|
<br />lJav'Iroa,rrs ~C:'o~,•xa~,~s~+TS. Borzcwcr and F-eadeir covenant ~snd agre~~e as f~ollr~swst
<br />7'.. ;Payment of Principal and Interest. 'Borrower shall prompti,y pag wbern ,:,:uc Ylte prNncipaud of and interest on tlbe
<br />ndebtleduoesa; eaitic~nced by tlhc Note, prepayrnent and late charges ar, pr~ovi:died in tfue l+ls3te, acrd. the principal of and interest
<br />cu any Future Advances secured by this Mortgage.
<br />2. rtnrd€ for Taaes and Insurance. Subject to applicable law ar to a written waiver by Lender, Harrower shad pay
<br />to Lander on the day monthly installments of principal and interest are payable under the Nate, until the Note is paid in full,
<br />z sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priori[, over this
<br />Mortgage, and ground rents nn the Property. if any, plus one-twelfth of yearly premium installments for hazat ' insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />rime to time by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposiu or accounts 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, assessmens,
<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 Borrower interest on the Fonds 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 Borzcwer, 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 accounting 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 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 premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly- repaid to Borrower or credited [o Borrower on monthly installroents of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance gremiums 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 gayment 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 pazagraph i8 hereof the Property is sold or the Property is otherwise acquired by I-ender, 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 and 2 hereof shall be applied by Lender first ir. payment of amounts payable to Lender by Borrower
<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 />4. Charges; Liens. Borrower shall pay al( taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a ptinriry 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 Lender aIl notices of amounts due under this paragraph, and in the event
<br />Borrower shall rank. payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortga¢e; provided, that Borrower shalt 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 or forfeiture of the Property or any pars thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property irsured
<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 shalt be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval 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 to the
<br />insurance carrier.
<br />All insurance policies and renewals theree( shall fie in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor cf and in form acceptable to under. L.eoder shall have the right to hold the policies and renewals thereof,
<br />and grower snail promptly burnish tc Lender all renewal notices and ail receipts all paid premiums. In the event of toss,
<br />Borrower shat{ give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if oat made prompt;;.
<br />by Borrower.
<br />Unless Lender and Burrower otherwtse agree in writing, insurance proceeds shall be applied to restoration or repair cf
<br />the 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 not economically feasible or if the security of this Mortgage would
<br />be impaired, 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 is abandoned by Borrower, or ii Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender ro Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoraticn ur repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and ?hereof or change the amount of
<br />such installments. II under paragraph l8 hereof the Property is acyuired by Lender all right, title and interest of Borrower
<br />in and to any insurance policies and in and tc the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such Salr ur
<br />acquisition.
<br />6. Presen•aflon and Maintenance of Property; Leaseholds; Condominiums[ Planned Unit llevelopmenLS. Borrower
<br />shalt keep the Property in good repair and shall not commit waste er permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned trait development, Borrower 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 regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower 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 part hereof. ,
<br />7. PtrotecHon of hemler's Sectrrity. 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 Lenders 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 to Borrower, may make such appearances, disburse such
<br />sums and Bake such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Progeny to make repairs. If Lender 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 />instuance in effect until such fime as the requirement for such insurance terminates in accordance with Borrower's and
<br />
|