|
<br />1JNLFOA?i CcyaRnn-rs. Borrower and Lender covenant and agree as follows:
<br />F. Pa}inept of Principal and Interest. Borrower shall promptly pa}' when due the principal of and interest on the
<br />indebtedness evidenced by the Note. prepayment and ;ate charges as provided in the Note. and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />?. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver 6p Lender. Borrower shall pay
<br />to Lender on the d-a}~ manthic installments of principal and interest are payable undo: the Note. until the Note is paid in full.
<br />a sum (herein "Funds"; equal to one-twelfth of the veariy taxes and assessments which may attain priority over this
<br />Mongage, and grotmd rents on the Properry•. if any. plus one-twelfth of pearly-premium installments for hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance. if any, all as reasonabh' estimated initially and from
<br />time to time by Lender on the bans of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held i^ an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state zgency (including Lender if Lender is such an institution). Lender shalt apple the Funds to pay said taxes, assessmenss,
<br />insurance premiums and ground rents. Lender may not charge for so hclding and applying the Funds. anal}zing 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 mar agree in writing at the time oT execution 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 be required to pa}' Borrower ant interest or earnings on the Funds. Lender
<br />shall give to Borrower, without char¢e. an annual accounting of [he Funds showing credits and debiss to the Funds and the
<br />purpose fcr which each debit to the Funds was made. The Funas are pledeed as additional securiq~ for the sums secured
<br />by this Mortgage.
<br />If the aznount of the Funds held by Lender. together with the future monthly installments of Funds payable prior to
<br />the due antes of taxes. assessments, insurance premiums and ground rents, shall exceed the amoum required to pay said taxes.
<br />assessmenu, insurance premiums and ground renu as they tall due. such excess shall be, aY Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If rho amount of the Funds
<br />held by Leader shad not 6e sutLcient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to Lender an}' amount oecessan• to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mongage. Lender shall promptly refund to Bonower any Funds
<br />'held by Lender. If under pazagraph 7 S hereof the Propeny is sold or the Property is otherwise acquired by Lender. Lender
<br />shall apply, no later than immedia[ely prior m the sale of the Propeny or its acquisition by Lender, any' Funds held by
<br />Lender at the time of app(icadoa 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 i and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under pazagraph 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; Liens. Borrower shall pay ail taxes. assessmenu and other charges. fines and impositions attributable to
<br />[he Property which ma7 attain a priority over this Mongage. and leasehold payments or ground rents. if any, in the manner
<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 ail notices of amoum due under this pazagraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such paymenu.
<br />Borrower shall prompily discharge any lien which has priority over this Dfongage: provided. that Borrawer shalt not be
<br />required to discharge any such lien sa long as Borrower shalt agree in wrung m the payment of the oblige[ion secured b}'
<br />such hen in a manner acceptable to Lender, or shall in good Earth comes[ such lien hp, or defend enforcement of such lien tn.
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pari thereof.
<br />S. Ilaxssd Lrs~.traree. Borrower shall keep the ampravemeau new existing pr hereafter erected on the Property insured
<br />against loss by tare, hazards included within the term "extended coverage". and such other hazards as Lender may rcouirc
<br />and in each amaunis and fcr sue:^. periods ~ Lender may require, prm•idcd, that Lender shall not require that the amount of
<br />such coveraee exceed that amount of caverage requred ro pay the sums secured by tMs Mortgage.
<br />The insurance cazrier providing the insurance shall be chosen b}~ Borrower subject to approval by Lender; provide$
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph Z hereof or, if not paid in such manner, by Harrower making payment. when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to 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 Leader all renewal peaces and all receipts of paid premiums. In the event of lass.
<br />Borrower shalk give prompt notice [o the insurance tamer and Lender. Lender map make proof oI loss if not made pmmptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to resmration or repair of
<br />the Property damaged, provided such restoration or rcpau is economically feasible and the security of thu Mortgage is
<br />not thereby impaired. If such restoration or repair is not economtcall}' tensible or d the security of this Mortgage would
<br />be imparted, the insurance proceeds shall be applied [o the sums secured by this Mortgage. wuh the excess, if any. paid
<br />to Borrower. if the Properq is abandoned by Borrower, or if Borrower tails to respond to Lender within 3G days from the
<br />date notice is mailed by Leader to Borrower that the insurance carrier offers m settle a claim for insurance benefi[s. Lender
<br />is authorized to coYlect and apply the insurance proceeds at Lender's option eithez to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall nob extend
<br />or postpone the doe dale of the monthty installments referred to in paragraphs 1 and ?hereof or change the amount of
<br />such installmenu. It under paragraph 18 hereof the Property is acquired 6y Lwder, all right, title and interest of Borrawer
<br />la and to ~} insurance ~hctes and in and ro the procceds thereof resulting tram damage to the Prope: ry~ prior to the sale
<br />or acquisttion shall pass to Lender to the extent of the sums secured 6y this Mortgage immedia[ety prior to such sale er
<br />acquisition.
<br />6. Prtservation aad Mafatenanee of Propeny; Leaseholds; Condominiums; Planned Unit Developments. borrower
<br />Khali keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Propeny
<br />and shall comply with the provisions of any lease it this Mongage is on a leasehold. if this Mortgage is on x unit in a
<br />condominium or a planned trait development, Borrawer shall perform all of Borrower's obhgations under the declaration
<br />or covenanu creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constiturnt documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together wi[h this Mortgage. the covenanss and agreements of such rider
<br />shall be iaeotporated into and shall amend and supplement the covenants and agreements of this' Mongage as if the rider
<br />were a part hereof.
<br />7. Protaetian of Lender's Security. It Bonower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's imerest in the Propeny,
<br />including, bu[ not limited to, eminent domain, insolvency, code enforcement, or azrangemenu or proceedings involving a
<br />battkrupt or decedent, then Lender at Leader's option, upon nonce to Bonower, may make such appearance, disburse such
<br />sums and take -such action as is necessary to protect Lender's interest. including, but not limited to, disbursement of
<br />reasonnble atiamay`s fps and crttr}' upon tht Praprny to make rapairs. If Lender required mortgage insurance as a
<br />wnditian of making the loan sccurcd by this Mortgage, Borrower shell pay the premiums required [e maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
<br />
|