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HomeMy WebLinkAbout0914 . ~ . ! YZ_ ~ f UNIFORM COVBNAIdTS. Borrower and Lcndtr covenant and agrec as follows: F 1. P~rmeat ot Prl~acipal sad lntensf. Borrower shall promptly pay when duo the principal and interest indebtedness cvidenced by the Note and late charges as provided i~ the Note. 2. Fuads tor T~xea ~ad Ias~rnace. Subj~ct to applicable law or a written watver by Lender, Borrower shall pay to Lcnder on the day monthly payme~ts of principal and Interest are payable under the Note, u~til the Note is paid in full~ a sum (herein "Funds") equal to one-lwelfth of the yearly taxes and assessments (including condominium and planned " unit devclopment assessments~ if any) which may attain priority over this IVtortgage and ground rents on the Property, if any, plus one-twatfth of yoarly premium installments for hazard lnsuranc~, plus one-twelfth of yearly premium ~ installments for mortgage insurance~ if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estlmates thereof. Borrower shall not be obligated to make such payments of H`unds to Lender to the exte~t that Borrower makes such payments to the holder of a prior mortgage or deed of trust if sue"h holder is an institutional iender. ~ If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are insurcd or guarantetd by a Federal or State agency (including Lender if Lender is such an institution). Ltnder shall apply the Funds to pay said taxes. assessments~ insurance premiums and ground rents. Lender may not charge for sa holdjng and applying the Funds, anatyzing said account or verifying and compiling said assessments and biUs, unless Lender pays Bor~ower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and I,ender may agree in writing at the time of execution of this Mortgage that interest on the Funds shali 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 Bonower any interest or earnings on the Funds. Lender shall give to Borrower, without charge~ an annual accounting of the Funds showing credits and debits to the Funds and tho purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthty installments of Funds payable prior to , the duo dates of taxes~ assessments~ insurance premiums and ground rents. shall exceed tha amount requirtd to pay said taxes, assessments~ insurance premiums and ground rents, as they fall due. such excess shall be, at Borrower's option. eithtr promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by L~nder shall not be sufficient to pay taxes. assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lcnder any amount necessary to make up the defieiency in one or more payments as Lender may require. Upon payment in full of all sums secured by this Mortgage, Lender shall promptiy refund to Borrower any Funds held by Ltnder. If under paragraph 17 bereof ihe Propcrty is sold or the Property is otherwise acquired by Lender, Lender sha(I appty, no iater than immediately prior to the sale of the Property or its acquisition by Lender, any Funds hetd by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Applica~ioo ot Paymen~s. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 htreof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under parag~aph 2 hereof~ then to interest payable on the Note~ and then to the principal of the Note. 4. P~ior Mortga~es and Deeds of Trnst; Ch~rges; Lieos. Borrower shall perform al! of Horrower's obligations under any mortgage, deed of trust or other security agreement with a[ien which has priority over this Mortgage, i including Borrower's covenants to make payments w6en due. Borrower shalt pay or cause to be paic! all taxes, ~ assessments and other charges, fines and impositions attributabte to the Praperty which may attain a priority over this ~ Mnrtgage, and leasehold payments or ground rents, if any. ~ S. HAZard Ins~rancr. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire~ hazards included within the term "extended coverage", and such other hazards as Lender t ( may require and in such amounts and for such periods as Lender may require. ~ 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 insurance policies ai?d renewals thereof shall be in a ~ form acceptable to Lender and shall include a standard mortgage claust in favor of and in a form acceptable to Lender. ~ Lender shall have the right to hold the policies and renewats thereof, subject to the terms of any mortgage, deed of trust ~ or other security agreement with a iien which has priority over this Mortgage. , In the 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. If 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 E authorized to collect and apply the insurance procceds at Lender's option either to restoration or repair of the Property ~ or to the sums secured by this Mortgage. 6. Preservation ~nd Malateoance oi Property; Le~seholds; Condominiums; Plaontd Un1! Dtvelopments. Borrower shal[ kcep the Property in good repair and shall not commit waste or ptrmit impairment or deterior~tion 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 cre~ating or governing the condominium or planned unit development~ the by-laws and regulations of the condominium or planned unit development~ and constituent documents, 7. Protectioa oi Lender's Secarity. If Borrower fails to ~erform the covenants and agreements contained in this Mortgage. or if any action or proceeding is commenced which materiatiy affects Lender's interest in the Property, then y Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including ( reasonabte attorneys' fees, artd take such action as is necessary to protect Lender's interest. If Lender required mortgage i insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to ~ maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law. Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon~ at the Note rate~ shall become additional indebttdness 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. Nothing contained in this paragraph 7 shall requir~ Lender to incur any expense or take any action hereundtr. 8. Inspection. Lender may make or cause to be made reasonable eniries upon and inspections of the Property, provided that Lender shal) give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in the Property. ~ 9. Condemnpilon. Tht proceeds of any award or claim for d'amages, direct or consequential, in connection with BooK~J~~ PacE ~12 , I