|
<br />Uvtroatrr CovttxA*ars. Borrower and Lender covenant and ogres as-follows:
<br />i. ?syment of Prsncipa! and Interest. Barower shall promptly pay when due the principal of and interest oa the
<br />fndebtrdness 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. Funds fort Tazes and lnsurtmce. Subject to applicable law or to a written waiver by Lender, Borrower shalt pay
<br />to Lender on the day monthly installments of orihcipal and interest are payable ender the Note, until the Note is paid m full,
<br />a stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and around rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurarce.
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, a6 as reasonably estimated initially and-from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />'lire Funds shat) be held in an institution the deposixs or accounts of which are insured.or guaranteed by a Federal or
<br />state zgency (including Lender if Lender is such an institution). Lender snail 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 />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 he paid to Borrower, and unless such agreement is made or applicable iaw-
<br />requires such interest to be paid, Lender shall not 6e required to pay Borrower any interest or earnings on [he Funds. Lender -
<br />shalt give to Borrower, without charge, an annual actouniing 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 Dredged as additional security for the sums secured
<br />py this Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Fvnds 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. sueh rsccss shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited-to Borrower an monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall-due.
<br />Borrower shalt pay ro Lender any amount necessary to make vp the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting pa}'ment thereof.
<br />Upon payment in fu1[ of all soots secured by this Mortgage. 1-ender shall promptly refund to Borrower any Funds
<br />held by Lender- If under paragraph IS hereof the Propert}' is said 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 of application as a credit against the sums secured by this ls4nrtgage-
<br />3. Application of PaymenLS, Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and Z hereof shall be applied by Lender first in payment of amounts payable to Lender b}' Borrower
<br />under paragraph 2 hereof, then to interest payable oo the Note, then to the principal of the Notc, and then to interest and
<br />principal an any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes. assessments and other charges, noes and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments it ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or. if oat paid in such manner, b}' Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shat! promptly furnish to Lender all notices nl amounts due under this paragraph, and in the event
<br />Borrower shall make pay:men! directl}•, borrower shall promptly furnish to Lcndcr receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has pnonry over this Mortgage: provided. that Borrower shalt not he
<br />required w discharge any such lien so long as Borrower shall agree in wnt:ne to the pap rnent i,f the obligau,in secured by
<br />such lien :n a manner acceptable to Lender, or shall in good faith contest such lien hy, or defend enforcement at such lien in,
<br />legal proceedings +vhich operate to prevent the enforcement oI the hen or torfriture of the Property or say part thereof.
<br />5. Hazard insurance. Borrower shall keep the improvements now caisung or hereafter erected on the Property msurcd
<br />against Ic ss by tire, hazards included wuh:n the term "rxterded .mec+ee'~, and such other hazards as [-ender may reauire
<br />and m such amounts and for such periods as Lender may reyurre; provided, that 1_ender shall not rcuuire that the amount o[
<br />_.-_ .:?rage a.ceed t.......mou.^.t , , coverage reyu:red h~ {=ay the onus caved by this MSortgage.
<br />rn"ire msuraace earner providing the insurance shall he chosen by Bornn+ar subject to approval by Lender, nruvided,
<br />!fiat - -oval s.... ^.ot ? ^rcasorably withheld °\I7 premiums ,,,, insurtrce aohcres yhaa ba paid in the moaner
<br />aravrd^,d.uader aaraerapb 2 h:reif or, if nisi patd ir. such moaner, by Borrower tusking payment, witon disc, directly to the
<br />InSUranCe C3rrief.
<br />All insurance palictes and renewals thereof shall be in form acceptable a Lender ;rod shall mdude a st:mdard mortgage
<br />clause in favor a[ and in [orm acceptable m Lender. Lender shall h;r.c the right ro hold lire polices and rencw;de thereof.
<br />and Borrower shall promptly [urnish to Lender :ell rerewa+l nooses and all receipts of paid prcmnnns. In the eo-ent of loss.
