|
<br />Uxtapatat Cov9ixnxrs. Borrower and Lender covenant and agre¢ as follows:
<br />I. Payment mf Prlrtc3pal wad Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indelated,tess evid¢nced 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 ivlortgage.
<br />2. Fnttds for 'razes ate Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />4o Lender on the day monthly installments of principal and interest aze payable under the Note, until the Note is paid in full,
<br />a stun {herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />i><forigage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insuranc¢,
<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 />Ths Funds shall be held in an institution the deposits or accounts of which are insured or guarant¢ed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender ;hall apply the Funds eo 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 Harrower 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 />R3otKgage that interest on the Funds shall be paid to Borrower, and unless such agreemer_t is made or applicable law
<br />t-¢quir-cs such interest to be paid, Lender shall not he required to pay Borrower any interest or earnings on the Funds. Lender
<br />shalt give in Borrower, without charge, an annual aceounting of the Funds showing credits and debits to the Funds and the
<br />E purpose for which each debit to 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 l.endcr, 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 slid tales,
<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 tF,e Fund<
<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 amotmt necessar}• 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 al! sums secured by this Mortgage. Lender shall promptly refund to Borrower arty Funds
<br />held by Lender. if ,;odor paragraph 18 hereof the Property is wld or the Property is otherwise acgwrcd by Lender, Lender
<br />shall apply, no lots: than immediately prior to the sale of the Property or its acquisition h} Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3, Anplirnti+w of Pivmetrots. Unless applicable law provides otherwise, all payments received 6y Lender untie[ the
<br />Note and paragraph> t and « hereof shall be applied by Lender first ]n payment of amounts payable to Lender by Bnrrnwer
<br />under paragraph «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 />~. Charges; Llet~. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />ale Properly whicFi may attain a priority over this Mortgage, and leasehold paymertc ar ground rents, if any, in the manner
<br />provided under paragraph «hereof or, if not psid in such manner, by Borrower making payment, when due, directly to the.
<br />payce thereof, Borrower shall promptly furnish to Lender all notices of amounu due under this paragraph, and in the event
<br />Borrower shall make payment titers tly, Borrower shall promptly furnish to Lender receipts evidencing such paymants.„,
<br />Borraw•er shalt promptly discharge any lien which has pnority over this Mortgage; provided, that Bottower shall not he
<br />required to dixhazge any such lien so long as Harrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shat! in good faith rnntrst 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 Prapereyy or any part thereof.
<br />5. Hazard lttsurnntt. Borrower shall keep the improvements now existing or hereafter erected an the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may reyuir¢
<br />and in such amounts and fcr such periods as Lender may require; provided, that Lender shall not require shat the aznount of
<br />such coverage exceed Eteat amount of coverage required to pay the sums secured by this Mortgage.
<br />T`re itisUrar3c¢ Eartrer pro-: iding lis¢ insuran~r shall 6¢ ~:hos¢n fly 3c~rrowrr subj¢e:i io approval by LetttJ¢r, p*svid~'s'.
<br />that such approval shall not br unreasonably withheld. All premiums on insurance pnti¢ics shalE be paid in the manner
<br />provided under paragraph « hereof or, if nut paid in such manner, by Borrower making payutent, when due, directly to tile,
<br />insurance cu'rcer.
<br />e:l i^suranee ,,.,t:..:~ ~^^ tills *~r~.# shall M in faro: acc¢ctab!e to Lend: r aAd ~':al! i.";l=. a .3rd rn„rtga~a.
<br />F...-..:....-~ ...... rsne.. a
<br />clause in favae of and in form a~ecpta8le io I..cnder. Lnnd¢r shall htrvc the right to hold the policies and renewals ttter-vw?if,
<br />23H3 ~SraWGr 3['F21i ikt€?Rl pily tL-: 5335Ii to LCr 211 tCFt¢wa] itVttl'C3 and 31! f2i:~IptK E)f piif! t3[L}}F}tl~~.}). IFF lsaE E`"ESit tf f4'.`ai~'n
<br />-Ba=ro.~r sF.al1 gi::: r=fl f, nzt4~ ,~ t~ #~;ttra:r-~ sorrier tintl L¢rdi`.r. ].~rFd~r Wray ~a;<F p,°c~~, ,f loss =. _..~t maz-~ ~ _l~,
<br />by Borrower.
