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<br /> 78� U 02795
<br /> Ur�rnoxM CovatawN�rs. Borrower and Lender covenant and agree as follows :
<br /> 1. Payment of Pdnciprl and Interest. Borrower shall promptiy pay when due the principat of and interut on the
<br /> indebtedness evidenced 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 Mortgage. �
<br /> 2. Funde for Tues and Insoraoca Subject to applicable law or to a written waiver by Lender, Borrower shall pay .
<br /> to I.eader on the day monthly installments of principal and interest are payable under the Note, uotil the Note is paid in full,
<br /> ; a sum (herein "Funds'� equal to onatwelfth of the yearly ta�ces and assessments which may attain priority over this
<br /> ' Mortgage, and ground nnts on the Properry, if any, plus one-twelfth of yeady premium installments for hazard insurance,
<br /> � plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> � time to time by Lender on ffie basis of assessments and bills and reasonable estimates thereof.
<br /> The Fuads shall be held in an institution the deposiu 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 /> insurance pnmiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> � or verifying and compiling said assessmmts and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br /> permiu Leader to make such a charge. Borrower and Lender may agree in wricing at the time of execution of this
<br /> , 4 Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br /> nquires such interesr to be paid, Lertder shal� not be reqaired Lo pay Borrower any interest ot eamings on the Funds. L.ender
<br /> � shall give to Horrower, 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. 'I1�e Funds are ptedged as additional security for the sums secured
<br /> by this Mortgage.
<br /> ' ; If the amount of the Funds held by Lender, together with the future monthly installmeots of Funds payable prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> assessments, insurance premiums and ground recns ns they fall due, such excess shall be, at Borrower s option, either
<br /> prompdy repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds !
<br /> y held by Lender shall not be sut&cient 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 /> �' by Leader to Borrower requesting' payment thereof.
<br /> + Upon payment in full of all sums secured by this Mortgage, Leuder shall promptly refund to Borrower any Funds
<br /> held by I.ender. If under pazagraph 18 hereof the Property is sotd or the Property is otherwise acquired by Lender, Lender
<br /> s6a11 apply, no later than immediately prior to the sale of the Property or its acquisition by Lendeq any Funds held by
<br /> 3 Lender at the time of application as a credit against the sums secured by this Mortgage.
<br /> ; 3. Appllcation of Pqyments. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> ; Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> ander paragraph 2 hereof, thea to iarerest payable on the Note, then ro the principal of the Note, and then to intcrest and
<br /> 1 principal on any Future Advances.
<br /> : j 4. C6arges; Ltens. Borrower shall pay alI taxes, assessments and other charges, fines and impositions attributable to
<br /> the Proper[y which msy attain a priority over this Mongage, and leasehold payments or ground rents, if any, i� the manner _
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> ' payce thereof. Borrower shall prompdy furnish to Lender all notices of amounts due undcr this paragraph, and in the event
<br /> � Borrower shall make payment directly, Borrower shali prompNy fumish to Lender receipts evidencing such payments.
<br /> ; Borrower shall prompfly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> ? requ'ved to 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 enforcement of such lien in,
<br /> G legal groceedings which operate to prevent the enforcement of the lien or forfeiture of the Properiy or any part thereof.
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<br /> � 5_ Hazrrd Iasnrance. Borrower shall keep tfie improvements now existing or hereafter erected on the Property insured �'"
<br /> , � against loss by Sre, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br /> : � and ia such amounts and for such periods az 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.
<br /> i The iasutance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> F that such approval shall not be unreasonably witt�held. All premiums on insurance policies shall be paid in the manner
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<br /> provided u�ler paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
<br /> t insurance carrier.
<br /> ' 1 All inavrance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> � dause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br /> j and Borrower shall promptly furnish to Lender all renewal notices and all 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 promptty
<br /> 3 by Boaower.
<br /> Unless Lender and Borrower othenvise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> i � the Property damaged, provided such restoration or repai� is economicalty feasible and the securiry of this Mortgage is
<br /> i not thereby impaimd. If such rostoration or repair is not economically fcasible or if the security of this Mortgage would
<br /> � be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> i� to Borrower. If the Ptoperty is abandoned by Borrower, or if Borrower fails to respond to Lrnder within 30 days from the
<br /> : i date notice is mailed by Lender to Borrower that the insurance carrier offers to senle a claim for insucance benefits, Lender
<br /> ; k is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> � I or to the sums secured by this Mortgage.
<br /> i i Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principat shali not extend
<br /> '' I or postpone the due date of the monthly installmenis referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> t such installments. If under paragraph 18 hereof the Property is acqu'ved by Lender, all right, tide and interest of Borrower
<br /> } in and to any insuraace policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br /> ` , p 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. Pre,ervatioo and Mainteaance of Properfy; Leaseholds; Condominiums; Planned Unit Devdopments. Borrower
<br /> # shall kcep tlie Properiy ia good repair and shall not commit waste or permit impuirment 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 imit in a
<br /> � condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br /> or covenants creating or governing the condominium or planned unit development, the by-laws and regutations of the i
<br /> condominium or planned unit development, and constituen[ documents. If a condominium or planned unit development -.�
<br /> � rider is euecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider -- .r . ;
<br /> ; � shall be incorporated into and shall amend and supplement the covenanu and agreemenu of this Mortgage as if the rider ' �
<br /> were, a part hereof. � � '� :w
<br /> , � 7. Protecdon _of 'Lende�s Serndq. If Borrower fails to perform the covenants and agreements contained in this ,
<br /> Mortgage, or if any action or proceeding R oommenced which materially affeccs Lender's interest in the Property,
<br /> r a including, ,but not limited to, eminent domain, insolvency, code enforcement, or arrangemenu or proceedings involving a ; '
<br /> , � baalwpt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appeamnca, disburse such `�` �±
<br /> i aums and take such ac[ion as is necessary to protect Lender's intercst, induding, but not limited to, disbursement of a�
<br /> reasonable atromey's feee and entry upon the Property to make repairs. Tf Lender required mortgage insurance as a �'"" ^
<br /> % condition oP making tbe loan secured by this Mortgagq Borrower shall pay ihe premiums required to maintain such
<br /> - �; inaurance in effect until suoh time as the requirement for such insurance terminates in accocdance wich Borrower s and
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