<br />Borrower shalt give prompt nonce to the insur:uece crater ;rod Lender. Coaster stay nc+ke pr,ot of Iws i[ not outdo promptly
<br />6y Borrower.
<br />Unless Lender and Borrower ethensase agree m wntmg, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair a rconnmiea117 tcudtle and the .courtly of this tiiortgagi: a
<br />oat thereb}' impaired. If such restorrnon or repine is Hal ecinamrcull} Icmhle or it ti;e security of this Mortgage would
<br />he impaired, the insurance proceeds shag be applied to the sums sceaurci h} this 6lortgagc. +vnh the excess, if any, paid
<br />to Borrower. If the Yeoprrq~ is abandoned by tiorrowrr, ar it Bon owc•r lai6 to respond to Lcndcr wrthm i0 days from the
<br />date notice is mailed by Linder to Bortower that the insurance carrier oilers ro scale a i:um for ^nur:mcc henclits, Lender
<br />is authorized to collect ;rod apply the msuranee proceeds ai Lender's option either to restoration car iepair of the Property
<br />ar to the sums secured by this SSortgugc.
<br />Unless Leoder :rod Borrower otherwise agree m wt nmg, any such upphcatiun of proceeds m pi utcip;d shall not e~teud
<br />ar postpone the due dale of the monthly installments rrlerret) to car parngr:rph. 1 and -'- hereof i,r change the anxnuu r,i
<br />such installments, if urttler paragraph 18 hereof the Property is acyuucd by Lcndcr, all right, title ;unl interest of furrower
<br />in and to an}' insurance policies and in and to the proceeds therein resulnng [ram damage h) the Property prior a> the sale
<br />or acquisition shall pass to Lender to the extern of the sums =ewred by this Mortgage i:nmrchately poor to such side car
<br />al'gUISIliVn.
<br />6. Preservation and Maintenance of Property: LeaSehoWs: Coudominiunis: Planned Uttit Uevelupuu•uts. Burrower
<br />shall keep the Property in good re{:air and .hall not commit waste it pernnt impainnmrc or Jcteriaration o[ the Property
<br />and shall comply with the provisions of any tease it this ~Sortgage is on a leasehold. II this Mortgage is on ;e unn m .i
<br />condominium or a planned unit development, Borrower shall pert orm all of Boron+cr's uhhgetions' under the drelarauun
<br />ar covenants creating or governing [he condominium or planned unn development, the by-laws and regulatiotn u1 [hc
<br />condominium or planned unit development, and consuu+cnt dncuntrnis. II a condominium car planned unn Jrvrlupmcnt
<br />rider a exeeut_ed by Borrower and recorded together with this Mortgage, the covenums ;rod agrerutrnts of such nJei
<br />shall ire incorporated into and shag amend end supplement ~.hc eov canals and agtements of this Mortgage as rf the ridei
<br />were a part hereof.
<br />7. Protection of Lender's Security. If Borrower tads to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proeeetling is conuncaced which materially slicers Lender's uncrest in the Propenv.
<br />including, but Heel limited to, eminent domain, insoh•ency, code cnforcemrnL rr artangemcnis or proceedings mvoh•mg a
<br />bankrupt or decedent, then Lender at Lendei s option, upon notice to Borrower, may make such appearances, dr+burse such
<br />sums and take such action :rs is necessary io protect Lender's mierest, including, but not lino led to, disbursentcra nl
<br />reasonable attarney'3 fees and entry upon the Yropcrty to make repnn s. It Lcndcr reyuirod mortgage insurance a ..
<br />setxliti~n of making the loan secured by thic_ Mortgage, l;nrn~wcr shall pis} the premiums requned to maintain each
<br />insuran_: in effect anti[ sueh time as the r: quircment for such ,r_+urancc Ienninaics in acan-danec with Borrower's and
<br />
|