<br />Unless Lender and Harrower otherwise agree in writing, insurance prMeeds shall be applied to r¢storatian ar repair of
<br />the Propetty damaged, prm•id¢d such restoration or repair is economically feasible and the security of this Mortgage is
<br />oat thereby impaired. If such r+:atorstion or repair is oat economically feasible or if the security at the Mortgage would
<br />ha tmpairrd, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess. if any, paid
<br />to Borrower. if the Property ss »battdott¢d by Borrower, or if Borrower faits to respond to Lender within 3Q days tram the
<br />dart: notice is mailed by Lender to Harrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
<br />is authorized to enliect and apply the insurance proceeds at Ixnder's option wither to restarauon ar repair of the Prap¢t•ty
<br />or Ya the starts secured by this Mortgage.
<br />Unless Lender and Butrowrr uthrrwisr agar in writing, any such application .±f pmce¢ds to pnnctpat shall not ~xtE•n;l
<br />or postpone tin: due date of the monthly insta8ntrnts referred to in paragraphs 1 and ' hereof or change the amount of
<br />such installtttents. It under paragraph ttl hereof the Property is acyutrcd by l.¢ndrr, all right, title and interest mf Borrower
<br />in aatd to any insurance ptlicies and in and to ehc proceeds thereof resulting from damage to the Property prior to the sale
<br />pr acquisition shalt pass to Lender tc the eztrut of the sums secured by this Mortgage tmmediately prior to such sak or
<br />tuyuisiiion.
<br />d. Prearrvatloa and Maiatenaace of Property; l.esatholth[t Cwndomlaitrtos; Planned Unit • Urvelopatieats. Borrower
<br />shall keep the Pron¢rty in gaud repair and shall not commit waste or permit impairment or deterioration of Ute Peap¢rt}
<br />~i[zii 3,at i% ~piy 'rt itit thv- prs5t i°s"t4:iF`s c'}f afly e`c~c if rlrii Mi,rCga~z• 7~ 6n it Ii<~~iii~id. li thtS Mf~Tig~~-2 F-°~ t5n a F7nii ;n
<br />eoadnluuvum ar a Plarnl¢d nnlt d¢v¢lapment, Bnrrpw¢r shall perform all i)1 Harrower 3 lttiligatlarts tinder ih¢ d¢claratron
<br />nr covenants creating ar governing the eondomintum ar planned unit development, the by-laws and regulations of ihr
<br />candotnirtium ax planned unit d¢veloptrtent, sod constituent dexumems. If a condominium or planned unit rI¢vrlopm¢nt
<br />rder is executtx! by Borrower and rrcot•ded together wtth this Mortgage, the covenants weld agreements of such rider
<br />shall 6e incorporated into and shall amend and supplement the eovcnants and agreements of this Mortgage as if the rider
<br />were s part hrt•Ewf.
<br />7. l?'rotectloa at L¢adet's '3e¢arity. If Borrower fails to perform the covenants and agreements nxntaintxl in this
<br />Mongagc, nr if any action or proceeding ,s commenced which materially affects Lender's intrrast in the Property,
<br />Including, but not limited tn, eminent datnaio, insolvency, code enforcement, or arrnngemcnts ar pracerdings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action ss is necessary to protect Lender's interest, including, but not limited ta, disbursement of
<br />rasonable sttomey's fens oral entry upon the Property to make repairs. ]f Lender required mortgage insurance as a
<br />condition of malrittg the Ingo secured by ibis Mnr~gage, Borrnwee shall pay the premiums required tp maintain such
<br />insurance In enact anti3 such base as the reyuiremem far such insurance t¢rminat¢s in accordance with Borrower's and
<br />
|