|
<br />I,;NtroaM Covrtrr.+tvx°s'. Bcirrocver and I.encicr covea~ant and agree. as follows:
<br />1. Payment elf Principal aad Interest. Bar~rawer shall promptly pay whzn diue the principal of a,nd "snterest an the
<br />indebaedness evidenc:od by llho Note, prepayment .and Irate. charges as ,provided in thr Note, and. the principal of . td irr,tert:st,
<br />on an; Future Advances secured by this Mortgage.
<br />2. rends for Taxes and Insnraaee. Subjec, to applicable law or to a writtee waiver by Lender, Borrower shalt pay
<br />to Lender cn the day monthly installments of principal and interest are payable under the Note, untl! the Note is paid in full.
<br />a sum (herein "Funds") equal to pre-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 h}' Lendez on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shat! lie held in an institution the deposits or accouats of which are insured or guaranteed by a Federal or
<br />state agency {including Lender if Lender is such an institution). tender shalt apply the Funds to 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 hills, 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 shat! he 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 Aorrower any interest ar earnings on 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 ter which each debit to the Funds was made. Toe Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />Tf the amount of the Funds held by Lander, 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 fail due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credated to Borrower on monthly installments of Funds. If the amount cf 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. l; under paragraph I6 hereof the Properly is sold or the Properq is otherwise acquired by Lender. Lender
<br />shall 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 credit against the 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 ?_nd 2 hereof shall be app?led by Lender first r^ pa}went of :imaunts payable fe Lender by Borrower
<br />under paragraph Z 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, Cltatgrs; Lieas. Borrower shall pay al! taxes, assessments and other chances, fines and impositions attributable to
<br />the Property 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 or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lerdtr all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any Tien which has priority ever this Mortgage; provided, that Borrower she!! not be
<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 Lender, 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 ar forfeiture of the Property or any part thereof.
<br />3. Hazard Insarance. Borrower shall keep the improvements now existing or hereafter emceed 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 ,his Mortgage.
<br />The insurance carrier providing the insurance shall tie chosen by Borrower subject to approval by Lender, provided,
<br />that such approve! shall not be unreasonably withheld. All premiums on 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 ro the
<br />insurance carrier.
<br />Ali insurance policies and renewals thereof shall Ix in form acceptable to [.ender and shall include :t standard mortgage
<br />clause in favor of and in farm acceptable to Lender. Lender shall have the right te. hold the policies and renewals thereof,
<br />aRd Borrower she!! p*amptiy fa:rnish to Lender a!! rerewa! aatices and all receipts of paid premiums. In the event o€ Ions,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. bender may make prow( of loss if not made Fromptly
<br />h}' Borrower.
<br />Unless 2_ender and Borrower otherwise agree in writing, insurance pnxocds shall be applied to restoration cr repair of
<br />the Property damaged, provided such restomuon ar 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 />tx imparted, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower, If thio Property is ahandoned by Borrower, or if Borrower fails to respond to Lander within 30 days from the
<br />date Holier is mailed by Lender ro Bormwcr that the insurance carrier otfe~s to settle a claim fur insurance benefits, [..ender
<br />is authorized to catlect and apply the insurance proceeds at Lender[ option either to restoration or repair of the Property
<br />or to the sums secured by this Martgage.
<br />f.'niess Lender and Borrower otherwise agree in writing, any such application of prcneeds to principal shat! nut extend
<br />or postpone the dux date of the monthl}' installments referred to in paragraphs ! anti ? hereof ar change the amount of
<br />such installments. if under paragraph It; hereof rho Proprty is acquired by hander, a!1 ogle, title and interest of Aorrower
<br />in and to any insurance policies and in and ur the proceeds thereof resuhing from damaGe to the Properly prior to the sale
<br />ar acuuisitian shall pass to Lender to the extern at ;he sums secured h}• this Mortgage immediately prier to such sale or
<br />acquisition.
<br />6. Preservation aad httdoteaance aF Propertyy; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in gaxl repair and shall not commit waste ar permit impairment or de[crioration of the Property
<br />uuu s halt comply ~:wiLh uhe pravisians of any lr'ase if this Martgage is tin a Itasthald. if this Mwrtgagt is un a unit in a
<br />cortdomimum ar a planned uaiF development, Barrawer shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and nguiations of the
<br />ectndominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is exuuted by Borrower and recorded together with tLis Mortgage, rho covenants and agreements of such rider
<br />shall be incorporated into and shalt amend and supplement [he covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Ptvtectioa of If,ettder's Secatity. Tf Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in rho Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender a[ Lender's option, upon notice to Borrower, map make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest, including, but not lmited to, disbursement of
<br />a•easonabie attomoy's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Boaower shall pay the premiums required to maintain such
<br />insurance in etloci until such time as the requirement for such insurance terminates in accordance with Borrower's and
<br />
|