|
<br />Utatratu Covetvsrars. 8orrowar and Lender covenant and agree as follows: 8 ~ ~ ~ ~ .7 {
<br />1. Paya-eit of 1!elacf~ad aatd laleraA. Borrowu ah:IS promptly pay when due the principal of seal interest on the
<br />iadebtedatet evidenced by the Mote, prepayment and late charges as pravidtd in tIx Note, and the principal of and lateral
<br />oa say Future Advatuea aecu[+ed by this Mortgage.
<br />3. lf~is ter'd^a~ea staff tit. Subject to applicable law or to a written wanner by Lender, Borrowu shall pay
<br />rn d.F.. ~ oa tfm dap ~tlap iarsllntents of pnncipai and itrtri:st are pay-aok uuder the iL'ote, until tic .' :,fe is paid :- full
<br />a stmt (herein "Futtda"} agtial to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, sad gtmmd teals on the Property, if any, plus one-hvelfth of yearly petmium instaWneats for hard insursttcx,
<br />plus atjo-twelfeh of yearly pretaium installments for mortgage insurance, if any, all as reasonably estitoated initially and from
<br />tiau Eo time try Leader on the basis of asseurnents and bills and reasonable estimates thereof.
<br />'llee Fonds dull be ~ in an institution the dept>sits or accounts of which are insured or guaranteed by a Federal or
<br />dam agency (inclw#ing i:.ptder it Lender is such an ittstinttion). Lender shall apply the Funds to pay sai¢ taxis, ttssesatttents,
<br />insurance premiums sad growtd rents. Gender may not charge for so holding and applying the Funds, analy~~ing said account,
<br />or vetifyittg and compiling said asesaaments attd bilks, un[ss Leader pays Borrower interest on the Funds and applicable law
<br />permits Ltraxter to makes= stall a char. borrower and Lender may agree in writing at the time of execution of this
<br />Mortgagee that interest on the Futeia shall be paid to Borcowcr, and unless stub agreement is mach or applicable law
<br />r+e~ttrs such interest ta fie paid, t.ettder shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall giro to Harrower, without charge, an annual accounting of the Funds showing credits and debits to the Futtds and tht
<br />purpose for which each delrit to the Funds was made. '[4te Funds are pledged as additional security for the soma secured
<br />by this Mortgage.
<br />If the amount of the Funtls held by Lender, together with the future monthly installments of Funds payable prior to
<br />the dire dates of taxes, assessmmta, insurance premiums and ground ttnts, shall exceed the amount required [o pay said toes,
<br />assesnaents, tasursoce premiums and ground rents as thty fall doe, such excess shat) fx, at Borrower's option, eithu
<br />promptly repaid to Borrowu or credited to Borrower on monthly instalments of Funds. If the amount of the Funds
<br />heM by Lender shah not be sufficient to pay taxes, assessments, insurarue premiums and ground renu as they fat! due,
<br />Borrower ahdl pay to Lender any amount necessary to make up the deficiency within 30 days from the data notice is mailed
<br />by i.ea~r to Horrowu requesting payment tlu,-eot.
<br />Upat payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 1g hereof the Property is sold or the Property is oxhetwise acquired by Lender, Lender
<br />ahadt apply, Ito tatu than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the Batt of application as a credit against the sums secured by this Mortgage.
<br />3. A of Psy~ht. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs t sad 2 hueof sha!1 bt applied by Lender first in payment of amounts payable to Lender by Borrower
<br />ua~r paragraph 2 Iterarf, elcen to interest payable an the Note, then ro the principal of the Note, and then to interest sad
<br />principal an any Future Advances.
<br />4. Chsegta; I.aiem, Bonowu shaft pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may eosin 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 tlret+rAf. Borrower shall promptly furnish to Leader all notices of :,maunu due under this paragraph, and is the event
<br />Borrower shall make gayment dirtsity, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrowu shag promptly diultargc any lien which has prrority over this Mortgage; provided, that Borrower shall not be
<br />required Eo dischsr~ anp such lien so long as t3oreower shall agree in wrung to the payment of the obligation secured by
<br />such neA in a manner acceptable La Ltndtr, or sifall In good faith ~anttli SnCh lien by, o[ Utfend CtliO[CC1Mni of sUCh 11QI in,
<br />legal proct~irtgs which operate to pttvmi the enforcement of the lien er forfenurc of the Property or any pan thereof.
<br />5. F3s3md Ertwrsace, Borrower shall keep the improvements now txisun$ or hereaficr erected an the Prnptrry insured
<br />against foss fry fire, hazards included within the term "Extended coverage". and such other hazards as 1_ender may requitt
<br />slut in sash amounts and for such peri:•ds as [,ender may r~gttire; provided, that Lender shall rat require that the amount of
<br />sash soveragt excttd that amount of coverage required to pay the sums secuttd hp this Mortgage.
