|
~~t't wi ~~ I ~i li•,.PS.lVmNGu.i b:
<br />UrJtt~aaatit Covrt~vs:^rrs. Borrawer and Lender ccrvenaatt and agree as ftaAi,7ws:
<br />' 1, Payanerm4, of Prirtcfpal grad interest. Borrower' sharp promptly pay when due tlae principal of grad inheres: on the
<br />' indebtedness evidenced by the Note, prepayment and fate charges as pro~a~ided in the 1~'ote, and [he principal of and interest
<br />en any Future Advances secured by this Mortgage.
<br />i 2. Fantle for Taxes and fnsuratece. Subject to applicable Saw or to a written waiver by Lender, Bcrrower shalt pay
<br />_ to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in fr'1,
<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 in=±allments 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 by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />r 2're Funds shad be held in an institution the deposits 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 pat' 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 hilts. unless Lender pays Borrower interest on the Funds and applicable taw
<br />permits Lender to make such a charge. Borrower and lender may agree in u•ritirg at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not he required to pay Borrower any interest at earnings cn 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 tviortgage.
<br />If the amount of the Funds held by Lender. together with the Future monthly installments of Funds payable prior ro
<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 to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient io 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 Irom the date notice is mailed
<br />' by Lender to Borrawer requesting payment thereof.
<br />Upon payment in full of ail sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph t8 hereof the Property is sold or the Property 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 tit :cpplicaticn as a credit against the sums secured by this Mortgage.
<br />• ?. Applicatlan of Payments. Lnless applicable law provides otherwise, al! payments received by Lender under the
<br />Note and ^ ~^hs !and 2 hereof shall be applied by Lender first ir. payment of amet:..^.ts payable to i ender b} Lorrawer
<br />under paragraph 2 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 all taxes, assessments and other charges. floes and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if env, 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 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 lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the pa}'moot of the obligation secured 6y
<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 />S. Hazard Insurance. Borrower shat keep the improvements now existing or hereafter erected on the Property insured
<br />against toss by 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 reyuire; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage reyuired to pay the sums secured by this Mortgage.
<br />Tne insurance carrier providing the insurance shall 6e chosen by Borrower subject to approve! by Lender, provided,
<br />[hat 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 thereof shalF ho in form acceptable to Lander and shall in.lude a standard tnartgage
<br />clause ir, favor of and in form ac:ceptabic to Lender. Lender shall have the right io hold the puiiHies and renewals thereof,
<br />_- and Borrower shall promptly furnish to Lender a!1 renewal notices and all receipts of paid premiums, 1n the event of Ions,
<br />Borrower shat( give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompts}`
<br />-= ,
<br />- by Borrawer.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds 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 s not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall 6e applied to the sums secured by this Mortgage, with the excess, if an}•, paid
<br />to Borrower. if the Prcperty is abandoned by Borrower, nr if Bcxruwar fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrawer that the insurance Harrier 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 restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />• Unless Lender and Borrawer otherwise agree in writing, any such application of proceeds to principal shall oat extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amaa,ut of
<br />such instailntents, if under paragraph Iii hereof the Property is acyuired by lender, all right, title and interest iii Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the ,ale
<br />ur acquisition shall pass to Lender to the extent of the sums secured by thu Mortgage unmediately prior to such sole or
<br />- acquisition.
<br />6. Preservation and illaintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in $ood repair and shall not commit waste or permit impairment ar 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 ar a planned unit cicvelopment, Borrower shill perform all of Borrower's obligations under the declaration
<br />or covenants creating nr governing the condominium ar planned unit development, the by-laws and regidntions of the
<br />condominium er planned unit development, and constituent documents. if a condominium or planned unit development
<br />rider is executed by Borrower and retarded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenams and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Pmtee6on of Leader's Security. ]f 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 no[ limited to, eminent domcin, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon nonce 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 to, disbursement of
<br />reasonable attgrney'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, Borrower shall pay the premiums required to maintain such
<br />insurance ir. effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
<br />
|