|
~._
<br />-- ;
<br />~`°~t~~i3~~ t
<br />1
<br />Utvri;oa41 Covts*rarv~rs. Harrower and Lander covenant and agree as fellows:
<br />I. PaymeaY o£ Prinr3pat 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 as provided in the Note, and the principal of and int>_rest
<br />on any Future Advances secured by this Mortgage.
<br />2.- Fends far Taxes and Irtsurance. Subject to applicable law or to a written waiver by Lender, 8orcower shat{ pay
<br />to Lander on the day monthly installments of principal and interest are payable under the Nate, until the Note is paid in full.
<br />a su.^.t (herein "Funds' equal to one-twelf'.h of the yearly [axes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of veady premium installments for hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from
<br />time to time by Lander on the basis of assessments and }sills 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 agenty (including Lander if Lender is such an institution ). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Ixnder 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 nn the Funds and applicable law
<br />permits I-ender to make such a charge. Harrower and Ixnder 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 or applicable law
<br />requires such interest to 6e paid, Lender shall not be required to pay Borrower any interest of earnings on the Funds. tender
<br />shat! 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 />If the amount of the Funds held by Lender, together with the futur monthly installments of Funds payable prior to
<br />the duo 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 Borrower's option, either
<br />promptly repaid to Harrower or credited to Borrower on manthty installments of Funds. If the amount of the Funds
<br />held by Lender shall eat tae sufficient to pay taxes, assessments. insurance premiums and ground rents as they fall due,
<br />Borrower shall pay is Lander any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender 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 Funds
<br />held by Lender. if under paragraph 18 hereof the Property rs sold or the Property is otherwise acquired by [.ender, Lender
<br />shall apply, na later t'nan immediately prior to the sale of the Property ar its acquisition by Lender, any Funds held by
<br />Leader at the time of app4ica5on as a credit against the sums secured try [his tvtortgage.
<br />3. Applicatfan of Payments. Unless applicable law provides otherwise. alt payments received by Lender under the
<br />Note and paragraphs !and 2 hereof shall be applied by Lender first in payment of amounts payable [o Lender by Borrower
<br />under paragraph ?hereof, then to interest payable on the Note, [hen to the principal of the Nate, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shalt pay all taxes, assessments and other charges. fines ;rod impositions attributable to
<br />the Property which may attain a priority over this Mortgage, 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 all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly (urnrsh to Lender receipts c+ideneing such payments.
<br />$orrawer shall promptly discharge any lice which has pnnrity aver this Marfgage; provided, [hat Borrower shall not he
<br />required to discharge any s~!ch lien so long as Aarrawer shall agree in •.vnung to the ; a}'meet of the nbligatien secured by
<br />such lien ir. a manner acceptable to Lender, or shall in goad faith contest sash lien hy, or defend enforcement of such lien in,
<br />Icgai proceedings which operate to prcveat the enforcement of the ben or farfeitnre of the Property ar any par[ thereof.
<br />/xsuraaee. Borrower shall keep [he Impra:emenis na:r e sung or hercatter erected an lire Pfaperty :ns::red
<br />against Ines bp' fire, hazards included within the term "extended ceverage'~. and such ether hazards as Lender may cognate
<br />a d is such a.,,.~ur;is and fcr such pe: today Lender may require: prwidzd, h, t i_endzr stroll mx reyuu:: the: ;he amount e.
<br />such coverage exceed that amount of coverage reywred W pap the u:.nts secured by due Mortgage.
<br />re insurance carrier providing the insurance shah be chosen by Borrower subject to approve! 6p' Lode:: provided.
<br />.,. - -- approval shall nai be unreasanal?iy with}ted. All premtums .. insara;tce falici'ra short :>e paid ::s t;r- moaner
<br />provided under paragraph 2 hereof or, if not paid in such manner, b)' Borrower making payment, when due, duectly [o the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to lender and shall include a srmdard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender :,hall have the right ur hold the policies and rencwah thueal,
<br />and Borrower shall promptly furnish to Lender all renewal notces and all receipts at paid premiums. In the event of lass,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof a[ less If not made promptly
<br />by Horrower.
<br />Unless Lender and Borrower o[herwase agr: c in wrung, insurance pruccuds shall br: applied to rcsioration ur repair of
<br />the Feoparty damaged, prowided such restorauon ar tepee is ecanamicaily feasible a'-1 the security of ihts Llortgagc n
<br />not thereby impair¢d. If such restorauon or repair is not economically fcasiL•le ar if the security of this Mortgage would
<br />be Impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, wuh the excess, if ;~ . paid
<br />[o Harrower. if the 1'roperey is abandoned by S3orn»ver, ur a Borrower tails [o respond to Lender within 3U days teen the
<br />date notice is mailed by L,crrt'ler to Borrower that the insurance earner orlon us seine a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair al the Pmpeny
<br />ar to the sums secured b}' Cluis Mortgage.
<br />Unless Lcnd¢br and Harrower otherwise agree m wruing. any such application of proceeds to pnnctpat shall not extend
<br />ar postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the anrount ut
<br />such installments If water paragraph IS hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance I?alleles and in and to the proceeds thereof resulting from damage to the Yropeny prior to the sale
<br />or acauisition shall pass tq I-ender to deg extent oI the sums secutul by this Mortgage Immediate(v print to such =_a!e er
<br />acquisition.
<br />5. Preservadan and h9aiatenance of Property; LRaselmlds; Condominiums, Irianned Unit Ilereiopmeats. Hormwcr
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shah comply with @te grovisians of any lease if this Morgage is an a Iea.chald. if this Mortgage is on s amt in a
<br />condominium ar a placated unit development, Borrower shall perform all of Psorrower's obhganons under the declaration
<br />or covenants creating or governing the condominium or planced unit development, the by-laws and regulations of the
<br />caadontiniunt or planned unit development, and constituent documents. It a condominium or planned amt development
<br />rider is executed by Borrower and recorded together wnh this Mortgage, the covenants and agreements of such rider
<br />shag'be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as it the rider
<br />were a pan hereof.
<br />7. Protection of header's Security. [f Borrower foils to perform the covenants and agreements rontained m this
<br />Mortgage, or if any action or proceeding is commenced which materially a(Iccts Lender's interest in [he Property,
<br />'including, but not timited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />softie and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />~;siS€~. of -°,dsing t.,e text: se;,ured try iris Iartgage, Harrower shat; pay the premiums required is maintain such
<br />,,.st,raare in eYfect unt;I satclr ih .e as the requirem€at fcr such insurance terminates iu accordance :vith Bo; rower's and
<br />
|