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HomeMy WebLinkAbout1143 . 1 _ " Li ~ 3 ~ ti ~ ' Uniform Covenants. Borrower and Lender oovensnt and agree as follows: 1. PAYMENT OF PRINCIPAL AND INTEREST. Borrower shall promptly pay when due the prinapal of and interest on the indebtedness evidenced by the Note, any prcpaymem and late charges provided in the Note arld all other sums setvred by this Instrument. 2. FUNDS FOR TAXES. INSURANCE AND OTHER CHARGES. Subject a applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal or interest arc payable under the Note for on another day designated in writing by Lender), until the Nee is paid in full, a sum (herein "Funds") equal to one-twelllh of (a.) the yearly water and sewer rates and taxes and assessments which may be levied on the Property, (b) the yearly ground rents, if any, I c) the yearly premium installments for fire and other hazard insurance, rent loss insunrlce and such other insurance covering the Property u Lender may roquire punwnt to paragraph S hereof, (d) the yearly prctnium installments for mortgage insurance, if any, and (e) if this Inurumeat is on a leasehold, the yearly fixed rents, if any, under the ground lease, all as reasonably esumated initully and from time a time by Lender on the basis of assessments and bills and reasonable estimate thereof. Any waiver by Lender of a requirement that Borrower pay such Funds may be revoked by Lender, in Lender's sole discretion, at any time upon notice is writing to Borrower. Lender may require Borrower to pay to Lender, in advance, such other Funds for aher taxes, charges, premiums, assessments cad impositions in connection with Borrower or the Properly which Lender shall reasonably deem necessary to protect Lender's interests (herein "Other Impositions"). Unless otherwise provided by applicable law, Lender may require Funds for Other Impositions to be paid by Borrower is a lump sum or in periodic iauallments, at Lender's option. The Funds shall be held in an institution(s) the deposits or aeoounts of which arc insured or guaranteed by a Federal or sure agency (including Leader if Linder is such an institutwn Lender shall apply the Funds to pay said ores, rents, taxes, assessments, insurance premiums cad Other Impositions so bog u Borrower is not in breach of any covenant or agreement of Borrower in this Instrument- Lender shall make no charge for so holding and applying the Funds, analysing said account or for verifying and compiling said assessments and bills, unless Lender pays Borrower interest, earnings or profits 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 Instrument that interest on the Funds shall be paid to Borrower, and uakss such agreement is made or appliabk law requires interest, earnings or profits to be paid, Lender shall not be required to pay Borrower any interest, earnings or profits on the Funds. Lender shall give to Borrower, without charge, an annwl amounting, of the Funds in Lender's rarmal format showing credits and debits to the Funds and the purpose for which each debit to the Funds wu made. The Funds arc pledged u additional security for the sums secured by this lastroment. If the amount of the Funds held by Lender at the time of the annual amounting thereof shall exceed the amount deemed necessary by Lender a provide for the payment of water and sewer rates, taxes, assessments, insurance premiums, rents and Other Impositions, as they fall due, such extxss shall be credited to Borrower on the next monthly installment or insullments of Funds due. If at any time the amount of the Funds held by Lender shall bt less than the amount deemed necessary by Lender to pay water and sewer rates, taxes, assesments, insurance premiums, rents and Other Impositions, u they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within thirty days after notice from Lender to Borrower teyuaung payment thereof. Upon Borrower's breach of any covenant or agreement of Borrower in this Instrument, Lender may apply, in any amount and in any order as Lender shall determine in Lender's sole discretion, any Funds held by Lender at the ume of application (i) to pay nets, rents, taxes, assessments, insurance premiums and Other Impositions which are now or will hercaRer become due, or (o) u a credit against sums secured by this Instrument. Upon payment in full of all sums secured by this Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 3. APPLICATION OF PAYMENTS Unkis applicable law provides otherwise, all payments received by Lender from Borrower under the Note or this Instrument shall be applied by Lender in the folbwing order of priorigr. (i) amounts payable a Lender by Borrower under paragraph 2 hereof: (u) interest payable on the Note: (iu ? principal of the Mott; (iv ? interest payable on advances made pursuant to paragraph 8 hereof: (v) - princpal of advances made pursuant to paragraph 8 hereof: (vi) interest payable on any Future Advance, provided that if more than one Future Advance is outsunding, Lender may apply payments received among the amounu of interest payable on the Future Advances in such order u Lender, in Lender's sole discretion, may determine; 1 vii) princpal of any Future Advance, provided that if more than one Future Advance is outstanding, Lender may apply payments received among the principal balances of the Future Advances in such order as Lender, in Lender's sole disctttan, may determine; and 1 siii 1 any other sums secured by this Instrument in such order u Lender, at Lender's option, may determine; provided, however, that Lender may, at Lender's option, apply any sums payable purswnt to paragraph 8 hereof prior to interest on and principal of the Note, but wch applintion shalt not otherwise aBect the order of priority of application specified in this paragraph 3. d. CHARGES; LIENS Borrower shall pay all water and sewer rata, rents, tare, assessments, premiums, and Other Impositions attribuubk a the Property at Lender i option in the manner provided under paragraph 2 hereof or, if r1a paid in such manner, by Borrower making payment, I, when due, directly to the payee thereof, or in such other manner u Lender may designate in writing. