|
<br />Ur+tt+ottat Covetv,xtvrs. Borrower and Lender covenant and agree as follows: ~ ~ v ~ 0631
<br />I. P'oyureat of Priml~t aed IrrPerext. Borrawer shalt promptly pay when due the principal of and interest on the
<br />indebtedness evidettad by the Note, prepaytnent and late charges as provided in the Note, and the principal of and interest
<br />on any Iautitte Advances secured by this Mortgage.
<br />2. lPeteds (or Taus and Tta~araace. 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 under the Note, until the Note is paid in full,
<br />a tn.~°t ;6n,rei:s "Fundy"; e=,'= I to one-!w~fth 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 />pine one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially-and from
<br />6me to time by Lender on the basis of assessments and bitls and reasonable estimates thereof.
<br />Tha Fumis-shall be held in an institution the deaosits c • accounts of which aze insured or guaranteed by a Federal or
<br />stela agency (including Lender if Lander is such an insthn.ion}. Lender shall apply' the Funds to pay said taxes, assessments,
<br />ittsaraace premiums attd ground rents. Lender may not charge for su 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 [o 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 ar applicable law
<br />raluires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Baaower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />Impose 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 />[he 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 />prompdy repaid to Borrower or credeted to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they felt due,
<br />Borrawer 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 Borrawer requesting payment thereof.
<br />Upon iaymeni in full of all stuns secured by this Mortgage, i_endcr shall promptly refund to Borrower any Funds
<br />held by Lender. if under pazagraph 18 hereof the Property' is sold er the Propern• is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediatcl}' prior to the sale of the Properly ur its acqutsnion by Lender. am• Funds held by
<br />Lender at the time of application as a credit against the sums secured by this \1ertgage.
<br />3. Appikatioa ~ Payr~nts. Unless applicable law provides otherwise. all payments received by Lander under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender fist in payment of amounts payable to Lender b}' Borrower
<br />under paragraph Z hereof. then to interest payable on the Lute, then to the principal of the Note, and then to interest and
<br />principal on any Fumce Advances.
<br />4. Charges; I~e~. Borrower shall pay all axes. assessmems and other charges. fines and impusivans 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, it not pxrd in such m:mner, h} Burrower making payment, when due. directly to the
<br />payee thereof. Borrower shalt promptly furnish to Lender all ponces of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Burrower ,hall promp8} turm,b ~+, !.ender receipts evidencing such payments.
<br />Borrower shall promptly discharge an}' lien-whis:h has pnonty o,er tb., lfongage: prov,ded. that Borrower shall not be
<br />required to discharge any such lien so long rs 8arrower shall agree re ..Hung to the payment of the obligation secured by
<br />such lien in a manger acceptable to Lender, or nball in gex?d teeth rurtesr ,ueb lien hy. or defend ynforcement of such lien in,
<br />{egai ptnceedings which operate to prevent the enforcement of the lien .,r tarfenure of the Property or any part [hereof.
<br />5. Hazard Irssnraace. Borrower shall keep the impmvemcnt, Haw c~tsurrg nr hereafter erc3,ted on the Property insured
<br />against loss by fire, haurds included within the term "extendeJ euwyragc'-. and such ether hazards as Lender may reyuire
<br />and in such amounts and for scch periods a, Lender ma} reyuire: ;:rasrded. the! l.endyr .ball not reyuire that the amount of
<br />such coverage exceed that amount of coverage reywred to ; a~ the xmt> secured by thts Mortgage.
<br />The insurance carrier providing the insurance sfiail be .he.en hg~ Burrower subject to approval by Lender; provided,
<br />that such approval shall not be unreawnably withheld. :111 premnims on insurance policies shall be paid in the manner
<br />provided umfer pazagraph 2 hereof or, d rtot paid in wch manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />A8 itt3itranca policies anal renewals [hereu! shell he in tern; .+cceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender ,hall have the right to hold the policies and renewals thereof.
<br />and Burrower shall promptly Furnish to Lender al! renewal noures and all receipts of paid premiwms. In the event of lot„
<br />Borrower shall give prompt notice to the insurance carrier end Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in venting. insurance pra;eeds shall be applied to restoration ar repair o[
<br />the Property damaged, pravidcd such restarauun ur repair .s economically tcasible and the security of this Mortgage rs
<br />not thereby impaired. if such restoration ar repaie is not ewnumically feasibly or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shalt be applied to [hc sruns settired by this &tortgage, with the excess. if any. paid
<br />to Harrower. if the Property is abandoned h} Borrows:. or a Borrower tails ro respond to Lender within 3i) days from the
<br />date ~tice is mailed by Lender to Borrower that the insurance earner otters to settle a clam[ fur inwrance benefits, Lender
<br />is authorized to colhxt and apply the insurance proceeds at L.ender's option either to restoration or repair of the Properq
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in venting. any such application of proceeds to pnncipaal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and '_ hereof or change the amount of
<br />such installments. If under paragraph i8 itereaf the Property is acyuired by Lender, ail right, title and interest at Borrower
<br />in and to gap' insurance policies and in and to thy proceeds thereof resulting from damage to the Property poor to the: sale
<br />'or aegttisition shall pass to Lyoder to the extent uE the sums secured by this Mortgage immuiiately prior t:? such sole or
<br />acquisition. °
<br />6. Pmerration and Kttiateaance of Property; Leaseholds; Candominiams; Planned Unit [kvelopmenls. Borrower
<br />steal! keelr She Properry~ in good repair gad shall not commit waste ur permit impairment or deterioration of the Property
<br />and-sball comply with the provisions of any lease: ii this Mortgage is un a leasehold. if this Mortgage is on a unit in a
<br />coadominlttm ur a planned trait development. Burrower shall pcrEornt all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit developmen4 the by-laws anti regulatiuas of the
<br />~tadomiritutt or planned us+~t development, and constitucmt documents. 11 a condominium ar planned unit dewclopntent
<br />rider is executed by Borrawer and recnrdyd together wnh this Mortgage, the covenants and agreements of such rider
<br />:halt be incs3rporated into and shall anxend and supplement the u?vcnants and agreements of this Mortgage as if thy rider
<br />wire a part hereof.
<br />7~ Protacfian of f..eealtr's Security. lE Borrowver tads to perform the covenants and agreemerts contained in this
<br />Mortgage:. or if arty action or proceeding is ccrmmcnced which materia{ly nffe+:ts Lender's mtorest in the Propene,
<br />ittelitditig, but Hat lime€ed io, eminent domain. iusulveracy, u~de entorccmenr_ or arcangements ar pruceytfings mvoh•ing a
<br />bankrupt of =fee;:dant, then Leader at Lnutfer's option, upon naricy to Burn?wcr, may make ouch appenrmces, disburse such
<br />sums arW take such action 1i is teeccssar} to pre?test Lender's interest, including, but nut limned to, disbursement uC
<br />reasooattlo anuixray's teas and entry upon- ti:e Properly to make repairs. If !.ender rcyuired mortgage insurance ~+ .+
<br />r~anditioo of making the loan secured b}` this Mnrtgage, Burrower .halt qtly the pretmiunts requireaf to maintain ,ugh
<br />rnsittance in ctferst tmiil sir.h tltrte ns fix rey;aireBrynt far such mstuancr. te.mm~aies m accordan~c wnh Bor n,wcre anJ
<br />
|