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HomeMy WebLinkAbout0993 • . 1111 7 UNiFORM COVENANTS. Bor~ower and Lender convenant and agree as follows: 1. Paym~nt of PNncipal a~d Inf~r~st. Bo~rower shall promptly pay when due the principal ot and ~nterest on lhe indebtedness evidenced by the Note, prepayment and late charges as provided i~ the Note. Z. Funds fo~ Tax~s and InsuanC~. Sub~ect to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in tull, a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one-tweltth oi yearly premium installments for hazard insurance, plus one-twelfth of yearly premium ~nstallments for mortgage insu~ance, if any, all as ~easonably estimated initially and trom time to time by Lender on the basis of assessments and bills and reasoRable estimates thereof. The Funds shall be held in an institution the deposits or accou~ts of which are insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institutio~). lender shall apply the Fu~ds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or ve~ifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Bor~owe~ and Lender may agree in writing at the time of executio~ 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 earningsBn the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose tor which each debit to the Funds was made. The Funds are pledged as additional security tor the sums secured by this Mortgage. It the amount of the Funds held by.Le~der, together with the futu~e monthly installments of Funds payable prior to the due dates ~ of taxes, assessments, i~surance premiums and ground ~ents, 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 instaltment oi Funds. If the amount ot the Funds held by Lender 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 deficiency within 30 days from the date notice is mailed by Lender to Borrower ~equesting payment thereof. Failure to pay any amounls hereunder may be treated as a default under this Mortgage and the related Mortgage Note. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender_ Ii under paragraph 19 hereoi the Property is sold or the Property is otherwise acquired by Lender, Lender shall 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 apptication as a credit agai~st the sums secured by this Mortgage. 3. AppBcatlon of Paymenb. Unless applicable I~w provides otherwise, all payments received by Lender under the Note and paragraphs t and 2 hereof shall be apptied by Lender first 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 ot the Note. 4. Charges; Llens. Borrower shall pay all taxes, assessments and othe~ charges, fines and impositions attributabte to the Propeny which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereoi or, ii not paid in such manner, by Borrower making payment, when due, directly to the payee thereoi. 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 over 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 faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lie, 6r to~feiture of the Property or any part thereof. 5. Huard Insurar~ce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against Ioss 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 may require; provided, that lender shall not require that the amount of such coverage exceed that amount of caverage 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 hereoi 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 policies and renewals thereof, and Borrower ~ shalt promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss. Borrower shall give - j prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. ' Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the f 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 shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. Ii 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 settte a claim for insurance benefits. Lender is authorized tQ collect and apply the ' insurance proceeds at Lender's option either to restoration or repair of 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 hereof or change the amount of such ~nstallments. If under paragraph 18 hereof the Property is acquired by Lender, all ~ight, title and interest of Borrower in and to any ~ insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition shall E pass to Lender to the extent oi the sums secured by this Mortgage immediately prior to such sale or acquisition_ ~ 6. Preservatlon and Malntenance oi Property; LQaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment ordeterioration of the Property and shall comply with the provisions of any lease if 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 of Borrower s obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and ~egulations of the condominium or planned unit development, and ~ constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with ~ this Mortgage, the covenants and agreements of such rider 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. Protectlon of Lenders SecuNt~l. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if ~ any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, p eminent domai~, insolvency, code enforcement, or arrangements 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. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in eifect until such time as the requirement for such insurance terminates in ' accordance with Borrower's and Lenders written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereoi. Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest trom the date of disbursement at the rate ~ payable irom time to time on outstanding principal under the Note unless payment of inte~est at such rate would be contrary to 4 applicable law, in which event such amounts shall bear interest at the highest rate psrmissible under applicable law. Nothing ~ contained in this paragraph 7 shall require Lender to incur any expense or take any action hereunde~. S. Inspectlon. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that ; Lender shall give Borrower notice prior to any such inspection speltifyiAg~reasonable cause therefor related to Lender's interest in ~ the Property. ~ 9. Condemnstfon. The proceeds of any award or claim for damages, direct or consequential, in connection with any f condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and ~ shall be paid to Lender. i:r ~~W ~ t 7 PaGE ~ ~ - ~