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph 4, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender j receipts evidencing such payments. Borrower shall prompdy discharge any lien which hu, or may have, priority os~er or equality with, the lien of this Instrument, and Borrower shall pay, when due, the claims of all persons wpplying labor or materials a or in connection with the Property. j Without Lender's prior written permission. Borrower shall rat albw any lien inferior to this Instrument to be perfected against the Properly S. HAZARD INSURANCE. Borrower shall keep the improvements now existing or hercafier erected on the Property Insured by carvers at all times satisfactory to Lender against loss by 6rc, hazards included within the term "extended oovenge rent loss and such other hazards, casualties, liabilities and contingences u Lender (cod, if this Inswment is on a leasehold, the ground kale) shall require and in such amounts and for such periods u Leader shall require. All premiums on insurarar po4cies shall be paid, at Lender's option, in the manner provided under paragraph 2 hereof, or by Borrower making payment, when due, directly to the artier, or in such other manner as Lender may designate in writing. All insurance policies and renewals thereof shall be in a form aeoepubk to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right a hold the polices, and Borrower shall promptly furnish to Lender all renewal notices and all,receipts of paid premiums. At lent thirty days prior to the expiration date of a policy, Borrower shall deliver to Lender a renewal policy inform satisfactory to Lender. IPthis Instrument is on a leasehold, Borrower shall furnish Lender a duplicate of all policies, renewal notices, renewal polices and receipts of paid premiums if, by virtue of the ground lease, the originak thereof may not be supplied by Borrower to Lender. In the event of loss, Borrower shall give immediate written notice to the insurance carrier and to Lender. Borrower hereby authorve and empowers Lender as attorney-in-fact for Borrower to make proof of loss, a adjust and compromise any clam under insurance policies, to appear in and prosecute any action arising from such insurance policies, to eolleat and receive insurance proceeds, and to deduct therefrom Lender's expenses - iacurred in the collection of such proceeds; provided however, that nothing connived in this paragraph S shall require Lender to incur any expense or uke any action hereunder. Borrower further authorize Lender, at Lender's option, l a 1 ro hold the balarlee of such proceeds to be used to rcimbutx Borrower for the cost of reconstruction or repair of the Property or (b) to apply the balance of such proceeds to the payment of the sums ~ secured by this Instrument, whether or rIa then due, in the order of application set forth in paragraph 3 hereof (subject, however, to the rights of the lessor under the ground least if this Instrument ri on aleasehold). - If the insurance proceeds arc held by Lender to reimburse Borrower for the cost of retorauon and rcpau of the Property, the Properly shall be retored ro the equivalent of its original condition or such other condition u Lender may approve is within`. (:ender may, at Lender's option, condition disbursement of said proceeds on Lender's approval of such plans and specfications of an architect satisfactory to Lender, contractor's cost estimates, architect's certificates, waivers of liens, sworn sutements of nlechania and materialmen and such other evidence of costs, percentage ~ completion of construction, application of payments, and satisfaction of liens as Lender may reasonably require. If the iasunnce proceeds arc applied to the payment ofthe wms secured by this Irlswment, any such appliation of proceeds to prirlapal shall slot extend or postpone the due data of the monthly installments referred to in pangnphs I and 2 hereof or change the amounts of such installments. If the Property is sold purwant to paragraph 21 hereof of if Lender acquires title to the Property, Lender shall have all of the right, title and interest of Borrower in and a any insurance polities and untamed premiums thereon and in and to the proceeds resulting from any damage to the Property poor to such sale or acquisition. - ~ PRESERVATION AND MAINTENANCE OF PROPERTY; LEASEHOLDS Borrowrer (a 1 shall rat commit waste or permit impairment or deterioration of the Property, (b) shall rat abandon the Property, (c) shall restore or repair promply cad is a good and workmanlike manner all Uniform Covenants-Multifamily-1 /77-R1VMA/FHLMC Uniform Instrument (Pogt 3 oI8 pages) BOOK PAGE~~/,