|
Uxrnoant Covexnxrs. Borrower and Lender covenant and agree as follows:
<br />1, Payment of Prlnc.!pal and Inletest. 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 Ftrture Advances secured by this Mortgage.
<br />2. Fonds for Taxes 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, unlit 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[al!ments for mortgage insurance, if any, all as reasonably estimated initiatly and from
<br />lime to time 6y Lender on the basis of assessments and bills and reasonable estimates rhereoi.
<br />The 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 chargr 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 />C"~ Mortgage that interest on the Funds shall be paid tp Borrower, and unless such agreement is made or applicable law
<br />d requites such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />o 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 [o the Funds was made. the Funds are pledged as additional suuri[y 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 />l~ the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as the}' tall 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 shalt not be sufficient [o pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borsower 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, Lender shall promptly refund to Borrower any Funds
<br />herd by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediatey' prior to the sale of the Property or its acquisition by Lender, an}' Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application o[ Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by 1_ender fiat 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 o[ the Nete. and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens, Borrower shalt pay al! taxes. assessments and other charges, fines and imposuions attributable to
<br />the Property which may attair. a priority over this Mottgage, and leasehold payments of grouted rents, if any, in [he manner
<br />provided under paragraph 2 hereof or. if not paid in such manner. by Eorrower making payment. when due, directly to the
<br />payee thereof. Borrower shall promptly' furnish to Under all notices of amounts due under this paragraph, and in the event
<br />Borrower shalt make payment directh~, Borrower shall promptly fumtsh to Lender receipts evidencing such payments.
<br />Borr_wer shall promptl}' discharge ary• lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien w 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 fn good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
<br />S. Sward Iawtance. Borrower shall keep the imptovement_s now existing or hereafter erected on the Property insured
<br />against loss in• fire, hazards included within the term "eztended coverage". and such other hazards as Lender ma}' require
<br />and in wch amounts and for such periods as Lender may require; provided- [hat Lender shall not require that the amount of
<br />such coverage exceed [hat amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing [he insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />thaf such approval shalt not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provi~d under paragrph 2 hereof or, if not paid in such manner, by Burrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Linder and shall include a standard mortgage
<br />datue in favor of and ie form acceptable to Lander. under shall have the right to ho]d the policies and renewals therrnf,
<br />and Bot[ower shall promptly furnish m Lender all renew2i nonces and all receipts of paid premiums- In the event of loss,
<br />Borrower sY,all give prompt notice to the insurance carrtcr and Leader. 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 daaag~, provided such ratoraann or repatr is economically feasible and the security of this Mortgage is
<br />not thueby impaired. If such restoration of rcpatr is not economicall}• feasible or it the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the stuns secured by [his Mortgage. with the excess, if any, paid
<br />to Borrower. It the Propert} is ahandaned b} Borrower, or it 13orrawer faits to respond io Lender within 30 days from the
<br />date >mtiu is mailed by Lender to Borrower that the insurance career often to scale a claim for insurance benefits, Ixnder
<br />is authorized to coded and apple iIx insurance proceeds at Lenders option either to restoration or repair of the Propert}'
<br />or to tfx sums secured by thu htongage.
<br />Unless Lender and Borrower otherwise agree in writing, an} such application of proceeds to principal shall not extend
<br />or postpone fix dui date of the monthiv installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. if under paragraph I B hereof the Property is acquired b} Lender, all right, tide and interest of Borrower
<br />in and to any instuance policies and in and to the proceeds thereof resutnng from damage to the Property prior [p the sale
<br />or aegttisition shall pass to Lender to the extept of the sums secured by this bfortgage immediately prior to such sale or
<br />acquisition.
<br />6 Preaervatloe gall Ma®teaaoee of Property; Leaseholds; Ccrndnmiaiems; Planned Unit Developments. Borrower
<br />shat! keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mottgage is on a leasehold [f This Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shalt perform all of Borrower's obhga[ions under the declaration
<br />or covenants creating or governing the condominium or planned unit development. the by-laws and regulations of the
<br />condomitium or planned unit developmem, and constituent documents. If a condominium or planned unit 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 />7. Proleetloa of I,eeder's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mottgage, or if any action or proceeding is commenced which materially affects Lender-s interest in the Property.
<br />ircluding, but not limited to, eminent dotnain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lwder at Leader's option, upon notice to Borrower, may make such appearances, disbuae wch
<br />stuns and take such action az is necessary to protect Lenders interest, including, but not 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 malting elk loan secured by this fvfongage, butrui.cr sh.:ii pa} - :. pre^i..;rts r qt:i-ad ±n.maintain each
<br />irtituancc in effect until such tithe az the requvement for such inwrance terminates in accordance with Borrower's and
<br />
|