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HomeMy WebLinkAbout0672 ~~t . 1 UNIFORM COVFN~NTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principsl 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 for Ta:es and Insurance. 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 arc payable under the Note, until the Note is paid in full, a atun (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 far mortgage insurance, if any, all as reasonably estimated initially and from time to time b}• Lender on the basis of assessments and bills and reasonable estimates thereof. 'ilte Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or slate agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pa}• said taxes, assessments, insurance premiums and ground ants. Lender ma}• 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 be paid to Borrower, and unless such agreement is made or .applicable law requires such interest to be paid. Lender shall not be rcyuired 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 pledgc~t 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 tall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on nx?nthl}• 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 dos, Borrower shall pa}• to Lender any amount necessary to make up the drficienc}• within 30 da}•s from the date notice is mailed by Lender to Borrower requesting pa}•ment thereof. Upon payment in full of all sums secured by this Mortgage. Lcndcr shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is u?Id or the Property is otherwise acq?urcd by Lender, 1_ender shall apply, no later than immediatcly 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 h}• this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received b}• tender 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 an}• Future Advances. 4. Charges; Liens. Borrower ,hall pay all taxes, assessments and other charges, fines anJ impxitions attributable to the Propert)• 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 1_ender all notices of amounts due under this paragraph, and in the event Borrower shall make pr}•ment directly, Bc?rn?wrr shall promptly furnish to 1_ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as BOrfOwr( shall agree in writing to the pa}•ment of the obligation secured by such lien in a manner acceptable to Lcndcr, or shall in go.xf faith contest such lien hy, 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. Hazard Insurance. Borrower shall kelp the improvements now misting or hereafter erected on the Property insured against loss h}• fire, hazards included within the term "rrtendr.l cos•eragr". and such other hazards as Lcndcr may require and in such amounts and for such periods as l_snder ma}• require: provided. that 1_endrr ,hall not rcyuirc that the amount of such coverage exceed that amount of coverage rryuired to pa}~ the sums secured by this ;lfortgagr. "Ilte insurance carrier providing the insurance shall tx: chuun by Borrower subject to approval by Lcndcr: provided, that such approval shall not br unrrau?nabl}• withheld. All prcmiiims on insurance policies shall F?r paid m the manner provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thererf shall Ix in form acceptable to lender and shall include a standard mortgage clause in favor n( and in form acceptable h? Lender. Lender shall hale the right to hold the policies and renewals thereof. and Borrower shall prompt)}• 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 earner and Lender. Lender may make prx?f of loss if not made promptly by Burrower. Unless Lcndcr and Borrower otherwise: agree in writing, insurance prc?ceedc shall be applied to restoration or repair of the Property damage), provide) such restoration or repair is economically feasible and the security of this Mortgage is not thereb)• impaired. If such restoration or repair is ne?t ra?nomicalh• feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied te• the sums secured b}• this Mortgage. w•rth the excess, if any, paid to Borrower. If the Propert}• is ahandcmrd by Borrower, or it Born?wcr 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, 1_ender is authorized to collect and apply the insurance proceeds at lender's option either to restoration or repair of the Property onto the sums secured by this Mortgage. Unless Lcndcr and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend or postpone the due date of the momhly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph l8 hereof the Propert}• is acquired by Lender, all right, title and interest of Borrower in and to an} 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 secure) by this Mortgage immediatcly prior to such sale or acquisition. 6. Presenation and Maintenance of Property; I.eiseholds; Condominiums; Planned Unit Ikcelopments. Borrower shell 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 all of Borrower's obligations under the declaration o. covenants orating 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 = 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 Lenders Security. If Borrower fails to perform the covenants and agreements rnntained in this Mortgage. or if anyrction ur proceeding is commenced which materially affects Lender's interest in the Propert}•. } including, but ne,t 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, map make such appearances, disburse such sums and take such action as is necessar}• to pmreet Lender s interest. including. but not limited to, disbursement of ~ reasonahk attorney's fees and entry upon the Property to make repairs. If Linder required mortgage imurance as a condition of making the loan secured by this Mortgage, &?rn?wrr shall pay the premiums required to maintain such insurance in effect until such time as the rryuirrment for such insurance terminates m aocordanec with Borrow•rr's and - ~ - e~x 340 P~~E 672 - ~ ~f~~ - .