|
<br />UrtmoxM CovENeNTS. Borrower and Lender covenant and agree as follows:
<br />t. Paym~t of Prindpd sad Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />in&btedness 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 />Z, F+euda for Taxes arsd Inntsauee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable u.-..,~'.,-.r the Note, until 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-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and fmm
<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 (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying fire Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Hortower interest oo 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 applirable law
<br />requires such interest to tx paid, Lander shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accnumiag of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds wv made. The Funds are pledged as additional security for the sums secured
<br />by this Mongage.
<br />if the amount of the Funds heltl by Lender, together with the iunue monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired m pay said. taxes,
<br />assessments, insurance premiums and ground rents as rhey fall due, such excess shall be, at Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly knstallments of Funds. If the amount of the Funds
<br />hold 6y Lender shall not be sufiicient to pay taxes, assessments, insurance premiums and ground rents as they fell due.
<br />Borrower shall pay to Lender any ,:mount necessary to make up the defciency within JO days (rare rtes date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment iu full of all sums secured by thrs Morgage. Lender shall promptly refund to Borrower am' Funds
<br />held by Lender. If under paragraph IS hereof the Property is snld or the Property rs otherwise acquired by Lender. Lender
<br />shalt apply, nu later thin 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 Mortgage.
<br />3, Application of Payments. Unless applicable law prm~ufes otherwise, uli payments received by Lender under the
<br />Note sad paragraphs I and ?hereof shall be applied by Lender first m payment of amounts payable u, Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nate, and then m interest and
<br />principal un any Future Advances.
<br />4. Chargest f3erts. Borrower shall pay all taxes, assessments and other charges, fines ant unpasruons attributable [o
<br />the Propery which may attain a pnority over this Mortgage, and IeasehnlJ payments or ground rents. if any, in the manner
<br />provided tinder paragraph 2 hereof oc d' not pint m such manner, by Borrower making payment. when dun, directly to the
<br />payee thereof. Harrower shalt promptly furnish to Lender all notices of amounts due under this paragraph. sad in the event
<br />Borrower shall make payment directly. Aorrower ,hall promptly Yumrs'h to Lender receipts evidencing such payments,
<br />Borrower shall promptly Discharge any Tian whrch has pnonty user this Mortgage: provided. chat Borrower shall nut be
<br />regwred to discharge any such lien xi long as Harrower .chill agree in sritutg m the payrnem ui the ohLgauon ,reared by
<br />such ben m a manner nuoptable m Lender or shall in good faith contest such lien hy, or defend enioremrnt nr such aen in.
<br />legs( pn'xrstlings whrch operate to prevent the u;nfurcemrnt of the hen ur Yorteuure of the Prnpeny or any pan shereuf
<br />4. Razard Isararaurr. B€rrrower shat( keep ?he :nrpnxnmen[s now oyi,liug nr hereafter cCected on rho Prr:~n.y nrsureif
<br />against toss by' thee, hazards included, wnhrn rho term "zxtcnded anveragr', ant web other hazards ,r., L..cnder inn} irytur'c
<br />and m such atnnurtts oral tare such penoJ.e .,,, i..aoder may- royune: provrderi, that LcnJar ,hart nut reyuur that :nc am;^urx .ir
<br />such cuveraea exceed rtrat amount of coverage reyuired to pay thz wins ,ecureJ by •his ~9orgage.
<br />The insurance carrier providing the insurance shall he chosen by Borrower ,object io appmv:,l h}' I enter, prov!deJ.
<br />that such approval ,hall nut be unreasonubh• withheld. .All premmms ,.n insur:urce pohcres ,hall he part .n the manner
<br />provrded under paragraph 2 hereof or, if not pxrd in such manner. by Borrower making payment, when due, drrecth~ m the
<br />insurance earner.
<br />Alt insurance pohcres ant renewals thereat shall t,e m form acceprnblc ~o Len.ier .md shall instate a ,randanl nu+ngage
<br />clause m favor of and in farm acceptable to Lender Lender shall have the nght p. hold the policies .uuh renew eh there.a.
<br />and Borrower shall promptly ftumsh to Lender all renewal ounces noel .ell recarpts m pail przmuun,. In the esem of lu,s.
<br />Borrower shall grve prompt noose to the insurance earner .urJ LenJrr. Center inns make pne+l .+t loss it ^ot made pr,nnpth
<br />by Borrower.
