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<br /> Uxtt+oxM CovErrwNrs. Borrower and Lender covenant and agree as follows :
<br /> 1. Payment of Principd and Interest. Bonower shall prompdy psy when doe the principal of and interest on the
<br /> indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interesc
<br /> on any Future Advances secured by this Mortgaga '
<br /> 2. Fuuds for Ta=ea and Insurance. Subject to applicable law or to a written waiver by Lender, Bonower shall pay
<br /> to Lender on the day monthly installments of principal and interes[ are payable under the Note, until the Note is paid in full,
<br /> a sum (hercin "Funda") equal to one-twelfth of the yearly ta�ces and assessments which may attain priority over this `
<br /> � Mortgage, and ground rents on the Property, if any, plus one-twethh of yearly premium installments for hazard insurance,
<br /> plus one-twelfth of yearly premium installmenta for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> dme to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br /> ;;. 'I'he Funds shall be held in aa instimtion the deposits or accounu of which are insured or guaranteed by a Federal or
<br /> ; state ageocy (including Leader if L.ender is such an institution) . Lender st�all apply the Funds to pay said taxes, assessments,
<br /> inaurance premiums and ground rcnts. Lender may not charge for so holding and applying the Funds, analyzing said account, '
<br /> ot verifying and compiling said assessments and bills, unless Lender pays Borrawer interest on the Funds and appiicable law
<br /> permits Lender to make sach a charge. Borrower and Ixnder may agree in writing at the time of exewtion 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 shatl not be required to pay Borrower any interest or earnings on the Funds. Lender ;
<br /> � shall give to Borrower, without charge, an annual accountiog of the Funds showing crodits and debits to the Funds and the
<br /> � purpose for which each debit to the Funds was made. The Funds are p[edged as additional security for the sums secured
<br /> by this Mortgage.
<br /> � If the amount of the Funds held by Lender, together with the fumre monthiy installments of Funds payable prior to :
<br /> • j the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said ta�ces,
<br /> t aasessmenu, inaurance premiums and ground rents as they falt due, such excess shall be, at Borrower s option, either
<br /> ° � prompUy repaid to Borzower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br /> ; � held by Lender shall not be suH'icient to pay taxes, assessments, insurance premiums and ground rents as they fall due, i
<br /> Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> j by Lender [o Bonower requesting' payment thereof. (
<br /> ' � Upon payment in full of all sums sewred by this Mortgage, Lender shall prompdy refund to Borrower any Funds ;
<br /> held by Lender. If under paragraph IS hereof the Property is sold or the Property is otherwise acquirod by Lender, Lender �
<br /> � shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lendeq any Funds held by ;
<br /> Lender at t6e time of app&cation as a credic against the sums secured by this Mortgage.
<br /> ' � 3. ApplfcaUon of Payments. Unless applicable law 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 /> under paragraph 2 hereof, ffien to interest payable on the Note, then to the principal of the Note, and chen to interest and s
<br /> j principal on any Future Advances_ 1
<br /> { 4. C6arges; I3eos. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to `
<br /> 3 the Property which may attain a prioriry 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, dimdy to the r
<br /> ¢ payee thereof. Borrower shall prompdy furnish to Lender all notices of amounts due under this paragraph, and in the event =
<br /> Y Borrower shall make payment directly, Borrower shall prompdy fumish to Lender receipts evidencing such paymenu. ;
<br /> Bonower shall promptly 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 c
<br /> suc6 tien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such ]ien in,
<br /> legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thenof. f
<br /> S. Haa�rd insu�ance. Borrower shall keep the improvements now existing or hereafter erected on the nroperty insured
<br /> against loss by firo, hazards included witliin the term "extended coveragc", and such other hazards as Lender may require �
<br /> and in such amounu and for such periods as Lender may require; provided, ehat Lender shall not require that the amount of ?
<br /> suci� coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. �
<br /> T6e 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. Ali premiums on insurance policies shall be paid 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 /> insurance cartier.
<br /> All insurance policies 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 L.ender_ Lender shall have the right to hotd the policies and renewals thereof,
<br /> sad Borrower shall prompUy furnish to Lender all renewal notices and ali receipts of paid premiums. In the event of loss.
<br /> Borrower shall give prompt aotice to the insurance carrier and Lender. Lrnder 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 econamically feasible and the security of this Mortgage is
<br /> � aot thereby impaired. If such restoration or repair is not economicalty feasible or if the security of this Mortgage would
<br /> be impaired, the inaurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> to Sorrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> date notice is mailed by Lender to Borrower that the insurance carrier offers [o settle a claim for insurance benefits, Lender
<br /> is aut6oriud 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 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 date of the monthly instaltments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> such installments. If under paragraph IS hereof the Property is acquired by L.ender, aIl right, title and interest of Borrower
<br /> in and to any insurance policies and in and ro the proceeds t6ereof resulting from damage to the Property prior to the sale
<br /> or acquisition shall pass to Lender to t6e extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> acquisitioa.
<br /> 6. Peetervallon and Maintenaoce of Property; Leaseholds; Condominiums; Planned Unit Devdopmenls. Borrower
<br /> + shal! keep the Property in good repair and s6a11 not commit waste or permit impairment or deterioration of the Property
<br /> "� � and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> � condominium or a planned unit development, Sorrower shall perform all of Borrower s obligations under the declaration
<br /> �. or eovenants creatiag or governing the condominium or planned uoit development, the by-laws and regulations of ihe �,
<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 „, r�,».. `"��
<br /> � shail be incorporated into and shali amead aad supplement the covenants and agreements of this MoRgage as if the rider � "
<br /> ; � wece a part'.hercof. `i;
<br /> , � 7. Protectloo of Lender's Securlty_ If Borrower fails to perform the covenants and agreementa contained in this � -' -
<br /> Mortgage, or if any action ot proceeding i� commenced which materially affecu Lender's interest in the Property, t ' x
<br /> h incIuding, but not limiud to; eminent 'domain, insolvency, code enforcement, or arrangements or proceedings involving a ;�
<br /> banlcmpt or decedent; then Leader at Lender's option, upon notice to Borrower, may make such appearances, disburse such � � '' . ?�;?
<br /> ' sutad apd take auch actioa as is �cessary to protect Lender's interest, inciuding, but not limited to, disbuTsement of x " � ���.
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<br /> ".j zeasonablc attomey's fees and entry upon ttie Property to make repa�rs. If Lender required mortgage insurance as a � .� ;,' �
<br /> ; � wadidon of making the doan secured by t6is Mortgage, Borrower shaEl pay the premiums required to maintain such
<br /> q im�aance in effecC until such time as tlx requirement for sucli insurance terminates in accordance with Borrower's and
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