<br />'Ihe insurance caerier providing the insurance shall be chosen by Borrower subject to approval by render, providt~
<br />that gush approval shall tt~f fie unreasonably withheld. A!I premiums an insurance policrea shaft bt paid in the manner
<br />provided under paragraph 2 huaof ar, rf Ira paid in such manrxr, by Borrowu mrdctng payment, when dirt, directly to the
<br />insurance carrier.
<br />AB insurance pansies and renewals therraf sfiali bt to form acceptable to Lender and shall tndude a standard mortgage
<br />c3attse in favor of and in form acceptairle to tinder. Lender shall have the right to bald the paliciea and renewals [hereof,
<br />alit borrower shall promptly furnish to Lender al! renewal noucts and all recetptc oS paid prrvvtiums. In tIx event of loss,
<br />Borrower shalt give prompx notice to tfte irtsttratue casritr and !..ender. Lender ma} make praoi at lass if rat made promptly
<br />fry Barroas"r.
<br />Unless Linder and Horrowu othtr+vi.;e egret in writing, Insurance prexetds chat: be applied to rtsioratian or repair of
<br />the Property damaged, provided such rcstaration or rcpatr es esonomicaBy feastbk and tfse securely of this Mortgage is
<br />sot thereby irnpaited. Ii such ttstorauon or rcparr is trot tcanomxaify feasti>ae w tf the vtcunty of this Mortgage would
<br />ire itttpairod, ttte iastuattcc protxeds shall be applied to the sutrri seared to this Mortgagt. with tlu excess, if any, paid
<br />ra Horrower. If the Property is abandoned by Borrower, or ,t Barrewer tan#s to r~pand to Ixader within 3Q days from the
<br />daft ratite is mailed by Lendu to Harrower that tilt rnsuraeut canner afftn to settle a claim for insurance benefits, Lender
<br />is authorized to tbllat and apply the insurance procoeds at Ltndcr`s option ettlter to rntaration or repair of the Property
<br />or to tine zam:s secuued 6y chis Mortgage.
<br />Unless Lender attd Borrower odterwist egret to wetting, anp such application ref prcx:ersds to pnnctpal shall not extend
<br />or poatpttrae the dot date of the monthly installments referred to rn paragraphs I and 2 hereof or change the amount of
<br />~ inawttttents_ If uadu paragraph 18 hereof the Property rs acyuued h}' Leader, aL' right, title and interest of Borrower
<br />in and to any insrtratus policies and in and to Litt pracCeds thereof resulting from dunagt to the Property prior to the sale
<br />or acgt~itioa shah pass to Lender to the extent of the sums crated try this Mortgage immediately prior to such sale w
<br />actitm.
<br />f. lsesursYea ssttl MNttr4emee of Peatgerty; I.eardte/da: Catiaasst Pleased Udt Derelopmestdr. Borrower
<br />sftslt peep the Property in good repair atoll slttdl twt comettit wane or permit impairment or deterioration of the Property
<br />sad shag comply with the Qrovssioas of any kale r( this Martgagt es an a leaseltoid. [f this Mortgage is on a unit in a
<br />mm~iaittm ex a ptaamd trait development, Borrower shall perform all of Borrower's obligations under the declaration
<br />oe a uetilrag or govuaing cite cortdcxntnitrm or planned unit devefoprmnt, the by-laws and regulations of the
<br />or piaaaui unit derelopmtnt, and cortstittxnt documents. it a condominium or planned unit ckvelopment
<br />rider k tateesatui by Borrower and rscordtd together with this Mortgage. ttte covenants attai agreements of stash rider
<br />t fss atestporNtsti itmt sad sltait amend alai suppkmertt tltt cavenan[s and agreements of this Martgagc as if the rider
<br />+vats a part hassof.
<br />9. lrsv~lselina et II.atAods ~1'• If Borrower fails to perform tam covenants and agreemenU contained in this
<br />or if say atxisst or ptowsdirtg is catnrrrcactd which mattridly affects Lender's eoterest in the Property,
<br />t~ ilea arts l~ti~d to, e~€netu dmautin, itutalvCruy. cods entcrrczment, or arrangtmtnts or ~prnstedfngs invaiving a
<br />htealtrtrpt eat dsaxi4mt. then iamntiaa :tt lXaoer'a option, upon rttrtett ro &tnaWCr, may make stub appasrattcu, disburse such
<br />cocas sad udts sorb aetlon as is ttscrassry to protect i.trukr's interest, including, hue not limited ta, disbursement of
<br />rgfde 9 flees and t+atry rtfiett tts+: Pctt~rty !o tr;ake repairs. !f L.tnder "squirsd martgagt iusur,;rt~t a., a
<br />of tab the ~n sacursd by +.'m: Mortgsgt, 8arcowtt shall pay tlxe prurtiutrts rryuired to maintain such
<br />ittsssetans !a tdlsc! suttil ta+ch t its :l•,e rtgttutotsnt for atrch ittsuranse ttrntinates an arxordsrx~e with Bergs and
<br />
|