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001026
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows;
<br />I- payment of Principal and Interest.
<br />Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidegco' byolfc, tjote, prepayment and late
<br />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 Taxes and insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to fender on the day monthly installments of principal
<br />and interest are payable tinder the Note, until the Note is paid in full,
<br />a sum (herein "Funds ") equal to one twelfth of the yearly taxes and assessments which may
<br />Mortgage, and ground rents
<br />attain priority over this
<br />on the Property, if any, plus one- twelfth of yearly premium installments for hazard insurance,
<br />Plus one - twelfth of yearly premium installments for mortgage insurance,
<br />if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments ;Ind hills and reasonable estimates thereof.
<br />The Funds shall be held in institution
<br />an 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
<br />insurance premiums and ground said taxes,
<br />pay assessments,
<br />rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessmerN and bills, unless Lender pays Borrower interest
<br />Permits Lender to make
<br />on the Funds and applicable law
<br />Mortgage
<br />such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />ainteresinterest
<br />FLender hnot
<br />requires such o be paid shall be required to pay Borrower sany inte agreement
<br />shall give to Borrower,
<br />s or earnings on the Funds. Lender
<br />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
<br />by this Mortgage. made. The Funds are pledged as additional security for the sums secured
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds
<br />the due dates of taxes, assessments.
<br />payable prior to
<br />Insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due,
<br />such excess shall be, at Borrower's option, either
<br />Promptly 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 sufficient to
<br />pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary to make tip the deficiency within 30 days from the date
<br />by Lender to Borrower requesting
<br />payment thereof. notice is mailed
<br />Upon payment in full of all
<br />sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property
<br />shall apply, no later
<br />is otherwise acquired by Lender, Lender
<br />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
<br />secured by this Mortgage.
<br />3. Application of payments. Unless applicable law provides otherwise, all payments received
<br />Note and paragraphs 1 2
<br />and by Lender under the
<br />hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to Interest payable on the Note,
<br />principal on any Future Advances.
<br />then to the principal of the Note. and then to interest and
<br />•i• Charges: IJens. Borrower .hall pay all taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage.
<br />and leashold 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 payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish Lender
<br />to all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall
<br />Borrower
<br />promptly furnish to Lender receipts evidencing such payments.
<br />shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall
<br />agree in writing to the payment of the obligation secured by
<br />such hen in a manner acceptable u) Lender, or shall in good faith contest such lien by, or defend enforcement
<br />legal proceedings which
<br />of such lien in,
<br />operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. Hazard Insurance. Borrower shall keep the Improventcnis
<br />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
<br />and in such amounts and for
<br />may require
<br />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.
<br />The insurance carrier
<br />providing the insurance shall he chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be
<br />provided under paragraph 2 hereof
<br />paid in the manner
<br />or, if not paid in such manner, by Borrower making payment• when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include it standard mortgage
<br />clause in favor of and in form acceptable ill Lender. Lender shall have the
<br />and Borrower
<br />right w hold the policies and renewals thereof,
<br />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
<br />by Borrower. and Lender. Lender may make proof of loss it not made promptly
<br />Unless Lender and Borrower otherwise
<br />agree in writing, insurance proceeds shall he applied to restoration or repair of
<br />the Property damaged, provided such rebtoration ar repair
<br />is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the securc It this Mortgage would
<br />be impaired, the Insurance proceeds shall be applied
<br />to the sums secured by this Mortgage, wnh the excess, if any, paid
<br />to Borrower. If the property's abandoned by Borrower, or it Borrower talk to respond to Lender within 30 days
<br />date notice is mailed by Lender
<br />from the
<br />to Borrower that the insurance carrier offers to settle it claim for insurance benefits. Iender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration
<br />or to the sums secured by
<br />this Mortgage. or repair of the Property
<br />Unless Lender and Borrower otherwise
<br />agree in writing, any such application of proceeds to principal shall not extent
<br />or Postpone the din date of the monthly installments referred to
<br />n, paragraphs I and 2 hereof or change the amount of
<br />such installments. It under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to
<br />the proceeds thereof rewhing from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to tfte extent of the sums secured by Ibis Mortgage immediately
<br />acquisition.
<br />prior to such sale or
<br />6- Prtnarratlon fwd Rlalrlenanee of property; f,esseholds; Condominiums; planned Unil 1hvelopments,
<br />shal Bormwcr l keep the Property in goad repair and shall not commit
<br />waste tit permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage 1% on a leasehold. If Ill's Mortgage Is on
<br />condominium or a planned unit development.
<br />a unit in a
<br />Borrower shall perform all of Borrower's obligations under the Jeclaretion
<br />or covenants creating or governing the condominium or
<br />planned unit development, the by -laws ;Ind regulations of the
<br />condominium or planned unit development, and constituent documem,. If a condominium or
<br />rider is executed by Borrower
<br />planne.J unit development
<br />and recorded together with this Mortgage, the covenants ant agreements of such titer
<br />Shall it incorporated into and shall amend and suppler-lent the covenant% jilt] agreements of this Mortgage
<br />were a pan hereof.
<br />as if the rider
<br />7' ProfactM" of "trader's !fecurffY. If Borrower fail' nl perform the covenants and agreements contained in this
<br />Maragap, or if any action or procceding is
<br />including, but not
<br />commenced which materially affects I. ender'. Interest in the Property,
<br />I'm led to, eminent domain, Insolvency Lode enlortement,
<br />e.
<br />or arrangements or proceedings involving a
<br />bankrupt or decedent, then 1 ender at I ender's option, ,pon notice to
<br />Ilorl,lw'l'r, lilac snake skids l ,
<br />%urria and take such action .ls is necessary to prulet I,el+llel'' 'tItCIC %I, IIL:111d1ng, h I lx;l'auccs, dishuixc ,rich
<br />reasonable altClrnay'-4 fte1 ant! enni, a pull file Pru 1@!t III Iri)1 illllltc'd 1,,, ,lr%hllfFClnCllf u(
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<br />1 assurance or) effect linlll 811,11 (lilt!'. X111 the reglln "mietit
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