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<br /> �g, U02558
<br /> UNmonrt Coverter�rs. Borrower and Lender covenant and agree as follows:
<br /> 1. Paymeat of Princlpal and Interest Borrower shal! prompdy pay when due the principal of and interest on the
<br /> indebtedness evideaced 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 Mortgaga
<br /> � ; 2. Fmds fo� Tazes and Ineurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br /> to Lender on the day monthly installments of principai and interest are payable uoder the Note, until the Note is paid in full.
<br /> ; ; a sum (herein "Funds'q equal to onatwelfth of the yearly taxes and assessments which may ettain priority over this F
<br /> ; Mortgage, and graund reata on t6e Property, if any, plus ono-twelfth of yearly premium instailments for hazard insurance,
<br /> r i plus ono-twelfth of yearly premiwn installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> time to dmeby I.ender on 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 guaranteed by a Federal or
<br /> stste agency (including Lender if Lender is such an institution ) . Lender shall apply the Funds to pay said taxes, assessmrnts,
<br /> insuranca 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 Lendor 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 Wat interest on the runds shall be paid to Borrower, and unlus such agreemmt is made or applicable law
<br /> ' requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br /> shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br /> j ' purpose for which each debit to the Funds was made. The Funds are pledged as additional securiry 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 payable prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground renu, shall exceed the amount required to pay said taxes,
<br /> asseasmmts, insurance premiums and graund rents as they fall due, such excess shall be, at BonowePs option, either
<br /> promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amonnt of the Funds
<br /> i held by Lender shall not be sufficieat 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 Borrower requesting' paymeat thereof.
<br /> Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower arty Funds
<br /> ; held by Lender. If under pazagraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br /> ahall apply, no laar 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 Mongage. '
<br /> 3. Applicatlon of Paymenb. Unless applicable Iaw provides otherwise, all 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 Lend'er by Borrower
<br /> uoder paragraph 2 heroof, thea to interest payable on the Note, then to the principal of the Note, and then to interest and
<br /> ! principal oa any Future Advances.
<br /> i 4. Charges; Idens. Borrower shall pay all taxes, assessments and other charges, fines and impositions atvibutable to
<br /> jI the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcUy to the
<br /> !; payce thereof. Bonower shal( prompdy fu�nish to Lender all noUces of amou�u due under this paragraph, and in the event
<br /> " Borrower shall make payment direcdy, Borrower shalt promptly furnish to Lender receipts evidencing such payments.
<br /> ` Borrower shall pmmptly 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 shalt 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 contest such tien by, or defend enforcement of such lien in,
<br /> legal proceedings which operate to prevent the eoforcement of the lien or forfeiture of the Property or any pazt thereof.
<br /> �' S. Iirzrrd Insurance. Borrower shall keep the improvemems now existing or hereafter erected on the Properry insured �y�
<br /> ' againat loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br /> {�' and in such amounk and for such periods as Lender may require; provided, that Lender skall not require that the amount of
<br /> u such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. _
<br /> F TI�e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br /> ` that such approval shall not be unreasonably withheld. All premiums on insurance policiu shall be paid in the mannet
<br /> kprovided under paragraph 2 heseof or, if aot paid in such manner, by Borrower making payment, when due, directly to the
<br /> d insuraace carrier.
<br /> AIl insurance policiu 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 Lendec Lender shall have the right to hold the policies and renewals thereof, ' '
<br /> aad Borrower shalt prompdy furniah to Lender all renewal notices and alI 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 promptly
<br /> C by Borrower.
<br /> � Unless Lender and Borrower otherwise agree in wri:ing, insurance proceeds shall be applied to res[oration or repair of
<br /> @ the Property damaged, provided such restoration or repair is economically feasible and the securiry of this Mortgage is
<br /> � not thcreby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage wauld
<br /> } be impaired, the insuraace proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> � to Borrower. If t6e Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> date notice is mailed by I.ender to Borrower that the insurance carrier offers to setAe a claim for insurance benefiu, Lender
<br /> � is authoriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> q or to the sums secared by this Mortgaga
<br /> � Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> � or postpone the due dau of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br /> ^ such installments_ If under paragraph 18 heroof the Property is acquired b Lender, all ri
<br /> k y ght, tiUe and interest of Borrower
<br /> in and to aay insurance policies and in and to the proceeds thereof raulting from damage to the Propeny prior to the sale
<br /> # or acquisition shall pass to L.eader to the eactent of the sums sewred by this Mortgage immediatety prior to such sale or
<br /> j acquisition.
<br /> � 6. Preservatlon and Maintrnaoce of Property; Lessehotds; Condominlums; Planned Unit Devdopments. Borrower
<br /> shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> and s6all comply wiW tl�e provisions of any lease if tliis Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> condominium or a planned unit development, Horrower shall perform alI of Borrower s obligations under the declaration �
<br /> or covenants 'creating or governing the condominium or plan�ed unit development, the by-laws and regulations of the
<br /> condotninium or planned uait development, and constiturnt documents. If a condominium or planned unit development .x ' -^�,
<br /> rida is executed by Borrower and recorded together with this Mongage, the covenants and agreements of such rider �-
<br /> shall bC inwrpo;ated iato and shall amend and supplement the covenanu and agreemrnts of this Mortgage as if the rider �'
<br /> were a part hereof. . �
<br /> '7. ProtecNon oE Lender's Securtty If Borrower fails to perform the covenants and agreemrnts contained in this �� ,' ,,
<br /> IHorfgage„ or if aay actioa , or proceeding� is commenced which materiaUy aft'ects Lender's interest in the Property, t �: �,
<br /> including; but aot limited to, eminent domain, insotveacy; code enforcement, or arrangements or proceedings involving a y , �
<br /> ` � baakrupt or decedmy thea ' Lender ai Lender's option, upon notice to Borrower, may make such appeamnces, disburse such ;.µ" , .�f
<br /> suma and take sucb action as ia aecessary to protect Leuder s intereat, iocluding, but not limited to, disbu�semrnt of
<br /> - :.- e . [easonable altointy'S fxs and entry upon the PropeRy to make mpairs. If L.ender required mortgage insurance as a � "�'� ` * ;
<br /> , s coaditioa of asaking the, loan secured by this Mortgagc. Bonower shall pay the premiums required �o maintain such
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<br /> insurance in effect uatil such time as t6e requirement for such insutance terminates in accordance with Borrower's and
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