|
<br />Ur+tr<ncni Cov[~:~'.w-t's. Borrower and 1.-ender covenant and agree :is -fvltows:
<br />I. Payment of Principal and Interest. Harrower shall promptly pay when due the principal of and intcrest un the
<br />indebtednc+s evidenced by the Nate, prepayment ;md late charges as provided in the Note, -;end thtir'principalof and interest
<br />on any Future Advances secured by' this ivtortgage.
<br />2. Funds for Taxes and.Insurance. Subject ro applicable law or to a written waiver by Lender, Boaower shall--pay
<br />to Lender cot the day monthly installments of principal and interest are payable under the Note, nnpl the Note is paid-in full,
<br />a sum !herein"'Funds"} equal to one-twelfth of the yearly taxes and assessments which may attain priority over -this
<br />Mortgage;~andgraund rents on the-Property, if env;-plus one-twelfth of yearly premium-installments for hazard insurance,
<br />plus~ne-twelfth-of-yearypremium installments for mortgage insurance, if any, alt as reasonably estimated initially andfrom
<br />time to time by-Lender on the basis of assessments and bills and reasonably estimates thereof. - - -
<br />"Fhe Fiords shall be held in an institution 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 paysaid taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for sa holding and applying the Funds, analyzing said-account:
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender m make such a charge. Burrower and Lender may agree in writing at the. time of execution of .this
<br />Mortgage that interest vn the Funds shall he paid to Borrower, and unless such- agreement is made or- applicable -taw
<br />requires such intcrest to be paid, Lender shall no[ he required to pay Borrower any interest or earnings oa the Funds.,Lender
<br />shalt give to Borrower, without charge, an annual accounting of the Funds showing credits and debits [o the Funds and the
<br />purpose fvru~hich each debit m the Funds was made. The Funds are pledged as additivnal security for the sums secured
<br />by this Mortgage.
<br />If [he. 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 theamount required_to paysaid taxes,'
<br />assessments. insurance premiums and ground rents as they tali due, such excess shall be, at Borrower's.opdan, either.
<br />promptly repaid to Borrower or credited tv Borrower on monthly installments of Funds. if the amount.of the Funds.
<br />held hy-Leader shall not be sufficient to pay taxes, assessments. insurance premiums and ground rents as they fall -duo, -
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days tram the d[tte notice.is mailed -
<br />by Lender to Borrower requesting payment therevf.
<br />Upon payment in tali of all sums secured by [his hfortgage. Lender shall promptly refund to Borrower any Fr:nds
<br />held by Lender. if under paragraph 18 hereof the Property is sold or the Properry is otherwise acquired by Lender, Lender
<br />shall apply, no Inter than immediately prior to the sale of the Property ar its acquisition by I-ender, any Funds held by
<br />Lender a[ the tone of application as a credit against the scans secured by this hf ortgage.
<br />3. AppBcadon of Paymenzs. Unless applicable law provides otherwise, ail paymems received by Lender under the
<br />Note and paragraphs t and 2 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, then to the principal of the Note.:md then to interest and
<br />principal on any Future Advances.
<br />J. Charges; Liens. Borrower shall p;p' all t.r+e,. ,issesancnb and other ;h:u~ges, tines and impositions attributable to
<br />the Property which may attain a pnority over this Mortgage, and leasehold payments or ground rents. if any, in the manner
<br />provided under paragraph 2 hereof or. if net patd m such manner. by Burrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notrces of :unounts disc under this paragraph, and in the event
<br />Borrower shall make payment d,rectly. Bvrmwer ,hall prompdc twnish to Lender receipts evidencing such payments.
