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HomeMy WebLinkAbout0615 UNIFORM COVENANTS. Borrower and lender covenant and agree as follows: 1. Payment of Principal trod 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 Nato. and the principal of and interest on say Future Advances secured by this Mortgage. 2. Ilitrads for Ttuta turd lastrnrnce. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender.on rho day monthly installments of principal and interest are payable under the Note. until the Noto is paid in full. a sum (herein "Funds") equal to onatwelfth 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 limo to time by I.cndcr 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 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 o[ this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreenxnt is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. !.ender 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 an; pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with rtes 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 Borrowers option, either ~ promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If rtes amount of tbe 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 Jays 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 Burrower any Funds held by Lender. If under paragraph 1R 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 rtes Property or its acquisition by Lender. any Funds held by Lender at the time of application as a credit against the sums secures! by this I?lortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to tender by Borrower under paragraph 2 hereof, then to interest payable on the Notc, then to the principal of the Note. _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 rents, if any, in the manrrer 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 I~nder receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provides!, 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 (orfeiturc of the Property ur any part thereof. S. Hazard Insurance. Borrower shall keep rtes improvements now existing or hcrcaftcr erected on the Property insured against loss by fire. hazards included within the terns "extended coverage". and such other hazards ac !.ender may require and in such amounts and for such periods as Lender mry require; provided, that Lender sh~l not require that the amount of such coverage exceed that amount of coverage required to pay the sum. secured by Ibis Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender: provided, that such approval shall not be unreasonably withheld. All premium. un insurance policies shall tie paid in the manner provided under paragraph 2 hereof or. i[ not psid in such manner, by Borrower making payment, when due. directly to the 'j insurance carrier. ~ All insurance policies anJ renewals thereof steal! be in form acceptable to Lender and shall include a standard mortgage f clause in favor of and in form acceptable to !.ender. 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 carrier and Lender. Lender may make proof of loss i[ not made promptly by Borrower. ` Unless Lender and Borrower otherwise agree in writing, insurance proceeds 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 i to Borrower. If rtes Property is abarrduned by Borrower, ur if Burrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, i-ender is authoriud to collect and apply the insurance proceeds aC 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 in writing, any such application of proceeds to principal shall not extend or pi~stpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph t8 hereof the Property is acquired by 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 or acquisition shall pass to Lender to the extent of the sums secured by this I?lortgage immediately prior to such sale or acquisition. _ 6. Presen~ation 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 i 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 cundomimum or a planned unit dcvclopmcnt, Borrower shall pcrfsum all of Borrowers obligations under the declaration or covenants creating of governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. It 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 be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as ~ the rider uerc a part hereof. i j 7. Protection of i.ende~s Security. If Borrov.•er fails to perform the covenants and agreements contained in this Mortgage, ur if any action ur 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 invoking a bankrupt 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 Lender's 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 by this Mortgage, Bormv.er shall pay the premiums required to maintain such ~ insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and • ~ 338 PEE 613