|
<br />UN[FCRM CovetvenTS. Borrower and Lender covenant and agree as follows:
<br />1. Paymeat of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />igdt:btedness evidenced by [he 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, Ftitnds for Taxes and Insurance. Subject to applicable law ar to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and imerest 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 any, 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 />The Funds shalt 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 irtsti[u[ion). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums sad 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 Lender 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 />requires :ach interest to be paid, Lender shall no[ 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 [he Funds and the
<br />` purpose for which each debit io 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 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 pretrduns a-d -ground teats ~.. they fall due, slick 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 shop net br sutHcient to pay taxes, assessments, insurance premiums and g;ouud rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary ;o make up the deficiency within 30 days from the date notice is mailed
<br />by Lrnder to Borrower requesting payment thereof.
<br />full ~•f Wit! s _ •nred f,v this Mortaaec. Lender shall tom tl refund to Borrower an Funds
<br />~P~" r~y~~e"t t - P P Y Y
<br />held by ]xnder. If under paragraph,l8 hereof the Property is sold or the Property is otherwise acymreo oy Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition b)' Lender, any Funds held by
<br />Lender at the time of app]ication as a credit against the sums secured by this Mortgage.
<br />3. Applicatiaut of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs t and 2 hereof shall be applied by [.ender first in payment of amounts payable to Lender 6y Borrower
<br />under paragraph 2 hereof, then [o interest payable on the Note, [hen to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. C'hatges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attrbutable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents. if any, in the manner
<br />prof^c!_d e;ndrr 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 all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment direcHy, Borrower shall promptly furnish to Leader receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Burrower shall not rte
<br />required to discharge 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 Lrnder, 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 the lien or forfeiture of the Property or any part thereof.
<br />S. Hazard Insurance. B^^n:vrr 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 hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lrnder shall not require that the amount of
<br />strCtt cm'rr'agr CRCrrn that amount of coverage ,eyui,cu [., P°~ t„c - ... raa b; 'h:_ M^r,oaor
<br />The insurance carrier providing the insurance shall be chosen~by Borrower subject [o approval by Lender. provided,
<br />that such approve) shall not be unreasonably withheld. All premiums un insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly co the
<br />i;i,arance -a;ricr.
<br />Ail insurance pohcres and renewals [hereof shall be in Yorm acceptable to Lender and shall inchrde a standard mortgage
<br />ciausc ir, favor of and to form acecptalxle to Lender. Lender shaii have the right to hold the policies and renewal, iher2of.
<br />sad l3orr=}sver she+: promptly furnish to Lender all ernrwa; notices and ail rz-xipts of paid premiums. fn the event of lass.
<br />Borrower shall give prompt notice to the insurance carrier and lender. Lrnder may make proof of loss if nut made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance pnxeeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration ur repair is economically feasible and the security of this Mortgage is
<br />nut thereby imparted. [t such restoration or repair is not economically feasible or if the security of thrs Mortgage would
<br />be itnpaircd, the insurance proceeds shall be applied to [he sums secured by this Mortgage, with the excess, if any, paid
<br />to $orrower. If the Property is abandoned by Borrower, or if Borrower Fails to respond to Lender w'uhin 3U days from the
<br />date notice is mailed by 1.endrr to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply [he insurance proceeds ut Lender's option either to resloratiun or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unitas Lender and Harrower otherwise agree in writing, any such application of proceeds to prncipal shall not extend
<br />or pustpnae the due date of the monthly installments referred to in paragraphs I :md 2 herein ar change the amount of
<br />such installments. h under paragraph I8 hereof the Property is acquired by Lender, all nghr, title and interest of Borrower
<br />in and to an}• insurance policies and in and to flee proceeds thereof resulting from damage to the Property prior to the sale
<br />nr acgtaisitiun shall pass to Lender to the extern of the sums secured by this Mortgage rmmediately prior to such sale or
<br />acquisition.
<br />6. Preaervat{pn and Ataintcnance of Property; I.ear~holds; (;ondontinlums; Planned Unit Uevelupments, Bormwcr
<br />shall keep the Property in goad repair and shall not commit waste or permu impairment or deteriarauun of the Property
<br />and shall comply with the provisions of any tease if thrs Mongagr is an a leasehold. I( this hkxtgage is on a unit in a
<br />condominium ur a planned unit dcvclapmrnt, Barrower shall perform all of Borrower's obligations under the declaratinrt
<br />or covenants creating or governing the condominium or planned amt development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent da:umems. {f a condominium or plattntd amt stevelapment
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such ririrr
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of thts Mortgage as if the rider
<br />were a part hereof.
<br />Z Pt»tecNon of Lender's Security. If Borcower faik to perform the covenams and agreements contained in this
<br />Mortgage, or if any action ur proceeding is commented which materially affects Lender's interest in the Property.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice u, Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's inures[, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make rrµairs, if Lrnder required 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 until such titre as the requirement for such insurance tennioates in accordance with Borrower's and
<br />
|