<br />Borrower shall promptlt• discharge any lien which has pnority m-cr this Mortgage: provided, that Burrower shall nut be
<br />reyuired to discharge any such lien so long as Borrouer shaft agree in ++rit mg tv the payment of the obligation se.. _d Jy
<br />such :.an in a manner aecepta6le to Lender, or shall m good faith contest such lieu by, or defend enforcement of such lien in,
<br />Legal proceedings which operate [+~ prevent the enturcemem a the hen or For[eiuuc of the Properq~ or :mv pan thereof,
<br />5. Hazard Insurance. Borrouer shall keep the impn,veu[cnts arn+ cvstmg or here:[ficr erected on the Property insured
<br />against loss by fire, hazards included within the term "'extended co+-cra~c". and such other hazards as Louder tnay require
<br />and in such amounts and for such periods as Lender omq require; pa~i ided. that Lender shall net require that the amount of
<br />such coverage exceed that amount of co+crage reyuired to pa} the sum, secured by this ~7ongage.
<br />The insurance carrier providing the insurance shall be chosen by Bvrrouer subject m approval by Lender; provided,
<br />that such spproval shall not be unreasonably withheld. :1 L' premiums on insurance policres shall be paid in the manner
<br />provided under paragraph 2 hereof or, d not paid in such msnner, by Dorrawer making payment, when due, dtrectly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereat shad be in form ecrepr,,bic ro Lmxlcr :md shall mciude a +tandard mortgage
<br />clause in favor oC and in form actteptable to Lender. Lender stroll ho+e the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renew al nouces and ail receipts of paid premium,. in the event of loss,
<br />Bornwer shall give prompt nonce to the insurance carrier and Lender. Lender may make proof of loss iL not made promptly
<br />by Borrower.
<br />Unless Lender and Borrouer other+ise agree in u-citing, i^>urance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically frasrhle and the security of this Mortgage is
<br />not thereby impaired. If such reswrttmn or repair is not eamomicallw tcas~ble or it the security of this Mortgage would
<br />beimpaired, the insurance proceeds shall be applied to the Bunts secure-d b} this Dtortgage. with the excess, if nay, paid
<br />to Borrower, if the Propert}~ is abandoned by Burrower, yr if Borrower fails w respatd [v Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle n claim fur insurance benefits, Lender
<br />is authorized to collect and apply the insurance eroceeds at Lender's option either to restvrnion or repair of the Properry
<br />or to the sums secured by this Aortgage.
<br />UnlessLender and Borrower otherwise agree in writing, any such appGca!ion of proceeds to principal shall oat extend
<br />or postpone the due date of the monthly installment, referred to in paragraphs 1 and ?hereof or change the amount of
<br />such installments. If under pazagraph t8 hereof the Property is acquired by Lender all right, title and interest of Borrower
<br />inand to any insurance policies and in and tv the proceeds thereot resulting from damage to the Property prior Yo the sale
<br />of acgtilsition shalt pass to Lender to the extent of the sums secured ny. this Mortgage immediately prior to such sale or
<br />acquisition,
<br />6. Pmaenation and btaintenance of.Property; Leaseholds; Condominiums, Planned L%nit Developments. Borrower
<br />shall keep [he Property in good repair and shall not commit waste or permit impaianen[ or deterioration of the Property
<br />and shag comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's vbhgutions under the declaration
<br />or covenants creating or governing the condominium ar planned unit development, the 6y-laws and regulations of the
<br />condominettm.orplanned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed; by Borrower and recorded together with-this Mortgage, the covenants and agreements of such rider
<br />she!! ba incorporated into and shall. amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a dart ha~epf.
<br />7, Protection of Lemder'a Security. IG Borrawr;r tails to-per[orm the covenants and agreements cvatained in thie
<br />Mortgage, or. if any _aciJtxi or proceeding, is cominehced which materially atfccts Leader's interest in the Property,
<br />including;, but not limited to; eminem domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt-or decedent, rhea Lender at Lender's option, upon notice to Borrouer, may make such appearances, disburse such
<br />sums and take. such: action as- isnecessary ao preteen .Lender's interest, .including, but nut limited to, disbursamen[ o[
<br />reasons}tlg=attompy's.-fc,is,xnd.tntry ttpon,thts,Prppertylo make repairs. It Lender rcyuued mortgage insw~anee as a
<br />eondilton n[ making the loan. secured py,this Mortgage, Barrowar shall pay [he premiums required to maintain such
<br />Insurance in r:FfecE-unlit such time as the requirement.,fnr such- insurance terntinytes in accardanec with Borrower's ;and
<br />
|