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<br /> Uxn+otu.t Covexerrrs. Botrower and Lender covenant and agree ss follows :
<br /> l. Payment o[ Princlpal and Interes4 Borrower sl�all prompdy pay when due the principal of and interest on the
<br /> ; indebtedneas evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br /> i on anyFuturo Advaztces secured by this Mortgaga
<br /> � 2. Fnnds for T�es and Insurance. Subject to applicable law or to a written waiver by I.ender, Borrower shall pay
<br /> to I,ender oa the day monthly installments of principal and interest are payable under the Note, untii the Note is paid in fu14
<br /> a sum (herein "Funds'7 equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installmenta for hazard insurance,
<br /> j plus one-twelfth of yearly premium installmmts for mortgage insurance, if any, alt as reasonably estimated initially and from
<br /> ` � time to time by Lender oa the basis of assessmenu and biils and reasonable estimates thereof.
<br /> ',- � � The Funds shall be held in an institution the deposits or accounts of which are insured or guarunteed by a Federal or
<br /> state agency (including Lender if L.ender is such an institution) . Leader shall apply the Funds to pay said taxes, assessments,
<br /> ' � I` inaurance premiums and ground renu. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> (\j or verifying and wmpiling said assessments and bilis, unless Lender pays Horrower interest on the Fuuds and applicable law
<br /> ` i Q permits Lender to make such a charge. Borrower and Lcnder may agree in writing at the time of execution of this
<br /> ` � Mortgage that interest on the Funds shatl be paid to Borrower, and unless such agreement is made or applicable law
<br /> i requires such interest to be paid, Lender shall not be required to pay Borrower any interest or eamings on t6e Funds. Lender
<br /> ; ' shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debiu to the Funds and the
<br /> ' Op purpose for which each debit to the Funds was made. The Funds are pledged as additiona! ucurity for the sums secured
<br /> j I� by this Mortgage_
<br /> i If the amount of the Funds held by Lender, together with thc fuwre monthly installments of Funds payable prior to
<br /> the due dates of taxes, assessmenu, insurance premiums and ground rents, shatl ezceed the amount required to pay said taxes,
<br /> assessmenu, insurance premiums and ground renu as they fall due, such excess shall be, at Borrower's option, either
<br /> ; promptly repaid to Borrower or credited to Borrower on moothly installments of Funds. If the amount of the Funds
<br /> >^ held by Lender shall not be suf&ciwt 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 notice is mailed
<br /> r by Lender to Borrower requesting' payment thereof.
<br /> . � iJpon payment in full of all sums secured by this Mortgage. Lender shall prompUy refund to Borrower arty Funds
<br /> hetd by I.ender. If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by Gender. 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 /> ' y Lender at the time of application as a credit against the sums secured by this Mortgage.
<br /> ' 3. Application of Paymenla. Unless applicable law provides otherwise, alt payments received by Lender under the
<br /> ' j Note and paragraphs 1 and 2 heroof shali be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> . � under paragraph 2 hemof, then to interest payable on the Note, then to the principat of the No[e, and then to interest and
<br /> ? principal on any Future Advances.
<br /> ' 4. Charges; Ltens. 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 /> ' ; provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paymmt, when due, direcdy to the '
<br /> f payee thereof. Borrower shall promptly furaish to Lender all notices of amounu due under this paragraph, and ia the event i
<br /> # Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such paymea[s. 1
<br /> � Borrower shall promptly diseharge any lien which has priority over this Mortgage; provided, that Borrower shall not be ',
<br /> � requind 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 maaner acceptable to L.ender, or shall in good faith contest such tien by, or defend enforcement of such lien in, �
<br /> q legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. i
<br /> � 5. Hazard Iffinrance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured �
<br /> � against loss by fire, hazards included within the term "extended coverage', and such other hazards as Lender may require f
<br /> and in suah amounts and for such periods as Lender may require; provided, that Lender shall not require that the amouni of
<br /> � such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. ;
<br /> T7�e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by L.ender, provided,
<br /> - � that such approval sha11 not be unreasonably withheld. AII 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, dimNy to the
<br /> � insurance carrier. i
<br /> � All insurance policies and renewals thereof shall be in form acceptable ro Lender and shall include a standard mortgage ;
<br /> clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br /> and Borrower shalf prompUy furniah to Lender all renewal notices and all receipts of paid premiums. In the event of loss, �
<br /> j Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> � by Bonower. �
<br /> Unleas 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 economically feasible and the security of this Mortgage is
<br /> ; not thereby impaired. If such resroration or ropair is not cconomically feasible or if the security of this Mortgage woutd
<br /> q be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> � to Bonower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> 4 • date notice is mai[ed by I.ender to Borrower that the insurance carrier ofien to settle a claim for insurance benefits, Lender
<br /> � is authoriud to collect and appty the insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> or to the sums secnred by this Mortgage.
<br /> ! a Unleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> i � or postpone the due date of the monthty installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> = such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, tiUe and interat of Borrower
<br /> � in and to any insurance policies and in and to the proceeds thereof resulting from damage to t6e Property prior to the sale
<br /> � or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior ro such sale or �
<br /> � acquisition.
<br /> � 6. Pmervatioa and Mainfenaoce 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 t6e Property
<br /> � and shalt 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, Borrower st�all perForm atl of Borrower's obligations under the dcclaration
<br /> ` � or coveaants creating or governing the condominium or planned unit development, the by-laws and mgulations of the �
<br /> condominium or planned unit development, and constituent documents_ If a condominium or planned unit development
<br /> ridet is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider �;:-- :
<br /> y. shall, be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the ride� � �_`" " �; '
<br /> y, wen a part hereof. '
<br /> 'f_ Protectiou of Lender's Sec�ty. If Borsower fails to perform the covenants and agreements contained in this � �' ,� ;
<br /> . Mortgage, or if aay acfioa or proceediag is commenced which materiully affects Lender's interest in the Property, i^ ?
<br /> � inoluding, but not ]imiud to, aninent domaiM: insolvency, code enforcement, or arrangemenu or proceedings involving a ;', :
<br /> baa9avpt ordecedent,'then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such p ; .,
<br /> aums and take auch action as ia necessary to protect Lender's interesi, including, but not limited to, disbucsement of '' n' }
<br /> Kasonable attosn�y's fees 'and mtry upon the Property to make rcpairs. If I.ender required mortgage insurance as a 3 ' "'"g'
<br /> '.`� condition of malcmg the (oan secured by t3�is Mortgage, Borrower shall pay the premiums required to maintain such ` '"� '
<br /> � insuraax ia effect until such •sime as the requirement for such insurance terminates in accordance with Borrowers and
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