|
Uxrnotut CovEtvarirs. Borrower and Lender covenant and agrze as follows:
<br />1. Payment o[ Ptlrtdpai and Interest. Borrower shall 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 interest
<br />on any Future Advances sectued by this Mortgage.
<br />2. Fonds for Taacs and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a stun (herein "Funds") equal to onedwetfrh of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfrh of yearly premium installments for hazard insurance,
<br />ptus one-twelfth of yearly prerniiun installments for mortgage insurance, if any, atl as reasonably estimated initially and from
<br />time to time b}• Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds sha':1 trt held in an institution the deposits or accounts of which are insured ar guaranteed by a Federl or
<br />state agency finduding 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 nai 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 Linder to make such a charge. Borzower and Lendtr may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall bt paid to Berzewer. and unless such agreetment is made er applicable law
<br />roquires such interest to be paid, Lendtr shalF not be required to pay Borrower any interest or earnings 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. 2be Funds are pledged as additional security far the sums secured
<br />by this Mortgage.
<br />~ If the amount of the Funds held 6y 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 [he amount required to pay said taxes,
<br />assesments, iasuraoce premiums snd ground tints as thry fall doe, such excess shalt be, at Borzowtr's option, zither
<br />'~ promptly repaid to Borrower or creditM to Barrawer on monthly mstallmenxs of Funds. If the amount of the Funds
<br />C w' heM by Leader shall ~[ be sttfftcient [o pay taxes, asxsamtnts, insurance premiums and ground rents as they fall dui,
<br />Bormwer shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />~ by Lendtr w Borrower requesting payment thereof.
<br />Upon paystent in full of ail sums secured by this Mortgage, Lender shall promptly refund to Borrowrr any Funds
<br />T 6,~,Jd t.y I~ndsr rf v~ rµ~oY t.~. t,.rvreeF t~ A: ~.,:'.:d i. tt:t P _ ..~ - ,.~ w~. L°ndt° lr^.•ut"
<br />.:ri^ roY., cqt.
<br />t71 shall apply, no later than immediately prior to the sale of the Propen}• or its acquisitron^b} Lender, any Funds held by
<br />~ Linder at the time of application as a credit against the sums secured by.thss Mortgage.
<br />~. Application a~f Payments. Unless applicabk law provides otherwise, all paymrnts rtrrivrd by Lender under the
<br />Nore aad paragraphs I and 2 hereof shall rte applied by Lender first in payment of amounts payable to i.ender by Borrower
<br />r~r paragrahh 2 hextof, then m inicrat payable on the Note, then to the principal of the Nott, and then to interes; and
<br />prirtcigal on say Future Advances.
<br />4. ~ Liras. Borrower shalt pa}' all taxes. asstssmenu and other charges, fines and impositions attributahie to
<br />tbt Pmpa*v which tnay attain a priority Deer xhis ilforigagt. and leasehold paymrnts or gmund rents, if any, in the mancer
<br />provided tmdtr paragtagh 2 hereof ar, if not paid in such manner, by Borrower making pa}•taent, when dice, dirudy to the
<br />payee theraaf. Borrower shall promptly furnish to Lender all notices of arnaunts dix under this paragrapR, sad is the event
<br />Borrowrr shall make payment dirauy, Harrower shall promptly famish to Lender receipts ea'idencing such paymrnts.
<br />Borrower shall promptly discharge any lien which has priority ovtr this Mongage; provsdrd, that Battowtr shall not be
<br />tequitx>d to discharge any such lim so long as 8arrow•er shag agree in writing to the paytneni ot` the obligation secured b}'
<br />such ties in a moaner ttereptable to Leader, or shall in goad faith contest such Tien hy, or dcftnd enforcement of such lien io,
<br />gat proceedings which operate to grcvent the enforcement of the bin ar forfaturt of the Property' or any part thereof.
<br />3. Haord /asuaee. Borrowrr shall keep the tmpmvenxms now existing ar hereafter erected on thr Property insured
<br />against lass by fire, bawds inrlitded within the arm "extended rnverage", and stub other hazards as Linder mac require
<br />and is sut~ amounts and for such periods as Lender ntay require; ptvvided, that Linde; shall nor requirt that the a.souni of
<br />st~rh coverage exceed that amount of coatragr rtquirtd to pay tht sums secured by this Atortgagt.
<br />The insurance carrirr providing the insutatas shall be chosen b}' t3arrawer subject to anpsoval by Lender: pm.°idtd,
<br />ittat such approval shall not be unreasorrabh withheld. All premituns on insurance poiicits shall t+t paid in the rnsntter
<br />psovided tinder paragraph 2 bertof or, tf not paid a such rrranner, be Barzawu making paynttnt, when due, dim-tly to the
<br />insurance carrier.
