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<br /> Utvrnow�t Cov$xeNTs. Borrower and Lender covenant and agree as foliows:
<br /> 1. Paymmt of Piincipal md Interat. Borrowet shall prompdy pay when due the principal of and interest on the
<br /> indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principa! of and inte�sst
<br /> on any Future Advances secured by this Mortgage.
<br /> 2. I�nds [or Tues and Ineuianca Subject to applicabie law or to a written waiver by Lender, Borrower shall pay
<br /> to I.ender on the day monthly instaliments of principai and interest are payable under the Note, until the Note is paid in ful1. ',
<br /> a sum (herein "Funds'•) equal to one-twelfth of the yearly taxes and assusments which may attain priority over this �
<br /> Mortgage, and ground rwts on the Property, if any, plus oae-twelfth of yearly premium installments for hazard insurance, ;',
<br /> plus one-twelfth of yesrly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from ±
<br /> time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br /> The Funds shall be held in an instimtion the deposiu or accounts of which are insured or guaranteed by a Federal or
<br /> state agency (induding Lender if Lender is such an institution) . Lender shall apply the Funds to pay said ta�ces, assessments,
<br /> insurance pnmiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, '
<br /> or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law ;
<br /> permiu Lender to make such a charge. Bortower and L,ender may agree in writing at the time of execution of this
<br /> Mottgage that interut on the Funds shall be paid to Borrower, and unless such agreement is made or applicable Iaw
<br /> rcquires such interest to be paid, Lender shalt not be required to pay Borrower any interest or earnings on the Funds. Lender
<br /> sball give to Borrower, without charge, an annual accounting of the Fuods showing credi[s and debets to the Funds and the
<br /> purpose for which each debit to the Funds was made. The Funds are pledged as additional securiry for the sums secured
<br /> by this Mortgage.
<br /> If the amount of the Funds held by Lender, together with the future moathly installments of Funds payable prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> assessments, insurance premiums and ground rents as they fatl due, such excess shall be, at Borrower s option, either
<br /> promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br /> held by Lender shall not be sut&cient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br /> Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by Lender to Borrower requesting' payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br /> held by L.ender. If under pazagraph 18 hereof the Property is sotd or the Property is otherwise acquircd by Lender, Lender
<br /> shall apply, no later than immediately prior io the sale of the Property or its acquisition by Lendeq any Funds held by
<br /> Lender at the time of application as a credit against the sums secured by this Mortgage. '
<br /> 3. Application of Payments. Unless applicable law providu otherwise, all payments received by Lender under the
<br /> Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower i
<br /> under paragraph 2 hereof, then to interest payable on the Note, then ro the principal of the Note, and then to interest and F
<br /> principal on any Future Advances. �
<br /> 4. CLaeges; Iiens. Borrower shall pay all taxes, assessments and other charges, fices and impositions attributable to ;
<br /> the Property which may attain a prioriry over this Mortgage, and leasehold payments or ground rents, if any, in the manner �
<br /> pruvided mder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcUy to the
<br /> payee thereof. Borrower shall promptly furnish ta Lender all notices of amounts due under this paragraph, and in the event ;
<br /> Borrower shall make paymen[ directly, Borrower shall prompUy fumish to Lender receipts evidencing such payments- 1
<br /> Borrower shall prompdy discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br /> such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, s
<br /> legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br /> 5. Hazard Insurance. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured
<br /> against ]oss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br /> aad in such amounts and for such periods as Lender may require; provided, that Lender shalt not require that the amount of :
<br /> such coverage exceed that amount of coverage required to pay the sums secured by this Mongage.
<br /> The insurance carrier providing the insurance shall be chosen by Borrower subject to approvat by Lender; provided, f
<br /> that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner i
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the i
<br /> insurance carriet
<br /> All insurance policies and renewals thereof shall be in fortn acceptable to Lender and shall include a siandard mortgage !
<br /> clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof. f
<br /> and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, i
<br /> Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly �
<br /> by Borrower.
<br /> Unless Lender and Borsower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of ,
<br /> the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br /> not thereby impaired. If such restoration or repair is not economically fcasible or if the security of this Mortgage would
<br /> be impaired, the insurance proceeds sha11 be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> io Borrower. If the Property is abandoned by Borrower, or if Borrower faits to respond to Lender within 30 days from the
<br /> date aotice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> is authoriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> or to the sums secured by this Mortgaga
<br /> Unless Lender and Borrower o[herwise agree in writing, any such application of proceeds to principal shall not extend
<br /> or postpone the due date of the monthly installments referred to in paregraphs 1 and 2 hereof or change the amount of
<br /> such installments. If under paragraph 18 hereof the Properry is acquired by Lender, all right, tide and interest of Borrower
<br /> in and to any insurance policies and in and to the proceeds tt�ereof resulting from damage to the Property prior to the sale
<br /> or acquisifion shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> 8CQUiSiit00.
<br /> 6. Preaervatlan aad Maintenance oi Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower �
<br /> shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> and shall comply with the provisions of any lease if this Mortgage is on a leaschotd. If this Mongage is on a unit in a
<br /> eondominium or a planned unit development, Borrower shall perform all of Borrower s obligations under the declaration
<br /> or wvenants creating or governing the condominium or planned unit development, ihe by-laws and regulations of the i
<br /> condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br /> rider is e�cecuted by Borrower and recorded together with ffiis Mortgage, the covenants and agreements of such rider - ��"
<br /> shall be incorporated into and shall amend and supplement the covenants and agreemenu of this Mortgagc as if the rider ,�. �
<br /> were a pact hereof. �� ' �# :
<br /> 7. Protection of Lende�s Security. If Boaower fails to perform the covenants and agreements contained in this , �
<br /> Mortgage, or if any action or proceeding is commenced which matecially affects Lender's interest in the Property, '
<br /> iacluding, but not limited to, eminent domain, icuolvency, code enforcement, or arrangements or proceedings involving a „d{
<br /> bankrupt or decedent, Yhen Lender at Lender's option, upon notice to Borroweq may make such appearances, disburse such �, .`}-:r '
<br /> sums and take such aMion as ia necessary to protect Lender's interest. including, but not limired to, disbursement of " M1
<br /> reaaonable atiorney's fees and enay upon the Property to make repairs. If Lender required mortgage insurance as a • aN
<br /> eondition of malting the loan secured by this Mortgage. Sorrowcr shall pay the premiums required to maintain such
<br /> iaaurauce in eHect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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