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HomeMy WebLinkAbout0968 • ~ ~ UNIFORM COVENANTS. Borrower and Lcnder covenant and agree as tollows: 1. Paymeat of Priacip~l aad I~teraf. Borrower shall p~omptly pay when due thc principal of and interat oo the indebtedness evidenceci by the Note. prepayment and late charges as provided in the Note. and the principal of and interest nn any Future Advat~ccs secured by this Mortgage. ~ 2. F~ads tor Tua ani Iawr~nce. Subject to applicabk law or to a written waiver by I.ender. Borrower shall pay I' to L,ende~ on ~hc day monthly installraents of principal an~ interest arc payable under the Note. until the Note is paid in fuq. a aum (herci~ "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this Morigage, and g~ound rents on the Pt+openy. if any, plus one-twelfth of eul ~ y y prcmium installmenta for hazaod insurance. plus or~twelfth of yearly premium iastallments tor mortgage in:urance, it any, all as reasonably astimated initiaUy and from I ' cimc to tinx by Lender on the basis of assessments and bills and rcasonablc estimates theteof. The Funds shall be held in an institution the deposits or accounts of which are insured or guarantecd by a Foderal or ' state agency (including Ler~der if I.ender is such an instiwtion). Lender shall apply the Funds to pay said taxa. assessments. li • insurance premiums and ground rents. l.ender may oot charge for so holding and applying the Funds. analyzing said account, or verifying and compiling said assessments and bills, u~las Lender_ pays Borrower interest on the Funds and applicabk law permits Lender to make such a charge. Borrower and L.ender may agree in writing at the time of enecution of this Mortgage that interest on the Funds shall be paid to Bonower. and unless such agreement is made or .applicable law requires sucti interest to be paid. l.ender shall not be required to pay Borrower any interest ot earnings on the Funds. Lender shall give to Borrower, without charge, an annual accou6iing of the Funds showing credits and debits to the ~unds and the I purpose for which each debit to the Funds was made. The Funds are pledgod u additional securiry for the sums secured ' by chis Mortgage. I 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 eacceod the atnount required to pay said taxa, I asses~t~ents. insurance premiums and ground rents as they fall due, such excess shall be. at Borrower s option. either ' promptly rcpaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds hsld by l.ender shall not be su~cient to pay taxes, assessments, insurance premiums and ground ronts as they fall due. Borrower shall pay to Lender any amount nec~ssary to make up the deficiency within 30 days from the date notice is mailod by I.ender to Borrower requestiag payment thereof. Upon payment in full of all sums securod by this Mortgage, Lender shall promptly refund to Borrower any Funds held by i.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender 'I shall apply. no later than immediately prior to the sale of the Property or its acquisition by L.ender, any Funds held by I.ender at the time of application as a credit against the sums socured by this Mortgage. 3. Applicatiw~ of psymeatr. Unless applicable law provides otherwise, all payments received by Lender u~der the Note and paragraphs 1 and 2 hereof shall be applied by l.ender 6rst in payment of amounts payable to I.ender by Bonower under paragraph 2 hereof. t6en to interest payable on the Note, then to the principal of the Note, and then to interat and principal on any Future Advanocs. 4. CMrae~ Ueas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may atwin a prioriry over this Mortgage, and leasehold payments or gmund rents, if any. in the manner j provided under paragraph 2 hereof or, if not paid in such manner. by Bonower making payment, when due. dirocdy to the ' payee thereof. Borrower shall prompUy furnish to Le~der all_nodces of amounts due under this paragraph, and in the eveat I Borrower shall make payment directly, Borrower shall prompdy furnish to I.ender roceipts evidencing such payments. Borrower shall pranptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be I required to dixharge any such lien so long as Borrower shall agrce in writing to the payment of the obligation secured by suc6lien in a manner acceptabk to I.ender. or shall in good faith contest such lien by. 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 thercof. 5. Hazud Ias~rmce. Borrower shall ketp the improvements now existing or hereafter erected on the Property insured against loss by fic+e, hazards included wit6in the term "extended coverage", and such other hazards as Lender may roquire and in such amounts and for such periods as Lender may require; provideci. that Lender sball not ~equire that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. I~ The insurance carrier providing ttie insurance shall be chosen by Borrower subject to approval by Lender, provided, that auch appmval shall not be unreuonably withheld. All premiums on insurance policiea shap be paid in the manner j provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment. when due, dircctty to the ~ insurance carrier. ~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of aod in form accxptable to Lender. Lender shall have the right to hold tbe policies and renewals thereof. ~ and Borrower shall prompdy furnish to Lendsr all renewal notices and all receipta of paid pterniums. In the event of losa. Borrower shall give prompt notice to the insurance catrier and Lender. Lender may make proof of loas if not made promptly by Borrower. Unless Lender and Bonower otherwise agree in writing, insurance procceds shall be applied to restoration or repair of the Property damaged, provicled such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or npair ia not economically feasible or if the socurity of lhis Mortgage would he impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excacs. if any. paid ' to Borrower. If the Propeny is abandoned by Borrower, or if Borrower fails to respond to Lender witl~in 30 days from the date notice is mailed by Leader to 8orrower that the insurance carrier ofiers to setQe a claim for insurance benefits. Lender is aut6orizod to collect and apply the insurance proceeds at Lender's option either to restoration or repair of !he Property or to the sums securod by this Mortgage. Unless L.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone tt~e due date of the monthly inst~llments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph l8 beroof the Property is acquired by Lender, all right, tide and intercst~of Borrower in and to any insurance policies and io and to the proceods thereof resulting from damage to the Property prior to the sale or acquisition shall pass to Lender to t6e extent of the sums socured by this Mortgage immediately prior to such sale or a.cquisition. ' 6. Preaervatbn aod Maiotenaace of Property; [,ease6olds; Condomioiums; PW~ned Udt Devebpmeab. Borrower shall ~cep the Property in good repair and shall not commit waste or permit impairment or deterioraUon of the Property . and shall comply with the provisions of any lease if this Mortgage is on a leaaehold. If this Mortgage is on.a unii in a condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration or covenants creatiag or governing the condominium or planned unit developmenl, the by-laws and regulations of the - condominium or planned unit development, and cbnstituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the rnvenants and agrcements of such tider 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 Lender's Securiq+. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action- or procoeding is commenced which materially affects Lender's interest in !he Property. including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proccedings involving a bankrupt or decedent, then L.ender at l.ender's option, upon notice to Borrower. may make such appearances, disburse such sutns and take auch action as is nevessary to protect Lender s interest, including, but not limited to. disbursemtnt of reasonable attomey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance u a condition of making the loan secura! by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in efIect until such time as the requirement for such insurance terminates in accordance with Borrower's and 8~ eh~3 PAGE 96g . .