|
80- :~~`~
<br />Uxmoast Covexetvrs. Borrower and Lender covenant and agree as follows:
<br />I. Paymeof of Pdncipd aced 1nMrest. Borrower shall promptly pay «•hen due the principal of and interest on the
<br />indebtedrtess evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Foods for Toes and Insurance. Subject to applicable law or tv a wrtten waiver by Lender, Borrower 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 fu1L
<br />a stun (htrein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over [his
<br />Mortgage, and ground rents on [he 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 es[ima[ed initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereoT.
<br />"I2te Funds shall be Geld in an institution the deposits or accounts o[ 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 pay said faxes, assessments,
<br />insurance pttmiums and ground rents. Lender may not charge fur so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays 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 $orrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall no[ 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. "['he Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Ftmds 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 tall 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 [o pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay [o Lender any amount necessary to make up the deficiency within 3o 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 thts Mortgage, Lender shall promptly refund tv Rorrower any Funds
<br />held by Lender If under paragraph 18 hereof the Property is sold or the Property is otherwise acgmred by Lender, Lender
<br />shelf apply, ao Eater than immediately prior to the sale of the Property ar its acquisition 6y Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<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 Fattue Advances.
<br />A. Chorses; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributahle tv
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided trader pazagraph 2 hereof or, if not peed in such manner, by Borrower making payment, when due, directly [o the
<br />pays thereof. Borrower shall promptly furnish io Lender all ponces of amvunts due under this paragraph. and in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provtded, that Borrower shall nut be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the abligaeion 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 ur forfeiture of the Propeny yr any aan thereof.
<br />5. Aarard Iawrraoce. Borrower shall keep the Improvements now ex~~ting or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lecffer may reyuirr: provided, that Lender shall nut require chat the amount of
<br />such coverage exceed that amount of coverage regmred to pay the sums secured by thls Mortgage.
<br />Tht insurance carrier providing the insurance shall 6e chosen by Burrower subject to approval by Lender: provided,
<br />that such approval shall no[ be unreasonably withheld. All premiums an insurance policies shall be paid in [he manner
<br />provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directly io the
<br />inwrance carrier.
<br />All insurance policies and renewals thereof shall tM in form acceptable m Lender and shall Include a standard mortgage
<br />clause in favor of and in form acceptable to Lender Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and aR rrceio[s of paid premiums. In the event of loss,
<br />Borrower shad give prompt notice io the Insurance eazrrr and Lanier. Lender may make prruf of loss if not made promptl}•
<br />6v Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall rte applied to restoration or repair of
<br />the Property damaged, provided such restorauan or repair is economically frasitale and the security of this Mortgage Is
<br />no[ thereby impaired. If such restoration or repair Is not rcvnomically leastbfe or If the serunty of this Mortgage would
<br />be unpaired, the insurance proceeds shelf be applied to the sums secured by this hlongage, with the excess, if any. paid
<br />to Borrower. If the Property is abandoned by $orrowrr, or If Borrower faits u, respond to Lender within 3t) days tram she
<br />date notice is mailed by Lender to Borrower that the insurance :.arner otters tv setter a claim for insurance benefits, Lrndrr
<br />is authorized to m]leet and apply the insurance proceeds at Lender's option either to restor,t[ioo or repair of the Properly
<br />ar to the sutras secured by this Mortgage.
<br />L`nlar Lander attd Borrower otherwise agree in wetting, an}' such application of proceeds to pnnclpat shall nut extend
<br />or pos~tprttae the due date of the monthly installments referred to in paragraphs t and '_ hzrevf or change the amount of
<br />such itastallmeots. ]f under paragraph ' g hereof the Property is acquired by Lender, alt right, tide acrd interest of Rorrower
<br />in and to any insurance policies arni in and [o xhr procexds thereof resulting from damage to the Propeny pnor to the ,ale
<br />ar acquisidan shall pass tv Lt~er to cite exiem of the sums secured by this Mortgage Immrdtatety pnor to such sale ar
<br />acgtdcition.
<br />b. Peesentt8an sni Mttinteatrece of Property; Leaseholds; Condomiaiunts; Planed Unit Ihvelopmrnes. Rorrower
<br />stuff) keep the 1?roperty in gaol repair and shall not commit waste or permit impaumen or deterioration of the Propen}-
<br />atd shat) comply with the provisions of any lease if this Mortgage is vn a leasehold. if this Alortgagc to on a unit in e
<br />eondominitua or a plarmul unit development, Borrower shall perform all of Borrower"s ob{igations under the declaration
<br />ar covenants creating or governing the ttndommtum ar planned ante develapmrnt the by-laws and regulations of the
<br />condominium ar planned unit development and constiuiem documents. if a condominium ur planned unit development
<br />rids is rxecutr:d by Borrower and recorded together wnh elite Mortgage, the covenants and agreements of such nder
<br />aball be incorporated into and shall amend and supplement the covenants and agreements of flits Mortgage as if the rider
<br />were a pact hueof.
<br />7. rrulectiw o[ Leaders Seceuity. If Borrow°er fads to perform the covenants and agreements contamrd m thls
<br />Mortgage, or if any ai:iion yr grxerding is commenced which materially affect. Lender's interest in the Prop:;rty,
<br />'including, but not limited to, eminent domain, inwivency, code rntarcrmant, or arrangcmcnts or proceedings imol+Ing a
<br />bankrup4 or decedmi, then Lender ai Lender option, upon notice to Burrower, may make such appearances, disburse such
<br />sums and iiakt such action as is necessary tv protect Lenders interest, uuluding, but not limned to, disbursement of
<br />reasonable anotney's fees and entry a.pon the Property to make rrpalrs. If Lrndrr required mortgage insurance as a
<br />condition of making the loan secured by this hiartgagr, Borrower snail pay the premiums regwred to mamtaul s^ch
<br />insurattct in tftect until such tithe as the requurmt:n! for such insurance trrrnutatis m accordance with Rurr~nver's and
<br />
|