|
<br />Uxat=ottM Covr=.rtnrrrs. Sorrower and Lender covenant and agree as follows:
<br />1, Payment of Principal and Inteeest. Borrower shah p:amptly pay when due the principal of and interest on the
<br />indebtedness eviijeticrd by the Note, prepaytnent mod late charges as provided in the Nate, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for Taxes and Irtsurattce. Subject to applicable taw or to a written waiver by Lender, Borrower shall pay
<br />eo Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in felt,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mongagr, 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 initia~'y and from
<br />time to time by Lander on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which ere insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender 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 />ar verifying and compiling said assessments and bins, unless Lender pays Borrower interest an the Funds and applicable taw
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Isfoflgage that interest on the Fends shall be paid to Borrower, and unless such agreement is made or applicable taw
<br />requires such interest to be paid, Lender shall not be required ro pay Harrower 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 far 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, shalt 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 />protptly 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 taxis, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to l.tnder 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 alt sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph tt; hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, nn later than immediately prior to the sale of the Property or itsucyuisibon by Lender, any Funds held by
<br />Gender at the time of application as a Credit against the sums secured by this Mortgage.
<br />3, Applirati~ of Paymenfa. Unless applicable Caw provides otherwise, ail payments received by Lender undes the
<br />N.oi~ "_ -- --f snail be a ilea b Linder
<br />a, d parer phs i . ~ pp y first rn payment of atnoutus payable io Lender by BOrtr,vrr
<br />under paragrap . a beret ~~Uthrn tounterest payabic on the .rote, then to the principal of the Note, and then to interc~! and
<br />princtpai on an+ future Advances.
<br />-i. Char>s~, Licm. B.:rrewrr shat! pay ail tales, assesments and other charges. fi:*.es and impositions attributable to
<br />the Property which rsay attain a priority over ibis biortgagt, and leasehold payments or ground rents, if ally, in the mantxr
<br />provided under paragraph 2 herraf ot, it not paid m such manner. by Borrower making payment, when dtte, directly to the
<br />payee thereat. Borrower shalt promptly furnish to Lender all notices of amounts due under Chu paragraph, and in the event
<br />Borrower shaft make payment directly, Borrower shall promptly famish to I_rnder receipts evidencing such pa}ments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, chat Borrower shall riot be
<br />required to discharge any such lien sti long as Borrower shall agree in writing '~ the payment of the ohtlgation secured by
<br />such lien in a manner acceptable to Lender, ar 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 pan thereof.
<br />5. Hazard lusur9nce. Burrower shalt keep the improvements new existing or hereafter erected on Cho Property insured
<br />against ions by fire, hazards inchided within the term "extended coverage", and such ocher hazards us Lender may tryaire
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shalt oat require that the amomu of
<br />such cov'eragr exceed tha€ amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier provir}ing the insurance shall 6e chosen by Bcrrawer subject tc approve! by Lender: pt'ovid~i.
<br />the[ such approval shall not br unreasonably withheld. Ail premiums on insurance policies shalt be paid in the manner
<br />provided under paragraph ~ hereof or, if not paid in such manner, by &xrower making payntcm, when dtte, directly w the
<br />insurance carrira.
<br />Ali insurance policies and rrnrwala thereat shalt br in form sccepiabie to Lender and shat; utciudc a siandatx mnrtgace
<br />clatuc in favor of and in form acccgta62e to Lrndar. Ltnarr shalt have the right to hold the pstlicirs and cello++•als (h€rtaf.
<br />and Borr3w ~ she pro=t;ptly furnish to Lrndi<r ail :enrw tiotic;s and ail receipts of paid pren.iuttr', = t~~ ee.°°.. ~s .4 e,
<br />}iorrcwi r shall giv.~ peel-; t n€?ti~ ter the ittsursnEe- s:atrie* .s:x1 I.sttder. Lzndzr m-a} ~ttak= prc-ot c',' I=mo ti F:.~t .;.3c~'~ p-r~-+=~p=;r
<br />by Borrower.
<br />lintels C.cnder and Borrower otherwise agrer in writing, insurance proCetds shall be applied to restoration or repair of
<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 shah be applied to the sums secured by this `iortgage. with the excess, if any, paid
<br />to Uorrowrr. if the Property is abandoned h)' Borrower, or it Borrower fails u> respond to Lender within 30 days from the
<br />date notice is mailed b}• Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the msurancr proceeds at Lender's option eiihtr to res[orution nr repair of the Property
<br />or to the sums secured by this Maztgagt.
<br />Cltdrss Lcndrr and Burrower otherwise agree m writing, any such application of proceeds [a principal shall not extend
<br />ar postpone the dot dote of the monthly installments referred win paragraphs 1 aril '_ hereof or change the amount cif
<br />such installments. ll under paragraph Ig hereof the Properq is acquired by (.ender, all right, ti[!t and in[errst u! Borrower
<br />in and to any insurance politics and in and ui the proceeds thereot resulting Pram damage to flit Property prier to Cite salt
<br />ar acquisition shalt pass to Lcndrr to the extrut of the sums secured by this Moetguge imattdiatety prior t„ such sail ar
<br />mcgtusitian.
<br />ti. Preaervatfon and Maintenance of Property; t.etuxholda; Condominiuau; Planned Unit lkvelupments. Barrawcr
<br />shall keep the Property in good repair and shall oat commit waste or permit impairment or deterioration of the Property
<br />and shah comply with the grovisians of any lease if this Mortgage is on a ieasrftoid. If this Mortgage is oft a unit in a
<br />condominium ar a planned unit drvrlapmrnt, Borrower shat! perform ail of &urawtr's obligations under the declaration
<br />ur covenants creating or governing the condpminium or planned unit development, the by-laws and rcgulatians of the
<br />condomsitiuni or planned trait development, and canstiiticot d<xuments. If a condominium or planned trait drvrlaprnent
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorparated into and shall amend and supplement the covenams and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection of Lender's Security. 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, of arrnngements or proceedings involving a
<br />banksapi or decedent, then Lender at Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />stuns and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement a(
<br />reasonable attorney's fees and entry tenon the Properly to make repairs, df Lender required mortgage insurance as a
<br />condition of makiae the loan secured. by this Mortea~r, Borrower shall pay the premiums required to maintain sash
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
<br />
|