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HomeMy WebLinkAbout2573 Ur~i~oRM Cov~~?tvts Borrower and Lender covenant and agree as follows: 1. Payenent ot Prfnclpal •nd interest. Bortower shall promptly pay when due the principal and inte~est in- debtedness ¢videnced by the Note and late charges as provided in the Note. 2. Funds far Taxe~ ~nd lnsuranct. Subject to applicabie law or a written waiv¢r by Lender, Borrower shall pay to Lender on the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full, a sum (h¢rein "Funds") equal to one-twetfth of the yearly taxes and assessm¢nts Iincluding condominium and planned unit development assessments, if any) which may attain prio~ity over this Mortgage and ground rents on the Property, if any, plus one-tw¢Ifth ot yearly p~emium installments for hazard inwrance, plus one-twelfth of yearly premium in- stallments (or mortgage insuranc¢, if any, all as reasonably estimat¢d initiaqy and irom time to tlme by Lender on the t~asis of assessments and bilis and reasonable estimates thereof. Borrower shall not b¢ obligated to make such payments o! Funds to I.end¢r to the extent that Borrawer makes such payments to ihe hold¢r of a prior mortgage or deed o# trust is such holder is an institutional lender. If Borrower pays Funds to Lend¢r, the Funds shall be held in an Insiitution the deposfts or accounts of whith are in- sured or guaranteed by a Federal or stat¢ agency (including Lend¢r if Lender is such an institution). Lender shati apply the Funds to pay said taxes, assessments, insurance premiums and ground rants. Lender may not charge for so holding and applying the Funds, analyzing said account or verifying and comp~ling said assessm¢nts and bills, unless Lender pnys Borrower interest on the ~unds and applicable law permits Lender to make such a charge. Borrow¢r and Lender may agree in u?riting at the time ot execunon of this Mortgage that interest on the runds shall be paid to Bortower, 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 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 the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgag¢. If the amount of the Funds hetd by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shaA exceed the amount r¢quired to pay said taxes, bssessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bonowei s op- tion, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. 1f the amount of the Funds held by Lender shall not be sufficient 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 in one or more payments as Lender may require. Upon payment in full of all sums secured by this Mortgage. Lender shall prompdy refund to Borrower any Funds held by Lender. If under paragraph 17 her¢of 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 application as a credit against the sums secured by this Mortgage. 3. ApplicaUon of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shaii be apptied by l.ender first in payment ot amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on ihe Note, and then to the principal of the Note. 4. Prior Mortgages and Deeds of Trust; Chuges: Liens. Bonower shall perform all of Bonower's obligations under any mortgage, deed of trust or other security agreement with a li¢n which has priority over this Mortgage, in- cluding Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes. assessments and other charges. fines and impositions attributable to the Properry which may attain a priority over tt~is Mortgage and leasehold payments or ground rents, if any. 5. Hazard Insurance. Borrower shail keep the improvements now existing or hereafter esected on the Property insured against loss by fire, hazards including within the term "extended coverage", and such other hazards as Lender may require and in such amounts and for such periods as i.ender 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 and renewals thereof shall be in a form ac- ceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptabte to Lender. Lender shalf have the right to hoid the policies and renewals thereaf, sub}ect to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. ln the eve~t of Ioss, 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 notsce is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lend¢r is authorued to 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. 6. Preservstion and Maintenance of Property: Leaseholds; Condominiums; Planned Un1t Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. lf this Mortgage is on a unit in a condomir.ium or a planned unit development, Borrower shall perforrn all of Borrower's obliga- tions under the declaration or covenants creating or governing the condominium or planned unit development, the by- laws and regulations of the condominium or planned unit development, and constituent documents_ 7. Prote~tion o f t.ender's SecuNty. If Borrower fails to perForm the covenants and agreements contained in this Mortgage. or if any action or proceeding is commenced which materially affects Lendei s interest in the Property, then Lender. at Lender's opt;on, upon notice to Borrower, may make such appearances, disburse such sums, including reasonable attorneys' fees. and take such action as is necessary to protect Lender's interest. tf Lender required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums requi*ed to maintain such insurance in effect until such time as the requirement for such insuronce terminates in accordance with Borrower's and Lender's written agTeement or applicable law. Any amounts disbursed by Lender pursuant to this~paragraph 7, with interest thereon, ai the Note rate, shal! become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of pay- ment, such amounts shall be payable upor~ notice from Lender to Borrower requesting payment thereof. Nothing con- ta~ned in this paragraph 7 shall require Lender to incur any expense or take any action hereunde~. 8. InspecNon. Lender may make or cause to be made reasonable entries upon and inspections of the Property. providing that Lender shall give Borrower notice prior to any such inspection specifying reasonabPe cause therefore related to Lender's interest in the Property. 9. Condemnation. The proceeds of any award or claim for damages. direct or consequential, in connection with any condemnation or other taking o! the Property, or part thereof, or for conveyance in lieu of condemnation, are herehy assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or ather security agree- ment with a lien which has priority over this Mortgage. ~j Q~~~ ~ Page Two of Four 500K PAGE 5 73 " ~ w ~ a ; ~ > ~ t ~ . . ~"s~.S`,Lk-`~-.~r.~r ,~'~"~!`~v~ ~~'."~~„a~'~+^~'az .~xr.