|
~Q-~ ~~~~
<br />Uxtaoau Covexn!vrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Prlacipai and Interest. Borrower shall prompd}' pay when due the principal of and interest on [he
<br />indebtedness evidenced by [he 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. r^unds for Tales and Itisoraoce. Subject to applicable ?aw ar to a written waiver by Lender, Barrower 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 full,
<br />a sum (herein "Feeds ') 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 installments for hazard insurance.
<br />plus one-twelfth of yearly premium installments far mortgage insurance, if any, aft 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 shaII 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 pa}• said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, ana4yzing said account,
<br />or verifying and corriling 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 Borrower, and unless such agreement is made ar applicable law
<br />requires such interest to be paid, Lender shall not he required to pay Borrower any interest or earnings nn the Funds. Lender
<br />shall give io 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, 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 8orrower's option, either
<br />promptly repaid to Barrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by L^..^.dor shalt net be su~eiant so pay taxes, assessments, insurance premiums and ground rents as they. fall due..
<br />Borrower shat) pay to Lender any' amount necessary' to make up the deficiency within 3C days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of aft sums secured 6}' this Mortgage. Isnder shall promptly refund to Borrower any Funds
<br />held by Lender. ii under paragraph Ig hereof the Property is sold tic the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to ehc sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Anpliratiae of Payments. Unless applicable law provides atherwisr, all payments received by Lender under the
<br />Note and paragraphs ]and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph Z hereof, then to interest payable an the Nate, then to the principal of the Note, and then to interest and
<br />principal an any Future Advances.
<br />4. Charges; Liens. Borrower shalt pay all ta.vrs, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this :vlongage, and leasehold payments or ground rents. if any, in the manner
<br />provided under paragraph Z hereof er, if not pa,d in such manner. by Borrower making payment when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all nonces of amounts due under this paragraph, and in the event
<br />Borrower shalt make pa}•ment directly. Borrower .hall promptly' furnish to Lender receipts evidencing ..=.uch payments.
<br />borrower shall promptly discharge any lien which has pnoray Deer this Mortgage: provided, that Borrower shall not be
<br />required to discharge any such lien so tong as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good laith con[eet such lien hy, or defend entarccment of such lien in,
<br />legal proceedings which apera[e to prevent the en[orcement of the ben or forfeiutre of the Property nr any part thereof.
<br />~. Idazsrd Insurance. Borrower shall keep the unprovements now existing or hereafter erected tin the Property insured
<br />against fuss by fire, hazards incWdrd witbia the term "extended coverage". and such other hazards as Lcndcr may require
<br />aad in such amounts anti for such periods as Lcndcr may rrquirc; provided, that I_endcr shall not require dint the amount of
<br />such Suva:ao- c d tM1 m-.tint er ..ai~rrsge teyuned to ,pat :he cunt -ec~,~,-d h. ih_s Mari aec-
<br />The insurance c:arri r pnviding the ,nsurance shall he chosen by Borrower +ublcet t,j approval b}• !ender. ;~rav+ded.
<br />that ouch appte..al =hai3 not be u.,reasouably .:ithhcld. .1!I prerntt:r.:a -.. i.^.s!irrnee petioles -st?ael b- ~sid in the manner
<br />provided under ;vragraph ' ltetent or.._r not yard in such manner, by Borrawer making payment, whenrdue, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thcreot shall he m Carm .mcrptahla m Lcndcr and shall include ,, siundnrd mortgage
<br />clause in favor of and in form acceptable [u Lender. Linder .hail have the right to hold the policies and renewals ihereoC,
<br />and Borrower sh;dl promptly furnish to 1_ender all renewal nonces and alt receipts of {?aid l*rcmiunt,. In the event of loss,
<br />Borrawer shall give prompt notice to the iusw'ancr earner :rod Lender. Lender nary make pnuii of lass it not made pnxnptl}'
<br />by Borrower.
<br />Unless Lcndcr and Borrower othenr+sr agree in wrong, insurance prucerds shall he applied m reswrrtiou er repair of
<br />the Property damaged, provided such restoration or repau is economically tensible and the security of thu Mortgage is
<br />not thereby impuierd, if lamb restaratton or repair is not economically Ieasihle or it the seruruy of flits Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured bS this Mortgage, «ith the excess, if :my, paid
<br />to Barrower. If the Propene is abandoned by Borrower, or :! (3ormwer tuts to respond to Lender wnhui 30 day's from the
<br />date Holier is mauled by Lender to Borrower th:u the insurance earner niters d-+ settle daitn for insurance benetitx, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either ro restorauou ur repair of the Propert7
<br />or to the swus secured by this Mortgage.
<br />Unless Lender ;rod Burrower otherwise agree m u•rumg, any xich application of proceeds to prmapal .~haii eon oxteod
<br />or postpone the due date of the nxxtthly instrtUmm~ts rrfcrred to in paragraphs i :utd 'hereof or change the amount of
<br />such. installments. if undor paragraph IS hereof the Property is acquired by Lvndrr, all right title and interest ul Borrower
<br />in and to ^ny insurance policies and in :Ind to the proceeds thcreot resulting trout daroagc to the Properq' prior to the side
<br />or acquisition shrill pass to Lender to the extent of thu sums secured by this Mortguke 'unmeiliately prior to such sale or
<br />acgGi3rnan.
<br />6. Pmservaiion aqd Afaiaieaance rf Property; IAaseholds; t:ontlominiaeo.; I'Lannrd L!rtil [?cvelapwcars, Burrower
<br />shall keep thy. Propany in goad repair and shall oat commit waste or permit uupainnrnt or deterioration of the Prope:ny
<br />and shall comply with [he provisions of any lease d this Mortgnge is on a leasehold. 1( this Mortgage n oft a unit in .,
<br />condominium ar a planned unit development, Barrower shad perform all of Borrower's n6bgauo~ns undor the declnratrun
<br />or covenants creating ar governing the conilomintum or planned unit development, the By-taws and rcgalations of the
<br />condominium or planned unit devclapment and constituent documentx. II' n condominium or planned uan development
<br />rider is executed 6y Borrawer and recorded tagethnr swih this Mortgnge, the covenant., anti agrecment> of such rider
<br />shall be incotporaied into and shall amend and supplement the covenants and ngtroolents of ihu Isiongugr :rs a the ndrr
<br />were a part hereof.
<br />'/, Protection of Lemler's Security. if Borrower fails to perform rho covenants and agreements contained m this
<br />Mortgage, or if any action or pracee<iing is commenced which materially nd~ects Lender's interest in the Property.
<br />including, but not limited to, eminent domain, insolvency, code enforcement ur nrrtngemerns or proc.cedings urvoh•ing a
<br />bankrupe or deceilent then Lender at Lender's option, upon notice to Borrower, may make such appearaaocs, disburse sorb
<br />loins and take such action as is necessary to protect L.ender's interest, including, but not timtted to, chshursrment of
<br />reasonable attonnxy's fees affil entry upon the Property to make repairs. It Lcndcr required nxrrtgage insurance a.c a
<br />canditian of making the loan secured by this Mortgage, Borrower shall pay the premiwns required in rnaintam such
<br />invr~rannn in ellect unlit suuh time as the requirement for such insurance terminates in arcordanee svittt Bormwcr's and
<br />
|