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<br /> 78' U02682
<br /> Unrif+ort�t Coverurrrs. Borrower and I.ender covenant and agree as follows:
<br /> ' II, �'�eat a: P:Ls�3pa! �3 :alxrrsl. Berrower shall promotly pay when due the principal of and interest on the
<br /> indebtedness evidenced by the Note, prepayment and Iate charges as provided in the Note, and the principal of and interese ,
<br /> � on any Futuro Advaaces secured by this Mortgage.
<br /> � 2. Fmds tor T�es and Insuraaca Subject to applicable law or to a written waiver by Lender, Borrower shall pay �,
<br /> � to Lender on the day monthly installments of principal and interest are payable under the Note, until the Notc is paid in full,
<br /> ;� a sum (hereia "Funda") equal to one•twelfth of the yearly ta�ces and assessmenu which may attain priority over this
<br /> j Mortgage, and ground rents on the Properry, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br /> ; i plus one-twelEth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> � time to time by L.ender on tbe basis of assessments and bills and nasonable estimates thereof_
<br /> } The Funds shall be held in an institution the deposits or accounu of which are insured or guaranteed by a Fedecal or
<br /> state agency (including I.ender if Lender is such an institution ) . Lender shalt apply the Funds ta pay said taxes. assessments,
<br /> insurance premiums and ground ronts. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and compiling said assessmenu and bills, unlus Lender 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 /> ' f Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br /> nquires such interest to be paid, Lender shall not be required to pay Borrower any interest or eamings on the Fuads. Lender
<br /> shalt gve to Borrower, without charge, an annuat accouniing of the Funds showing credits and debits to the Funds and the
<br /> i purpose for which each debit to the Funds was made. T6e Funds are piedged as additional security for the sums secnred
<br /> { by this Mortgage.
<br /> If the amount of the Funds held by Lender, together with the future monthly instaliments of Funds payabie prior to
<br /> ; the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said ta�ces,
<br /> aesessments, insurance premiums and ground renu as they fali due, such excess shall 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 aot be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br /> ; i 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 W Borrower requesting' payment thereof.
<br /> Upon payment in fult of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds :
<br /> i held by L.ender. If under pazagraph 18 hereof [he Property is sold or the Property is otherwise acquimd by Lender, Lender
<br /> � shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br /> i Lender at the time of application as a credit against the sums secured by this Mortgage. :
<br /> ? 3. ApplicaUon of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> � Note and pazagraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> � under paragraph 2 heroof, then to interest payabte on the Note, then to thc principal of the Note, and then to interest and
<br /> ` principal on any Future Advances.
<br /> � 4. C6arges; Liens. Bortower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> j the Property which may attain a priority over this Mortgage, and leasehold paymenu or ground rents, if any, in the manner
<br /> ; provided under paragraph 2 heceof or. if not paid in such manner, by Borrower making payment, when due, direcUy to the
<br /> Epayee thereof_ Borrower shall prompUy fumish to Lender all notices of amounts due under this paragraph, and in the event ,
<br /> ,. Borrower shall make payment direcdy, Borrower shall promptty fumish to Lender receipts evidencing sueh payments. '
<br /> � Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> j nquired to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br /> ( such liea in a mann�r acceptable to Lendeq or shall in good faith contest such lien by, or defend enfomement of such lien in,
<br /> � legal proceedings which operete to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br /> , j 5. Hazard lasarance. Borrower shall keep the improvements now existing ar hereafter erected on the Property insured „��
<br /> j against loss by fire, 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 /> . 1 such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. �
<br /> ; The insurance carrier providing the insurance shatl be chosen by Borrower subject to approval by Lender; provided, '
<br /> ' j that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br /> ; � provided underparagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcUy to the ;,,, ,
<br /> ' � insurance carrier.
<br /> tAll insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgagc
<br /> � clause in favor of and in form acceptable to Lendec Lender shall have the right to hold the policies and renewals thereof,
<br /> i aad Borrower shall promptly furnish to L.ender all renewal notices and all receipts of paid premiums. In the event of loss,
<br /> , Borrower shaIl give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> � by Borrower.
<br /> ; Unless Lender and Borrower othenvise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> � 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 economicalty feasible or if the security of this Mongage 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 Properry 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 ofiers ro settle a claim for insurance benefits, Lender
<br /> j is suthoriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propercy
<br /> 1 or to tho aums secured by this Mortgage.
<br /> � Unless Lender and Bocrower otherwise agree in wri[ing, any such application of proceeds to principal shall not extend
<br /> � or postpone tt�e due date of the monthly insiallmenu referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> , snch installments. If under paragraph 18 hereof the Property is acquired by Lender, all cight, title and interest of Borrower
<br /> ' in and to any insuraace polioies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br /> � or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> } acquisition.
<br /> 6. Prdervatton and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br /> � shall keep the Property ia good repair and shall not commit waste or permit impairment or deterioration of the Propercy
<br /> � aud shall comply with the provisions of any lease if this Mortgage is on a Icaschold. If this Morigagc is on a unit in a
<br /> � condominium or a planned unit devetopment, Borrower shall perform atl of Borrower's obligations under the declaration •
<br /> or covenants cresting or goveming the condominium or planned unit development, the by-laws and regulations of the �
<br /> condominium or planned unit 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 agrcements of such rider �
<br /> ' . e shall be iacorporated into and shall amead and supplement the coveaants and agreements of this Mortgage as if the rider -
<br /> were a part. hereof. �' '' _'
<br /> 7. PcofecHon of Lmde�s 3ecuriry. If Borcower fails to perform the covmants and agreemenu contained in this - �
<br /> ? Mortgage, or if . any action or proceeding is commenced which materially afiecu Lender's interest in the Property. ; . <.
<br /> including, 'but not limited to, eminent domai4S, insolvency, code enforcement, or arrangements or proceedings involving a � ,', y'
<br /> ' , � bankrupt or decedent, ffien Leader at Lender's option, upon notice to Borrower, may make such appearances, disburse such } -
<br /> � suma aad talce such action as is necessary to protect L.ender's interest, induding, but not limited to, disbunement of � ` ' ,'
<br /> , � zeaaonable attomey's feea and entry upon the Property to rnake repairs. If I.ender required mortgage insurance as a . r ^"`
<br /> ' coaditioa ot making the loan secured by this Mortgage. Borrower shatl pay the premiums required to maintain such "�d` "
<br /> ; inauraace in eHect until suc6 time as the requirement for such insurance terminates in accordance with Borrower s and
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