|
~~- U(1~003
<br />Urrrroaar COVENANT'S. Borrower and Lender covenant and agree a5 follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />ind¢btedneas evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />a:a any Future Advances secured by this Mortgage.
<br />Z. Fels for Tales a~ lasuraace. Subject to applicable law or to a written waiver by Leader, Borrower shalt pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Nate is paid in full,
<br />a stem (herein "Fonda") equal to one-twelfth of the yearly taxes and assessments which msy 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 installments for mortgage insurance, if any, alt as reasonably estimated initially and from
<br />Ume to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />Ths Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />stet. agency (including Lender if Lender is such an institution). Lender shall apply the Funds io 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 />or 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 interest on the Funds shall be paid to Borrower, and unless- such agreement is made or applicable law
<br />regttirex such interest to be paid, Lender shall not be required to pay Harrower any interest or earnings an 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. The Funds are pledged as additional security for the sums secured
<br />by Utis 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 ar 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 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 />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />-''°a$ ayyly, ,N °,z m-..edtatety p :vr iv tF,e Sate Gf the Pra~.rty a at^yuiaitia n lfy Leader, a.^.y FL'."'t..° lt°~Id by
<br />Lender at the time of application as a credit against the sums secured by this'Mortgage.
<br />3. dpplication of Payments. Unleu 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 on any Future Advances.
<br />4. Chstgest; IJeo3. Borrower shall pay alt tales, assessments and other charges, fines and impositions attributable to
<br />the Property which tray attain a priority over this Mortgage, and leasehold paymenu or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, diretUy to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shalt make payment directly, Borrower shall promptly furnish to Ixnder receipts evidencing such payments.
<br />Borrower shall promptly discharge 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 shalt 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 ia,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hanrd Iaatuaate. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agai>ffit loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and is ouch amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />Retch coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />11ts iostirance carrxz providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shag not Ne unreasanabfy withheld. All premiums on insurance policies shall be paid in the manner
<br />provided tinder paragraph 2 hereof ot, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />AB insuranx policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />tlarrse in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />sad Bo;ravxr shalt promptly furnish to Le>rder all renewal notices and alt receipts of paid premiums. In the event of lass,
<br />Boratswer shall give prompt notice m the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by $ottowes.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ar 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 />ba impausd, the insurance proceeds shaft 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 to Lender within 30 days from the
<br />Bats notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is author'ved to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or m the slims secured by this Mortgage.
<br />U~iess Lender attd 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 I 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 iostrrance parities and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the suns secured by this Mortgage immediately prior to such sale or
<br />scguisiti~.
<br />~. Ptvaervatias aed Maiateaaece of Property; Leaseholds; Coodominiutns; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shag not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if ibis Mortgage is on a leasehold. !f [his Mortgage is on a unit in a
<br />caadwninium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declazation
<br />or cavsaanta creating or goys.-Wing t!~ condominium or planned unit development, the by-laws and regulations of the
<br />i~dominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />ride[ is ezexuted by Borrower and retarded together with this Mortgage, the covenants and agreements of such rider
<br />abaB 6e ituarpatated lino a~ shall amend and supplement the covenants sad agreements of this Mortgage as if the rider
<br />were a girt hereof.
<br />7c PsoteeNer eit 11:eadeRs Security. If Borrower fails to pcrform the covenants and agreements contained in this
<br />Mesrtgase, or it anp atxion or practxdiag is commenced which materially affects Ixnder's interest in the Property,
<br />Licltrdittg, but not Iimite~ to, tnnrttent domain, insolvency, code enforeetnent, or arrangements or proceedings involving a
<br />bantcntpt eir dtxxebnt, then Lender at Lender's oQtiatt, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take atich aetitm as is y io protect Lender's interest, including, but not limited to, disbursement of
<br />re~wttabie attottcey'a flea and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />coridifion of makirt$ the ban secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />imatraace m elect until attclt rims as [he regrrire~nt for such insurance terminates in accordance with Borrowers and
<br />
|