|
<br />79- ~;~1;~6,L'U
<br />Uxtroaat CovExnx7s. Borrower and Lender covenant and agree as follows:
<br />2. Paymeut of Principal 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 secured by this Mortgage.
<br />2, firnds for Ta=es and Insurance. Subject [o applicable law or [o a written waiver by Lender, Borrower shall pay
<br />to Ixnder on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds") 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 hazard insurance,
<br />plus one-twelfth of yearly premium ins[aBments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time Yo time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be Geld in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Linder is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may no[ 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 [he time of execution of this
<br />Mortgage that interest on ±he Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest [o be paid, Lender shall not be required M pay Borrower any interest or earnings on the Funds. L.cnder
<br />shag 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 momhly 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 taxes,
<br />assessments, insurance premiums az+d ground rents as they fall due, such excess shall 6e, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Berrower on monthly installments of Funds. If [he amount of the Funds
<br />held 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 lull of all sums secured by this Mottgage, Lender shall promptly refund to Berrower any Funds
<br />held oy i,ender. if under paragraph i8 hereof the Properly 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 at 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 [he
<br />Note and pazagtaphs I 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 :dote, then to the principal of the Note, and then to interest and
<br />principal oa any Futtue Advances.
<br />4. Charges; L3eas. Borrower shall pay art 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 tinder 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 furnish to Lender alt notices of amaunis due under this paragraph, and in the event
<br />Borrower shall make payment directly, Porrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not 6e
<br />required [o discharge any such lien sa long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such ben 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 prevem the enforcement of the lien or forfeiture of 'he Property or any part thereof.
<br />5. Harard Instrance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against lass by fire, 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 wverage exceed that amount of coverage required to pa}' the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Berrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasonably withheld. Atl premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, b}' Borrower making payment, when due, directly to the
<br />insuranre carrier.
<br />AB insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable [o Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender alt renewal notices and all receipts of paid premiums. In the event of loss.
<br />Borrower shall give prompt notice [o the 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 shat; be applied to restoration or repair of
<br />the Proptrt}' damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired 2f such rcstoratian or repair is not economically feasible or it the security' of this Mortgage would
<br />be impaired- the insurance proceeds shall be applied to the sums secured by [his Dlortgage, with the excess, if any, paid
<br />to Borrower. If the Proper}~ is abandoned by Borrower, or it Borrower fails to respond to Lender w[[hin 30 days from the
<br />dais aoriee is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance henefits, Lender
<br />is authorirtd to caltcct and apply the =.nsurance proceeds ai Lender's option either to restoration or repair of the Propetty
<br />or to the sums secured by this Mottgage.
<br />Unless i.ender and Borrower athe."vise agrce m writing, any such application of proceeds to principal shall oat extend
<br />or postpone the due date of she monthly installments referred to in paragraphs I and '_ hereof or change the amount of
<br />stxh itsstttBrtrcnts. If under pazagraptt ! 8 hereof the Propert} is acquired by Lender, all right, title and interest of Bozrower
<br />in and to any irsurance policies and in and to the proceeds thereof :esclting from damage to the Property prior to the sale
<br />or aCgniSi[!on shall pass to Lender to the extern of the sums secured b} this :1lottgage immediately prior to such sale or
<br />acquisition.
<br />6. Pmenatton and Mzlntenaace of Property; Leaseholds; Condominiums; Planrred Unit Developments. Berrower
<br />shall kip the Property in good repair amt shall not commit waste ar permit impairment or deterioration of the Property
<br />and shall mmgly with [he provisions of arty Rase it this Mortgage is on u leasehold. If [his Mortgage is on a unit in a
<br />condominitun or a planned twit development, Borroxcr shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing tta condominium or planned trait development, the by-laws and regulations of the
<br />condominium or piantted unit development, and constituent documents. If a condominium or planned unit development
<br />ridtr is executed by Borrower and recorded together with this Mortgage, the cevenan[s and agreements of such rider
<br />shag 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. Prn4atlon ~ Lender's Security. If Berrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is rntnmenced which materially affects Lender's interest in the Properly,
<br />inr]uding, but not limited to, emireenf domain, insolvent}•, code enforcement, or arrangements or proceedings involving a
<br />beakrupt or decadent, then Lender at Leml~r's option, upon notice ur Bo: rawer, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursemem of
<br />reasonabk attorney's fees acrd en%ry upon the Property to make repairs. If Lender reyuircd mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect anti! such time as the requirement for such insurance terminates in accordance with Borrower's and
<br />
|