|
<br />
<br />Uxrtaaasx Covarthrms. Borrower and Lcndeir a;crvenan¢ and agree as faNlows:
<br />I. Pa~resu+R of Ppd aaiel lmrtrmsf. Baxrower shall promptly pay *,vhan due the principal of and intrnest oo the
<br />indebtedltetE tYldtnCed bV the Note, prepayment sad late charges as provided in tx '+iote, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />Z. Faalt for Tara sad Insn:aere. Subject to applicable law or to a written waiver by Lender, Sorrower shall pay
<br />to Lender on the day monthly installments of principal and interest aze payable under t:.e Note, until the Note is paid in full,
<br />a sum (hereitr "Funds"} equal to one-twelfrh of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, pltts 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 Leader on the basis of assessments and bills and reasonable atimaia thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guarantced by a Federal or
<br />state agency (including Lender if Lender is such an institution;. Lettder shalt apply the Funds to pay said taxes, assesstrsertta,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analysing said ac:,a~ant,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrcwer interest on the Funds acrd applicable law
<br />r~,.__r.n;re ~.a.r r„ n,~trP s„ch ,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 su~u aa.,x,^t'nt ;s made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest ar earnings on the Funds. Lenaer
<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 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, shall exceed the amount required to pay said tars,
<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 amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fait due,
<br />Borrower shall pay to Lender any amcunt necessary to make up the deficiency within 30 days from the date notice is mailed
<br />b_y Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mottgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If antler pazagraph 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 />Lender ai the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. 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 Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and Then to interest and
<br />principal oo any Futttre Advances.
<br />4. Charges; Liens. Borrower shalt pay ail [axes, 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 manntr
<br />provided under paragaaph 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 alt notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, $orrower shall promptly furnish fo Lender receipts evidencing such payments.
<br />Borrower shall promptly dischazge 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. Hazard Iffiorance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazazds 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 }sty the sums secured by this Mortgage.
<br />The insurance cazrier 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 tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />A!! insurance policies and renewals thereof shat! be in form acceptable to Lender and shall 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 Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompT notice to the insurance carrier and Lender. Lender may make proof of loss if net 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 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 Borrower fails to respond [o 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 cc!lect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the surtts 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 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 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 sale
<br />or acgtisition shalt pass to Lender to the extent of the sums secured by ehis Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condoroiniuros; Planned Unit Developments. 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 rnmply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condomiuium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, ttw_ by-laws and regulations of the
<br />condominitun or planned unit development, and constituent documents. If a condominium nr planned uniC development
<br />rider is executed by Borrower and- recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall 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 />?, Pretaetion of ]Lender's Sttenrity. If Borrower fails to perform the covenants and agreements contained in this
<br />Motigagt, or if any action or proceeding is commenced which materially affects Lender's interest is the Property,
<br />iaritrding, but not Gentled to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />btpt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />loans and take tceh action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />r+~ attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />:__rs~oe in effect lentil such time as the requvetnent for such insurance terminates in accordance with Borrowers and
<br />
|