<br />AB iascrtanct policies and tasew'ak itttra.f shalt be ir. form axtptaMc to Lender and shall include a standard atongagt
<br />clausC in favor of and in form atceptatrlt to leader. Lendtr shall have the right k' hold stir potirits and renewals thereof.
<br />and torrower shall promptly furtsssfi to Linder alt renrwal tx tires and ail receipts of paid premiums. In ahc event of loss.
<br />Borr'oaror shall give prompt natix to the tnsuranct comer and Lender- Lender ma} make pr iof of {Des if oat madr prv~tr+ptty
<br />by ».
<br />Uakas Larder and $orzo+r.•et athttwisr agree to wnnng, insurance procn'ds shall be apptitd to rrstota[ion or repair of
<br />the Propem' damaged, pmaidtd tuck rcstorar~on o; repair a cror><~micalt}~ feasible and the security of this Mortgage :z
<br />ttt.t ihaeb}' rmpaitt~.. 1# such restMauon ar repair a mu rconomicalh• ttasihlr of if thr security of this 4ortgage would
<br />fie imtpaired, the inatrraax proceeds shall Dr applied to tier stuns secured b} this Morigagr, with the txcrss. if any, paid
<br />ua Hcurawu- if the Pnperti u attandarted b~ Borzew°tt. ~=.r st B~tirnvw-er faits to rrspond to Linder within 30 daas Isom tht
<br />dart n:Ttix is mailed lsy Lester to Borrowrr iltaa the insurance earner offers to ~nle a dain+ for .nsura.tue bertefts, Ltr:dr;
<br />n a[Bhotvtd io collet atad apola' the itasttranct• proceeds at Lender's option other to restoration ar repair at the Proptrt}
<br />or ip the sums secured t:y this Rf _ rtgagt.
<br />U~ Lendtr and Bnrraw;r* atherwist ag,*~ in writing. =ny su.h appli.ati, r: of prac~ds !o pr::tc:pat shall nc+a tattsid
<br />or postpsxte the dice daft of the monthly utstalimtnu referred to in paragraphs i and 'hereof or change the amount ~t
<br />s~K:6 iastaBmeatt. It itits~ prtitagraph lg htrtof the PropeaYx is acyuiral b} Lendtr, all right, title and :merest of Borrowrr
<br />is sad to any insurance politdes and in atxd io the pra„^ttds thrrmf resulting from damage to the Property prior to the sate
<br />ixr acquisition shad pass !a Lender to the tsitni of the sutas secured by this Rlerigagt immcdiatele' peer to sorb sale er
<br />~-
<br />ti, PreservNiaa asd .'-ri~atesaect of f'rnprrtv: Leasrtaoid~ Condcemisiams: Pisooed L'ait Dea-tbpmeats. Borrowrr
<br />shall peep the Property is good repair sad shall not commit waste or pt:-mit ampairtnenc ar deterioration of the Property
<br />atod fitatt comply with the provisions of any lease if ibis Mortgage a on a teasthold. if this 4fortgagt is an a unit in a
<br />condominium or a pLarsd unit dtvtlapmrnt, Harrower shall perform ati of Borrower's abbgations under the dtrlararion
<br />~ covtnaatt crratirtg a govaxting the condamrnium or planned unit development, the by-taws and regulations of the
<br />condoatiait® or plaeaed trait dtvetapment, and constituent documtnis. tf a condominium or planned unst development
<br />rider is trtaetttcd by Borrowrr trod ntcurdal tagettter with this Mongage, the covenants and agreements of such rider
<br />sh#il bt ineotparrated into sad shall amend and supplement the covenanu and agreements of this Mortgage as it the rider
<br />aarp>G a part Itss~l'.
<br />3. Psafiselissr al I.asritr'a 3. if $orrowtr faits ra perform the covenants and agrxmttrts contained in chit
<br />ffiactga~e, ~ i# any action art proceet~rra a commenced which materially affects Lender's interest ie: the Property.
<br />inelsstlietg, but sot limited ta, eminent domain, irtsolvertcy, code enforcement, or artangettxnts or proceedings involving a
<br />bankrupt ar dtadmt, that Lender a Lender's onion, upon rxitice to Borrower, may make such appearances, disburse such
<br />sums and takt rush actioe as is rteressary to pmtcrt Lender's interest, including, but not limited m. disbursement of
<br />tasonable attomty'a fxr and cartes upon ilpt Property to make repair,. If Lender required mortgage insurance as a
<br />ipnditiw.r of making she loan scctard by this Mongage. Borrower thali pay the premiums required to maintain such
<br />instrtance itt effect until such Mime as the requirartent for such insurance terminates in accordance with Borrower's and
<br />
|