|
<br />Urns=ascr;=t Covt:n:AVas. Borrower and Lenrter covenant and agree as fallo~ws:
<br />1. Paynrant of Prlnc,€pal and Interesa, I3tarrewcr shall promptly pay ,a~taen due the principal of and interest an the
<br />indebtedruess evidenced lvy the 1^dote, prepayment and late charges as provided in the Kota, and the principal ~." and iaterest
<br />on any° Future Advances secured by this Mortgage.
<br />~. Funds for'I'axes and Insurance. Subject to applicable taw ar to a writter. waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly irstallments of principal andSnterest 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 yeaziy premium installments for mortgage insurance, if env, alt as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof-
<br />c ~ The Funds shat[ be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />U "~ state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />~~ insurance premiums and gratmd rents. Lender may not charge far so holding and applying the Funds, analyzing said account,
<br />~i ~ of verifying and compiling said assessments and bills, unless Lender pays Borrower iaterest on the Funds and applicable taw
<br />c~d'_Oy permits Lender to make such a charge. Borrower and Lender may agree in writing at the lime of execution of this
<br />~1~- Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />require; 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 6y Lender, together with the future monthly installments of Funds payable priar to
<br />the due dates of taxes, assessments, insurance premiums and ground revs, 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 to Borrower on monthly installments of Funds If the amount of tfie Funds
<br />held by fender shall no[ be sufficient to pay taxes, assessments. insurance premiums and ground rents as the;. tali due,
<br />Borrower shalt pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader [o Borrower requesting payment thereof.
<br />Upon pa}:Went in lull of al! sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph I g hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply. no toter than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender ai the ume of application as a credit against the sums secured by this Mortgage.
<br />3. !-pplicatian of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />!vote and paragraphs i and 2 hereaf shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereaf,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; Liens. Barrower shall pay all taxes, assessments and other _harges, fines and impositions attributable to
<br />the Property which inay attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />peovided under paragraph 2 hereof or, if no[ 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 4he event
<br />Borrower 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 eat 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 part thereof.
<br />5. Hazard Irrstrrance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss 6y fire, hazazds 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 amrnmt of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage-
<br />T'n2 insurante~arrier peoviding 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 sl•.all be paid in rite meaner
<br />provided under paragraph 2 hereof or, if no[ paid in such manner, by Barrower making paymen4 when due, directly to the
<br />insurance carrier.
<br />Al_t. inst:ra^ce r^lici =• ~.' rcrewals thereof shall be in farm aecptabi; tc Lender and shalt include a siardard mortgage
<br />clause in favor of and in form acceptable to tender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Barrower shah promptly Euraish to Lender all renewal notices and alt rccetpts of paid premiums. In the went of loss.
<br />Borrower shalt give pratnpt notice to the insurance carrier and Lender. tender may make proot of lass if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall 6e applied to restoration or repair of
<br />the Property damaged, provided such restoration or repaic is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration ar repair is not economically feasible or tf the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied ro the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. if the Property is abandoned by Borrower, ar if Borrower fails to respond to t-ender within 30 days from the
<br />Sate notice is mailed by Ixnder to 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 restaratian or repair al the i'roperty
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Barrower othetw~ist,• agree in writing, any such application ,.f proceeds to principal shall net extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and ~ hereaf or change the amount of
<br />such installments. if under paragraph 18 hereof the Property is acquired by Lender, al! right, tide and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property priar to the sale
<br />or acquisrtian shat[ pass to Lender to the extent of the scans secured by this Mortgage immediately prior to such sale ar
<br />acquisition.
<br />6. Preservation and Maintenance of Property; I,easehalds; Condominiums; Planned Unit i)evelopments. Barrower
<br />shall keen the Property in coed repair and shall not commit waste er permit impairment er deteriara[iat: of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. if this Mortgage is an a unit in a
<br />condominium ar a planned unit development, Borrower shall perform alt 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 unst 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 hereaf.
<br />7. PmtecBon of Lemler's Secnrity. If 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 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 ai Lender'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 io, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as x
<br />candiiian of ma;iisg the loan secured 6y this Mortgage, Borrower shalt pay the premiums required to maintain such
<br />insurar;~ in effect i!ntil such lima as Y3te requuem;.nt for such insurance terminates in accordance with Barn;weis and
<br />„. ~.._~
<br />
|