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<br /> �$- U02435
<br /> U�vrnonat Covexexrs. Borrower and Lender covenant und agree as follows :
<br /> 1. Paymmt of Princlpal and Interest. Borrower shal! prompdy pay when due the principal of and interest on the ,
<br /> indebtednesa evidenxd 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 /> �� 2. Fnnds for T�es and Insnrance. Subject to applicable law or to a written waiver by L.ender, Borrower shall pay �
<br /> to Lender on the day monthly installments of principal and in[erest are payable under the Note, uotii the Note is paid in full,
<br /> ' ;' a aum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain prioriry over this
<br /> fMortgage, and ground rents on the Property, if any, plus one-[welfth of yearly premium installments for hazard insurance,
<br /> i plus one-twelfth of yeariy premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> ; 6me to time by Lender on the basis of assessments and bills and reasonable estimates thereoE
<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 Lender is such an institution) . Lender shall apply the Funds to pay said taxes, assessments,
<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 bilis, unless Lender pays Bonower interest on ffie Funds and applicable law
<br /> permits I.ender 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 &orrower any interest or eamings on the Funds. L.ender
<br /> t shall give to Borrower, without chazge, an annual accounting of the Fands showing credils and debiis io ihe Funds aad ihe
<br /> � purpose for w6ich each debit to the Funds was made. Tlae Funds are pledged as additional security for the sums secured
<br /> ' by this Mortgage_
<br /> ' If the amount of the Funds held by Lender, together with the future monthly instatlments of Funds payabie prior to
<br /> the due dates of taxes, assessmenu, insurance premiums and ground rents, shalt exceed the amount required to pay said taxes,
<br /> assessmenu, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's aption, either
<br /> promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br /> ': ; hdd by Lender shall not be suRicient 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 natice is mailed
<br /> ,' ; by Lender to Borrower requesting' payment thereof.
<br /> Upon payment in full of alt 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 /> + I shall apply, no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Funds held by
<br /> ' i Lender at the time of application as a credit against the sums sewred by this Mortgage. s
<br /> ! 3. Applicadoo of Payments. Unless applicable law providu otherwise, all payments received by Lender under the
<br /> " s 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 principat of the Note, and then ro interut and
<br /> , a principa! on any Future Advances.
<br /> j 4. Charges; Lieos. Borsower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> t the Property which may attain a priority over this Mortgage, and leasehotd payments or ground rents, if any, in the manner
<br /> � provided under paragraph 2 hereof or, if not paid in such manner, by Horrower making payment, when due, direcUy to the
<br /> ". � payee thereof. Borrower shall promptly furnish to Lender all notices of amounu due under this paragraph, and in the event j
<br /> ; � Borrower shall make payment directly, Borrower shall promptty 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 secured by j
<br /> � such lien in a manner acceptable to I.ender, or shall in good faith contest 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 thereof. ' +
<br /> 5. Hazard Iasu�ance. Borrower shall keep thc improvements now existing or hereafter erected on the Propeny insured �, .,
<br /> � against loss by fice, 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 require that the amount of
<br /> such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. ?
<br /> The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, ;
<br /> j that such approval shall not be unnasonably withheld_ All premiums on insurance policies shal! be paid in the manner ;
<br /> � - provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paymeat, when due, direcUy to the ,
<br /> insuraactr carrier.
<br /> j All insurance polides and renewals thereof shall be in form acceptable to Lender and shall indude a standard mortgage
<br /> � clauu in favor of and in form acceptable to L.ender. Lender shall have the right to hold the policies and renewals thereof.
<br /> and Borrower shall prompUy furnish to Lender all renewal notices and all receipts of paid premiums. In tt�e event of loss,
<br /> Borrower sha11 give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> . j by Borrower.
<br /> � Unless Lender and Borrower otherwise agrec in writing, insurance proceeds shall be applied to restoratian or repair of
<br /> 3 the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br /> � not thereby impaired. If such restoration 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 aotice is mailed by I.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> is authorizod 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 postpoae the due date of the monthly installments referred to in paragrephs 1 and 2 hereof or change the amount of
<br /> such installments. If under paragraph I8 hereof t6e Property is acquired by L.ender, all right, tide and interest of Borrower
<br /> � in and to any insuraace policies and in and ro the proceeds thereof resul�ing from damage to the Property prior to the sale
<br /> � or acquisition shall pass to Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> ' � acquisition.
<br /> � 6. Prpervation and Maintenantt of Property; I.cese6olds; Condominiums; Planned Unit Developmenls. Borrower
<br /> shall. keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Propeny
<br /> and shall comply with the provisions of any lease if this Mortgage is on a leaschold. If this Mortgage is on a u�it in a
<br /> : � condominium or a planned unit development, Borrower shall perform all of Borrower s obligaiions under the declaration
<br /> , - � or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the 9,
<br /> condominium or planned uuit development, and constituent documents. If a condominium or planned unit development
<br /> � � rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider , �
<br /> shell be iaeorporated iato and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br /> were a part hereof. ^
<br /> Z PrntecUon of I.ende�s Secod if Borrower fails to J • {
<br /> ` ty. perform ffie covenants and agreements contained in this ,
<br /> ' Mortgage, or if any , ac4on or proceeding i� commenced which materially affects Lender's inrerest in the Property,
<br /> �, iacluding, but not limited to, eminmt domain, �nsolvency, code enforcement, or arrangements or proceedings involving a ,`F . ,,�k
<br /> banlm�pt or decedent, then Lender at LendePs option, upon notice to Botrower, may make such appearances. disbune such ' ' :�_•' �,
<br /> `-� sums and take such -actioa as is necessary to protect L,ender's interest, includiog, but not limited to, disbursement of ;;.�
<br /> - ¢ reaaonable attorney's feea and entry upon the Property to make rcpairs. If Lrnder required mortgage insurance as a - .+ctk'
<br /> '+ condition of making the loan secured by this Mortgage, Boaower shal! pay the premiums required to maintain such
<br /> iinaurance in eHect until such time as the requiremenc for such insurance terminaus in accordance with Borrower's and
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