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<br /> � � Uxmow.t Covexetazs. Borrower and Lender covenant end agree as follows :
<br /> ; � 1. Payment ot Pdnc(pd and LateresG Borrower shall prompUy pay when due t6e principal of and interest on the
<br /> ; � iadebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and ffie principal of and interest
<br /> on any Future Advances secured by this Mongage.
<br /> � 2. P'ods (or Ta=es aad I�aranca Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br /> � to Lender on the day monthly instaliments of principal and interest are payable under the Note, until the Note is paid in futl.
<br /> a sum (herein "Funda•7 equal to one-twelfth of the yearly taues and assessmenta which may attain priority over this i
<br /> � Mortgage, and ground renta on the Property, if any, plus onFtwelfth of yearly premitun installments for hazard insutance, �
<br /> plus ono-twelfth of yearly prcmium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> time to iime by Lender on the basis of assessments and bilis and reasonable estimates thereof.
<br /> 'Ihe Funds ahall be held in aa 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 /> inaurance 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 bills, unless Lender pnys Borrower interest on the Funds and applicable law
<br /> ' � permits Lender to make such a charge. Borrower and Lender rnay agrce i� writing at the time of executio� of this
<br /> Mortgage that interest on the Funds shall be paid to Borrower, and unless suc6 agreement is made or applicable law
<br /> zequires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. L.ender
<br /> t shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br /> ) purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br /> { by this Mortgage.
<br /> � If the amount of the Fuads held by Lender, together with the future monthly installments 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 taxes,
<br /> I assessments, insurance promiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br /> 1 promptly repaid to Borrower or credited to Borrower on monthty instailments of Funds. If the amount of the Funds
<br /> � held by Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fa11 due. �
<br /> Botrower s6a11 pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by Lender to Bonower requesting" payment thereof. ;
<br /> Upon payment in full of ail sums secured by this Mortgage. Lender shall prompUy refund to Borrower any Funda �
<br /> 6eld by I,endec If under paragraph 18 hereof the Property is sold or the Property is otherwise acquircd by Lender, Lender
<br /> s6all apply, no later 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 Mortgage. i
<br /> 3. Application of Payments. Unless applicabie law provides otherwise, all payments received by Lender under the
<br /> Note and pazagraphs 1 aad 2 hereof shall be applied by Lender first in payment of amounu payable to Lender by Borrower i
<br /> � under paragraph 2 hereof, then to inmrest payable on the Note, then to the principal of the Note, and then to interest and
<br /> principal on any Future Advances. '.
<br /> } 4. Charges; I,ieos. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to '
<br /> , j tl�e Property which may attain a priority over this Mortgage, and leasehold payments or ground renu, if any, in the maaner i
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whm due, direcUy to the s , ;;
<br /> payee thereof, Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event �
<br /> Borrower shall make payment directly, Borrower shatl promptly fumish to Lcnder receipts evidencing such payments.
<br /> Horrower shall pmmpfly disc6arge any lien which has prioriry ovor this Mortgage; provided, that Borrower shall not be �
<br /> requind ta discharge any such lien so long as Borrower shall 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 lien by, or defend enfomement of such lien in, C , `
<br /> legal proceedings which operate to prevent the mforcement of the lien or forfeiture of the Property or any pan thereof.
<br /> 5. $azard Imorance. 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 requiro f �;; ;
<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. i
<br /> The insnrance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> H�at such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the mannu
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dirccfly to the j
<br /> insurance carriec. �
<br /> All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage i
<br /> ciause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, �
<br /> j and Botrower shall promptly furaiah to Lender ail renewal notices and all receipts of paid pmmiums. In the event of loss. ' ,
<br /> � Borrower shall give prompt notice to the insurance carrier and 4ender. Lender may make proof of loss if not made promptly
<br /> by Borroa+er_
<br /> ; Uale�s Lender and Borrower otherwise agrce in writing, insurance proceeds shall be applied to restoration or repair of
<br /> � the Property damaged, provided such mstoration or repair is economically feasible and the sewrity of this Mortgage is
<br /> not thereby impaired. If such restoration or repair is not economieally feasible or if the security of this Mortgage would
<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 it Borrower fails to respond to L.ender withia 30 days from the
<br /> ;�,. date notice is mailed by I.ender to Borrower that the insurance carrier offen to settle a claim for insurance benefits, I.ender
<br /> � is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or ropair of the Property
<br /> or to the sums secured by this Mortgage.
<br /> � Unless Lender and Bocrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> or postpoae ihe due date of the monthly installmenu referred to in paragraphs I and 2 hereof or change the amount of
<br /> � such installments. If under paragraph I8 hereof the Property is acquired by I.ender, atl right, tiUe and inierest of Borrower .
<br /> in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br /> or acqtisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately priar to such sale or
<br /> , � acquisition.
<br /> 6. PreservaBon and MainMnsnce of Property; Leasehold� Condominlums; PlannM Ueit Devdopments. Borrower
<br /> shall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property
<br /> ' ;� and shall comply wit6 the ptovisions of any lease iE this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> � condominium or a planaed unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br /> or covenants areating or governing the condominium or planned unit development, the by-laws and regulations of the
<br /> oondominium or planned unit developmmt, and constitueni documents. If a candominium or planned unit development �
<br /> ridet is acecuted by Borrower and recorded together with this Mortgage, the covenants and agrcements of such rider
<br /> shall be incorporated into and shall amend aad suppiement the covenants and agreements of this Mortgage as if the rider "�"?�}
<br /> ; we�e a part laereof. '� � ,
<br /> , ' 7. ProLecHon of Lender's Secudty. If Bortower fails to perform the covenants and agreements contained in this ' ', ' "� ' Y
<br /> y�. Moitgagq or if any aMion or proceeding is commenced which materially aftects Lender's incerest in the Property, �� � 5
<br /> including, bui aot limited to. eminent domai� insolvency, eode enforcemeni, or arrangemenu or proceedings involving a � v, ;. :.
<br /> �' baelcru ofdecedeny ffiea Lender at Lender's'o tioa u a notice to Borrower, ma make such a t *` : `
<br /> pt p , po y ppearances, disbmse such
<br /> snrtu and talce such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of s� :4 _ .�r ,
<br /> tda6onable attomey's fw and entry upon the Property to make repairs. If Lender required mortgage insurance as a : !'
<br /> conditioa oE"making the Ioan secured by this Mortgage, Borrower shall pay the pr�miums rcquired to maintain such ,�< "^:t�
<br /> � imurance in effect until such time as the reqviremmt for such insurance terminates in accordance with Borrowers and �
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