|
~a.~; s) f? 16 ~? U
<br />Udmotut Covvrx,sxrs. Borrower and Lender covenam and agree as follows:
<br />I. Payment of Principal 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 intertsi
<br />on any Future Advances sectued by this Mortgage.
<br />2. Frmds for Tazn sled insurance. Subject to applicable law or to a written waiver by Lender, Borrower shag pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Nate. omit the Note is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessmenu 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 ins*aliments for mortgage insurance, if any, all 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 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 the Funds, analyzing said account.
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Fuvds and app6rabie taw
<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 sha0 be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Levder shall not be required to pay Borrower any interest or earnings on the Funds. Linder
<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 additions! security for the sterns 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 />Lhe due 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 Borrower or credited to Borrower tin monthly installments of Funds. If the amount of the Funds
<br />held by Lender shat! not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fats due,
<br />Dorrower 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 />L'pon payment in full of all sums secured by this Mortgage. Lender shall promptly refuvd to Borrower any Funds
<br />held by Lender. If under paragraph Ig hereof the Property is sold or the Propeny is otherwise acquired by Lender, Lender
<br />shall apply, no later than itttmediately prior to the sate of the Propeny 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 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 paragraph 2 hereof, then to interest payable on the Nute, then to the principal of the No[e, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall 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 grouvd 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 iv the event
<br />Borrower shall make payment directly, Borrower shall promptly (umish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br />required to 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 manner 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 [he enforcement of the Tien or forfenure of the Property or any part thereof.
<br />5. Aazsrd Imvrance. Borrower shall keep the improvements now existing or hereafter erected on file Property insured
<br />against loss by fire, hazards included within the term "zxtended coverage'", and such ether hazards as Lender may require
<br />sad in such amounts and for such periods as Lender may require; provided, that Lender shall rot require that the amount of
<br />sach coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance comer providing the insurance shall he chosen by Borrower subject to approval by Lender: pracided,
<br />that such approval shall not be unreasonably withheld. All premiums an insurance policies shall be paid m 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 />insurance carrier.
<br />Atl insurance policies and renew ats 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 Lender alt renewal notices and all receipts of paid premiums. [n the event of loss,
<br />Borrower shall fiRVe prompt notice to the insurance carrier and Lender. Lender may make proof of loss it nut made promptly
<br />by Borrower.
<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 resmration or repair is not economically feasible or ii' the securing of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. !f the Propeny is abandoned by Borrower, ur it Borrower fails to respond to Levder within 30 days from the
<br />date notice is mailed by Lender to Burrower That the insurance carrier offers to 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 of the Property
<br />ar to dre sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to prncipal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under patagmph tg hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the side
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquistion.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. &trrower
<br />shall 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 if this Mortgage is on a leasehold. [f this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
<br />or covenants creating or governing [he condominium or planned trait development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. if a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shalt amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection of Lender's Security. ff Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, ar if any action ur 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 />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's inrerest, including, but not limited to, disbursement ui
<br />reasonable attorney's foes and entry upon the Property to make repairs. If Lender requited mortgage inurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insuranx in affect until such lime as tha requirement for such ittsurancz tcrminatcs in accardancc with borrower's and
<br />
|