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<br /> U[rrnow.r CovexwM�rs. Bonawer and Lender covenant and egree as follows:
<br /> + L Payment ot Pdncipal and Iatereet. Borrower shall prompdy pay whea due the principal of and interest on the
<br /> ; iadebtedness evidenced by the Note, prepayment and lste charges as provided in the N3ote, and the principat of and interest ,
<br /> oa aay Futuro Advances aecured by this Mortgaga
<br /> ",� Z. Fmds tor Taes and Inmrance. Subject to applicable law or to a wdtten waiver by Lender, Borrower shall pay
<br /> t to Lender on the day monthly installments of principal and intere,st are payable under the Note, until the Note is �sid in fuU, ;
<br /> � a sum (hercin "Funds'� equal ro ane-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgago, and ground rents on the Ptoperty, if any, plus one-twelfth of yearly premium installmeota for hazard insurance,
<br /> plus onctwetfth of yesriy premium installments for mortgage insurance, if aay, all as reasonably estimated initially and from
<br /> � � Bma to time by Lender on ffie basis of assessments and bilts and reasonable estimates thereof.
<br /> The Funds shal! be held in an instimtion the depositv or accounts of which are insured or guaranteed by a Federal or
<br /> '� state agency {i�cIuding Lender if Lender is such an institution) . I_ender shall apply the Fun,ds to pay said taxes, assessments, ;
<br /> insutance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifyiag and compiling said assessments snd biils, unless Lender pays Borrower interut on the Punds and applicable law ;
<br /> i permits Lender to make such a charge. Bonower 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 such ageement is made or appiicable law
<br /> � requira such inierest to be paid, Lender shall not be required ta pay Borrower any interest or eamings on the Funds. i.ender
<br /> ,t shall give to Borrower, without charge, aa annual acwunting of the Funds showing credits and debits to the Funds and 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 t6is Mortgage. � �
<br /> � If the atnount of the Funds held by Leuder, together with the future monthly installmenu of Funds payable prior to
<br /> fhe due dates of tates, assessmenls, inawance premiums and ground rents, shall exceed the amount required to pay said taxes, �
<br /> ', � Aa���+enu, insurance premiums and gmund rents as they fall due, such excess shall be, at Borrowers option, either ,
<br /> � prompUy repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of trie Funds �
<br /> :� held by Leoder st�all not be sufficient to pay taxes, assessments, insurance premiums and gmund renu as they fall due. �
<br /> Borrower shall pay to Lrnder any amount necessary to make up the deficiency within 30 days from the date notice is mailed c
<br /> Q� by Lender to Borrower requesting' payment thereof.
<br /> � (� Upon payment in full of all aums secured by this Mortgage, Lender shall promptly refund to Borrower any F�inds ;
<br /> held by i.endec If under paragraph 18 hereof the Property is sold or the Property is otherwise acqnirod by Lender, Lendcr p
<br /> , �,�,,,� shall apply, no later than immediarely prior to the sale of the Property or its acquisition by Lender, aay Funds held by
<br /> ;} Q Lender at tbe time of application as a credit against the sun�s secured by this Mortgage.
<br /> � 3. Aypli¢ation of Psymenfs. Unless applicable law provides otherwise, all paymeats 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 heeeof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br /> p� principal on any Puture Advances. ! �
<br /> 1� 4. C6acges; Liens. Borrower shall pay a11 taxes, assessments and other charges, fines and impositions attributahle to
<br /> the Property whicl� may attain a priority over this Mortgage, and leasehold payments or ground renu, if any, 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 /> payce themof. Borrower shall prompUy fcirnish to Lender all notices of amounu due under this paragraph, and in the event f
<br /> Borrowec s6a11 make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments. '
<br /> Borrower shall prompUy discharge sny lien which has priority ovcr this Mortgage; provided, that Borrower shall not be
<br /> requiced to discharge any such lien so long as Borrower shall agree in writing to the paymmt of the obligatian secured by �
<br /> such liea in a manner acceptable to Lender, or shall in good faith conrest 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 chereof.
