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HomeMy WebLinkAbout0177 UNIFORM COVENANTS. Borrower and lender covenant and agree as follows: 1. Payment of Ptrincipal and Interest. Borrower shalt promptly pay when due the principal of and interest on the indebtedneu evidenced by the Note. propayment and late charges as provided in the Note, and the principal of and interest on any Futuro Advances secured by this Mortgage. 2. itbnds for 7lutea and ittstiraace. 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 aeon (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rent: on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance. plus otio-twelfth of yearly premiam installments for mortgage insurance. if any, all as roasonably estimated initially and from time to time by Lender on the basis of assessments and hills 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 itutitution). i_ender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may rant 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 paid. Lender shall not be reyuired 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 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 apwunt required to pay said taxes. assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers 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 premiums and ground rents as they fall due, Borrower shall pay to 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 sutras secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by !.ender. 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, all payments received by 1_cnder under the Note and paragraphs 1 and 2 hereof shall be applied by !.ender first in payment of amounts Rayable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Notc, and then to interest and ' principal on any Future Advances. 4. Charges; Liens. Borrower shall 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 ground roots, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the payee thereof. Borrower shall proiptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly furnish to Ixnder receipts evidencing such payments. Borrower shall prompt)}• discharge any lien which ~ 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. S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss h}• fire, hazards included within the term "extended coverage", and such other hazards as 1_ender may require and in such amounts and for such periods as Lender may reyuirc; provideJ. that Lender shall not reyuirc that the amount of such coverage exceed that amount of covtirage required to pr}• 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 trnrcasonahly withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereo[ or, if 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 forni acceptable to Lender and shall include a standard mortgage • f! clause in favor of and in form acceptable to l.eiider. 1_ender shall have the right to holfl rho 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 1_ender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwix: agree in writing, insurance pnx-eecls shall be applied to restoration or repair 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 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 Properly is abandoned h}• Borrower. or it Borrower fails to respond to i_endcr within 30 days from the date notice is mailed by Lender to Botrower that the insurance carrier ofiers 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. ' [finless Lender and Borrower otherwise agree in writing, an}• such application of proceeds to principal shall not extend or postpone the due date of the month!}, installments referred to in paragraphs 1 and 2 hereof or change the amount of _ such installment. if under paragraph l8 hereof the Property is acyuirecl b}• Lender, all right, title and interest of Borrower in and to any insurance policies and in aad to the proceeds thereof resulting from damage to the Property prior to the sale or acyuisition shall pass to Lender to the extent of the sump secured by this 11lortgagc immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; 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 alt 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 I rider is executed by Borrower and recorded together with this Mortgage. the covenants and agreements of such rider 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 Lender'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 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, ma}• make such appearances, disburse such sums and ta(~e 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 b}• this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time a~3~et~hepreyuirement for such insurance terminates in accordance with Borrowers and 9 ~ z' ^'i