|
7~._ ~; it +~ ~ ~ ~3
<br />UxrnYsoar~t Covttrt,trrrs. Borrower and Lender covenant and agce as follows:
<br />L Payareax of Frlnc~ai read Iateres4 Borrower shat! promptly pay when due the principal of and interest on the
<br />irxlebtedaeas evitieaced by the Nate, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Ftmds for Torras and I~mnace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly i~allmcnts of principal and interest aze payable under the Note, until the Note is paid in full,
<br />a aunt (herein "Femr~'~ equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazazd irtsuraruc,
<br />plus o~-twel#t1-i of yearly p; mit:m irstallments for mortgage insurance, if any, ail as masnnably estimated initially and from
<br />6me to time by Lender on die psis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accoants of which art insured or gttaranteed by a Federal or
<br />state agency (i~luding 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 />ar 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 Lander may agree in writing at the time of execution of this
<br />.'nort~w t~•t ~..._.w +!~ F+~ti±< <>`•n ~ ~:d rn Rnrrower, and unless such a2rcement is made or applicable law
<br />regtrires seuh interest to,be paid, Lender shall not be required to pay Borrower any interest or tar,:ings 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 Martgagt.
<br />If tht amount of the Funds held by Lender, t~:!~-r with the future monthly installments of Funds payable prior to
<br />the dare dates of taxes, assessments, insurance premiums and x..,.u~a Tenn, shall excced the amount required to pay said fazes,
<br />assetsments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly rePaM to Borrower or credited to Borrower on monthly installmenn of Funds. If the amount of the Femds
<br />held by Lender shall not be steffidsat to pay taxes, assessmenn, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay is Lender any amount necessary to make up the deficiency within 30 days from the daft notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payrtxnl in full of all earns secured by this Mortgage. Lender shal] promptly refund to Borrower any Funds
<br />held by Lender. If uat~: paragraph 18 hereof the Property is sold or the Property 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 />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Apps of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note garag:..pphs l and 3 hereof shall Ire applied by Linder first in.paymertt o€ amounts payable to Lender by Barrowrr
<br />under paragraph 2 hctiwf, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on coy Future Advances.
<br />1. Clurge~ iieng. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />flu Property which may attain a priority over this Mortgage, and leasehold payments or gtvund rents, if any, in the manor
<br />provided etreder 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 famish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish 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 8orrawer shall agree in writing to the payment of the obligation secured by
<br />stub lies is a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lisp in,
<br />Isgal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. Hazard Itssnraase. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and is such amounts and for such periods as Lender may require; provided, that fender shalt not require that the amount of
<br />stub coverage exceed that amount of coverage required eo pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lentler: provided,
<br />that such approval shall not be unroasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided trader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />ittsuraaa carries.
<br />All insurance pa6cies and rerxewals thereof shall be in form aceeptable to Lender and shall ineleede a standard mortgage
<br />cmteae is favor of and in form acceptable to Lender. Linder shall have the right to hold the policies and renewals thereof,
<br />cad Harrower shall grotaptly furnish fa Lender ail renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give grompi ao#iee to the irtsu:ante carrier and Lender. Linder may make proof a# lass if nai made promptly
<br />by Borrower.
<br />Unless ixnder and Borrower otherwise ogee 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 />cot thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurattcs 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 Leader within 30 days from the
<br />date notice is mailed by Leader to Borrower that the insurance carrier oHets to settle a claim for insurance benefits, Lender
<br />is atrthorized to wllect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or tar the stuns secured by this Mortgage.
<br />Unless Leader and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the dote date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If etndet paragraph 18 her~f the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any iustrratrce poliraes card in and to the proceeds thereof resulting from damage to the Property prior to the salt
<br />or acgerisiBan shall pass to Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Ptnprervatlan cad ?vfaietenaace of Property; Leatxholds; Condominiums; Ptimued Unit Developments. Borrower
<br />shall keep the Property in goad repair and shall cot commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the gmvisions of any lease if this Mortgage is on a leasehold. if this Mortgage is on a unit in a
<br />condominium or a platured unit developtneat, Borrower shall perform ail of Borrower's obligations under the declaration
<br />or covenants creating or govemiag the condominium or planned unit development, the by-laws and regulations of the
<br />coadorainitnn or plaa~d emit development, and consiitu_nt documents. If a condominitm or planned unit development
<br />rider is executed by Borrower and rernrded together with this Mortgage, the covenants and agreements of such rider
<br />ehali !te iQeorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />weft a part herd.
<br />7. YthlceHoa of I.eades's Seearlty. If Borrower fails to perform the wvenants and agreements contained in this
<br />,Mortgage, or if any acLioa or praccediag is commenced which materially affects Lender's interest in the Property,
<br />itrclndiag, but not limited to, emittutt domain, insolvency, ~ enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent man Lender at Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />sates and take seult action as is necessary to protect Lender's. interest, including, but not limited to, disbursement of
<br />rsasoaabls atteraey's feat cad entry upon the Property to oaks repairs. If Lander required mortgage insurance as a
<br />eoadttiort of making the loan settared by this Mortgage, Borrower shalt pay the premiums required to maintain such
<br />itenrraace is affect until such tirsu as the r..gtiireauat far such insurance terminates in accardanex with Bartxrwtr's and
<br />
|