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<br /> 78--� � ) `► 1 � 30
<br /> Ut�troxwr Covax�zs. Borrower and Lender covenant and agree as follows:
<br /> , � 1. Pagment ot Prlucipat sod Inter�at. Borrower shall promptly pay when due the principal of and inierest on the
<br /> - ; indebtedneaa evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and iaterest
<br /> on any Buture Advances secured by this Mortgaga
<br /> y � 2. Fmds tor Tazes and Insuranee. Subject to appticable law or to a writtrn waiver by Lender, Boaower shall pay �
<br /> ; to I.ender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br /> a sum (herein "Funds'� equal to one-twelfrh of the yeady taxes and asussments which may attain priority over this
<br /> � Mortgsge, and ground nntsbn the Property, if any, plus onrtwdith oE yearly premium installments for hazard insurance,
<br /> � plus oao-twelfth of yearly pnmium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> � time to time by Leader aa 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 guarahteed by a Federal or
<br /> ;r � state agency (including Lender if Lender is such an institution) . Lender shatl appty the Funds to pay said taxes, assessmenu,
<br /> insurance premiums and ground tents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and compiling said assessmenu and bill4, un(ess Lender pays Borrower interest on the Funds and applicable law
<br /> � permiu Lender to make such a charge. Borrower and Lender 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 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 eamings on the Funds. L.ender
<br /> shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debiu to the Funds a� the
<br /> purpose for which each debit 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 I.ender, 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 zaxes,
<br /> aasessmenu, insurance premiums and ground rents as they fall due, such excess shall be, at BorcowePs option, either
<br /> promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br /> ' t 6eld by Leoder shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they falt 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 Bonower 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 Lender. If under pazagraph I8 hereof the PropeRy is sold or the Property is otherwise acquired by Lender, L.ender
<br /> . y 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 secured by this Mortgage.
<br /> 3. Appllcation of Paymenfs. Unless applicable Iaw provides otherwise, alI payments received by Lender und�r the
<br /> ; Note and patagraphs 1 aad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> , j under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and j
<br /> principal on any Future Advances.
<br /> �� q 4. Chatges; Liens. Borrower shall pay all taxes, assessments and o[her charges, fines and impositions attributable to � .
<br /> ; the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br /> i i provided under pazagraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, direcUy to the
<br /> � payee thereof. Borrower shall prompdy furnish to Lender a!i notices of amounu due under this paragraph, and in the avent
<br /> 3 Borrower shall make payment direcUy, Borrower shall promptly fumish to Lender receipts evidencing such payments. '
<br /> 's, Bonower shall rom tl dischar e an lien which has �
<br /> p p y g y priority over this Mortgage; provided, that Borrower shalt not be
<br /> ; � rcquired to discharge any such lien so long as Borrower sha11 agree in writing ro the payment of the obligation secured by
<br /> : � such liea in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enfomement of such lien ia,
<br /> legal proceedings which operate to prevent the enforcemene of the lien or forfeiture of the Property or any part thereof.
<br /> 5. Aazard Insurance_ Borrower shall keep the improvernents now existing or hereafter erected an the Property insured
<br /> against loss by Sre, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br /> # and in such amountt and for such periods as Lender may require; provided, that Lender shalt not require that the amount of
<br /> , � such coverege exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br /> : gThe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> j that such approval shall not be unreasonably withheld. All premiums on insurance policies shalt be paid in the manner
<br /> � provided under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> 4 insurance cazrier.
<br /> All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> � clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br /> , and Borrower shall promptly furaish to Lender all renewal notices and aIl receipts of paid premiums. In the event of loss.
<br /> � Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptty
<br /> � by Borrower.
<br /> Unless Lender and Borcower otherwise agree i� 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 impaind. If such restorntion or repair is not economically fcasible or if the security of this Mortgage would
<br /> { be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />. �� to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> � date notiee is mailed by I.ender to Borrower that the insurance carrier oHers to settle a claim for insurance benefits, L.ender
<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 Lender 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 instatlments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />; � such installments. If under paragraph 18 hereof ffie Property is acquired by I.ender, all right, tide and interest of Borcower
<br /> , in and to any insurance policies and in and to the proceeds t6ereof resulting from damage to the Property prior to the sale
<br />: � or acquisition shall pass to L.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> acquisition.
<br /> � 6. PraervaBon and Maintenance of Property; Leaseholds; Condominiums, Planned Unit Developments. Borrower
<br />` ' shall keep the Property in good repair and s6all not commit waste or permit impairment or deterioration of the Property
<br />^ � and ahall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgnge is on a unit in a
<br /> � condomiuium or a planned unit development, Borrower shall perform all of Borrower s obligations under the declaration
<br /> y or covenants creating or governing the condominium or planned unit developmen4 the by-laws and regulations of the
<br /> ' � condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br /> rider is executed by Borrower and recotded together with this Mortgage, the covenants and agrecments of such rider
<br />° � ahall be incorporated into and sha11 amend and supplement che covenants and agreements of this Mortgage as if the rider
<br /> were a part hereof.
<br /> 7. Protec6ioo of Lender's Secnrity. If Borrower fails to pedorm the covenants and agreemenu contained in this ,
<br /> Mortgage, or if aay action or proceeding is commrnced which marerially affects Lender's interest in the Prupeny,
<br /> including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br /> bsnkrupt or decedeat, then I.ender at Leader's option, upon notice to Borrower, may make such appearanca, disburse such
<br /> suma and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />, � ressonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br /> coudition of making tht loan secured by thi6 Morigage, Boaower shall pay thc pmniums rcquired to maintain such
<br /> � iasuranee ia effect until such time as the nquiremeat for such insurance terminatcs in accordance with Borrawer s and
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