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<br />lIN7EO1tM COVENANTS BOtTIlwer and .Lendef covenant and agree as follows:
<br />1. Payment ofPrlacipal trod Interest.. Horrawershallpromptly paywhen due the principal of and intereston the
<br />indebtedness evidenced by the Note, prepayment and late charges. as provided in the Note, and the principal of and interest
<br />- on any Future Adyances secured by this;Aiortgage.
<br />~• Fwds for Ta=p and Iaearaaee. -Subject to applicable Taw nr to a written waiver by Lender, Borrawer shall pay
<br />to Lender on-the day monthly installments of principaland interest are payable tinder. the Note,tantil the Nate is. paid in full,
<br />a sum (herein "Fonda"i equaG to one-twelfth of the.. yearly .taxes and assessments which .may attain -priority-¢ver this
<br />Mortgage, and ground rents on the Property, if any; plus one-twelfth of .yearly premium insrallments for hazard insurance,
<br />plus orte-twelfth of yearly premium Installments for mortgage insurance: if any, all as reasonably estimated initially and from
<br />nine to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalLtie held roan institution the deposits or accounts ofwliich are-insured orguaranteedby a Federal or
<br />state agency:(iacluding Lender if Lender is such an institution). Lender shall apply the'Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Londe: may xotcharge for so holding and applying the'Funds, analyzing said account,
<br />oYverifyingand 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 rite Funds shall` be paid o .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, ts•ithoutcharge, an annual accountingpfthe Funds showing credits and debits to the Rinds and thz
<br />pttrpox for which each debit to the Funds was made... The Funds are pledged as additional security for the sums scoured
<br />by this Mortgage.
<br />If the amount of rtes Funds hcM by Lender, together with the future monthly .installments of Funds payable prior to
<br />the due dale; of taxes, assessments, insurance pretruums and ground rents, shall exceed the amountrequired to pay sad,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: fE the amount of the'rFunds
<br />held by Lender shall'not 6e stdficient to pay taxes, assessments; insurance premiums and ground rents as they fall: due,
<br />BOrrowerahall pay to Lender any amotmt necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lenderto'Borrowerrequesting paymemahereof.
<br />Upon payment in.fuB of all sums secured by this Mortgage. Lender. shall promptly refund to Barrower any Funds
<br />held by Lender.. If under puagraph 18 hereof the Property. is sold ar the Property is, otherwise acquired. by_Lender, Lender:
<br />steal! apply, no later than immediately prior to the sale of the Properly or its acquisition by Lender, any. Funds held by'
<br />Lender at the line of ppplirauon as a credit against the sums secured by, this Mortgage.
<br />3. A~IkaNoa of Tayttoeata. Unless applicable law provides otherwise, all. payments received by Lender under. the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts. payable. to Lender. by Borrowe:
<br />under paragraph 2 hereof, then to interest payable on the Note,. !hen to the.: principal. of the Note; and hen to interest and
<br />principal on any.Futnre Advances:
<br />4. Chtvgea; Lletss. Borrower shall pay: all taxes-.assessments and other charges, .fines and impositions attributaEle to
<br />the Property which may attain a priority over thts Mortgage, and`7easehold;payments or ground rents, if any, in the. manner
<br />provided tinder pazagraph 2 hereof or, i£not paid in such manner, by Borrower making payment; when due, directly to the
<br />payee thereof: Borrower shalbpromptly furnish to Lender all noticesof amounts doe under this paragraph, and in the event
<br />Borrower sball make payment'directly, Borrower shall. promptly furnish to Lender receipts evidencing such payments.
<br />..Burrower shall promptly discharge. any ilea which :has-priority. over this :Mortgage; provided, that Borrower shall :not be
<br />;.required to discharge any such lkn sa dung as Borrower shall. agree in writing to the payment. of the obligation secured b7
<br />suc6lien inS mannerat:ceptable to Lender, or shall in good faith contest such lien by, nr defend enforcetnentof such lien in,
<br />kgal proceedings which operate to prevent the enforcement of the lien or,forfei[ure of ttie Property or :any part thereof.
