|
<br />licar~otttu trtYVF.NAM7S.Sarrower ar:d fentler aovenant and agree as follows:
<br />I.. Payment of Prfncipai and Interest- Borrower shall promptly pay when due the prrincipa! of and interest on tlne
<br />indt;bRedn+:sr evidenced by tlve Note, prepaymem and late charge; a; provided in the Note, and the principal of and interesrt
<br />on any Future Advances secured by this Mortgage.
<br />2. Fends Eor B`aaes and Irrsmanee. Subject to applicable law or to a written waiver by Lender, Borrowe. shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (nerein "Funds") equal to one-Twelfth of the yearly taxes and assessmer,rs 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 yeazly premium installments fcr 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 shat! be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency f including Leader if Lender is such an institution }. Lender shall 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 bills, unless Lender nays 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 shall be paid to Borrower, and unless such agreement i< 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 Yo 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 additicnal security `or 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 Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of 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 rotund to Borrower any Fu;nls
<br />held by lxnder. If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, nu h~~~r than immediately prior to the sale o[ the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time +tf applic;ation as a credit against the sum; secured by this Mortgage.
<br />3. Applicatiurr of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note sd paragtaphs ! ?_nd ?hereof shall be applied by Lender first in payment of amounts payable Ye Lcnd~r by Borrower
<br />uadec paragraph ~ hereof, then to interest payable on [he 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 all nixes, assessments and other charges, 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 .raking payment, when due, directly to the
<br />payee themof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directty. Borrower shall promptly Yurnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over thi; A4ortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing m 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 [he Property or any' part thereof.
<br />5. Hazard lnsursnce. Borrower shall keep the improvements now- existing or hereafter erected on the Property insured
<br />against lass by fire, hazards included within the term "extended coverage", and such other hazards as Lender map require
<br />and Sn such amounts and for such periods as Lender may require; provided, that Lender shalt 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 shall net be unreasonably withheld. All premiums on insurance policies shelf 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 />insuraac carrier,
<br />All insurance policies and renewals thereof shall be in form aeecptabie to Lender and shall include a standard mortgage
<br />clause in favor of and in farm acceptable to Lender. Lender shall have the right to held the policies and renewals tltereof,
<br />and Borrower shall ^•amyLV f::r.^,ish to Lander all renewer notices and a!! receipts of paid premiums. In t!~ event of la: s,
<br />Borrower shall clue prompt notice to the insurance carrier and Lender, Lender may make proof of lass if not made promptly
<br />by Harrower.
<br />Unle~ Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ur 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 ur repair is nut economically [easible 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 />[o Burrower. If the fropert~' is abandoned by Borrower, or it borrower fails to respond to fender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the irsurance carrier nffers to settle a claim for insurance benefits, Lender
<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 6y this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall nut extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change rite amount of
<br />such installments. li under paragraph it3 hereof the Property is acquired by Lender, al! right, title and imerest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prier to the sale
<br />or acyuisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sate ur
<br />acquisition.
<br />b. Ptrservation and Maintenance of Property; Leaseholds; Condumiaiums; Planned Unit llevelopmenls. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and ;':all «ns;,ly v,°itr`t t!:w prcvisitns of any lease if thii Martgagu is an a l;~ast'hold If rho Mortgagt ii cn a unit in a
<br />eondomiuinm or a planned unit 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 :t 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 />shat! be incoruorated info and shall amend and supplement the covenants and agreements oP this Mortgage as if the rider
<br />were a part hereof.
<br />7. 'Protection of Lender's Security. 1[ Burrower tails 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 Propery,
<br />including, but not limited to, eminent domain, insolvency, cede enforcement, ar arrangements or procef:dings im•olving a
<br />btuakrupt or decedent, then Lender at Lender's option, upon entice to Borrower, may make such appearances, disburse such
<br />alms and take such action as is necessary to protect Lender's interest, including, but nut limited to, disbursement of
<br />reasonable attorney'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, Harrower shall pay the premiums required tv maintain such
<br />in5ltranCe in t;tTCCt Until such time as the requirement tar such insurance terminates in accordance with Borri~wer's and
<br />
|