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HomeMy WebLinkAbout0005 ' • I UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Prlnclpal and Interest. 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 Note, and the principal of and interest on any Future Advances secured by this Mortgage. • 2. Funds fotrTaxes and Insuance. Subject to applicable law or to a written waiver by lender. Borrower shall pay to Lender on the day monthly installments o1 principal and interest are payable under the Note, until the Note is paid rn 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, if any, plus one-twelllh of yearly premium installments for hazard insurance. plus one•twelfth of yearly premium installments for mortgage insurance, if any, all as reasaonablyestimated initiallyand from 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 if Lender is such an institution). Lender shall apply the Funds to pay sard taxes, assessments. insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing sard account. or verityrng and compiling said assessments and bills, unless Lender pays Borrower interest on the Fui'tds arxi applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time or execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requr?es such interest to be paid. Lender shall not be required to pay Borrowerany interes[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 are pledged as additional security to: 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 sard taxes. assessments. insurance premiums and ground rents as they fall due. such excess shall be. at Borrowers option. either promptly repaid to~BwroVver'or credited to Borrower on monthly installments of Funds. It the amount of the Funds held by Lender shall not be suflicient to pay taxes, assessments. insurance premiums and ground rents as they tall due. Borrower shall pay to lender anyamount necessary to make up the deficiencywithin 30 days from the date notice rs 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 herd 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 M 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. Applieatlon of .Payments. Unless applicable law provides otherwise. 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 antler paragraph 2 hereof. (hen Ito interest payable on the Note, then to the principal of the Note. and then to interest and pnncrpal on any Future'Advances. ~ . 4. Charges; Uens. Borrower sftall pay all taxes.:assessmenls and other charges. fines and impositions altrrtwtable to the Property which may attain a priority over this Mortgage, and teaseholtl payments or Bound rents. if any, in the manner provided under para'~raph•2~ hereb! or~f tlot paid in such manner, by Borrower making payn'ient, when due. directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and rn 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 shalt 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 rn 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. Hstrard Insura0ce. Borrower shall.keep thg~mprovements now existing or hereafter erected on the Property insured against loss by fire. hazardsincludedwfthin the term -extended coverage:. and such other hazards as lender•may require ~i, and m such amounts acid for such periods as, Lender require; provided, that Lender shelf not,require that jhe amount of such coverage exceed that amount of coverage regwred to pay the sum secured by this Mortgage. The insurance carrier providing the +rlsurance shah be chosen by Borrower su6lect to approval by Lender: provided. I'i that such approval shall not be unreasonably withheld. All premiums on rnsura'nce pohcres shall be paid rn the manner provided under paragraph 2 hereof or. if not paid rn such manne?. by Borrower making payment. when due. directly to the insurance career. - ~ All insurance policies and renewals thereof shall be rn form acceptable to Lender and shall include a standard mortgage clause in favor of and 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 career and Lender. Lender may make proof of loss d not made-promptly . by Borrower. Unless Lender and Borrower otherwise agree rn writing. insurance proceeds shall be applied to restoration ortepair 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 or if the securely of this Mortgage would be impaired. the insurance proceeds shall be applied to the sums secured by Ihrs Mortgage. with the excess. rf any. paid to Borrower. It the Property is abandoned by Borrower. or if Borrower lads to respond to Lender within 30 days from the date notice rs mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender rs 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 m writing. any such apphcahon of proceeds to pnncrpal shall not extend or postpone the due date of the monthly installments referred to rn paragraphs 1 and 2 hereof or change the amount of such installments It under paragraph 18 hereof the Property rs acquired by Lender. atr right. title and rnterest of Borrower rn and to any insurance pOlrcres and m and to the proceeds thereof resuibng from damage to the Property poor to the sate or acquisition shall pass to Lender to the extent of the sums secured by Ihrs Mortgage immediately prior to such sale or acquisition. - 6. .Preseiiratlon and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shaii keep the Property in good repair and shaii not comma waste or permit impairment or detenoratron of the Fro- perry and shalt comply with the provisions of any lease if this Mortgage rs on a leasehold. Ii this Mortgage is on a unit rn a condomrnrum or a planned unit development. Borrower shall perform all of Borrowfr s obligations under the declaration of covenants Creating or governing the condominium or planned unit development. the by-laws and regulations of the condomrnrum or planned unit development, ared constituent documents. It a condomrnrum or planned unit development rider rs 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 C were a part hereof 7. Protection of lender's Security.. (f Borrower faits to ~2erform the covenants and agreements contained rn this Mortgage or rt any action or proceeding rs commenced which materially affects Lender's rnterest in the Property. including but not limited to. eminent domain. insolvency. code enforcement. or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lenders option. upon notice to Borrower, may m$k~~g,~ ~ such - sums and take such action as is necessary to protect Lenders interest, inclad7fl~WLT' o rmrt t r ements of reasonable attorney s tees and entry upon the Property to make repairs. It Lender required ante as a ~.~,n~yrtion of making the loan secured by this Mortgage. Borrower shall pay th~,prPlr~r~lr~99~lii~d ~@N?IMIII~Idzs~~1~ ;n;urance .n effect until such Ume as the re urrement for such insurance terminates in a orda ast,il?' . tyc~.6lnk;~i 9 tY t.s•;?un ,r~ OI Lax+ca i - ~