|
<br />'~-~ ~U3'7~9
<br />LINIPOttM CoveHertrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Priadpal and Lrterest. Borrower shall promptly pay when due the principal of and interest on [he
<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. Fonds for Ts:ea aad Iosmance. 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 [he 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 tnstallmen*.s for hazard insurance,
<br />plus one-:wclfth of }`early premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estitrates ihe:eof.
<br />T'he Funds shall be bold in an institution the deposits or accounts of which are insured or guaranteed by a Federal ar
<br />state agency (indnding 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 Leader to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that ioteres[ on the Funds shall be paid to Borower, and unless such agreement is made or applicable law
<br />requites such interest to be paid, Lender shall 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 Foods 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 taxes,
<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 fall due,
<br />Borrower shall pay [o Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />U~rt payment in full of all sums secured 6y this Mortgage, Lender shall promptly refund to Borrower an}' Funds
<br />held by lender. If under paragraph 13 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 Mongage.
<br />3. Appl'uafioa of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and pazagraphs I and 2 hereof shall be applied by Lender fits[ in payment of amounts payable [o Lender by Borrower
<br />tinder paragraph 2 hereof, [hen to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Furure Advances.
<br />A, Charges; Bens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Aortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if no[ paid in sash manner, by Borrower making payment, when due, directly to tbe
<br />payee thermf. Borrower shall promptly' furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments.
<br />Borrower shalt promptly dixharge any lien which has priority over this Mortgage; provided, that Borrower sha0 not be
<br />requited to dischazge 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 rte lien or forfeiture of the Properly or any' pan thercoE.
<br />S. Hanrd hssarance. Borrower shall keep the improvements now existing or hereafter erected on the Properly insured
<br />against loss by fire, hazards included within the term "extended coverage', and such other hazards as Lender may regmre
<br />and in such amoun's and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exteed that amount of coverage required m pay the sums secured by this Mortgage.
<br />The insurance cattier 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 itndei paragraph 2 hereof or, if not paid in such manner, 6y Borrower making payment, when due, directly to the
<br />rOStrranCe Carnal.
<br />AQ instirsnce pa4cies aced renewals thereof shall 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 />Botmwu shall give prompt notice to the insurance carrier and Lender. Lender may make proof of {oss 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 damaged, provided such restoration or repair is economicall}' feasible and the security of this Mongage is
<br />not thereby impaired. If such restoration or repair is not ccorzomically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mongage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned b}' Borrower, er if Borrower fails ro respond to 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, Ixnder
<br />is atrthorittd to collect arzd apply the insurance proceeds at Lender s optian ei4Ser to restoration or repair of the Property
<br />or io the sums secured by this Mortgage.
<br />Unless Leader and Borrower otherwise agree m 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 13 hereof the Property is acquired by Leader, a{I right, title and interest of Borrower
<br />en-and to aav insurance policies aced ir. and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or ecgttisition shall pass to Linder to the c:tent of the sw ~ s;,c.z«c.`t-tie' [hi< Mart?nee immediately pror to such sale or
<br />acgitmtroa.
<br />ti. Ptreaerva!Son and Ma®tensnce of Properly; Leaseholds, Coadomiaiams; 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 tthall comply with the provisions of any !case if this Mortgage is on a leasehold. !f this Mortgage is on a unit in a
<br />condpmir[ium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or wvenants creating or governing the condominium or planned unit development, the 6y-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenanu and agreements of such rider
<br />shall be incotporaied into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Proteclbn of Ixeder+s SeeorNy. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but not 1'rmited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or deceda[4 then Lendu ai Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take atich action u is trec.sary to protect Lender's interest, including. but not limited to, disbursement of
<br />-• ~ ~-- - . ~-. ~~~~>±. ?i+~rn~ A _fxs_and, entry_upon_ the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this 'ST~ongagd;" rii...'.i:;c: z`-°t! -; ^^_;' tFe premiums required to maintain such
<br />insura~e in effect until such tune as the requirement for such insurance terminates in accordance with Borrower's and
<br />
|