|
r
<br />Urttsonrt COVENAN75. Borrower and Lender couenant and agree as follows:
<br />1. Payment of Prinefpal and Interest. Borrower shalt promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and fate charges as provided in the Note, and the principal of and interest
<br />on any Futwe Advances secured by this Mortgage.
<br />2. Fonds for Tazet and lasa:anee. Subject to applicable law or Fo a written waiver by L-ertder, Bottower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in faL',
<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 [he Property, if any, plus one-twelfth of yearly premium installments for hazard inswance,
<br />pros Otte-twelfth of yearly premium installments for mortgage insurance. if any, aH as reasonably estimated initially and from
<br />time to time by Lender on [he 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). 1_ender shall 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 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 m pay Borrower any interest or earnings on the Funds. Lender
<br />sha!1 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 fur the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with the furore monthly installments of Funds payable prior to
<br />the dye dates of taxis, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as the}' fall due, such excess shall 6e, at Borrowers option, either
<br />prompt(}' repaid to Borrower or cred'ried to Borrower nn 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 shall pay to Ixnder 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 6y this Mortgage. 1_ender shall promptly refund to Borrower any Funds
<br />held 6y I~;nder. [C' under pazagraph IR hereof the Property is sold or the Property is otherwise acyuired by Lender, Lender
<br />shag apply, no later than immediately prior to the sale of the Property or its augvisition 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. A.pplkation of Payments. Unless applicable law proviJes otherwise, all payments received by Lender under the
<br />Notre end paragraphs E and 2 hereof shall be applied by Lender first in payment ol` amounts payable to I-ender by Borrower
<br />under paragraph 2 hereof, then w 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 all [axes. asscssrocnts and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage. and leasehold payments ur ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or. if not psid 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 furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien.which has priority over this Mortgage, provided, that Borrower shall oat be
<br />required to discharge any such lien so long as Borrower shall agree in wriung to the payment of the ut+ligation secured by
<br />such lien in a manner acceptable to Lender. or shall in good faith contest such !ion bv. or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent [he enforcement aC the hen or Corlenure of the Property or any part thereof.
<br />5. $azard Insurance. Borrower shall keep the improvements nosy existing ar hereafter erected nn the Property insured
<br />against loss h}• fire, hazards inchtded within the term "extended eoceragc", anJ sr€ch other hazards as Lender ma}• require
<br />anti in such amounts aztJ for such periods as !..ender ntay require; pnrvideJ, that Lc^nr4~r shall nor rcquirz that the amount of
<br />such coverage exceed that amount of coverage reyurred to pay the aims secural by this .Mortgage.
<br />The insvrance carrier providing the insurauce slt:Jl be chosen h}• Borrc,.ver subject t,• appro.=at by tender; provided.
<br />that such approval shall not be unreasonably withheld. :\II premiums ors insurance puliues shall be paid in the manner
<br />prnvidr:d vnder paragraph 2 hertaf or, i[ not paid to such manner, by 8or°rotvet' ntakrng payrttcnt, when Jtte, drrccdy .+= the
<br />insurance carrier.
<br />Al( insurance policies and renewals thereof shall bt in form acccputblc m Lander :rod shall include a ,tondo`) mortgage
<br />clause in tavor of and in form acceptahle to Lender Lendu sh:dl hove the right to hull the puhcics and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal sauces and all receipts of paid prenums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance con'ic` anJ Lender. LenJer may make proof u( loss if oat nwde promptly
<br />by Borrower.
