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HomeMy WebLinkAbout0231 f ' ~ .~..~t! UNIFORM COVENANTS. Borrower and Lender covenant and agree as tottows 1. Payment of Principal and Interest. Borrower shall promptly pay when due theprincipat of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided ?n the N ore, and the principal of and ,merest on any Future Advances secured by this Mortgage 2. Funds forTaxss 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 +merest are payable under the Note, until the Note is paid in tuft, a sum (herein "Funds''1 equal to one•tweltth of the yearly taxes and assessments which may attain priority over this Mortgaya, and ground rents on the Property. it any, plus one-twelfth of yearly premium installments for hazard insurance. plus one•tweltth of yearly premium installments for mortgage insurance. it any, alt as reasaonablyestimated initiallyand Irom time to time by Lender 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 ar guaranteed by a Federal or state agencylinctuding Lender if Lender is such an instilution?. Lender shall apply the Funds to pay said taxes, assessments. +nsurance premusms and ground rents. Lender may not charge for so holding and applying the Funds. analyzing card account, or verifying and compiling said assessments and bills. unless Lender pays Borrower interest on the Funds and applicable taw f>ermits 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 required to pay Borrower any interest or earnings on the Funds. Lender shah gyve 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 i~ ~e.1ue dates ui loxes, assessments. +nsurar~Ce prer~++u+~+s and gr ~u~+d rents. shad exoeed the drr~uuni requ+rec7 to pay said iaxe5. 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 monthly installments of Funds. It the amount of the Funds held by Lender shaft not be si!fticient to pay taxes. assessments. insurance premiums and ground rents as they tall due, Burrower 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. Upan payment in full of all sums secured by this Mortgage, Lender shat) promptly refund to Borrower any Funds rietd by Lender. If under paragraph t 8~hereof the Property is sold or the Property is otherwise acquired by Lender, Lender snail 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 taw provides otherwise. alt payments received by Lender under the PJote and paragraphs t and 2 hereof shalt be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 frereot. then to interest payable on the Note. then to the principal of the Note, and then to interest and i:~,nc,pa! on any Future Advances- 4. Charges; Liens. Borrower shalt pay all taxes. assessments and othercharges. fines and impositions attributable to the Property which may attain a priority over this Mortgage. and leasehold payments or gound rents. it any. in the manner prov,ded under paragraph 2 hereof or. it not pa,d in such manner, by Borrower making payment, when due. directly to the payee thereof- Borrower shalt promptly furnish to lender alt notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower snail promptly furnish to Lender receipts evidencing such payments. Borrower shalt promptly discharge any lien which has priority over this Mortgage: pr7vided. that Borrower shall not be required fo discharge any such Iron so long as Borrower shat) agree rn writing to the payment of the obligation secured by such hen in a manner acceptable to Lender. or shall in good faith contest such hen by. ordelend enforcement of such lien in, loyal proceedings which operate to prevent the enforcement of the lien or forfei!ure of the Property or any part thereof. 5. Hazard Insurance. Borrower snau keep the improvements now ex+sting or Hereafter erected on the Property insured against foss by lire. hazards included within the term "extended coverage'. and such other hazards as Lender may require and rn such amounts and for such periods as Lender require; prpvided. that Lender shall not require that the amount of j such coverage exceed that amount of coverage regwred to pay the sum secured by this Mortgage. The insurance carrier providirig the insurance shall be chosen by Borrower subject to approval by lender: provided. that such approval shall not be unreasonably withheld. All premusms on insurance policies shall be paid in the manner provided underr paragraph 2 hereof or. if rot paid rn such manner. by Borrower making payment, when due. directly to the insurance career. All insurance pot+cres and renewals thereof shall be +n form acceptable to Lender and shall include a standard mortgage clause in favor of and inform acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof. and Borrower shalt promptly furnish to Lender alt renewal notices and all receipts of paid premiums. In the event of loss. Borrower shat) g,ve prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made-promptly ~ ny t3onower Unless Lender and Borrower otherwise ayree +n 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 shalt be applied to the sums secured by this Mortgage, with the excess. if any, paid to Borrower. It the Property is abandoned by Borrower. or. it Borrower fails to respond to Lender within 30 days from the date notice rs mailed by Lender to Borrower that the insurance career offers to settle a claim for insurance benefits. Lender :5 authorized to collect and apply the insurance proceeds at Lender s option either to restoration or repair of the Property ~~r to the sums secured. by this Mortgage. Unless Lender and Borrower otherwise agree rn writing. any such application of proceeds to principal shall not extend or postpone the due date of the monthly mstallmenl5 referred to rn paragraphs t and 2 hereof or change the amount of such +nstallments. If under paragraph t 8 hereof the Property is acquired by Lender. all right. titre and interest of Borrower in and to ony insurance policies and in and to the proceeds thereof resuuing from damage to the Property poor to the sale or acquisition shalt pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or n acgwsition. 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 ordetenoration of the Pro- perty and shalt comply with the provisions of any lease if this Mortgage ,s on a leasehold. II this Mortgage is on a unit in a condominium or a planned un,± development. Borrower shalt perform all of Borrowers obhgat!ons under the declaration r;r covenants creating or govern,ng the condominium or planned urnt development. the by-laws and regulations of the condominium or planned unit development. and constituent documents. If a condominium or planned unit development s r,r~gr is executed by Borrower and recorded together with this Mortgage. the covenants and agreements of such rider shalt be incorporated into and shalt amend and supplement the covenants and agreements of this Mortgage as it the rider ~ were a part hereof. 7. Protection of Lendsr's Security. tf Borrower tarts to perform the covenants and agreements contained in this Mortgage. or if any action or proceeding is commenced which materially affects Lender's interest rn the Property. ~ ,nctuding. but not limited to. eminent domain, insolvency. code enforcement. or arrangements or proceedings involving a bankrupt or decedent. then Lender at Lenders option. upon notice to Borrower, may make such appearances. disburse such sums and take such action as is necessary to protect Lenders interest, including, but not limited to, disbursements of reasonable attorney's fees and entry upon the Property to make repairs. It Lender required mortgage insurance as a r.ondition of making the Loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such :nsurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and - 6 . ~ I . g~~~342 P,~~ X31