<br />Uoleas LenJrr ~und Bonower ozherv ~te egret; ur ^atnmg utwurance i n «.cJ.v shall br ~applleei t r^sunratian ar repau nl
<br />the Property damagtyS, provided such reawtau«n ar xv.p"nr n o,ua,«n'm;':.rlh re:rsrh,u u,d Ihr• +t.+.w irv ul' thu Mongagc n
<br />not dttnebY rmpau'ed. Il such restnrauon ur rcpan rs nut ~~cona,mrcally reaxrhlu or .t the ~esx linty .^t ehrs 4lortgug«^ would
<br />Ise mtpatreJ,. the insurance prucoeds shall fee eplrhacl ur the sums ~aecured by rluro Mongrgr„ wine itte axccv. i( .n'rc, pa,J
<br />t~o Btu'rawer Id the Proparl:v rs abaodnned M YYurn,uweie„ or it Narr'ower' tints p. respond ~o Lumier withw ill .tat, In,ni rtes
<br />Date I'af;uea a rt7adeJ by [.ender a, Bun.,wer that rho uM'tsuruucr ,r:ur'rer ,dlcrs In .nettle .i dtnrru tlnr nuunurs:c heruelih_ Lendm
<br />is authonred to collrat and .rpply the uuurancc pnrceeXlx at I,enJet~v ~rluiau caber ko r,~korntion nr iep:ur of rtes Pro lv.•rry
<br />ar to Ihsa smm sex':nred by ttkrs Mungaga.
<br />Unleu Lander and Aorrower nrherwfxe agree m wrnmg, env suc}t applirnwn ul proceeds to principal ,hall nw ,^srend
<br />o~r postpone the Jue Jate lit dte rnamhly matallmrnts rcfrrn+d Ir+ m paragraphs I .md ? hareor or change she anruunp ~+t
<br />such uutallrnrnts. If tinder paragraph Itl herein the Property ~_> acyuued 1+~ LenJrr. ,JI nght, uJe noel nurnsi .n Non ow e:
<br />u7 attd tc airy uuuranae ~!tcam and ht end to thee proceeds thereat rasulLmg from damage u+ ific Pn,prm pray to iix ;a,«
<br />ur uc.grusrufm sltall pass to l..errder to rtes rxtznt ~.J' Ihr ,urns insured by rho Mortgage unnrv-rllau;h pain :, „rah ,ald~ +n
<br />7u:yuiaitron.
<br />6. Ptteaervelfoa and ;Vlalittrrratn'i of Propertyt I.raarhoWs: t'unelominimm: PlannrA Unit 1>rvrlupmrnls. N„r row er
<br />steal! k-rrp the Property in good repair and shall oat comma r. auc a:~r perms unp:urmrnn ar Jeleriorauun ur rtes. Praprny
<br />and shall comply with the Provrsrons of .ray Ieasa d Ihu M,u rgagz . nrr e Ie;srhuiJ. II ihr, Nun gage ~.nrn i
<br />condominium or a planned unit clevclopmem, Borrower ,hall I><rtnnn ell or Nornnvor'c obbg:urvns under the dedarurum
<br />or covenants creating or governing rtes a,ndormnnrm ar planned -gum development. the by-low, and regulation, of ~ha
<br />condominium or planneJ unit development, ant .unstiurznt documenn. It .+ eondununmm or plamrut non desel+,pnum
<br />reeler a execulrJ by Borrower ant recorded wgether wnh thi, Mortgage. the covenants ant agrcann•nls of ,uch nder
<br />shall be incorporated into :md shall amend ant wpplcmem the roc enants and ugrecments of this Mortgage ,u it she nder
<br />were a part hereof.
<br />7. Protection of Lender's Security. If &mowzr fiats io perform the covenants and agreements euivameJ m this
<br />Mortgage, or if any action or proceeding is a,mmenced whrch materially .dfects Lender's uneresr in the P•opern.
<br />including, but not limited to. eminent domain mwlvency, code rNorcement. or .urangrments or proceedings involving a
<br />bankrupt or decadent, then Lender lit Lender's opuun, uptm nun ce to Borrower, may make wch appearances, dnhursc uch
<br />sums and take such anion as s necessary to protect l.rndzrs nose est. including. inn nut Iimne<i to. disbursrmcu; of
<br />reasonable attorney's tees and entry up«m the Prv_txny ro make repau s. It Lender required mnrtgsge i!uucmcr a
<br />condition of making the loan secure) by thrs Morgage, Borrower shall pas the premium, ~cyuucd to rnamtam vich
<br />insurance in effect until such lime ass the reyuiremmu for ouch insurance icmm~ares m accordance wnh &urowcr\ .,red
<br />
|