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<br />UN)FORM CovexexTS. Borrower and Lender covenant and agree az follows:
<br />i. Payment of Ptiaclpal and interest Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges az provided fn the Note, and the principal of and interest
<br />oa any Future Advances szctrred by this Mortgage.
<br />2. Ponds for Taxes sled losarance. Subject to applicable taw or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, anti[ the Note is paid in full,
<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-twelhh of yearly premium installments for hazard insurance,
<br />plus one•twelfth of yearly premium installments for mortgage insurance. if any, ail az reasonably estimated initially sad from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency t`induding Lender if Lender is such an institution). Lender shall apply the Funds to pay said Lazes, assessments,
<br />iasutance 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 exewtion 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 or earnings on the Futtds. Lender
<br />shalt 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 Mortgage.
<br />Lr the a_*noun! of 1!e Fungi held by Lender, together with the future monthly installments of Funds oayable 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 oxcess 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 suRtcient to 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 from the date notice is mailed
<br />by Lander to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, 1_ender shall promptly refund to Borrower any Fonda
<br />held by Lender If under paragraph ]8 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 tinder, 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 />Noce and paragraphs I 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 Future Advances.
<br />4. Charges; [fens. Borrower shall pay all razes, assessments and other charges, fines and impositions attnbutab{e to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents. if any, in the mancer
<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 iumish to Lender reczipts zvidenemg such payments.
<br />Borrower shall promptly dfscfiarge any lien which has priority over this Mortgage; provided, that Borrower shall no[ tx
<br />required to discharge any such Tien so long 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 faith contest such lien by, or defend enforcement of such Tien in,
<br />legal proceedings which operate to prevent the enforcement u[ the lien or forfetmre of the Property nr any part thzrzuf.
<br />5. Hazard Ittaorance. Borrower shrill keep the improvements now existing or hereu(ter erzcred on the Property insured
<br />agafust loss by fire, hazards included within the term "extended coverage". and such other hazards as Lender may reyuue
<br />and !n s!•cb amo!~n+~ and for such periods as Lender may rzgmm; provided, that Lender shall net require that the amount of
<br />such coverage excceri that amount of -:overage required to pay the sums secured by this Mongage.
<br />-ine insurance carrier providing the insurance shall bz chosen by Burrower subject to approvat by Louder, pravtdzd.
<br />that such approval shall not be unreasonably withheld. Al( 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 puymenL when due, Directly w the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standarJ mortgage
<br />cfatrse in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies :nrJ mnewals [hereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and all roceipts of pail premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss ii not made promptly
<br />by Borrower.
<br />Utsless Lender and Borrower otherwrse agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoraumt or repair is economically (easible and the security of this Mortgage ~,
<br />not thereby impaired. If such res'mration or repair is not economically (easible or d the security of this Mortgage would
<br />he imparted, the irsurana proceeds shag bz applied to the sums secured by this Mortgage. with the excess, i( any, paid
<br />to Aorrower. If the Property is abandoned by Rormwer, or d Borrower tails to respond to Lcndcr within 30 days from the
<br />date notice is mailed by Linder to Borrower that the insurance earner otters to seine a claim fur insurance benefits, Lcndcr
<br />s- authorized to collect and apply the insurance proceeds at Lender's option euhzr «+ restoruuon or repair tit the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to pnncrpal shall not zxtend
<br />or postpone the due date of the monthly installments rciened to in paragraphs I :md Z hereof ur change the anwunt of
<br />such installments. If undo paragraph Ig hereof the Property is acyuirod by Lender, :dl right, title and interest of Borrower
<br />in and w any insurance policies and in and to the proceeds thereui resuhing from Jamagz to the Property prior m the s:dc
<br />ur ac~luisitiau sirali pass to lender to the extent of the sums secured by this Mortgage munediatcly prior n, ,uch ,:rte or
<br />acquisition.
<br />6. Preservalqu and Melatenance of Property; Lxaeebolds; Cundominiunts; Planned l.lnil Uevelupmentx. }iorrowcr
<br />shall kezp the Property in good repair and shall not commit waste or permit tmpairnreut ur deteriormton of the Property
<br />oral shall comply with the provisions of any lease if this Mongage is on :t Izaszhold. It the, Mortgage is tin a unn m a
<br />condominium or a plauned unit development, Borrower shall perlurm all of Rorrowzrb obligauwu under rh,: deelaruuou
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and rcgulatiom of the
<br />wndominium or planned unit development, and constiutent documems. If :r condominium or planned unit developmcent
<br />rider is executed by Borrower and recorded together wuh thin Mortgage, d[e r rvenants .md agreements of uxh rider
<br />shall be incorporated into and shall amend and supplement the covenants and ugroements of this Mortgage as d the rides
<br />wire a part hereof.
<br />7. Protectipn of Leader's Security. If Borrower fails to perform the covenants and agroements conutincd m Ihis
<br />Mortgage, or if say action or proceeding is commenced which materially alfcct, LenJzr's nuaest in the Pn,peny.
<br />including, hue not limited to, eminent domain, insolvency, code enforcement, or arrmgements ar pn>Leedings nrvoh~ing a
<br />barrknipt ar decedent, then Lender at Lender's opGan, upon notice to Borrower, may make such appearance, disbut5e such
<br />sums and take such action as is necessary to protect Lender's intzrest, mduding, but not limned «+, disbursemem nt
<br />reasonable ateonrcy's fees and Cntry upon the Property to make repass. If Lcndcr required mortgage imw;wtt•
<br />cu..di!i n of making the loan secure) by this Mortgage, Borrower sh;dl pay the premiums requrrcd to maintain .uch
<br />iruryranse in effzct until such time as the requirement for each msutance. •^mm~;ues m accordance with Rorra+wer'~, and
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