|
'} ~,,, _ l f t~ i T ~ ~:
<br />y
<br />LJwtt'4ttxt Covt=.wntr7s. Borrower and Lender covenant ttrid agrrx as folloe s~
<br />4. ra;~itst o£ Pik a~ Ieiarest. Sorrower shall prorriptly pay when title the principal of and 'interest on the
<br />indebied[tess evidenttd by tht Note, prepaytrtmt and laze charges as provided in the 'Vote, and the principal of artd interest
<br />as aay Future Advances sectn-ed by this Mortgage.
<br />2. Fnede for Taxes ~ Insnrmure. Subiect to applicalsle law or to a written waiver by Lender, Horrawer s`,~II pay
<br />to LencLar on the day monthly installments of principal and interest are payable under the Note, until t<~ Note is paid [a. ' •'1.
<br />a stmt (heroin "Funds") equal to one-twelfth of the yearly [axes 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 innrratrce,
<br />plus one-twelfth of yearly premium insiaBments for mortgage insurance. if aay, ail as reasonably estimattd insiially and from
<br />time to time by Leader on the basis of assessments and bills 2nd reasonable estimates t'nereaf.
<br />The Funds shall b~ held in an institution the deposits or accounu of which are insured or guaranteed by a Federal or
<br />state agencry firtcludeng Lender if Lender is such an institution). Lender shat! apply rase Funds to pay said taxes, assessments,
<br />in3ttranCe premiums arrd groutrd rcnzs. Lender may not charge for so holding and applying tee Funds. analysing said actaunt,
<br />or veeifying and compiling said assessrettnts and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Linder to make such a charge. Borrower and bender may agree in writing at the tiros of execution of this
<br />Martgege that interest on the Funds shat! be paid to Borrower, and `unless such agreement is made or applicable law
<br />rcgitires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings oa the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds acrd the
<br />purpose for which each debit to the Funds was made. IZte Funds are pledged as additions! 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 prtior to
<br />fire due dates of razes, asszssrttents, insurance premiums and ground rents, shall exceed the amount required to pay said Taxes,
<br />assessments, inaurarrce premiums and ground rents as they fail due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sir8icient 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 mail
<br />by Leader to Borrower requesting payment ehereaf.
<br />Upon payment in full of all stuns secured by this Mortgage. Lender shalt promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shell apply, no later than immediately prier to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />~. ~ ~ ~aet~. - applicabl° ..ia..W ~ he^xise, a 1 payaxnts r., i°ed by r,~,..yte. .ndwr rFre
<br />Note and paragraphs 1 sad 2 hereofvshall be applied~by Lender first in payment of amounts payable to Lender by~Borrower
<br />under paragraph 2 hereof, then to interest payable nn the Note. then to the principal of the Note, and then to interest and
<br />principal on any Futtue Advances.
<br />4. Chugt~; Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a pnority over [fits Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided tinder paragraph 2 hereof or. if not paid to such manner, by Borrower making payment, when dire, directly to the
<br />payce thereof. Borrower shalt promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shad promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly diuharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br />required to descharge soy such Gen w long as Borrower shall agree m 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 paoceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any par[ thereof.
<br />3. Aai>Jrd Iwutantt. Borrower shall kelp the improvements now existing or hereafter erected on the Property insured
<br />against loss by Rre, hazards included within the term `extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such penuds a. Lender may requim; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount ot" coverage required to pay the sums secured by this Mortgage.
<br />i~ insures-~ earner frrovidi,3g i~,~ snsurance si[aii ire eiros:.ri by Barra:v~r su`uj~ci to approval by Lender; provid~i.
<br />that such approval shall not be unreasonably withheld. All premiums tin insurance policies shall be paid 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 />inaurat~:c carrier.
<br />All L~+r~nce. ~i._i~ an.i cert.-wat~ tnarY.,f shall ~. ,n torn, a .?pt=,bt~~ to Len=_ter and shah include a standard mortgase
<br />clause in favor of and in for.,t acceptable to Lender. :dzr shat! nave the right to bald the policies and renewals thereof,
<br />..,, d;krr~. i prYmpzly _, -, ,,,.~e,,... a., .~,v-n-, _,., .. ; ,,.. a,I ,.,ke;pts ., po... pry... ,. ..,... .... .
<br />~:t'_we~ s.~!lJOive E==- r .`~'-~to tf:: ,..~_.G=zz ea€.":- _.._'t_e:~a,. i!_:,.z~... , ..=lee pr=-_~tm•€ t.~ ir,_not mad~np_ ,mxrity
<br />by Borrower. _ -
<br />Ualeas 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 ectrnomicaGy feasible and the security of this Mortgage is
<br />not thereby fmpaired. If such restoration or repair is not economically feasible or i[ the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied [u the scans secured by this Mortgage, with the excess, if any, paid
<br />to Borrower If the Property is abandoned by Borrower, ur it Borrower fails to respond to Lender within 3i) days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier often to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lenders option eitlur to restoration or repair of the Property
<br />or to the sums secured 6y this Mortgage.
<br />Unless Lend<r and Borrower otherwise agree m wasting, any such application of proceeds to prncipal shall not extend
<br />or postpone the due date of the monthly instaiimenrs referred to in paragraphs I and 3 hereof or change ibe aniuuni of
<br />such installments. !f undee paragraph 18 hereof the Property is acyuued by Lender, all right, title and interest of Borrower
<br />in anti to any irsurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the Burns scented by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. ls+aervadou anti Maintenance of PropeHy; Leaseholds; Coodomiaiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall net commit waste or permit impairment or deterioration of the Property
<br />and anal] mr~ynty Gyith t_he prov;sionc r_rf any lence if [his Morrgage is pas a leasehold. if this Morteave is on a unit in :t
<br />~adominittm ar a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or coventwts creating or governing the condominium or planned unit development, the by-taws and regulations tit the
<br />condominium or planned unit development, and constituent documents. If a condominitmt or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such ndcr
<br />snail-be iucarpotated into and shall amend and supplement the covenants and agreemenU of this Mortgage as if the rider
<br />were a part hereof.
<br />7, P3~e'£t~tt a[ Le~sr's ~sttsEfvx,. if Borrower fails to perform the covenants and ageeemenL contained +n this
<br />Mortgage, of if aay action or proceeding is commenced winch materially affects Lender's interest in the Propene,
<br />including, but net limited to, eminent domain, insolvency, code entorcetnen[, ur arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, up:m notice to Borrower, may make such appearances. Disburse such
<br />sums and ftdee such action as is necessary to prvtcct Lender's interest. mcludtng. but not limited tn. disbursement i~f
<br />reasonable aitotney's fees and entry upon the Property to make repairs. If Lcndcr rcquireJ mortgage insurtncc as .+
<br />cantfition of making the Loan xcure.i 6y this Mortgage, Borrower shall pay the prrmiunis rcqutrcJ to maintain Bastin
<br />insurance in eff~t urttl such time as the requirement for such insurance tcrmmates in eccurdanee with Bmr<iwe:'s and
<br />
|