|
<br />[JxrFORM Covaxexts. Borrower and Lender covenant and agree as follows:
<br />1, t4ymeat of Pdnclpal sad Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />ittdcbiedaess evidenced by the Note, prepayment and late charges as provided in the Note, and the princigai of and interest
<br />oa any Future Advances ~ettttd by this Mortgage.
<br />2 Fends for Toss and France. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Len~r on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a stmt (herein "Fuads'~ equal to one-twtifrh of the yearly taxes and asxssments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, pros one-twelfth of yearly premium installmrnts for hazard insurance,
<br />plus one-twtlfrh of yearly premium installments for mortgage insurance, if any. all as reawaably estimated initially and from
<br />time to time by Lender on the basis of assessments ai 6ilk and reasonable estimates thereof.
<br />'ILc Fttttds shalt be held in as institution tare deposiff nr a~counts a( which are insured or guaranteed by a Federal or
<br />state agency (incitiding Linder if Lender is such an institution). Lender shalt apply the Funde to pay said races, assessments,
<br />insurance premiums and groin r-_nts. Lender may not charge for sn holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless t,mder pees Borrower interest on the Funds and applicable law
<br />permits Leader to make such a charge. Harrower slid Lender' may agree in wriUn¢ at the Ume of ececution of this
<br />Mortgage that interest on the Fttads shall be paid to Harrower, aitd unless such agreement is made or applicable taw
<br />tegetires such interest to be paid, Lender shalt not k+e 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 />ptupeae for which tack debit to the Funds was made The Funds arc pledged as addi[ionai securiry for the sums secured
<br />by thh Mortgage.
<br />If the amount of the Funds he}d by Lender, toae[her with the future monthly installments of Funds payable prier to
<br />the doe dates of taxis, assessments. insurance premiums and ground rents, shall eccied the sitwunt required to pay said taxes,
<br />usesaments. insurance premiums and ground rents as then' fall due. such excess shall be. at Harrowei s option, either
<br />promptly repaid to $ortowrt or credited to Harrower oti monthly installments of Foods. If the amount of the Funds
<br />hdd by Lender shall not be suffxient to pay taxes, assessments. ituurance pirmrums and ground rrnts as they fait dui,
<br />$orrower shelf pay to Lender any amount necessary to make up the dtticicncv within ?0 da}s from the date entice is mailed
<br />by Leader to Barmwtr regtrssting payment thertaf.
<br />Upon payment in fitB of aI! sums secrutd by this !1longage, 1_ender shall promptly refund to Borrower any Funds
<br />held by Leader. If under paragraph 1t3 hereof thz Prapeny is x,ld nr thz Propenl~ is otherwise ac4tnrcd by Linder, Lander
<br />shall aPP15', rsa late than immediaitly prior to the :alt of tl!e Property ar its acquisition M' Censer, am Funds held bl'
<br />Leader ai the titer of application as a credit against the sums secured by this \longage.
<br />3. A~$catinn d Pay^menis. Unless applicabk taw provides otherwise, all payments received by Lender under the
<br />Note grid paragraphs 1 aml 2 hettof shall be applied b}• 'seder first in payment of amounts payable to Linder by Harrower
<br />tinder paragraph ? hettxtf, thin to iniztist pa}abie nn iht Note, then to the principal of the Note, and then to intemi sod
<br />principal art any Fttttrre Advances
<br />i. !~ Brae Borrower shall pay all taxes, assessments and nihzr charges, fines and impositions attsibutable to
<br />the Prnptxty which may attaht a priority oFtr this Siortgagt, and leasehold payments ar grovrnl rents, if any, in tlt= manner
<br />pxctvided under paragr~h Z hetrx# or. if not paid in such manner, by Borrower making pa}'mtnt. whrn due, directly to the
<br />pa}ao rhetmf_ Boarowtr shall promptly famish to Lender all notices of amounts dire under this paragraph, and in the event
<br />$curower shall make parmetrt diretU}', Borrower shall promptly furnish to Linder receipts tvidencing such pa}'meets.
<br />~Krow~er shall promptly discharge any l~ti witi.'h has pnoriry over this Mortgage: Provided, that Bnrmwir shall oat be
<br />requited to discharge any such ]kn sa long ss Bairrou~er shall agree in writing to the payment at the a+i+ligation sicurcd by
<br />such lien iii a manger acctptahlz to Leader. ar shall in good faith contest such lien hy, or defend znforczment of such Tien in,
<br />legal patretdings which operate to pre,rat the enfantmem of thz lieo ar forfeiture of tht Property :v any part thereof.
<br />5. Harm Insaraae. Borrow~tr shall keep the ;mprovimrnts new existing x hzreafter ercl:tui an the Properh' insured
<br />agai[rst loss by >ue, harards included within the terra `eviended coverage", slid such other hazards a_s Lender ma} require
<br />and in such ataouau and far such ptriads a. Linder r^ay rzquin; provided, that Linder shall not trquire that the amount of
<br />sorb coverage txae+zl that amount of rnvtiage riquir~ed to pay the sums secured by this Mortgage.
