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HomeMy WebLinkAbout0589 UNIFORM COYEN.~NTS. BOrrOwer and Lcndcr covenant and agree as follows: 1. Payment of Principal and Interest. Burrower shall promptly pay when due the principal of and interest un the indebtedness es•idenccd by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advance-s securest by this Mortgage. Z. Funds for Taxes and Insurance. Subject to applicable taw or to a written waiver by I.cnder, 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 sum (herein "Funds") equal to one-twelfth of the yearly taxes and assescntents 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 ntortgagc insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and hills and reasonable estimates thereof. •ilte Funds shall t-e held in.an institution the Deposits or accounts of which arc insured or guaranteed by a Federal or state agency (including Lender if !.ender is such an institution). Lender shall apply the Funds to pay said lazes, 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 ntay 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 hr reyuir~rl to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the f=unds showing credits anJ debits to the Funds and the purpose fr-r which each debit to the Funds was made. The Funds are pk~lged 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, assessmenh, insurance premiums and ground rents, shall cxccc~l 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 Fund.. If the amount of the Funds held by Lender shall not be sufficient tQ pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to nr,rkc up the deficiency within 30 days 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. Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph lt+ hereof the Property is suW or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately priur-to the sale of the Property or its acquisition by 1_ender, any Funds heW by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law pmsides otherwise, all payments received by 1_ender under the Note and paragraphs 1 and ~ hereof shall be applied by Lender first in pa}mcnt of amounts payable to 1_ender by Borrower under paragraph 2 hereof, then to interest payable on the Nute, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borross•cr .h:dl pay all taxes, assessments and other ch:ages, fines and imprxitir-ns attributable to the Property which may attain a priorit)• 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 !.ender all notices of amounts due under this paragraph, and in the event Borrower shat! make payment directly, Bornnver shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly dixharge any lien which has priority over this Mortgage; provided. that Borrower shall nut be required to dixharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured h}• such lien in a manner acceptable to Lender, or shall in ga-d faith contest such lien hv, ur defend enforcement of such lien in, legal proceeding, which operate to prevent the enforcement of the Gen or forfeiture of the Property or am' part thereof. S. Hazard Insurance. Borrower shall keep the impn-sements now existing ur hereafter erected nn the Pn-Ixrty insured against loss by fire.-hazards included within the term "extended coverage", and such other hazards as Lender may rcyuirc and in such amounts and for such periods as Lender may require: provided, that Lender .hall not rcyuirc that the anunrnt of such wverage exceed that amount of coverage required to pas the sums secured M' this ~lortgage_ The insurance carrier providing the insurance shall be chosen by Borrower subject to approval b}• Len.ler: provided, that such approval shall not be unreasonably withheld. :VI premiums on imurrncc policies shall he paid in the manner provided under paragraph 2 hereof ur, if not paid in such manner, by Burrower making payment, when due, directly to the insurance carrier. All inurrance policies and renessals thereof shall t-e in form acceptable to Lender and shall inchide a standard mortgage douse in favor of and in form acceptable to Lender. !_ender shall have the right to hold the policies and rcncwak thereof, and Borruwcr shall prompth• furnish to_ Lcndcr all renewal notices and a!I receipts of paid premiums. In the event of loss. Borrower shall give prompt noose to the imurance carrier and Lender. Lcndcr ma}' make proof of loss if not made promptly by Burrower. Unless Lcndcr and Borruwcr othcrwix agree in writing. insurance proceeds shall be applied to restoration ur repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this ntortgagc is nut thereby impaired. It such restoration ur repair rs not ecunumicalh• feasible or i( the security of this Mortgage would be impaired. the insurance proceeds shall be applied to the sums xcured by this Mortgage. with the excess, if any, paid to Borrower. If the Property is ahandoncd hs' Borruwcr. or it Borruwcr lath to respond to Lcndcr within 30 days from the Date notice is mauled by 1_ender to Borrower that the insurance carrier offers to settle aclaim-for insurance benefits, Lender is authorized to collect anJ apply the insuranrc proceeds at Lender's option either to restoration or repair of the Propert}' or to the sums secured by this hortgage. Unless Lcndcr and Borruwcr otherwise agree m writing.an}' such application of proceeds to principal shall not extend or postpone the due date of the munthh~ installments referred to in paragraphs I and 2 hereof or change the amount of such installment. If under paragraph t8 hereof the Property is acytured h} Lender, alt right, title and interest of Borrower in and to am insuranrc policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acyuisittun shall pass to Lcndcr to the extent of the sums secured by this \k~rtgage immediately prior to such sale or acquisition. 6. Preservation and ~laintcnance of Property: Leaseholds: Condominiums; Planned Unit Iks•elopments. Borrower shall 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 an}' lease it this Mortgage is un a leasehold. If this Mortgage is on a unit in a condomimum ur a planned amt Jcvelopment. Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium ur 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 n executed by Borrower and recorded together wrth this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants anJ agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lenders Security. If Borrower tads to perform the covenants and agreements contained in this Mortgage. or if any action ur proceedmg is commenced which materially atTeas lender's interest in the Property, including. but not limited to. eminent domain. insuhency. code enforcement, or arrangements ur proceedings involving a bankrupt or decedent. then Lcndcr at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessan~ to protect Lender's interest. including. but not limited to, disbursement of reasonable attorney's t4cs and entry upon the Property to make repairs. If Lcndcr required ntortgagc imurancc as a sandman of making theaoan secured by this Mortgage, Borruwcr shall pay the premiums required to maint,un such insurance in etTect until such time as the requirement for such insurance terminates` rn accordance with Borrower's and I f - `s"'+~ _ S 34~ P~ 589 s - _ -~'~ ~.