|
gl~}02802
<br />Ubtrnotitt Covt?tvnn'rs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Pdnclpal and Interest. Borrower sF.all promptly pay when clue 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 [his Mortgage.
<br />2. Funds for Taxes and Insurance. 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 payahle under the Note, until the Note is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over [his
<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 installments for mortgage insuroncc, if any. all as rcasanably estimated initially and from
<br />lima 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 guaranterd by a Federal oY
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxer, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said account,
<br />pr verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and app}icable law
<br />permits Lander to make such a charge. Borrower and Lender may agree in writing at ttte 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 ur earnings on the Funds. Linder
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to 4he Funds and the
<br />puroose for which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lx:nder, together with the future monthly installments of Funds payable prior to
<br />the due dates of tapes, 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 an monthly installme'4s 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 Lender any amount necessary [o make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment nc~rcet.
<br />Upon payment in full of all sums secured by this Mortgage, lender shall promptly refand to Borrower any Funds
<br />held by Ixnder. If under paragraph 15 hereof the Property is sold ar the Property is otherwise acquired 6}• Lender, Lender
<br />shall apply, no later than immediately prior to the sale tit the Property or its acquisition by Leader, any Funds held by
<br />Lender at the ume of application as a credit xgamst the sums secured by this !viortgagc.
<br />3. Application of Payments. Unless applicable law provides ctherwise. all payments received by Lender under the
<br />Note and paragraphs I and 1 hcrcu( shall be applied by 1_ender first in payment of amounts payable to Lender by Borrower
<br />under paragraph ?hereof, then to :merest payable an the Note, then [o the principal of the Note, and then to interest and
<br />princrpal on any Future Advances.
<br />4. Charges; Liens. Burrower shall pay all taxes, assessments and other _harecs, foes anti impositions attributable to
<br />the Prupetty which may attain a pnority aver thrs Mortgage, and Leasehold pa}~mcnts er ground rents. if any, in the manner
<br />provided under paragraph 2 hereof tic if no[ pool in such manner, by Bormwer cooking payment. when due, directly to the
<br />payee thereof. $orrower shall promptly furnish to Lender all nattces of amounts due under thts paragraph, and in the event
<br />$orrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has pnority over this Mortgage; provuleti, that Borrower shall not be
<br />reyuired to discharge any such lien >u long as borrower shall agree in writing to the payment of the obligation secured by
<br />such iten Sri a manner acceptable to Lender, or shall in good laith vntest such lien by, or detend enforcement of such ;ten in,
<br />legal proceedings which operate to prevem the enforcement of the her. or torterturc of the Property ar •any part thereof.
<br />5. Hazard Insurance. Borrower shall kcep the rmpmvements now esisung or hereafter erected on the Yroperry insured
<br />against!oss by fire, hazards included tvithm the term "extendev ~-overage~~. and such ether hazards as Lender may require
<br />and in such amounts and for such periods as Lender Wray icyuire: pnnided, that Lender shall not rcyuire that the amount of
<br />such coverage exceed that amount of ceverige requued to pay the >ums secured by the 6ortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. Aii premnnns on insurance pa;icics shall he paid m the manner
<br />provided under paragraph 2 hercot or, if not pard in such manner, by Burn+wer making payment, when due, directly to the
<br />insurance cazrier.
<br />Ali insurance policies and renewals thereof shat! be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender- =-coder ahxll hate the right to hold the policies and renewals thereof,
<br />and Burrower shall promptly furnish m Lender all renewal notices and ail receipts of paid premiums. Ir. the event of loss,
<br />Borrower shalt give prompt notice m the insurance .arner end Lender. I,cnder to„} make proof of loss iY nu[ made promptly
<br />by Berrawer.
