|
86..,._ 105851
<br />Uidfwm Covenots. Borrower and Lender covenant and agree as follows:
<br />I. 'PAYMENT OF PRINCIPAL AND INTEREST. Borrower shall promptly pay when due the principal of and interest on the indebtedness
<br />evideaced by the Nore, any prepayment and late charges provided in the Note and all other sums secured by this Instrument.
<br />7. FIINOB, FOR TAXES. INSURANCE AND OTHER CHARGES. Subject to applicable law or to a written waiver by Lender. Borrower shall
<br />pay to,Lesmder'aat the day monthly installments of principal or interest are payable under the Note (or on another day designated in writing by
<br />Len*ir a aillAt Note': is paid in full. a sum ':(hercie"Funds ") equal to one- twelfth of (a) the yearly -water and sewer rates and tans and
<br />ttaaaniem� which maybe levied on the Property, (b) the yearly ground rents, if any, (c) the yearly premium'imtallments for fire and other hazard
<br />inslamece. rest hm 'insanince and such other insurance covering the Property as Lender may require pursuant to paragraph S hereof, (d) the yearly
<br />ptesiam- iwallments A* mortgage insurance, if any, and (e) if this instrument is on a leasehold, die yearly fixed rents, if any. under the ground
<br />lease, all as reasonably estimated initially; and' from time to time by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />Airy wr'ver by Lender of a requirement that Borrower pay such Funds may he revoked by Lender, in Lenders sole discretion, at anytime upon
<br />notice in wtiting'to Borrower. Lender may require Borrower to pay to Lender, in advance. such other Funds for other taxes, charges, premiums,
<br />messtueass and impositions to connection with Borrower or the Property which Leader shall reasonably deem necessary to protect Lender's
<br />inseress (herein "Other Impositions "I Unless otherwise provided by applicable law. Lender may require Funds for Other impositions to be paid
<br />by Borrower in a lump sum or in periodic inuallments, at Lender's option.
<br />The Funds shall be held in an institution(&) the deposits or accounts of which are insured or guaranteed by a Federal or state agency
<br />(including Lender if Lender is such an institution). Lender shall apply the Funds to pay said rates, rents, taxes, assessments, insurance premiums
<br />and Other Impositions so long as Borrower is not in breach of any covenant or agreement of Borrower in :his Instrument. Lender shall make no
<br />drew for so holding and applying the Funds, analyzing said account or for verifying and compiling said assessments and bills, unless Lender pays
<br />Borrower interest, earnings or profits on the Funds and applicable law permits Lender to make such a charge. Borrowt:r and Lender may agree in
<br />writing at the time of execution of this Instrument that interest on the Funds shall be paid to Borrower, and unless such agreement is made or
<br />applicable law requires interest, earnings or profits to be paid, Lender shall not be required to pay Borrower any interest, earnings or profits on the
<br />Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds in Lender's normal format showing credits and debits to
<br />the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this
<br />Instrument
<br />If the amount of the Funds held by Lender at the time of the annual accounting thereof shall exceed the amount deemed necessary by Lender
<br />to provide for the payment of water and sewer rates, taxes, assessments, insurance premiums, rents and Other Impositions, as they fall due, such
<br />excess shall be credited to Borrower on the next monthly installment or installments of Funds due. if at any time the amount of the Funds held by
<br />Lender shall be less than the amount deemed necessary by Lender to pay water and sewer rates, taxes, assessments, insurance premiums, rents and
<br />Other Impositions, as they fall date. Borrower shall pay to Lender any amount necessary to make up the deficiency within thirty days after notice
<br />from Lender to Borrower requesting payment thereof.
<br />Upon Borrower's breach of any covenant or agreement of Borrower in this Instrument Lender may apply, in any amount and in any order as
<br />Lender shall determine in Lenders sole discretion. any Funds held by Lender at the time of application (i) to pay rates, rents, taxes, assessments,
<br />insurance premiums and Other Impositions which are now or will hereafter become due, or (u) as a credit against sums secured by this Instrument.
<br />Upon payment in full of all sums secured by this Instrument. Lender shall promptly refund to Borrower any Funds held by Lender.
<br />I APPLICATION OF PAYMENTS. Unless applicable law provides otherwise. all payments received by Lender from Borrower under the Note
<br />or this instrument shall be applied by Leader in the following order of priority: I i 1 amounts payable to Lender by Borrower under paragraph 2
<br />hereof; (ii) interest payable on the Note: (w ► principal of the Note; (v) interest payable on advances made pursuant to paragraph 8 hereof, (v)
<br />principal of advances made pursuant to paragraph 8 hereof: I va) tntemi payable on any Future Advance, provided that if more than one Future
<br />Advance is outstanding. Lender may apply payments received among the amounts of interest payable on the Future Advances in such order as
<br />Lender, in Lender's sole discretion, may determine: (vu) principal of any Future Advance, provided that if more than one Future Advance is
<br />outstanding. Lender may apply payments received among the principal balances of the Future Advances on such order as Lender, in Lender's sole
<br />discretion, may determine: and ( vin 1 any other sums secured by this Instrument in such order as Lender, at Lender's option. may determine;
<br />provided, however, that Lender may, at Lenders option, apply any sums payable pursuant to paragraph 8 hereof prior to interest on and principal
<br />of the Note, but such application shall not otherwise affect the order of prionty of application specified in this paragraph 3.
