,ng a bankrupt ordecedent- then Lender at Lenders option. upon notice to Borrower. may make such appearances. d,sburse such sums and take such action as ,s necessary to protect Lenders ,nterest. ,nclud,ng. but not t,m,ted to, d,sbursements of reasonable attorneys tees and entry upon the Property to make repairs. If Lender requ,red mortgage ,nsurance as a cond,t,on of mak,ng the loan secured by this Mortgage, Borrower shall-pay the p?em,ums requ,red to ma,nta,n such .nsurance ,n effect unt,l such time as the requ,rement for such ,nsurance terminates accordance w,th eorro?,rers and • ~ 8U~ P,~Gf