<br />Unless Lender and $OrrOWt',r otherwrse agree m twntutg, inswanw pit+ceeds shall he applied to restoration ur repair of
<br />the Property damaged, provided such rcs[oration ur ,eparr rs cconumirdly feaable and the security of this Mortgage is
<br />not therebr• 9mpaired. if such restcr.mon or repau s rot eamomrcaily !castitle or if the security of this .kortgage would
<br />be Impaired, the insurance proceeds shat) br upptied to the sums secured by thrs Morgage, wnh the excess, if any, paid
<br />to Borrower. I[ the Property' is at?andonrd h} Burrower, ur it Borrower tads ;u respmd to Lender w•nhin iU day, from the
<br />date notice is marled by Lender [o Burrower that the insurance earner otter> +a settle a claim fur insurance baneilts, Lender
<br />is authorized to called and apply the iusurancc proceeds at Lender", ~-+puoo either to resturatio{t ur repair of the Property
<br />or to the sums secured by this 1•lortgagc.
<br />Unless Lendes and $orrower ctherwise agree in venting. any such application of proceeds to principal shall not estend
<br />or postpone the due date of the monthly installments referred to in paragraphs ', and ~ hercot or change the amutmt of
<br />such instathneots. IY mide: paragraph 15 hercot the Propt:r[y is acyuued by I_cndrr, a!1 right, tide and interest of Borrower
<br />in and to any iusurance politico and in and to the proceeds thereof resulting from damage to the Prapeny prior to the sate
<br />or acyuisition shad pass to Lander to ih:: extent tit the sums soured by [hiy .furtgage immediately prior to suet: sale or
<br />acquisition.
<br />6. Preservation and Vfaiturnance at Yroprrly; Lcasehulds; Condominiums; Planned knit Developnoents. Borrower
<br />shaft keep the Property in good repair and shat! oat romniit 'haste or permit arrpairmtnt ur dcterioratiun of the Properly
<br />and shall comply with the provisions of any lease a this 'vturtgugc is on a :_.,chcld. 11 thls ~lurtgage is on a unit tit a
<br />condominium ct a ptannui unit det~eiopmcnt, borrower shall perfurn; ail ul Bolnxver's obligations [order the dedartt:on
<br />or covenants creating or governing the cundarntnmm or planned unit dcvriopntenL the bt'-law[ :utd tegulaiior.; of the
<br />aondotnimum or planned unit devetapn:eat. and atnsthtrent documents. It a cuadan;inium oI ph:nned unit deveh>pmer.t
<br />rider is executed 6y $orrower and rrcurded together wnh thrs Mortgage, the covenants and agrecrnentt esf such rider
<br />shall be incorporated into and shah amend and supptcmcnt the covenants and agreements ~+f this Mortgage as if the rider
<br />were a part hereof.
<br />7, Pratectiaq of Lrnder's Srcurify. It Borrower fails to perform the covenants and agreements"contained :n thu
<br />Mortgage, ar si any action cr prxeeding is cotnmertecd which materi.atiy a!€cets Lrne!er't tnleresi in the Yrupcnv,
<br />including, but not limited ta, eminent domain, it>_eolvcncy, code enforcement, or nrzangamcros er proceedings :urolving a
<br />trankrupt or decedent, thin Lender at I~;ndea's upu<n, upon notice to Borrr'~wer, :nay make such ap~;aau,cea, disbur>e such
<br />sums and [aka such action as rs necessary to protect I-cs:der"s ,nterr>t.:e<i,rdial;. but not iimitrd to. J:s};urscmcut r,i
<br />rn~anable atwrncp's €t€es and entry opal the Property to make re;=ears. 1! t,_nde=~ required mortgage insurance ss a
<br />condition of making the bun cured by tills Mortgage, $atYflwer shai3 pay- :he premiums required to mximatu such
<br />Itezuranct in effrr.t unlit such ume as : rcyuiremetit Eor •:rtch inn:ant:_ teeminates ,n ac.:~~rda:t:e wr:h Bur;+.:wer'~. and
<br />
|