|
<br />~C~--x ~'r ~'t ~ ~ ~ g
<br />Uxmow.t Covaxxxzs. Borrower and Lender covenant and agree as fe6ows:
<br />I. Payment of Prladpal and Iruerest. Harrower .dtall 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 interest
<br />on any Future Advances secured by this fortgage.
<br />& Fonds for Taaea and Insvrarsce. Subject to applicable law or to a written waiver by Lender, Borrower shag pay
<br />to Lender or. itx day monthly installments of principal and.ioteres[ are payable under the Note, until the No[e is paid in full,
<br />a sum {herein "Funds") egos! 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-twelfh of yearly premium installments for mortgage insurance, if any, at! as reasonably estimated initially and 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 ar 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 aad grotmd rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />ar verifying and compiling said assessments and bills, unless Lender pays Rorrower 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 be required to pay Borrower any interest or earnings on ih~ Funds. Lender
<br />shall 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 future monthly installments of Funds payable prior to
<br />the dve 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 />prampiiy repaid ro Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sttliirSent 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 Lender to Borrower requesting payment thereof.
<br />Upon payment is foil of alt sums secured by this Mortgage, Lender shall promptly refund to Harrower any Funds
<br />held by Lender. If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shalt apply, no later than immediately prior to the sale of [he Property or its acquisition by Lander, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this iYfortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received 6y Lender under the
<br />Note and paragraphs (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 shat! pay all taxes, assessments and other charges. fines and 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 [hereof. Borrower shah promptly furnish [o 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 Sian which has priority over this Rortgage; provided, that Borrower shall not be
<br />required [o discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a mariner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of ths^ lien or forfeiture of the Property or any part thereof.
<br />5. Hazard [usarance, Banower shell keep the improvemen€s now existing ur hereafter en;cred on the Penperty insured
<br />against lass Fry fire, hazards included within [he term "zxtendeci cavan'agz", and such other hazards as Lender may require
<br />and in such amounts and far =_uch periods as Lender may require; prc,v#dcd. that Lender ,hail not eequire that the amaun[ of
<br />such coverage exceed that amount of coverage ~rquired to pay the aunts r'ecured by this Mortgage.
<br />~ll:e insurance carrier providing the insurance shall }x ehasen by Harrower subject to approval by Lender, provided,
<br />that such approval ;hat! oat be unreasarably withheld. Ail premiums on insurance pahcies shalt bz paid in the manner
<br />provided under paragraph 2 hereat 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 [hereof shall be in farm 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 />aad Borrower shall promptly famish to Lender all renewal notices and ail receipts of paid premiums. to the event of loss.
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrawer.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property Damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not ecanamically feasible or if the securiry• of this Martgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secure) by this Mortgage, with the excess, if any, paid
<br />to Harrower. !f the Peopet[y is abandoned by Borrawer, or iY Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to scale a clean for insurance Itenefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair n[ the Property
<br />or to the sums secured by this Martgage.
<br />Unless Lender and Borrawer otherwise agree in writing, any such application of proceeds to prncipal shall not extend
<br />or postpone the due date oC the mauthly installments referred to in paragraphs I end 2 hereof ur change the amount oC
<br />such installments. If under paragraph l8 hereof the Property is acyuirett 6y Lender, all right, title and interest of Harrower
<br />in and to any insurance policies unJ in and to the proceeds thereof resulting from Janinge [u the Propzny prior to the salt
<br />or awuisition shill pass [o Louder to the extzrt nl the sums secured by this Mortgage ~ttttneDiateiy prior to such sale or
<br />acquisition.
<br />5. I'reservairon anti Maintenance of Property; Leaseholds; Condominiurm; Planned Unit Uevclopments. Horrowcr
<br />shall keep the Property in good repair and shall not commit waste or permie impairnem or Deterioration of the Property
<br />and shall comply with the previsions of any least if this Mortgage is tin a leasehold, if this Mortgage is on a unit in a
<br />condominium or a planned unit development. Borrower shall pennrm all of Borrower's obligations under the declaration
<br />or covenants creating or governing [he condominium or planned unit Development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit Jevelopmcnt
<br />rider is exe.:uted by Borrower and retarded together with this Mortgage, the covenants and agreements of such nder
<br />shall be incorporated io[o acrd shall amend and supplement the covenants anJ agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />9. Protection of Lender's Sectuity. I[ Horrowcr fails to perform the covenants anD agreements contained in this
<br />Mortgage, or iF any action ar proceeding is commenceD which materially affects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements ar proceedings involving a
<br />baukrvpt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />earns and take such action as is necessary to protect Levder's interest, including, but oat limited to, disbursement of
<br />reasonable attorney's fees and entry upon [he Property [o make repairs. If Lender reyuired mortgage insurance as a
<br />=andirio.= of m.,„iag the loan si<cuted ~;y this :tortgagz, Borrawer shah pay the premiums requireD to maintain such
<br />in='era _.•' in effect until setah time as the :egairemeai lot such insurance terminates in accordance with Borrower's attD
<br />
|