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HomeMy WebLinkAbout0781 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Paymeal of Principsl and lalerest. Borrower shall promptly pay when due the principal of artd interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal o[ and interest on any Future Advances secured by this Mortgage. 2. Funds [or Trues snd lnsunace. 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 arc payahle under the Note, until the Ihote 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, 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 reasonably estimated initially and from :;me to -time by Lender on the hosts 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 if lender is such an institution). tender shall apply the Funds to pay said taxes, assessments. insurance premiums end ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and hills, unless !.ender pays Borrower imerest on the Funds and applicable law permits Lcndcr to make such a charge. Borrower and !.ender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid. Lender shall nut he required to pay Borrower any interest or earnings on 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 arc pleelged 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 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 be sufficient to pay taxes, assessments, insurance prer.titrms and ground rents as they fall due, Borrower shall pay to lender any amount necessar}• to make trp the Deficiency within 30 da}•s 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 Borruw•cr ~n}• Funds held by Lcndcr. If under paragraph 18 hereof the Property is u~ld 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 1_ender, any Funds held by Lender at the time of application as a credit against the sums secured by this 1ltortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments receivod by Lender under the Vote and paragraph, 1 and 2 hereof shall be applied by Lender first in payment of amounts payahle to 1_endcr by Borrower under paragraph 2 hereof, then to interest payable on the Nute, then to the principal of the Note, and then to interest and principal on any Future Advances. Charges; Liens. Borrow•cr ,hall pay all taxes, assessments and other charges, fines and rmpusitions. attnbutahle 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 nut paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall prontptl•• furnish to Lender all notices of amounts due under this paragraph, and in the event Borruw•er shall make payment dircctl}•, Borrower shall promptly furnish to Lender receipts e~•idencing such payments. Borrower shall prumptty 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 gcxd faith contest such lien hy, or defend enforcement of such lien in, legal pnxeedings w-hick operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the rmpruvcments now exiuing or hcrcaflcr erected on the Property insured against loss h}• fire. hazards included within the term "extended coverage", and such other hazards as Lcndcr may require and in such amounu and for such periods as Lender may «yuire: pre»•ided. that Lender shall not require that the amount of such coverage exceed that amount of coverage regwred to pay the sums secure) h}' this Mortgage. The insurance earner providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval hall not be unreasonably withheld. All premiums on insurance pellicles shall be paid in the manner provided under paragraph 2 hereof ur. if not paid in such manner, by Burrower making payment. when due, directly to the insurance carrier. ~ All insurance policies and renewals thereof shall tx: in form acceptable to Lender :ind shat! incl.rde a standard mortgage clause in favor of and in form acceptable to Lender. Lcndcr shall have the right ro hold the policies and renewals thereof, s and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, ( Burrower shall give prornpt notice to the insurance carrier and Lender. Lender ma} make proof of loss if not made promptly Burrower. i Unless Lender and Borrower othen+•ix agree in writing, insurance prcxceds shall be applied to resroration or repair of ~ the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is E nut ;hereby impaired. If such re,torati~n ur repair is nut economically feasible or if the security of this Mortgage would ~ be impaired, the insurance procceJs shall be applied to the sums secured by this Mortgage, with the excess, if any, paid ~ to Borrower. If the Properly is ah:mdoned h} Borrower. or if Borrower fails to respond to Lender within 30 days from the ~ Date notice is mailed by Lender to &.rrower that the insurance carrier otters to settle a claim for insurance benefits, Lender is authorized to collect and apply the inwran~e proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this 1?tortgage. Unless Lender and Burrower otherwise agree in writing, any such application of pnx:ceds 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 b}• Lender, 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 r or acquisition shall pass to Lcndcr to the extent of the sums secured h} this Mortgage immediately prior to such sale or acquisition. ~ 6. Presen~ation and Staintenance 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 i( this Mortgage is on a leasehold. If this Mortgage is un a unit in a i condominium or a planned unit development, Borrower shall pcrferm all of Borrower's obligations under the declaration s 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 shall ix: 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 bender'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, including. but not limited tu, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a banl.~upt 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 riot limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a cundit of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such j insuran in eBect until such time as the requirement for such insurance terminates in accordance with Borrowers and a s Iltf : s + ~ . + • PAf>F f s 1 '