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HomeMy WebLinkAbout0378 1 ~ rrr.- . • ~ , 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 charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgages 2. Fttnds for Taxes and Ituttrance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on file day monthly installments of principal and interest ace payable under the Note. until the Note is paid in full. a attm (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 insttrancc, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessment . and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or state agency (including Lender if Lender is such an instituti.•?n). 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 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 he paid to Borrower, and unless such agreement is made or applicable law requites such interest to be paid; Lender shall not 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 madt! 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 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 premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 desys 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 IR 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 secure! by this Mortgage. 3. Application 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 Lcndcr 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. 4. Charges; Liens. Borrower shall pay all Iaxes~ assessments and other charges, fines and iml>.,sitions attr,butahle 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 not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly 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 Lcndcr receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not Ise 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 hy, or defend enforcement of such lien in, legal proceedings which operate to prevent- the enforcement of the hen or forfeiture of the Property or any part thereof. S. Hazard Insurance. Borrower shall keep the ,mprovements nos existing or hereafter erected on the Property insured against loss by fire, hazards incluck~tf within the term "exicnded coverage", and such other hazards as Lcndcr may require - . and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of • such coverage exceed that amount of cm•erage required to pay the sums secured by this Mortgage. - The insurance carrier providing the insurance sh:~ll he chosen by Borrower subject to approval by Lcndcr, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall t+e paid in the manner ~ provided under paragraph 2 hereof ur, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. ~ All insurance policies and renewals thereof shall Fx: in form acceptable to Lender and shall include a standard mortgage j clause in favor of and in form acceptable to Lcndcr. 1_ender shall hrve the right to hold the policies and renewals thereof. j and Borrower shall promptly furnish to Lcndcr all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the irourance carrier and Lender. Lender may make proof of loss if not made promptly by Burrower. • Unless 1_ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration pr 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 applieJ to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower. or if Borrower-fails to respond to Lender within 3U days from the date notice is mailed by Lender to Borrower that the insurance carrier ofTers 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. Unless Lcndcr and Borrower othensise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthh• installments referred to in paragraph: 1 and 2 hereof or change the amount of such installments. If under paragraph LS hereof the Property is acquired by Lender, all right, title and interest of Borrower a in and to any insurance policies anJ in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this 1lfortgage immediately prior to such sale or acquisition. 6. Preservation aad ~taintcnance of Property; Leaseholds; Condominiums; Planned Unit Ikvelopments. Borrower shall keep the Property in good repair aed shall not commit waste or permit impairment or deterioration of the Property Y and shall comply with the provisions of any lease if this.Mortgag~ is on 'a Icauhold. If this Mortgage is on a unit in a condominium or a planned unit, development, Borrower shall perform all of Borrower's obligations under the declaration ~ or covenants creating or gove: ni0g the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development. and constituent documents. If a condominiua: or planned trait development 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 r Hcrc a part hereof. ~ f 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this } Mortg:,ge. ur if any action ur proceeding is commen.ed which materially affects Lcndcr ~ interest in the Property. including. but not lim,ted to. eminent domain. insolvency, code enforcement. or arrangements or proceedings involving a bankrupt or decedent. then lender at Lender's option, upon notice to $orrowcr, may make such appearances, disburse such { sums and take such action as is necessary to protect Lenders interest. including, but not limited to, disbursement of - reasonable attorney's lees and entry upon the Property to make repairs. if Lender reyuircd mortgage insurance as a• i .condition of making the Man secured by this Mortgage, Borrower shall pap the premiums required to maintain such - insurance in efTect until such time as the rcyuirement for such insurance terminates in accordance with Borrowers and 3~ ar>,7x e~cw Pe~E 377 _ - ~ - .