|
85- 0014345
<br />" UNrroatu COVENANTS. Borrower and Lender covenant and agree as follows;
<br />intkbtedneu�ve evidenced �y Itatereat• Borrower shall promptly pay when due the principal of and interest on the
<br />on any Future Advances the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />r secured by this Mortgage.
<br />1 t Fmsy for Tttt on and fnsarsime. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />j a slim (herein "Funds ") equal to one - twelfth of the yearly taxes and assessments which ma attain
<br />Mortgage, and ground rents on the Property, if any, plus one - twelfth of earl Y priority over this
<br />Plus one twelfth of yearly premium installments for more f Y Premium installments for hazard insurance,
<br />time to time by Lender on the basis of gage insurance, if any, all as reasonably estimated initially and from
<br />The Funds shall be held in an inatituEtottn the td�p�isllar accounts f which are eins hereof. . or ? state agency (including Lender if Lender is such an institution). Lender shall a guaranteed by a Federal or
<br />insurance premiums and ground rents. Lender may not charge for so holding andlapplying ut Funds analyzing said account, said taxes, assessments,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />Permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />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 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 />assessments, insurance premiums and ground rents as they fall due, 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 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 notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />hell by Lender. If under paragraph 18 hereof the Property is sold or the Properly is otherwise acquired by Lender, Lender
<br />shall 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.
<br />3. Application of Payments. 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 Lcnder by Borrower
<br />under paragraph 2 hereof, then to interest 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; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the 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 making payment, when due, directly to the
<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 shall promptly furnish to Lender receipts evidencing such payments.
<br />required to discharge Promptly ny such lien o any longnas Borhrowerhall priority gree io this Mortgage; to the provided, that Borrower shah not be
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement obligatio such lien in.
<br />legal proceedings which 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 improvements now existing or herc;dtcr erected on the Property ntsured
<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, 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 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 paid 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 />insurance carrier.
<br />All insurance policies and renewals thereof shall he in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and m form acceptable to Lender. Lcnder shall have the right to hold the policies and renewals thereof,
<br />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 promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, 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 thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />he impaired, the msurancc proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, pai
<br />10 Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond in Lender within 30 days from the
<br />date notice re mailed by !.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />Is authorized to collect and apply the insurance Proceeds at Lcnder'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 />of Postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph IS hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any nrurance Policies and in and to to proceeds thereof r esulting from Damage to the Property prior to the sale
<br />acquisition. rtacquisition shall peas to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />qulailto.
<br />6' preaarrslitm and Mafsiensnce of Property; "toeholds; l'o „dominiums; Planned Unit Developments, Iforrowcr
<br />ales!l keep the Property in good repair and shall not commit waste or permit impairment 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 unit in
<br />condominium or a planned unit development. Borrower shall perform all of Borrower's obligations M under the declaration
<br />or covenants creating or governing the condominium or planned unit dcvclopmcnt, the byI and regulations dec of the
<br />condominium or Planned unit development, amt constituent documents. If a condominium or planted unit development
<br />rider Is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be Iftcoriterated into and shall amend and supplement the covenants and agreements of this Mortgage as it the rider
<br />were a part hereof.
<br />y. P"Ifectlas of t.esdrr"a -%clarity. It Borrower fails to perform the covenants and agreements contained in this
<br />Mor[Ragra. or if any action nr proceeding Is commenced which materially affects Lender's interest in the Property,
<br />holoakrup including. but not I'm led to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving !t
<br />or decedent, Ihen Lerber and
<br />amps at I.skier *' oPtiott, upon notice to Borrower, may make such aPpearances, disburse such
<br />rake nus:h acthxn as Is resaary to protect Lernfcr'm interest, Including, but not limited tie, disbursement of
<br />roulsom hla atlorrtcy's fees and entry upon the Property to make repairs. If Lcnder revolted mortgage insurance as a
<br />rcwu$itiup of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
<br />insurance in effect until %Uch tittle as fire requnentcnt Ior %u0i msurancc Iernuoates .n :arontark:c with Borrower's .,toil
<br />p: S F3' lr (ran 10 0 Pape 1
<br />m.�
<br />
|