|
<br />1:J:~.tr:oarr ~~v€x.stv7',s. B'orrowes and Lender cmver==ant sad agree as falicws:
<br />]t,. Payment of Principal and Interest, Borrower shalt promptly pay when due the principal of at:d interest on the
<br />indebn~n~s evidenced by the Nmte, prepayment and. late charge. as provided in the 7+ote, and the print=pal of and intei=st
<br />an any FuYUre Advances secured by this Mcrtgage.
<br />2. Funds for Taztt and insurance. Subject 4o applicable taw or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly ins?ailments of principal and interest are 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 assessment 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 premitim 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 shall be held in an institution the deposit mr account of which are insured or guaranteed by a Federal or
<br />state agency !including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessment,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />of verifying and compiling said assessment and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permit Lender to make such a charge. Borrower sad Lander 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 such interest to be paid, Lender shall nmt be required to pay Harrower any interest or earnings an the Fords. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debies to the Funds and the
<br />purpose for which each debit to the Funds was made. "Ihe Funds are pledged as additiena! 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 rent, 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 credhed to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall no[ be sufficient to day tars, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shat! 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 />shalt apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credo against [he sums secured by this Mortgage.
<br />3. Application of Payments. Unless 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 mf amounts payable to Lender by Borrower
<br />under paragraph ~ hereof,then to interest payable on the Note, then to the principal of the Nate, and [hen to interest and
<br />principal an any Future advances.
<br />4. Charges; Lleos. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Frcperty which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof ar, if not paid in such manner, by Borrower making payment, when due. directly to the
<br />payee thereof. Borrower shall promptly furnish to Lentiar all notices of amounts sue under this paragraph, and in the event
<br />Harrower shalt make payment directly, Borrower shall promptly furnish to Lender 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 shall agree in writing to the payment of the obligation, secured 6y
<br />such lien in a manner acceptable to Lender, or shall in good faith comes( 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 />5. Hazard Insurance. 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 hazards as Lender may' require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender: provided,
<br />that such approval shah not be unreasonably withheld. All premiums on insurance policies shall ba paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />Alt insurance policies and renewals thereof shat( be in form acceptable to Lender and shall include a standard mortgage
<br />ciauso =F favor of and ift fa.~ acezg4ablc to t~.nder. Lc .der ,halt have the right to halo' the palii ~ and rnewFls th~raaf,
<br />.and Borrower shalt nromatly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of foss.
<br />Borrower shall give prompt nceice to the insurance carrier and Lender. Lender may make pnraf of lass if na[ made promptly
<br />by IY3arrower.
<br />Unless !-ender and Borrower otherwise agree in writing, insurance proceeds Shutt be applied to restoration or repair of
<br />[he 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 rat economically feasihle or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the stuns secured by this Mortgage, wrth the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or ff Borrower fails to respond to Lender within 30 days from the
<br />data notice is mailed by Lender fa Borrower that the insurance carrier offers to settle a claim far insurance benefits, 1-ender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lendtr and Borrower otherwise agree in writing, any such application of proceeds to principal shalt not extend
<br />z:r postpone the due dot: of the monthly installments referred to in paragraphs 1 and '_ hereof or charge the amount of
<br />such installments. if under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest tit Borrower
<br />in and to any insuranec policies and in and to the proceeds thereof resulting from damage to the Property prior [u the sale
<br />ar acquisition shall pass to Lender [o the extent of the sums secured by this Mortgage immediately prior m such sale or
<br />acquisiNan.
<br />6. Preservation and Maintenance of Property; Leasthotds; Condominiums; Planned Unit 1hvelupmenls. Borrower
<br />shalt keep the Property in good repair and shalt not commit waste or permit impairment or deterioration of the Property
<br />and shall cemaly wi±h the pravisiana of any lea_~ if this Mer[gagc is en a leasehold. Il this Mortgage is alt a unit in a
<br />t:ondominittm ar a planned unit devclepmettt. Borrower shall perform all of Borrower's abligatians under [hc declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and roguiations of the
<br />condominium cr planned unit development, end constituent Documents. H a condominium or planned unit development
<br />rider is executed by BORC1Wer and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />.were a pan hereof.
<br />7, ?ratceiian of Leadea's Becnrity. If Borrower faits to perform the covenants and agreements contained in this
<br />Mortgage, ar if any action or proceeding is commenced which materially affects Lender's interest in the Property.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, ar arrangements or proceedings involving a
<br />bankrupt ar decedent, then Lender at L.ender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attgrney's fees and entry upon the Froperty to make repairs. If Lender required mortgage insurance as a
<br />eardKicn of making the loan s.-cured fsp this biarrgage, Borrower shall pay the premiums required to maintain such
<br />insurat,ct« in c;feeY uneit such isme as the requirement for such insurance terminates in s~:oedanee with Borrower's and
<br />
|