|
79--, i.~~;a;~~~i
<br />Uxrr~oitnr t.:.avexnwrs. Borrower and Lender covenant and agree as follows:
<br />I. ]Payme;za of PdnciPat and I~trYSt. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedriess evidenced by the Note, prepayment avid late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Martgagt.
<br />2. Funds for Tartee arM Irisffisace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monihfy installments of principal and interest are payable under the Nott, until the Note is paid in full,
<br />a slim {herein "Funds' equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgagt, and ground rents 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, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />77ie Funds 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 pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so 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 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 Pamings on the Funds. Lender
<br />shalt give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which tech debit to the Funds was made. Ttte 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, c:. all exceed the amoum 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 amoune of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fail 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 full of all sums secured by this Mortgage, L,endtr shall promptly refund to Borrower arty Funds
<br />held by Lender. If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later !hen immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
<br />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Paymeoffi. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs f and 2 hereof shall be applied by Lender first ir. paymem of art[ourts payable to Ltndar by Borrower
<br />under paragraph 2 hereof, tben [o interest payable on the Note, thtrt to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. C6srges; Lkas. 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 />payce 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 fumish to Lender receipts evidencing such payments.
<br />Borrower 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 agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of 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 />5. Haaard losaraace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by firs, 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 />lire insurance carver providing the insurance shall be chosen 6y 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 xo the
<br />insurance carrier.
<br />All insurance oo(icies and reotwals thereof shall ere in form acceptable to Lender and shalt include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Botrowtr shall promptly furnish to Lender sit renewal notices and a!I receipts of paid ~ rtmiums. In tbe tutor of loss,
<br />Borrower shall give prompt notice to [he 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 />be impaired, the insurtmce 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 Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collet! and apply the insurance proceeds at Lender'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 />or postpone the due date of the monthly installments referred to in paragraphs t and 2 hereof or change the amount of
<br />such installments. If under paragraph l8 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 the proceeds thereof resulting from damage to the Property prior to the salt
<br />or aequisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such salt or
<br />acquisition.
<br />6. Preservalioa and Maintenantt of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shalt kcep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shah comply with [hc provisions of any least if this Mortgage is on a leasehold, if this Mortgage is on a unit it[ a
<br />condominium or a planned unit devtlegrttent, Borrower shall perform ail of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed bl' Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />aliall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. 1°rotectian of feeder's Secarlty. If Forrower fails to perform the covenants and agreements contained in this
<br />lstortgage, or if any action or pra:eeding is commenced which materially a[Iects Lender's interest in the Property,
<br />including, but net Bmittd to, eminent domain, insolvency, code enforcement, or arrangements or pro<:eedings involving a
<br />bankrupt o: decedent, then Lender at Lcttder's option, upon notice to Borrower, may' make such appearances, disburse such
<br />stuns and take such action as is necessary to protect Lenders interest, including, but oat limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the 9remiams required to maintain such
<br />imttraticc in effect until such time as the requitement for such insurance terminates in accordance with $orrrswer's and
<br />
|