<br />The itrstnattet carrier providing the insrranx shall be chosen by Borrawrr subject to approval by Lzndir. provided.
<br />that st~h appmvai shag ntu bt uatruatahly w~tithtld. 131 premituns orr insurance polices shall be paid ~,., the manner
<br />provided tinder paragraph 2 hermt or. if not pai3 in such taan>rer, by Boirowar making payment, wham due, :itrrcU}' to ihz
<br />iasnraa¢ carrier.
<br />AB iasurantt policies and ro>xts'ak thermf shall lY in foam arxptabk to Lender and shad include a standard mnrtgagz
<br />t3us9c in favor' of a~ in form acsptahle to Leader. Lender shall have the tight to hold the policies and renewals thereof,
<br />seal $r~trsrwer shall ptttmptiy ftnaish to Lendtt all renewal trances and sli rcz-eipts of paid ptettuums. In the event of loss.
<br />9atruv~ shall ,give pznmpr rmlice to the iostirance ~rritr and Lender. Lender may make prone ni lass iF not made promptly
<br />fry Bestows'.
<br />Ur>lae Leader a>~ Bturows oUurwise agent in wtiung. insurans proctids shalt tx applied to restoration nr repair of
<br />the Fragrant}' damrtgetl, prmickd such restanr:^~ ,,: repair is a:~vta?mit:aih ftasibte and the >t-.unit} of this \lattgage rs
<br />mR thnnby impaired. if such tesuvatinn or repair is oat irnn.~riicaliy feasible nr if the secuttt}' of this Mangage would
<br />he - the ie~aaoe prer`^eais shall be applied in the stems stored b} this Atnrigage, wnh the excess, if any, Paid
<br />m Borrower. B the Property g ahandaimd by Bara,wet, a+r ii Harrower fails to respnrnl to Linde: within ~P days trom thz
<br />date uotioe is rnailetf by Loader to Borrower that the insurance can'ier aUm to settle a claim fnr imnrance benefits, Linder
<br />g att~nti~d m rAlleQ and apply the insurance prarx~ at Leader's opunn tither to restoration or repair of the Propeny
<br />a m the >~ smaed by this Maxt~e.
<br />Uri L~der sad Bacrowtr Mherwist ague :n writing, any such application of proxeds to principal shall oat attend
<br />air p thr drie state of the monthly itrstalhneats rtferted to in paragraphs 1 and_ hereof or change the amount of
<br />each installments.. If ender paragraph l6 hnaenf the Property is acquired h} Lender, all nght, title and interest of Bnrnwer
<br />a and m any imuranx p anal is sod to the proriads thereof resuftiag from damage m the Propem prier to the salt
<br />K aatpmitian shaA P~ to let+ds to the rxttnt of rite sums sicutrai by this hfortgagt tmrrtediately prior to such sale nr
<br />~. Trnenradan v lfaiatanaace aF Trepsrty; I.eaceAolic Coadooiainiast Pleased Unit Devclapmepls. Borrower
<br />. ~ ~ alit Prtipaty ffi good repair and shall sot casaratit rasa nr pernut impairmeai or detcrioratinn of the Proptny
<br />sad tdisB Y with flit praviatuis of arty 3tarse if this Mortgage is an a ltasel+old_ if this Mangage is an a unit in a
<br />uadnmimirm ce a planned unit devdopmeai, Hnrrrnver shall perform all of Hnrrowei s obligations wider the declaration
<br />flr ar gt,vtraing the :x+ndnmiaiurn ar planrxd unit devek:prunt, the by-laws and regulaviors cf the
<br />condtsniiti'ti® rir planned illil2 4vC1{tpaiCrti, and c~tstitutnt dortuntms_ ]f a condominium or planned unit divelopmint
<br />ride' i5 tarxiaad by HorxOwra sad ttcnrdtd tagtthtr with tats Mangage, Utz covenants and agreements of avcfi rider
<br />sbaq he iaompora~d faro slid shall amcmd avid supplement the castnants grid agreements of this Mongage as if the rider
<br />were a part hsoaf,
<br />7. at I.eaier"s 5ec~ifi, If Himnwrr fails to pertarm the covenants sad agrectiients contained in this
<br />1:, in if say settee cs pa'ocroading is commenced w}tich materially' afft::ts Lender's interest in the Properiy,
<br />lea ze7a limirod to, emittap dontaut, itttaiverrc}. code tnfnzxmrnt, nr arrangements nr proceedings involving a
<br />birs~Fstipt or deotdwt. then i.tnds at Lender's aptian. upon notice to BMrarwer, ma}' malt such appearances, disburse such
<br />areas and fake atrh actitia as is wary to preteci Lzisdcr's interest, irxludinR, but not limited to, disbursement u[
<br />reranoai3le attorney's fees sad stay upon tax Proper}• to make repairs. If Lender riquir~i mortgage insurance as a
<br />of Makin; the lose sttvred h5 Utis Mangage. Borrower shall pay the premiums required to maintain such
<br />iaaaanea in Nfsei tsaN1 each time as the talusrement for such insurance terminates to acwrdance with Borrower's and
<br />
|