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<br /> 7 �s- U02409
<br /> UxrnonM Covsxetv�rs. Borrower and I,ender covenant and agree as foilows :
<br /> 1. Payment oE Principal md Interest. Borrowet shall promptiy pay when due the principal of and interest on the
<br /> indebtedneas evidenced by the Note, prepayment aod late charges as provided in the Note, and the principal of and interest
<br /> on any Futeue Advances secured by this Mortgaga �
<br /> , 2. Fands tor Tues and Insuraace. Subject to applicable Iaw or to a written waiver by Lender, Borrower shall pay
<br /> to Lender oa the day moathly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br /> a sum (heroin "Funda'7 equal to one-twelfth of the yearly taxes and assessments which may attain priority oJer this
<br /> Mortgage, and groundYents on t6e Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br /> 1' plus ono-twelfth of yearly premium instaltments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> time to4ime by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br /> The Funds shall be held in aa insiitution the deposits or accounts of which are insured or guaranteed by a Federal or
<br /> stau agency (including Leuder if Lender is such an institution) . Lender shall apply the Fuads to pay said taxes, assessmenu,
<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 bil(s, unless Lender pays Borrower 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 t6at interest on the Funds shall be paid to Borcower, and unless such agreement is made or applicable law
<br /> requires such interest to be paid, L.ender shall not be requirod to pay Borrower any interest or eamings on the Funds. I.ender
<br /> s6a11 give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br /> purpose for which each debit to the Funds was made. 1'he Funds are pledged as additional securiry for tfie sums secured
<br /> by this Mortgage.
<br /> If the amount of the Funds held by Leoder, together with the future monthly instaliments 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 taxa,
<br /> i assessments, insurance premiums and ground rents as they fall due, such excess shalt be, at Borrower's option, either
<br /> promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br /> ; held by Lender shall no[ be suf6cient to pay taxes, assessments, insurance premiums and ground ronu as they fall due,
<br /> 's Boaower 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 Borrower requuting' 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 paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br /> y shall apply, no later than immediacely prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br /> �, Leader at the time of application as a credit against the sums secured by this Mortgage.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all paymenu received by Lender under thc
<br /> ; ; Note and paragraphs 1 and 2 hereof shall be applied by Lender fint in payment of amounts payable to Lender by Borrower
<br /> S under paragraph 2 henof, then to interest payable on the Note, then to the principal of the No[e, and then to interest and
<br /> ; principal on any Future Advances.
<br /> : � 4. Chacges; Lieos. 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 ground rents, if any, in the manner
<br /> i provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcfly to the
<br /> {t payce thereof. Borrower shail ptomptty furnish to Lender al( notices of amounts due under this paragraph, and in the event
<br /> t Botrower shall make payment direccly, Borrower shall prompdy furnish to Lender receipts evidencing such payments.
<br /> � Borrower shall prompUy discharge any lien which has priority 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 secund by
<br /> � such lien in a manner acceptable to I.ender, or sha11 in good faith contest such lien by, or defend enforcement of such lien in, ' :
<br /> legal proceedings which operate to prevent thc enforcement of the lien or forfeiture of the Property or any part thereof.
<br /> 5. Ha�rd Inaorance_ Borrower shall keep the improvements now existing or hereafter erected on the Properry insured
<br /> , againat loss by fice, hazards included within the terni "extended coverage", and such other hazards as Lender may require "��-a, y
<br /> ' � and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br /> f such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br /> I'he insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
<br /> � t6at such approval shall not be unreasonabty withheld. All premiums on insurance policies shail 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 carrier.
<br /> All insurance potioies and renewals thereof shall be in form acceptable to Lender and shall include a standard mongage
<br /> clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policiu and renewals thereof,
<br /> and Borrower shall promptly furnis6 to Lender all renewal notices and all receipts of paid premiums. In [he event of loss.
<br /> Borrower shall give prompi notice to the insucance 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 proceeds shall be applied to restoration or repair of
<br /> the Property damaged, provided such restoration or repair is economicalty feasible and the securiry of this Morcgage is
<br /> not thereby unpaired. If such nstoration or repuir is not economically feasible or if the security of this Mortgage would
<br /> � be impaired, the insurance proceeds shal! 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 notice is maited by I.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, I.ender
<br /> � is aut6orized to collect and apply the msurance proceeds at Lender's option erther to restoraaan or repa�r 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 duc date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br /> such installments. If under pazagraph 18 hereof the Property is acquired by I.ender, all right, title 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 acquisition sball pass [o L.ender to the extrnt of the sums secured by this Mortgage immediately prior w such sale or
<br /> acquiaition.
<br /> 6. Preservatbn aod Maintenance of Property; [.easeholds; Condominiums; Planned Unit Developments. Borrower
<br /> f shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> i sud shall rnmply with the provisions of any leese if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> , � condominium or a planned unit development, Borrower shall perform all of Bonower's obligations under the declaration
<br /> or covenants creating or governing the condominium or planned unit devdopment, the by-laws and regulations of the s
<br /> coadominium or planned unit development, and corutituent documents. If a condominium or planned unit development
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<br /> rider is executed by Bottower and recorded together with this Mortgage, the covenunts and agreements of such rider "'4�
<br /> ahalt be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider `
<br /> were a part hereof. �
<br /> ` Z Protection of LendePs Secority. If Borsower fails to perform the covenants and agreements contained in this 1 � � �
<br /> ` Mortgage, or if any action or proceeding js commenced which matcrially affecu Lender's interest in the Propecty, J � ` '
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<br /> ' includiag, 'but not Gmited to, eminent domain, insolvency, code enforcement, or arrangemenu or proceedings involving a
<br /> ` ' baokmpt or`deoeden4 �en Lender at Lender's option� upon. notice to Borrowcr, may make such appearanca, disburse such S' ' ' ��
<br /> � aums and take auch action as ia necessary to protect Lender's interest, including, but not limrted to, disbu:sement of x '` ,� ^
<br /> reasonable attomey's feca and entry upon the Property to make rcpairs. If Lender required mortgage insurance as a ' ; ;,�
<br /> ;: -.� coadition of making the loan secured by this Morcgagc, Borrower shall pay the premiums required to maintain such
<br /> � i�rance in egect uatil such time aa t2�e requirement fot such insuraace terminates in accordance with Bormwer's and
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