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HomeMy WebLinkAbout2473J'Ir Xr.Jt~~ t r, t~t~ ~'i UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows. 1. Payment of PMncipal and Interest. Borrower shall promptty pay when due the pr+nc+pal of and +nterest on the +ndebtedness evidenced by the Note. prepayment and late charges as prov+ded +n the Note, and the pr+nc+pat of and +nterest on any Future Advances secured by th+s Mortgage. 2. Funds forTaxes and Insuance. Subtect to applicabte law or to a written waver by Lender, Borrower shall pay to Lender on the day monthly installments of pr+nc+pal and interest are payable under the Note, until the Note is pa+d in full, a sum (here+n "Funds'") equal to one-twelfth of the yearly taxes and assessments which may atla+n pr+Or+ty over th+S Mortgage, and ground rents on the Property, +t any, plus one•twellth of yearly p-emium +nstallments for hazard +nsurance. plus one-twelfth of yearly premuum installments for mortgage+nsurance, it any, all as reasaonablyest+mated initially and from t+me to Time by Lender on the bas+s of assessments and bills and reasonable est+mates thereof. The Funds shall be held +n an institution the depos+ts or accounts of which are +nsured or guaranteed by a Federal or state agencyl+nctuding Lender +t Lenders such an institution). Lender shall apply the Funds to pay sa+d taxes, assessments. rnsurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account. or ve-+fy+ng and compiling said assessments and briis. unless Lender pays Borrower +nterest 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 applicabte law requires such interest to be pa+d, Lender shall not be required to pay Borrower any +nterest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing cred+ts and debits to the Funds and the purpose for which each debit to th_e Funds was made. The Funds are pledged as additional security for the sums secured by this Mcrtgage. It 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. +nsurance premiums and ground rents. shall exceed the amount required to pay said taxes. assessments, +nsurance premiums and ground rents as they fall due. such excess shall be. at Borrower s option. either promptly repaid to Borrower or credited to Borrower on monthly +nstallments of Funds. It the amount of the Funds herd by lender shaft not be suflic+ent to pay taxes. assessments. +nsurance premiums and ground rents as they tall due. Borrower shat! pay to Lender any amount necessary to make up the deficiency w+th+n 30 days from the dale notice is matted by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage. Lender shall promptty -efund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by lender. Lender shaft 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 applicabte law provides otherwise. aft payments received by Lender under the Note and paragraphs t and 2 hereof shat) be applied by Lender 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 +nterest and principal on any Future Advances. 4. Charges; Uens. Borrower shalt pay alt taxes. assessments and other charges, fines and impositions attributable to the Property which may attain a pr+ority over this Mortgage. and leasehold payments or gound rents, it any, in the manner provided under paragraph 2 hereof or. rf not paid in such manner. by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all not+ces of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower shalt promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly d+scharge any hen which has priority over this Mortgage: provided, that Borrower shall not be required to d+scharge any such Iren so long as Borrower shat) agree in writing to the payment of the obligation secured by such hen m a manner acceptable -o Lender, or shat) in good faith contest such hen by, or defend enforcement of such lien in. legal proceedings which operate to prevent the :?nlorcemeni of the Iren or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrowe- shall keep the improvements now exist+ng or hereafter erected on the Property insured against toss by fire. hazards included within the term "extended coverage".and such other hazards as Lender may require and in such amounts and for such periods as Lender requ+re: provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sum secured by this Mortgage. The insurance carrier providing the insurance shalt be chosen by Borrower subject to approval by Lender; provided. that such approval shall not be unreasonably withheld' All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, rf not paid rn such manner. by Borrower making payment, when due. directly to the +nsurance career. Atl +nsurance policies and renewals thereof shall be in form acceptable to Lender and shalt include a standard mortgage clause rn favor of and rn form acceptable to Lender. Lender shalt have the right to hold the polices and renewals thereol. and Borrower shall promptly furnish to Lender aft renewal notices and all receipts of paid premiums. In the event of loss. Borrower shalt give prompt notice to the +nsurance carr+e- and Lender Lender may make proof of toss if not made-promptty by Borrower. Unless Lender and Borrower otherwise agree in writing. +nsurance proceeds shalt be applied to restoration or repair of the Property daTaged. provided such restoration or repair rs economically feasible and the security of this Mortgage rs not !hereby impaired. If such restoration or repair +s not econom+cally feasible or if the security of this Mortgage would be impaired. the +nsurance proceeds shalt be applied to the sums secured by this Mortgage. with the excess. if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faits to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the +nsurance carrier offers to settle a claim for +nsurance benefits. Lender +s author+zed to collect and apply the +nsurance proceeds at Lender's option either to restoration o~ repair of the Property or to the sums secured by this Mortgage. Unless Lender and Borrowe- otherwise agree rn writing. any such application of proceeds to prrncipat shat) not extend or postpone the due date of the monthly +nstallments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property rs acquired by Lender. all right, title and +nterest of Borrower rn and to any rnsurance polic+es and in and to the proceeds thereof resulting from damage to the Property prio- to the sale or acquisiUOn shall pass to Lender to the extent of the sums secured by this Mortgage immed+ately prior to such sale or acquisition. 6. Preservation end Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property rn good repair and shat! not commit waste or permit impa+rment or deterioration of the Pro- perty and shall comply with the provisions of any lease it this Mortgage is on a leasehold. If this Mortgage is on a unit +n a condominium or a planned un+t development. Borrower shat) perform all of Borrower s obligations under the declaration or cavertants creating or goverrnng the condomirnum or planned unit development. the by-taws 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 shalt tie 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 Lender's Security. if Borrower fails to perform the covenants and agreements contained in this Mortgage. or d any action or proceeding is commenced which materially affects Lenders interest in the Property. mclud+ng. but not lim+ted 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. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shalt pay the premiums required to maintain such +nsurance +n effect until such t+me as the requirement for such insurance terminates in accordance with Borrowers and a~3~44 Q~2472