<br />+,~ ~r and varrow'Ci hCri..SC a4 . .,, ,.,, ref:, If Ci:ra.. .: pr `•1, .,hall 1... ,.I~td 'l- l`raliCn .`C CLp_iir ,tl
<br />the Property` damaged, provide) such restorauun or repair rs eamomitallp teasiMt and •jthe security,+of this Mortgage u
<br />no[ [hereby impaired. if such restoration or repair is nor economically Irttiihle ar rf the secunry' of this Mortgage wool)
<br />hs; tmpaved. the insurance proceeds shall be applitJ to the sums secure) by this Mortgage, with the excess, if any, yard
<br />to Borrower. !t the Propern is abanduneJ b} Burrower, .x i[ Bcrtower !ails to rcsixntJ ro LenJer within all days from [he
<br />dote notice is moiled by Lender to Borrower that the insurance carrier alien m scale n claim for insurance benefits, LenJer
<br />i> authonzed to collect and apply the m.>aran~c proceeds at Lender's option crihcr to restoration ur repair uL the Property
<br />ur to the sums sewreJ by this Mortgagt-
<br />Unless Lander .tad Burrower otherwise agree m writing, any such :ytpbcatiun of proceeds to prmapul ,hall not extend
<br />or postpone the due date of the montMp installments rcterrcd to in paragraphs I :rod ' hereof or rhnngc the amount or
<br />such installments. I[ under paragraph 18 hereof [hc 1'roptrtv is ucyuucJ by tender, all right, hale and interest of Borrower
<br />in and to any insurance policies and in and u+ the proceeds dttreot resulting from Jumuge m the Property prim to the >:Je
<br />or acyuisition shall pass to !.ender to the extent u[ the sums secured by this Mortgage immediately prior to such sale or
<br />acyuisition.
<br />6. Prexrvatinn sad Mitintenance of I'ropert}; Leaseholds; (tntdottriniunt+; ('tanned !!nit Ucveloomettts, itnrrutter
<br />shall keep tho' Property in ga+d `caul` and ,hull not (Douai` caste or permit nnpm anent or Jetcrioration nl the Property
<br />and shnB comply with the prnvistmts of any Itast rl the. Mot (gage ~~ nu a Ie;ncholJ. It' dti, 'vlur (gage i, on a tow in :
<br />condominium or n planned emit development, Borrower shall pcrhtnn all ul Born?err-s obhg,tuons under the declaration
<br />or covenams creating or governing the condominium nr plamad uun devrli?pmont, the by-laws anJ regul:uion, or die
<br />rnndominium or planned snit devtkil~untnt, and cunstiurem Jo.:uuttnrs. If a euuJominium or planneJ non dctclopmcnt
<br />rider is executed by Borrower wid recmda:l wgcther with this Mortgage. the corcnnnis and agrecmwt> nt ,udh n+Jrr
<br />shalt 6e iucorporateJ into and shalt :,-mend anJ >uppicnunt the cotenants and agrtentents of this Mortgage :r, rt rpm udcr
<br />were a part hereof.
<br />7. Protection of Lender's Security. If Bprtower t;u 1, to perhnm the covutama and agreements .ommncJ m thn
<br />Mortgage, or if any action ur proceeding is commences; to hrch materially aBe.as Lender's intrrc,t in the Pngxnt.
<br />including, hut. nut limited w, eminent domain, insolvency. wdc cntorcemen[, or ar rangemenb .rt pro.ecdineo unt,it urn .r
<br />'bankrupt or decedent. then L,euder at Lender s option, upon, ootict t:. Bonotvcr. nwy rook( su.h aplx-;u:un:c.,, +h,buoc ,udr
<br />sums and take such action as is ntccsvup to pancn Lcodtrs mtrr est. rnchnhng. hw not hooted m. J:,huncnscm .~~
<br />reasonuhle attnmty's Pets and envy upat the 1'ropcrty to make rcpaun. If Lender raywrd mtxtgugc in>ur.mce ;.
<br />to>ndiiian cf making the loan secured by ibis Mortgage., Borrower shah pay the prrntiwn~ reyuued ro maintain such
<br />insurance in aBect until srtch time ns the rcyuirentem for ,uch insurance rernmc,m, .r. awordancc wish Bur `otter's ,rod
<br />
|