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<br /> Uxrnoxhr CovBxwtvrs. Borrower and Lender covenant and agree as follows :
<br /> 1. 1'aymeut of Piinclpal and Interest. Borrower shall prompQy pay when due the principal of and interest an 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 /> i 2. Funde [or Taes and Insannce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br /> � to L.ender on the day monthly installments of principal and interest are payable under the Notq until the Note is paid in full,
<br /> a sum (herein '•Funda'ry equal to ono-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> i ; Mortgage, and ground rents on the Pro rt
<br /> pe y, if any, plus ono-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 initiatly 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 deposits or accounts of which are insured or guaranteed by a Federal or ,
<br /> ' state agency (including Lender if I.ender is such an institution) . Lender shall apply the Funds to pay said taxes, assessmenu,
<br /> � insurance premiums and gound rents. Lender may not charge for so hoiding and applying the Funds, analyzing said account,
<br /> ` � or verifying and compiling said assessments and bills, unkss Lender pays Borrower interest on the Funds and applicable law
<br /> permits Lender to make such a charge. Borrower and L.ender may agree in writing at the time of execution of this
<br /> ; Mortgage that interest on the Funds shall be paid to Borrower, and unless suc6 agreement is made or appiicable law
<br /> nquires such interest to lx paid, Lender shall not be required to pay Borrower any interest or eamings oa the Funds. Lender
<br /> shall give to Borrowu, without charge, an annval accounting of the Funds showing credits and debits to the Funds and the
<br /> i by t�h'is MortWhich each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br /> '. E If the arnount of the Funds held by Lender, together with the fumre 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 /> ; assessmmu, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's op[ion, either
<br /> i prompUy repaid to Borrower or credited to Horrower on monthly instaliments 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 /> ! Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed ,
<br /> I by Lender to Bonower requesting' payment thereof. `
<br /> i Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds 1
<br /> + held by Lender. If under paragraph 18 hereof the Property is sold or the Property is othenvise acquired by Lendeq Lender {
<br /> i shall apply, no larer than 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 the sums sewred by this Mortgage. ?
<br /> f 3. Applicatlon of Payments. Unless applicable law provides otherwise, alt 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 ;
<br /> " ! under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to in[erest and ;
<br /> S principal on any Future Advances. }
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<br /> { 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to �
<br /> • the Property which may attain a priority over this Mortgage, and leasehold payments or grouod rents, if any, in the manner
<br /> ? provided under paragaph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly ro t6e `�
<br /> ' � payee themof. Borrower shall prompdy fumish to Lender all notices of amounts due under this paragraph, and in the eveat j A
<br /> Borrower shall make payment directty, Borrower shall promptly furnish ro Lender receipts evidencing such payments. � ;
<br /> ; , i . Sorrower shalI promptly dischazge any lien which has priority over this Mortgage; pravided, that Sorrower shalt not be j �.
<br /> required to discharge any such tien so long as Borrower shall agree in writing to the payment of the obligation secured by E
<br /> , � such lien in a manner acceptable to Lender, or shall in good faith contest such Iien by, or defend enforcement of such lien in, f�
<br /> legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. �,;
<br /> � 5. Ha�rd Insurance. Bonower shall keep the improvemenu now existing or hereafter erected on the Property insured sF
<br /> againat loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require �
<br /> and in such amounts and for such periods as Lender may require; provided, that Lender shall not requirc that the amount of ,` `
<br /> � such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. "-
<br /> � T'he inaurance cazrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, � �p
<br /> ' 1, that such appmval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner ! ^
<br /> ; € provided under paragraph 2 hereof or, if not paid in suah manner, by Borrower making payment, when due, directly to the ; �
<br /> ' insurance carriet.
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<br /> i All insurance policies and renewals thereof shall be in form acceptable to Lender and shall inctude a standard mortgage
<br /> I clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br /> � and Borsower shall prompUy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, „,
<br /> Borrower shall give prompt notice to the iasurance carrier and Lender. Lender may make proof of loss if not made promptly '
<br /> i by Boaower. y;
<br /> { Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or rep�ir of
<br /> 7 the Property damaged, provided such mstoration or repair is economically feasible and the security of this Mortgage is
<br /> ' I aot theroby impaized. If such restoration or repair is not economically feasibte or if the security of this Mortgage would
<br /> 5 be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> . � to Bonower. If the Property is abandoned by Borrower, or if Borrower fails to respond to I.ender within 30 days from the
<br /> - � date notice is mailed by I.ender to Borrower tha[ the insurance carrier offeis to settle a claim for insurance lxnefits, Lender
<br /> is authorized 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 Mortgage.
<br /> � Unless I.ender and Borrower otherwise 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 paragraphs 1 and 2 hereof or change the amount of
<br /> � such installments. If under paragraph 18 hereof the PropeRy is acquired by Lender, all right, title and interest of Borrower
<br /> s in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Propeny prior to the sale
<br /> ' < or acqtisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> . � acquisition.
<br /> ', ; 6. Preservatloo and Maintenance of Property; Lesseholds; Condominiums; Plaaned Unit Developments. Borrower
<br /> : ; s6a11 keep the Property in good repair and shatl not commit waste or permit impairment or deterioration of the Property
<br /> ' aad shatl comply with the provisiona of any lease if this Mortgage is on a leaschold. If this Mortgage is on a unit irt a
<br /> � condominium or a planned unit development, Borrower shall perform atl of Borrower's obligations under the declaration
<br /> � or coveaants creating or governing the condominium or planned unit development, the by-laws and regulations of the t
<br /> condominium or plamed unit development, and coestituent documents. If a condominium or planned unit development
<br /> ,, rider is executed by Borrower and rewrded together with this Mortgage, the covenants and agreements of sach rider ,..-
<br /> " shall be incocporated into and shatl amend and supplement the covenants and agreements of this Mortgage as if the rider � "'" " " �''
<br /> were a part hereof. - �'� , g
<br /> 7. Protectlon of Lender's Security. If Borsower fails to perform the covenants and agreements contained in this � ., " >
<br /> Mortgage, or if aay action or proceeding is commenced which materially affects Lender's interesi in the Property,
<br /> including, but aoYlimi[ed to; eminent domain, iosolvency, code enforcement, or arrangements or proceedings involving a � ":
<br /> banlcrnpt or'8ecedent; then Lender at Lender's option, upon notice to Borrower, may make such appearances, disbuae such ' ,-� ,
<br /> ' aams and take auch actioa as is necessary to protect Lenders interest, including, but not limited to, disbutsement of ; ` �; :; i
<br /> reasonable attomey's feea and mtry upon the Property to make repairs_ If Lender required mortgage insurance as a - � '_ `"+�
<br /> " ' ' condition "of makin the losa secured b this Mort a e, Borrower ahall
<br /> g y g g pay the premiums required to maintain such " "�`' "
<br /> t. imuraax in effect until such time as the requirement for such insurance terminates ia accocdance with Borr.owe�s and
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