<br />4 CHARGES: WENS. Borrower shall pay all water and sewer rates, rents, taxes, assessments, premiums, and Other Impositions attributable to
<br />the Property at Lender's option in the manner provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment,
<br />when due, directly to the payee thereof, or in such other manner as Lender may designate in wnung. Borrower shall promptly furnish to Lender all
<br />notices of amounts due under this paragraph Q, and to the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing such payments Burrower shall promptly discharge any lien which h•ts• or may have, priority over or equality with, the hen of
<br />this Instrument, and Borrower shall pay. when due, the claims of all persons supplying labor or maienals to or in connection with the Property
<br />Without Lender's prior written permission. Borrower shall not allow any ben inferior to this Instrument to be perfected against the Property
<br />& HAZARD INSURANCE. Borrower shall keep the improvements now existing or hereafter erected on the Property insured by carriers at all
<br />cones satisfactory to Lender against loss by fire, hazards included within the term "extended average ". rent loss and such other hazards. casualties,
<br />liabdities and contingencies as Lender ( and. if this Instrument is on a leasehold, the ground lease 1 shall require and in such amounts and for such
<br />periods as Lender shall require All premiums on insurance polities shall he paid, at Lender's option, to the manner provided under paragraph 2
<br />hereof. or by Borrower making payment. when due, directly to the carrier. or in such other manner as [.ender may designate in writing.
<br />All insurance policies and renewals thereof shall be in A form acceptable to Lender and shall include a standard mortgag: clause in favor of
<br />and in form acceptable to Lender [ender shall have the nghr to hold the policies, and Borrower shall promptly furnish to Lender all renew.:
<br />notion and all receipts of paid premium. At least thirty days prior to the expiration date of a poltc;, Borrower shall deliver to Lender a renewal
<br />policy inform satisfactory to Lender If this Instrument u on a leasehold. Borrower shall furnish Lender a duplicate of all policies, renewal notices.
<br />renewal polices and receipts of paid premiums if. by virtue of the ground lease. the originals thereof may not be supplied by Borrower to Lender
<br />In the event of loss. Borrower shall give immediate written notice to the insurance carrier and to Le-d•r. Borrower hereby authorizes and
<br />empowers Leader as attorney-an -fact for Borrower to make proof of loss. to adjust and compromise any claim ,ider insurance policies, to appear in
<br />and prosecute any action ansang from such insurance policies, le witect and receive insurance proceeds. and to deduct therefrom Lenders expenses
<br />incurred in the collection of such proceeds; provided however, that nothing contained in this paragraph 5 shall require Lender to incur any expense
<br />or take any action hereunder Burrower further authorizes Lender, at Lenders option. (a) to hold the balance of such proceeds to he used to
<br />tnmbune Borrower for the cost of reconstruction or repair of the Property of I b) to apply the balance of such proceeds to the payment of the sums
<br />secured by this Instrument, whether or not then due, in the order of application set forth in paragraph 3 hereof t subject. however. to the rights of
<br />the lessor under the ground lease J this Instrument u on a leasehold).
<br />If the insurance proceeds are held by tender to reimburse Borrower lot the ant of reskoratxtn and repair of the Property, the Property shall he
<br />restored to the equivalent of its original condition or such other condition as Lender may approve in wnung Lender may. at lender's option.
<br />condition disbursement of said proceeds on Under *% approval of such plans and specifications of an arclutect satisfactory to Lender. contractor's
<br />cost estimates. atehitect's certificates, waivers of lens. sworn statements of mechanics and matenalmen and such other evidence of costs, percentage
<br />completion of construction. application of payments, and satisfaction of hens as Lender may m —nably require If the insurance proceeds are
<br />applied to the payment of the sum. ses:ured by this Instrument, any such applicawn or proceeds to principal shall mot wend or postpone the due
<br />dates of the montbly installments retetred to in paragraphs 1 and ? hereof or change the amounts of such matallments if the Property is sold
<br />yfwrtwant to paragraph 27 hereof or it tender acquires title to the Property. Lender shall have all of the nghr, tide and interest of liormwer in and to
<br />any mWranee Polxxt and unearned premiums thereon and in and to the proceeds resulting from any damagr to the Property prior u, lush site or
<br />aattustuon
<br />Q FRF.S)KRYATiON AND MAINTUNANCF OF PROPFRl t; L FASENO11M IL•rrnwer i a i .h4l, not somrtm ,sash .,, perm., impeootrnt ..r
<br />derenoralian of the Proprfts t h 1 4hall —1 JhA doa the Property, t c; SAAR rettote or pA,, pmmptiy ".0 sn .i g—1 ,and u -o>A noari hl,, manner all
<br />11090M Cotenant% Multt(acstly 1:77 VNiM4rFFII,R1(' tinifam In.trument Form 40tltl rhirr, -Y k r.ricei
<br />
|