|
<br />'~'-m41~~~ ilk
<br />liNtPOftM Covax.srtis, Borrower and Lender envenom and agree as follows:
<br />I. Paymeai of Prlaclpa! attd Enterest, Borrower shat! promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and imerest
<br />on any Future Advances secured by this Mortgage.
<br />.~. Fonds for Tares a~ Insatwmce. Subject to aggfiicable law or to a written waiver by Lender, Borrower shall pay
<br />to *,.er,de°, on the day manehly installments of principal and intent a;e payable wader the Net:., anti! the Noe is paid in full,
<br />a sum (heroin "Funds"j equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Aforigage, and ground tens on the Property, if any, plus one-twelfh of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, al{ as reasonably estimated initially and from
<br />time fa lime by Lender an the basis of ass~ments and bills and reasonable estimates thereof.
<br />The Funds shat! be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency tine.finding Lender i€ Lender is such an institution}. Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge far so holding and applying the Funds, analyzing said account,
<br />or verifying and rnmpiling 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 cf execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made ur applicable law
<br />requites such interest to be paid, Lender shall not 6e required to pay Borrower any interest or earnings an the Funds. Lendrs
<br />shall give io 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 additions! 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 tens, she!! exceed the amount required to pay said razes,
<br />assessments, insurance premiums acrd ground rents as they fall due, such excess shat! be, at Borrowers option, either
<br />promptly repaid to Borrower ar credited da Borrower on monthly installments of Funds. If the amount of the Funds
<br />he}d 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 up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in tali of all sums secured by this Mortgage, lender she!! grompEly refund to Borrower any Funds
<br />held by Lender. If under paragraph I8 hereof the Property is sold ar the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property orsts acquisition by Lender, any Funds held by
<br />Leader at dre time of application as a credit against the sums secured by this Aortgage.
<br />3. Appficatioa of Payateats. Unless applicable taw provides otherwise, afii payments received by I-ender under the
<br />Note and paragraphs I and 2 hereof she!! be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hetxof, then to interest payable on the Note, then to the principal of the Tdote, and then to inieresL and
<br />principal on any Future Advances.
<br />4. Charges; Lierffi. Borrower shall pay all taxes, asessmens and other charges, fines asd impositions attributable to
<br />die Property which may attain a priority over this Mortgage, and leasehold payments or g;aund rents, if any, in the manner
<br />provided under paragraph 2 hereof ar, if not paid in such manner, by $ormwer ma!;ing payment, when due, directly 4o the
<br />payee thereof. Borrower shall promptly furnish to Leader all notices of amounts due under this paragraph, sad in the event
<br />Harrower shalt make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such paymenB.
<br />Borrower shaft promptly discharge any lien which has priority over *.his Mortgage; provided, that Borrower shalt not Iw
<br />required to discharge any such lien so long as Harrower shalt agree in writing io the payment of the ob[igatlan secu:~d try
<br />such lien is a manner acceptable to Lender, or shall in good faith contest stir h lien hy, or defend enforcement of such lien in,
<br />legal graceediags which operate to prevent the enforcement of rise lien or forfeiture of the Property or any part thereof.
<br />5. ;l€arard Eosttrance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against toss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for suds 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 r.arrier providing the insurance shall be chosen by Bor,awer subject to approval by Lender. provided,
<br />tlsat such approval shat! not be anreasonabfy withheld. All premiums an insurance policies shall t:e paid in [he manner
<br />provided wader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to ilte
<br />insurance carrier.
<br />All insurance policies and renewals thereof she!! be is form acceptable to Lender and shat! include a standard mortgage
<br />clause in favor of and in form acceptable to Lersder. Lender shalt have the right to hold the policies and renewals thereof,
<br />and Borrower she!! promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
<br />Harrower shall give prompt settee to the insurance ern=.er and i.ender. Lender may make proof of lass it not made promptly
<br />try Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt be applied to restoration or repair of
<br />the Property damaged, provided. such restoration ar repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If sorb restoraeion or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Harrower fails to respond to Lender within 30 days from the
<br />date notice is malted bq• Leader to Harrower that the insurance carrier offers to settle a claim for insurance benefits, lender
<br />is authorized to collect and appfiy the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or Yo the satins secured by this Mortgage.
<br />Unicss Lender and Borrowwer otherwise agree in writing, any such application of proceeds to pr,ncipaI shalt net extend
<br />er postpone the due date of the monthly installments referred to in paragraphs ]and 2 hereof ar change the amount of
<br />stub installments. If under paragraph i8 hereof the Property is acquired by Lender, all righE, tit{e and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof r•yulting from damage to the Property prior to the sale
<br />or acquisition steal! Bass to Lender to the extent of the sums secure:! 6y this Mortgage immediately prior to such sale or
<br />scgatisition.
<br />b. Presrrvat~ sad Malatenance of Prapettyt E,easehoids; Condamittiums; PEanned Utttit EDevelopmeats. Borrower
<br />shall keep the Froptrty in goad repair and shalt not commit wasu ar perntit impairment or deterioration of the Property
<br />-- shat! comply wetY: the p,vt~uiar,s of say lease if t,`s'ts Afartgage is an a leasehold. ,` this Mortgage U an a unit fir. a
<br />condominium or a planned trait development, Harrower shall perform all of Bormwer'saobligatioas under the declaration
<br />ar €ovenaats emoting or governing lire condominium or planned unit developrnent, the 6y-laws and regulations of the
<br />condominium or planned unit development, and constituem documents. If a condominium or planned unit development
<br />rider is executed by Btrrrowt:r and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shalt be iseorpa.•a1~ tote and shs~t amaad a.^.d supplement the rnvenarts sad agreements of this Mortgage as i€ the rider
<br />were a part hereof.
<br />9. Ptotact~a art Lea~t?s Seettrlty. If Botr~wer faits io perform the covenants and agreemens contained in this
<br />Mortgage, or if any action or proceeding is cammetxed which materially affects Lender's interest in the Property,
<br />ittcltu$irg, but-trot limited to, erainem domain, insolvency, code en€otcenaent, or arrangements ar proteedings involving a
<br />Bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />stems-and €a&e such action as is necessary to protect Lender's interest, inctttding, but not limited SO, disbursement of
<br />reasonable atwtttey's fees and entry upon the Property fo make repairs. If Lender required mortgage insurance as a
<br />condttian of making the Loan secured by this Mortgage, Barra;•2r shaII pay the premiums required to maintain such
<br />insurance in effect until such timer as the requirement for such insurance ternilnates in accordance with Borrower's and
<br />
|