|
�
<br /> 78- ;) U1 �' 3 '7
<br /> Uriironat Covew�Nrs. Horrower and Lender covenant and agree as follows :
<br /> 1. Payment of Principal and Interest. Borrower shall promptly 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 principal of and interest
<br /> on any Future Advances secured by this Mortgage.
<br /> 2. Funds for Ta=es snd Insur.nce. Subject [o applicable law or to a written waiver by Lender. Borrower shall pay �
<br /> to I.ender on the day mon[hly instaliments of principal and interest are payable �mdcr tbe Note, until the Note is paid in full,
<br /> a sutn (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br /> plus one-twelfth of yearly 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 institution the deposi[s or accounts of which are insured or guaranteed by a Federal or
<br /> state agency (including Lender if Lender is such an institution ) . Lender shall apply the Funds to pay said taxes, assessments,
<br /> insurance premiums 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 Dorrower interest on the Funds and applicable law
<br /> permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br /> Mortgage [ha[ in[erest on the Funds sha�l be paid to Borrower, and unless such agreement is made or applicable law
<br /> requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br /> shall give to Borrower, wi[hout charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br /> purpose for which each debi[ to the Funds was made. The Funds are pledged as additional security for the sums secured
<br /> by this Mortgage.
<br /> If the amount of the Funds held by Lender, together with the future monthly 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 fall due, such excess shall be, a[ Borrower's option, ei[her
<br /> promp[ly repaid to Borrower or credited to Borrower on monthly instatlments of Funds. If the amount of the Funds
<br /> held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br /> Botrower shall pay [o Lender any amoun[ necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by Lender to Borrower reyuesting� payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage, i.ender sha�l promptly refund to Borrower any Funds
<br /> held by Lender. If under paragraph � 8 hereof the Property is sold or thc Property is otherwise acquired by Lender, Lender
<br /> shall apply, no later [han immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br /> Lender at the time of application as a credit against Ihe sums secured by this Mortgage. �.
<br /> 3. Applicalion of Paymenfs. Unless applicable law provides 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 amoun[s payable to Lender by Borrower
<br /> under paragraph 2 hereof, then to interest payable on the Note, then to thc principal of the Note, and then to in[erest and �
<br /> principal on any Future Advances.
<br /> 4. Charges; Liees. Borrower shall pay all tases, assessments and other charges, fines and impositions attributable to
<br /> the Property which may a[tain a pciority over this Mortgage, and leasehold payments or ground ren[s, if any, �n the manner
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> payee thereof. Sorrower shall promptly furnish to Lender all notices of amounts duc under Ihis paragraph, and in the event
<br /> Borrower shall make payment directly, Borrower shall prompdy furnish to Lender receipts evidencing such payments.
<br /> Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower sh•rll not be
<br /> required to discharge any such lien so long as Borrower shall agrce in writing to the payment of the obligation secured by
<br /> such lien in a manner accep[able to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<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 keep the improvements no�+• existing or hereafter erected on the Property insured
<br /> against loss by fire, hazards included within the term "extended coverage", and such o[her hazards as Lender may require
<br /> and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amoun[ of
<br /> such coverage exeeed that amount of coverage required to pay the cums secured by this Mortgage.
<br /> The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided.
<br /> � � that such approval shall no[ be unreasonabty withheld. All premiums on insurance policies shall be paid in the manner
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> insurance cazrier.
<br /> � i AIt insurance policies and renewals thereof shall be in form aceeptable to Lender and shall include a smndard moRgage
<br /> � 1 dause in favor of and in form acceptable to Lender. Lender shall have thc right to hold the policies and renewals thereof,
<br /> '� S and Borrower shal ! prompUy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
<br /> � { Horrower 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 Borrower otherwise agree in writing, insurance proceedx shall be applied to restoration or repair of
<br /> ; �� [he Proper[y damaged, provided such restoration or repair is economically feasible and thc security of this Mortgage is
<br /> no[ thereby impaired. If such restoration or repair is not economically fcasible or if the security of this Mortgage would
<br /> �� 3 be impaired, [he insurance proceeds shall be applied to the sums secured by this MoRgage, with the excess, if any, paid
<br /> to Borrower. If the Property is abandoned by Borrower, ur it Borrower fails to respond to Lcnder within 30 days from the
<br /> date no[ice is mailed by Lender to Borrower that the insurance carrier ofFers to senle -r clairn for insuranee benefits, Lender
<br /> . ; is authoriud to collec[ and apply the insurance proceeds a[ Lender's option either to restoration or repair of the PropeRy
<br /> or to the sums secured by this Mortgage.
<br /> Unless Lender and Borrower otherwise agree io writing, any such application of proceeds to principal shall not extend
<br /> or postpone the due date of [he monthty installments referred to in paragraphs I and 2 hcrcof or change the amount of
<br /> such ins[allments, If under paragraph IS hereof the Property is acyuireJ by Lender, alt right, title and interest of Borrower
<br /> in and to auy insurance policies and in and to thc proceeds thereof resulting from damage to the Property prior to the sale
<br /> or acquisition shall pass to Lender to Ihe extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> acquisition.
<br /> 6. Preservation and Maintenance of Properiy; Leaseholds; Condominiums: Planned Unit Uerelopments. Borrowcr
<br /> shatl 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 x Icasehold. If this Mortgage is on a unit in a
<br /> wndominium or a planned unit development, Borrower shall perform all of Borrower's OLIIIE:i[I005 under the dedaration
<br /> or covenants creating or governing the condominium or planned unit development, the by-laws and rcgulations of the
<br /> condominium or planned unit development, and constituent documents. I ( a condominiurn or planned unit development
<br /> rider is executed by Borrower and tecorded together with this Mortgage, the covenants nnd agreements of such rider
<br /> shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br /> were a part hereaf.
<br /> 7. Protection of LendePs Security. If Borrower fails to perform the covenants and a�reements contained in this
<br /> Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property. �
<br /> including, but not limited to, eminent domain, insolvency, code en (orcement. or arrangements or proceedings invulving a
<br /> bankrupt or decedent, then Lender at Lender's option , upon noticc ro Borrower, may make such appearances, disbursc such
<br /> sums and take such action as is necessary' to protect Lender's interest, including, but not limited to, disbursement of
<br /> reasonable attorney's fees and entry upon the Property to makc repairs. It Lendcr reqi�ired mortgage insurance as a
<br /> condition of making ffie loan secured by this Mongage. Borrowcr shall pay the premiums required to maintain such
<br /> insurance in effect until such time as the requirement for such insurance terminates in accordance with Borr�wer's and
<br /> tp
<br /> E
<br /> I
<br /> i
<br /> i
<br />
|