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<br /> � $-" U01463
<br /> Uxtpoat.i Covexwtvrs. Borrower and Lender covenant and agree as follows :
<br /> 1. Payment of Prindpal and Interest. Borrower shall promptly pay when due the principal of and interest on t6e
<br /> indebtednesa evidenced by the Note, prepayment and Iate charges az provided in the Note, and the principa! of and intercst
<br /> on any Future Advances secured by this Mortgage.
<br /> 'f ' 2. Fanda for T�a and Insurance. Subject to appiicabte law or to a written waiver by Lender, Borrower shall pay
<br /> to I.ender oa 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-twdfth of the yearly taxes and assessmenta which may attain priority over this
<br /> ; Mortgage, and ground rents on t6e Properry, if any, plus ono-twelhh of yearty premium instaliments 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 Leader on the basis of assessments and bills and reasonable estimates thereof.
<br /> - ! The Funds ahall be held in aa institution the deposits or accounts of which are insured ot 8uaraoteed by a Federal or
<br /> state agency (iacluding Lender if Lender is such an institution) . Lender shall apply the Funds ro pay said tattes, assessments,
<br /> insuraace premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> ' or verifying and compiling said asscasments and bills, unless Lender pays Borrower interest on the Funds and appticable law
<br /> ' permits Lender to make such a charge. Borrower and L.ender may agree in writing at 1he time of execation of this
<br /> Mortgage that intetest on the Fuads shalt be paid to Borrower, and unless such agreement is made or applicable law
<br /> requires such iaterest to be paid, Lender shall not be required to pay Bonower any inierest or earnings on the Funds. Lender
<br /> shal! givt fo Borrower, wirhout charge, an annuat aceoanting of the Funds showing credits and debits ta the Funds and the
<br /> :� purpose for which each debit to the Funds was made. T6e Funds are pledged as additional security for the sums secured
<br /> i by this Mortgage.
<br /> i If the amonnt of the Funds held by Lendeq together with the future monthly installments of Funds payable prior to
<br /> athe due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> aasessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br /> � ' prompdy repaid to Borrower or credited to Borrower on monthty instaltments of Funds. If the amount of the Funds
<br /> ' = held b Lender shall not be suf6cient to
<br /> � Y 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 /> j by Lender to Borrower requesting' payment thereof. `
<br /> ; E Upon payment in full of all sums secured by this Mortgage, Lender shatl promptly refund to Borrower any Funds
<br /> i held by L.eader. If under paragraph 1S hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
<br /> ' s6a11 apply, no later than immediatety 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 thic Mortgage.
<br /> ' E 3. Applicallon of Paymmts. 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 No[e, then to the principal of the Note, and then to interest and
<br /> principal on any Future Advances.
<br /> � 4. Chaiges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and imposi[ions attributable to
<br /> � ,' the Property which may attain a priority over this Mortgage, and leasehold payments or ground renu, if any, in the manner
<br /> i provided under paragrap6 2 hercof oq if not paid in such manner, by Borrower making payment, whm due, directly to the
<br /> payee theroof. Borrower s6a11 promptly furnish to Lender all notices of amounts due under this paragraph, and ia the eveat
<br /> Borrower shal! make paymen[ diratly, Borrower shall promptly fumish to Lender receipts evidencing such payments. �
<br /> Borrower shall promptly disc6arge any lim which has prioriry 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 contesc such lien by, or defend nnforcement of such lien in,
<br /> legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pan thereof.
<br /> i- 5. Iiazard Inyurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> againat ]oss by fire, hazards included within the term "extended coverage", and such other hazards as Lender muy require
<br /> r and in such amovnta and for such periods az Lender may require; provided, that Lender shall not require that the amount of
<br /> such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br /> �1 'Ihe inaurance carrier providing the insurance shall be chosen by Borrower subjec[ to approval by Lender, provided,
<br /> that such appcoval shall not be unreasonably withhdd. All premiums on insurance policies shall be paid in the manner
<br /> provided under paragraph 2 hereof or, if not paid in such manneq by Borrower making payment, when due, directly to the
<br /> insurance carriet.
<br /> All insurance policies and renewals thereof shall be in form acceptablc to Lender and shall include a standard mortgage
<br /> clauu in favor of and in form acceptabte to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br /> and Borrower shall promptly furnish to L.ender all ronewal 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 promptty
<br /> by Bonower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> � the Property damaged, provided such restoration or repair is economicall feasible and the xcurit of this Mort a e is
<br /> Y Y B 8
<br /> not thereby impaired. If such restoration or repair is not economically feasible or if the ucurity 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 8orrower, or if Borrower fai�s to respond to Lender within 30 days from the
<br />� . • date notice is mailed by Lender to Borrower that the insurance carrier ofiers to settle a daim for insurance benefits, Lender
<br /> is authoriud to eollect and apply the insurance proceeds at Leuder's option either to restoration or repair of the Property
<br /> or to the sums secured by this Mortgage.
<br />� . ' Unless Lender and Bonower offierwise agrce 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 paragrapb 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br /> C � in and to any insarance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br /> r' or acquisition shalt pass to Lender to the extmt of the sums secured by ;his Mortgage immediately prior to such sale or
<br /> acquiaition.
<br />� 6. Preservatlon and Matutenance of Property; Leaseholdr, Condominiums; Planned Unit Developments. Bottower
<br />' ' shall keep the Property in good repair and shall not commit waste or petmit impairment or deterioration of the Property
<br />� and sltall comply with t6e provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />�' condominium or a planned unit development, Borrowu shall perform all of Borrower's obligations under the declaration
<br />�: or covenants creating or governing the condominium or planned unit development, the by-Iaws and regulations of the
<br /> S'' condomininm or planned unit development, and constituent documents. If a condominium or planned uni[ development
<br />� rider is executed by Horrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />�, shall baincorporated into and s6a11 amend and supplement the covenants and agreements of ihis Morigage as if the rider �-
<br />!"` we`e a part hereof.
<br />�' , 7. ProtecNoo of Leader'e Sec�tty. If Horrower fails to perform the covenants and agreements contained in this �
<br /> r�. Mortgpge, or if any action qr proceeding is commrnced which materially affects Lender's interest in the Property,
<br />� mduding, but aat limited to, eminent domain; in;olvency, code enforcement, or azrangements or proceedings involving a
<br />,"n�' ban7crupt or daedent;, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />% suma and take such action as is necessary to protect Lenders interest, including, but not limired to, disbursement of
<br /> '� reawnabk attomey's fxs and entry upon the Property to make repairs. If Lendcr requirzd mongage insurance as a
<br /> condition of maYing the loan securod by ffiia Mortgage, Borrower shall pay the premiums required to mainiain such
<br /> a, ,� msu�anx in eHeet until such time aa the requirement for such insurance terminates in accordance with Borrower's and
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