|
V_J?vta=ottx~t CovaNaxrs. Borrawer and bender covenant and agree as follows:
<br />1. Payment off Principal and Interest. Borrower shall promptly pay when due the principal of and [merest 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. Funds for Tales and Insurance. Subject to applicable law or to a written waiver by Lender, $oaower shall pay
<br />to Lt;nder 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 installments for mortgage insurance, if soy, all as reasonably estimated initially and from
<br />~ time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />r. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agen,y {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 charge for so holding and applying the Ftands, 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. Borroter and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shat! be paid to Borrower, and unless such agreement is made or applicable law
<br />requires 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 accountin6 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 se;:urity for the sums xcured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior do
<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 Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower an monthly installments of Funds. If the amounE of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as the} fall due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days Pram the date notice is rnailed
<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 />hold by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, ne later than immediately prior to the sale of [he 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. Appiicatioo of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Nate and paragraphs 1 ;nd 2 hereaf~hall be af,plizd by Lender iuai in payment of amounts payable [o Lender by Borrower
<br />under paragraph 2 hereof, then is interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />d. Chargts; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain x priority over this Mortgage, and leasehold payments ar ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borro•.ver making payment, when due, directly to the
<br />payce thereof. Borrawer shalt promptly furnish to Lender all notices of amounts due under this paragraph, and io the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Sarrower shall prompdy discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required [o discharge any such lien so long as Borrower shall agree ir, writing to the payment of the abGgatum secured 6y
<br />such lien iu a manner acceptable to Lander, or shalt in goad faith contest such lien by, or defend enforcement of such lien in,
<br />legal prxeedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. Ilarard Itffintanre, Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hasards as Lender may require
<br />and in such amounts and fur such periods as !.ender may require; provided, that !.ender shall not require that the amount of
<br />such coverage exceed that ama!mt of saueraoe required to gay the sums secured try this Martga~.
<br />The insurance carrier providing the insurance shall he chosen b}° Borrawer subject to approval by LFtitder. provided,
<br />that suds apprava[ shall not be unreasonably withheld. All premiums an insurance policies shaft be paid in [he manner
<br />provided un~r paragraph 2 hereof or, if not paid in such mamser, by Bareawer making payment, when due, directly m the
<br />•~~ All iesurance palici~ a..il retsewals thereof shat( 6c in form acceptable to t.endcr and shall inctude a standard mortgage
<br />tlau~ irx favor of end in fa,^n ;=,:septable to land:;. Linder shall have €lie right so hold the prriicies and rrneuais thereof,
<br />and >I!+rr.,,ver <hall pram; tIy furnish io Lzndrr all rerawal no€ic,<s and ail receipts of p„id prent'ttnns, In €tx (:eat of Imo,
<br />BOfrOwer shall glVe pi'Ompt nOtlce t0 the iRSUPanI'e CarrlCr and LEltder. Lender ma} rtt~~e prL-xf (){ Ia5S jf tty_r /tladr promptly.'
<br />by Barrow.. .
<br />'i.€nltss Lender and Borrower otherwise agree in writing, insurance prexcttt shall he appiitd to rtstoration or repair iif
<br />the Property damaged, provided such restoration ar repair is economically feasible and the snootily of this Afartgagr is
<br />not thereby impaired. if such resrorauon or repair is not rconamically Erosible ar if the security of this Mortgage woald
<br />be impaired, the insurance proceeds shall be applied to the stuns secured by this Mortgagr, with the excess, iC any, paid
<br />to Barrawrr. if the Property is abandoned by Borrower, or if Borrower fails to respond to l ender within. 3'J days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to seine a claim for msurance hrnrfits, Lender
<br />is authorized to collect and apply the insurance procee~ts a! Lender's a,^sia;: eithtr t., r ~toratian or re~o-ir of else Properly
<br />or to the sums scoured by this Ivlarrgage.
<br />Unless Lerd.r and Borrower otherwise agree m writing, any suefi application of prc+:etds to pncscipel ,hull not extend
<br />ar posiprne the due date of the monthly installments referred to in paragraphs I xnd 2 hereof or change the amount of
<br />such installments. if under paragraph IS hereof the Property rs acyuued by Lender, all nght, trek and interest ,~t Borrower
<br />in and to arty insurance golicics and in and to the orocreds thsreaf resulung front damage ±o the property pri..r to the salt
<br />or acquisition shall pass to Linder to the extent of the sums securer[ hy. !hit: ~iorr;sge .nt^x,#iattly prior t, such sale ar
<br />acquisition. '
<br />6. Preservation and hitriatettaoce of Propert}; Le~trholds; Coneiwuiaiunes; P4tnaed Uait ptvelogtAeah. Borrawer
<br />shall keep the Property in goad repair and shall not commit waste or permit impairment or de[erioratian of the Property
<br />and gna€i rnrrtnly with ehw prn..~__. z _f = „ !~~ .: u~s3 ,+Lr€~a°gz ~ - ,: i~aaciF..i~. !f €hiS iC3rt~agc is On a iinlt in 9
<br />condamtnrunt o ptn~ ~ t .r.,..., i~,,,.,,,E.... t~^rrv~~r °`s': ~~rfc=rt ~ 3'
<br />~•~•_•. 3••3= r, al, 4tf Barn=w-tr's obitgauans under else ci~:iardtinn
<br />ur cavt;uants creating or governing the condominium or planned unit development, the by-laws and refttilatians of the
<br />condominium or planned unit develapmtnt, and constituent documents. It' a condominium or planned unit development
<br />rider is executed by Borrower and recorded tagetber wr[h this Mortgage, the covenants and agretmenta of surM rider
<br />shall he incorporated into and shall amend and supplement the covenants and agreements of this Mortgage ns Ff the rider
<br />were a part hereof.
<br />7. Profectioa of Leer's Scearity. if Borrower tails to perform the covenants and agreements contained rn this
<br />Mortgage, ar if 2.y aciian ar praccedsng as co-tttenced which materially affects Lender's interest in the Property,
<br />iucluding, but nai limited ta, eminent [;amain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />'bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburu such
<br />sums and take sash action as is necessary to protect Lender's interest, including. but trot limited to, disbursement of
<br />reasonaLle aUOmey's fees and entry upon the Property to make repairs. If Ixnder required mortgage insurance as a
<br />condition of making the loan secured by this Mortgagr, Borrawer shall pay the premiums required to maintain such
<br />insurance in effect unfit such time as the requirement far such insurance terminates in accordance with Horrasw°er's and
<br />
|