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<br /> UxrnonM Covexwxxs. Borrower and Lender covenant and agree as fotlows : '
<br /> ; 1. Paymen! of Principal and Interest. Borrower shall promptly pay when due the prineipal of and interest on the
<br /> � indebtedneaa 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. Funds for Ta=es and Imoiance. Subject to appticable law or to a written waiver by Lender, Borrower shatl pay
<br /> � to Lender on the day monthly installments of principal and interut are payable under the Note, until the Note is paid in full. �
<br /> j a sum (herein "Funda'� equal to one-twelfth of the yearly taxes and assessments which may attain pdority over this
<br /> ' Mortgage, and ground rents an the Property, if any, plus ono-twelfth of yeafly premium instatlments for hazard insurance.
<br /> ? plus onatwelfth of yearly premium installments for mortgage insurance, if any, ail as reasonably estimated initially and from
<br /> : time to time by Lender on the basis of assessments and bills and rcasonable estimates thereaf.
<br /> i T'he Funds 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 institu[ion) . Lender shall apply the Funds [o pay said ta�ces, assessments,
<br /> i insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and wmpiting said assessments and bills, unless Lender pays Borrower interest on tlae Funds and applicable law
<br /> � permits Lender to make such a charge. Borrower and L.ender may agree in writing at the time of execution of this
<br /> Mortgage that interest on ttie Funds shall be paid to Borrower, and unlcss such agreement is made or applicable law
<br /> j requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br /> i 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. "fhe Funds are pledged as additional sauriry for the sums secured
<br /> ; by this Mortgage.
<br /> 'r If the amount of the Funds held by Lender, together with the future monthly installments 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 /> aasessments, insurance premiums and ground rents as 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 /> held by Lender shall not be su�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 /> j by Lender to Borrower requesting' payment t6ereof.
<br /> : Upon payment in full of all sums secured by this Mortgage. Lender shali promptly refund to Borrower any Funds
<br /> � held by L.ender. If under paragraph 18 hereof the Property is sold or the Propetty is otherwise acquired by Lender, Leader
<br /> � shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by i
<br /> ' Lender at the time of application as a credit against the sums secured by this Mortgage. '`
<br /> f 3. Applicatlon of Payments. Unless applicable Iaw provides otherwise, a❑ payments reeeived 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 /> j under paragraph 2 heroof, then to interest payable on the Note, then to the prineipal of the Note, and then to interest and
<br /> ' } principal on any Future Advances.
<br /> � 4. Charges; I.ieos. Bonower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> t6e 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 rnaking payment, whrn due, direcdy to the
<br /> ' j payee ffieceof. Borcower shall promptly fumish to Lender all notices of amounts due under ffiis paragraph, and in the event }
<br /> , j Bocrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. ;
<br /> � Borrower shall prompdy discharge any lieu which has priority over this Mortgage; provided, that Borrower shall not be +
<br /> : � required to discharge any such lien so long as Borrower shall ag�ee in writing to the payment of the obligation secured by :
<br /> � such liea in a mannet acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, �
<br /> legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. i
<br /> � 5. Hazard lnsurance. Borrower shall keep the improvements now existing or hereafter erected an the Property insured '�
<br /> 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, tha[ 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 /> � The insurance carrier providing t6e insurance shall be chosen by Borrower subject to approval by Lender, provided, ;
<br /> � that such approval shall not be uareasonably withheld. All premiums on insurance policies shall be paid in the manner
<br /> - ; provided under paragraph 2 hereof or, if not paid in such manneq by Borrower making payment, when duc, directly to the ' �
<br /> � insurance carrier.
<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 hold the policies and renewals ihereof,
<br /> � and Borrower shall promptly furnish to Lender alt renewat notices and all receipis of paid premiums. In the event of loss.
<br /> ; Borrower shall give prompt notice to the insurance canier and Lender. Lender may make proof of loss if not made prompdy
<br /> 3 by Borrower.
<br /> � Unless Lender and Borrower otherwise agree in wri[ing, 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 t6ereby impaired. If such restoration or repair is not economically feasible 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 /> to Borrower. 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 affers to settle a claim for insurance benefits, Lender
<br /> 7 is authorized to collect and apply t6e insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> , � or to the sums secured by this Mortgage.
<br /> Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> j or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br /> � such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br /> in aud to aay insurance policies and in and to the praceeds thereof resulting from damage to tl�e Property prior to the sale
<br /> � or acquisition shall pass to I.ender to tLe extent of ihe sums secured by this Mortgage immediately prior to such sale or
<br /> � acquisition.
<br /> � 6. PxxrvaUon and Maintenance of Property: Leaseholds; Condominiums; Planned Umt Developments. Borrower
<br /> shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> r � and shall comply with the provisions of any lease if this Mortgage is on a leasehold. lf this Mortgage is on a unit 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 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 Boaower and recarded together with this Mortgage, the covenants and agreements of such rider _' `'� ' a
<br /> ahell be inoorporated into and shalt amend and supplement the covmants and agreements of tbis Mortgage as if the rider '` ;� � �
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<br /> wero a part hereof.
<br /> 7. Protection of Lender's Security. I4 Borrower fails to perform the covenants and agreements cantained in this
<br /> Iviortgage, or , if. any action or proceeding is commenced which materielly affects L,ender s interest in the Property. � �
<br /> ipclnding, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a . � +
<br /> � � bankrupt or decedent, then Lender at L.ender•s option, upon notice to Borroweq may make such appearances, disburse such + � � , �
<br /> suma snd teke such action us ia aecessery to protect Lender s interest, including, but not limited to. disbursement of �,, ,
<br /> "�� " � � � reasonable attoiney's fees and � entry upon the ProQerty to make repairs. If Lender nquirecl mortgage insurance as a .
<br /> condition. of maiting the loan secured by this Mortgage. Borrower shal] pay the premiums requirecl to maintain such
<br /> ' � insurance in eHect unt�7 such time as the requiremeM for such insurance terminates in accordance with Borrower s and
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