<br />S. Nwrd hwraece. Barrower shall keep the improvements :now existing or hereafter erected on the Property insured
<br />agaimt loss by 5re, hazards included within he term "extended coverage", and such: other hazards as Lender may require
<br />and in such amounts and for such periods as Lende[ may require; provided,: that Lender shall not: require that the amount of
<br />such coverage exceed4har amount. of zoverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall. be 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 uodgr paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due; directly to the
<br />InSUfapeerearrjer.
<br />All insurance policies and renewalsthereaf shall be in form acceptable to Lender. and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender, Lender. shalt have the right to hold the policies and renewals.thereof,
<br />wtd Borrowershallprompdy furnish to Lender all renewal notices and aII receipts of paid premiums. In_tha even[ of lass,"
<br />Borrower shall give prompt aolice to the insurance carrier and Lender: Lender may make proof of loss if notmade promptly
<br />by Borrower.
<br />Unless Lender andBorrowcr otherwise agree m writing, insurance proceeds shallbe applied. to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically-'feasibletand the security of this Mortgage. ~.
<br />trot thtreby impaired. db such restoration or repair is not economically feasible or if'the security of this' Mortgage. would
<br />be impaired, the insurance proceeds shall bcapplied toahe sums':secured'by this MOrtgage,:with the excess, if any;'paid
<br />to Borrower. If the Property is abandoned-by Borrower,. ar if Borrower fails:: to respond. to Lender within30 days from the
<br />date notice is mailed by Lender to Aorrower steer the insurance carrier offers o settle s claim for insurance benefits,,Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option:: either to restoration%or repair of the Property
<br />or to the stems secured by this Mortgage.
<br />Utiltas Lender and Borrower-otherwise agree in writing, any such application of proceeds to principal shall not extend.
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 :hereof or change the amount aE
<br />such Installments. If ender paragraph L8 hereof the Property is,acquired'byLender, allright;ai[le andnterest of Borrower
<br />m and to any insurance policies and m and to the proceeds thereof resulting front damage to the Praperty: prior to the. sale
<br />or acquisition sbaB pass to Lender t6 the extent of the sums secured by this Mortgage immediately prior to such. sale or
<br />acquisition.
<br />6. Presernuea and Maiatenaoce of [roperty; Leaseiwlds; Corulomiaiums; Planned Unit Ikvelopmeets. Borrower
<br />shall 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 wy'lease tf this Mortgage is on a leasehold:-df this Mortgage is on a.unit in a
<br />condominium or a planned unit development,: Borrower shall-perform all of Borrowei sobligations under the: declaration
<br />ar covenants creating qr. goverrting the condominium or planned. unit development,'the by-laws and reglalations of the
<br />condomitium or planned unit developmen4 and constituent documents. If a condominium or'planned unit development
<br />rider is executed by BOrtowu and recorded 'together with this Mortgage, the covenants and agreementsrof such rider
<br />shall be incorporated into and shag amend and supplement the covenams and agreements of this Mortgage as !f .the rider
<br />wire a pari hereof..
<br />7. PrdecNoa of Letaier'a 9eetuify. If Borrower fails to perform the covenanu and agreements contained in this
<br />- Mortgage, or if any action ur ptaceeding is commented which matetiaily .affects Lender's inrterest in the Property,
<br />includin;, but ^ot limited to, cmitxnt domain, insolvency, code enforcement: orarranpements br proceedings involving a
<br />bank_n:p! or decedent, then Lender at Lender's option; :upon noticeta Borrower may make. suchappearaaces, disburse such
<br />stluu and takcutch action as is neccssaryco protect:Lendeis rnterest:"including, but notlimitedto, disbursement of
<br />reasonable auamty's fees and entry upon ttx Property to make repairs. If Lender required mortgage insurance as a
<br />cat[dition of rnakipg the- lose secured by this Mortgage, Barrower shall pay .the premiums required to maintain such
<br />insurance in effect untilsuch time as the requirement.far sorb insurance -terminates in .accordance with: Hatrower's xnd
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