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HomeMy WebLinkAbout0988 : , ~ , UNIFORM COVENANTS. Bor~ower and Lender convenant and agree as tollows: 1. Parm~nt ot P~i~cipal and Int~rqf. Bor~ower shall p~omptly pay when due the principal of and ~nterest on the indebtedness ev~denced by the Note, prepayment and late charges as provided in the Note. 2. Funds fo~ Tax~s a~d Insuranc~. 5ub~ect to applicable law or to a w~itten waivsr by Lender, 6orrower shall pay to lender on the day monthly installments of principal and interest a~e payable under the Note, until the Note is paid in lull, a sum (herein "Funds") equal to one-lweltth oi the yearly taxes and assessments which may attain priority ove~ this Mortgage, and ground rents on the Properiy, ii any, plus one-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as.reasonably estimated initially and trom 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 o~ guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and g~ound ~ents. lender may not charge tor so holding and applying the Funds, analyzing said account, or ve~ifying .3nd compiling said assessments and bills, unless L~nder 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 unlsss 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 Bn the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the pu~pose tor which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage_ Ii 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 g~ound rents, shall exceed the amount required to pay said taxes, assessments, insurance 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 installment of Funds. Ii the amount oi the Funds held by Lende~ shall not be sufiicient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficie~cy within 30 days from the date notice is maited by Lender to Borrowe~ requesting payment thereot. Failure to pay any amounts hereunder may be treated as a default under this Mortgage and the related Mortgage Note. Upon payment in full oi all sums secured by this Mbrtgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 19 hereof the Property is sold or the P~operty is otherwise acquired by Lender, Lender shall apply, no later than immed~ately prior to the sale oi the Property or its acquisition by Lender, any Funds held by Lender at the time oi application as a credit against the sums secured by this Mortgage. 3. AppllcaNon of Payments. Unless applicable I~w provides otherwise, all payments received by Lender under the Note and paragraphs 1 a~d 2 hereoi shall be applied by Lender tirst in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to the interest payable on the Note and then to the principal of the Note. 4. Charges; Lisns. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under parag~aph 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 Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority ove? this Mortgage: provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender; or shall in good taith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement oi the lien or forfeiture of the Property or any pa~t thereof_ S. Hua~d Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against Ioss by tire, 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 may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall 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, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender andshall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the poticies and renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In ihe event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower_ i Unless Lender and Borrower othenerise agree in 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 orrepair is not economically feasible or if the security of this Mortgage would be impaired, the f insurance proceeds shall 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 if Borrower 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, Lender is authorized to collect and apply the ' insurance proceeds at Lender's option either to ~estoration or repair oi the Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such apptication of proceeds to principal shall not extend or ~ postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereoi or change the amount of such ~ installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any ~ insurance policies and in and to the proceeds thereof resulting irom damage to the Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Malntenance of Property; Leaseholds; Condominiums; Planned Unlt Developmenb. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of tlie Property and shalt comply with the provisions of any lease it 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 oi Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit ~evelopment, the by-laws and regulations of the condominium or planned unit development, and constituent documents. lf a condominium or planned unit development rider is executed by Borrower and recorded together with ' this Mortgage, the covenants and agreements of such rider shali be incorporated into and shall amend and supplement the ~ covenants and agreements of this Mortgage as if the rider ~rere a part hereof. ~ 7. ProtecNon of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if ~ any action or proceeding is commenced which materially afiects Lender's interest in the Property, including, but not limited to, ~ eminent domair., insolvency, code enforcement, orarrangements or proceedings involving a bankrupt or decedent, then Lender at , Lender's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. It lender required mortgage insurance as a condition oi making the loan secured 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 Lender's written agreement or applicabte law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall become additional indebtedness oi Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice irom lender to Borrower requesting payment thereoi, and shall bear interest from the date of disbursement at the rate ~ payabte irom time to time on outstanding principal under the Note unless payment oi interest at such rate would be contrary to r applicable law, in which event such amounts shall bear interest at the highest rate parmissible under applicable law. Nothing ~ contained in this paragraph 7 shall require Lender to incur any expense or take any action hereunder. ~ 8. tnspectlon. Lender may make or cause to be made reasonable entries upon and inspections of ihe Property, provided that = lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in 8 the Property_ ~ 9. Cond~mnation. The proceeds oi any award or claim for• dAhiage~!lJirect or consequential, in connection with any ~ condemnation or other taking oi the ~roperty, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and i shall be paid to Lender. ` . :~~r P!GE ~C77 : . , . _ _ _ - ~ . . _ , _ ~