<br /> 5. Hazard Insarance. Borrower shall keep the improvements now existing or hereafter erected on the Propeny insured
<br /> against loss by fire, hazards ineluded within the term "extended coverage", and such other hazards as Lender may require s
<br /> � aad in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br /> such coverage excecd that amount of coverage required to pay the sums secumd by this Mortgage.
<br /> The iasutance carrier providing ihe insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> that such approval shall not be unreasonably withheld. Alt premiums on insurance policies shall be paid in the maaner
<br /> provided under paragtaph 2 hereof or, if not paid in such manner, by Bonower making payment, when due, dimtly to the
<br /> insurance carrier.
<br /> All insurance policies and renewals thereof shall be in form acceptable to Lender aod 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 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 insurance carrier and Lee�der. Lmder may make proof of loss if not made promptly
<br /> by Borrower.
<br /> Unless Lender and Boaower otherwise agree in writing, insurance procceds shall be applied to restoration or repair of
<br /> the Property darnaged, provided such restoration or repair is economically feasible and the securiry of this Mortgage is
<br /> not thereby impaired. If such restoration or repair is not economicalty feasible or if the security of this Mortgage would '
<br /> be impaired, the insurance procxds shall be applied to the suros securod 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 notix is mailed by Lender to Borrower that the insurance carrier offers to senle a claim for insurance benefits, Lender
<br /> is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of tt�e Property
<br /> ;� or to tbe sums secured by this Mortgaga
<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 l and 2 hercof or change the amount of
<br /> such instatlments. If under paragraph 18 hereof t6e Property is acquired by Lender, alt right, tiUe and interest of Borrower
<br /> in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br /> or acquisifloa shall pass to Lender to the exteat of the sums secured by this Mortgage immediately prior to such sale or
<br /> acquisition.
<br /> 6. Preaervation aod Maintenence of Property; Lcaseholds; Condominiams; Planned Unit Devdopments. Borrower
<br /> ahall keep the Property in good repair and shall not commit waste or permit impairment or deterioradon of the Property
<br /> and shall comply with the provisions of any tease if this Mortgage is on a leasehotd. lf this Mortgage is on a u�it in a
<br /> : condominium or a planned unit development, Borrower shall perform all of Borcower's obligations under the dedaration
<br /> or covenants crea[iag or governing the condominium or planned unit development, the by-laws and regulations of the g
<br /> ' condominium or planned uait development, and constituent documents. If a condominium or planned unit development
<br /> ridec .is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider '"� ,
<br /> ahat! be incorporated iato and shall aznend and supplement the covenants and agreements of this Mortgage as if the rider ' � � �
<br /> were a part hereof_
<br /> T Protecliou of Lende�s Secarl If Borrower faits to � '�'�
<br /> !y. perform the covmaats and agreeroeots contained in this � . �
<br /> Mortgage, or if aay action or proceeding is �commenced which materially affects L.ender's interest in the Property, � � - :
<br /> iacludiag, butiaotlimited to, eminent domain, �nsolvency, code enforcement, or arrangements or proceedings involving a r
<br /> bsakrupt ot`decedent; then Lender at Lendec•s option, upon notice to Baaower; may make such appearances, disburse such 3 " '" � ,'�
<br /> aums and take sueh action as id necessary to protect Lender:s interest, including, but not limited to, disbursement of � `� J�;.y�
<br /> teasonable attorney's fxa and mtry upon the Pmperty to make repairs. If Lender zequircd mortgage insurance as a � - , t ' . '
<br /> conditioa of makiag. the loan secured by this Mortgage, Bortowcr shall pay the premiums required to maintain such �
<br /> insurance ia effect until such time as the x+equirement for such insurance terminates in accordance with Borrower s and
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