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<br /> �s-, U002F. 5 �
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<br /> Utv�onM Covertwa'rs. Borrower aad Lender covenant and agree as follaws : (,
<br /> 1. Psyment of PrindpW and 7nteres6 Hormwer shalt prompUy pay when due the principal of and interest on the _ .
<br /> indebtedneas evidenced by the Note, prepayment and late charges as provided in the Note, and t6e principal of and interest
<br /> oa any Future Advances secured by this Mortgaga
<br /> � Z. Fmds tor Ta=p and Insoeance. Subject to applicable Iaw or to a written waiver by I.ender, Boaower shall pay '
<br /> s to Lender on ttie day monthly instailments of principal and interest are payable under the Note, until the Note is paid in full, '
<br /> a :um (herein "Funds'7_ equal to onatwelfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground rents on the Property, if any, plus ono-twelfth of yearIy premium instatlmenu for hazard insurance,
<br /> jplus o�-twelfth of ycarly premium installmenta for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> dme to time by Lender on the basis of assessments and bills and reasonabie 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 /> ` atate agency (including I.ender if L.ender is such an institution) . Lender shalt apply the Funds to pay said taxes, assessments,
<br /> ' insurance premiums and ground rmts. Lender may not charge for so holding and applying the Funds, analyzing said account, '
<br /> or verifying and compiling said assessmenta and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br /> pwinib 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 shall be paid to Borrower, and unless such agreement is made or applicable law i
<br /> nquires such interest to be paid, Leader shall no[ be required to pay Borrower any interest or earnings on the Funds. Lender
<br /> t shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debib to the Funds and the
<br /> ?. purpose for wlaich each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br /> i by this Mortgage.
<br /> < If the aznount of ffie Funds heid by L.ender, together with the future monthly insiallments of Funds payable prior to
<br /> ` the due dates of taxa, assessmenu, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> aasesnmrnts, insurance premiums and ground renu as they fall due, such excess shali be, at Borrower's option, either
<br /> prompdy repaid to Borrower or credited to Borrower on monthly instaUments of Funds. If the amount of the Funds
<br /> ' $ held by Lender shall not be sutficient 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 mailed
<br /> ' by Leader to Borrowv requestiag' payment thereof.
<br /> Upon payment in full of alI sums secured by this Mortgage, Lender shall prompUy refund to Borrower any Funda
<br /> � held by Lender_ If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, L.ender r
<br /> F a6a11 apply, no later than immediatdy ptior to the sale of the Property or its acquisition by Lender, any Funds hdd by
<br /> i Lender at the time of appliaation as a credit against the sums secured by this Mortgage.
<br /> j 3. Appltallon of Payments. Unless applicable Iaw provides otherwise, all payments received by Lender uader the
<br /> Nou aad paragraphs 1 and 2 heteof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> iunder paragcaph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to inrerest and
<br /> principal on any Future Advances.
<br /> 4. Charges; I3e�, Borrower s6a11 pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> R t6e Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br /> , t 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 prompdy furnish to Lender all notices of amounu due under this paregraph, and in the event
<br /> � Borrowet shall make payment direcUy, Borrower shall promptly furnish 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 diseharge 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 L.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, :
<br /> ! legal proccedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. -
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<br /> � 5. Har�rd Insurance. Horrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> againat loss by 8re, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br /> ? and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of �
<br /> ` such covera e exceed t6at amount of covera e re uired to �
<br /> 7 g g q pay the sums secured by this Mortgage. i
<br /> , The insurance carrier providing the insuraace shall be chosen by Borrower subject to approval by Lender, provided, i
<br /> " f that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br /> � provided under pazagrap6 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dimtly to the
<br /> , � insurance carria.
<br /> All insurance poticies and renewals thereof shall be in form acceptablc 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 /> : E and Borrower sl�all prompdy furniah to Lender all renewal notices and ail receipts of paid premiums. In the event of loss,
<br /> ' 4 Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> by Borrower.
<br /> Unlesa Lender and Borrower othenvise agree in writing, insurance proceeds shall be applied to restoration or repair of '
<br /> � the Property damaged, provided such restoration or repair is ewnomically feasible and the securiry of this Mortgage is ,
<br /> not thereby impaired. If such restoration or repair is not economically feasible or if the security 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. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> i :! date notice is mai[ed by Leader to Borzower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> � is auffiorized to collect and appty the insurance proceeds at Lender's option either to restoration or repair of the Properry
<br /> ' d or to the sums secured by this Mortgage.
<br /> ' � Unless Leader and Borrower otherwise agree in writing, any such application of proceeds to principal shatl not extend
<br /> � or postpone the due date of the monthly installments refermd to in paragraphs 1 and 2 hereof or change the amount of
<br /> � such installment�. If under paragaph 18 hereof the Property is acquued by I,ender, all right, tide and interest of Borrower
<br /> ` in aad to any insutance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br /> jor acquisition shall pass to Lendet to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> � acquisition.
<br /> � . 6. Preservatlon and Maintenance of Property; I.case6olds; Condominiums; Ylanned Unit Devetopments. Borrower
<br /> shalf keep the Property in good repair and shall not commit waste or permit impairment or dererioration of the Property
<br /> and shalt comply with the provisions of any lease if this Mortgage is on a leasehold. If this Morigage is on a unit in a
<br /> condominium or a planned unit development, Bonower shall perform all of Borrower's obligacions under the declaration
<br /> or covenants creating or goveming tlae condominium or planned anit development, the by-laws and regulations of the �
<br /> condominium or plan�d unit developmen4 and constitueni documents. If a condominium or pta�ned unit development , _ .,� -
<br /> °` • � rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider _
<br /> a6all be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider �: �
<br /> � � were a part�hereof. � , � s
<br /> y . 7. Protecfion o[ Lender's Secoeity. If Borrower faiLs to perform the covenants and agreements contained in this : " `
<br /> M, Mortgage, :or if any , aMion or ,proceeding is commenced which materialty affects Lender s interest in the Property, i '
<br /> mcluding, but not limited to, eminent domain, insolvency; code enfomement, or arrangements or proceedings involving a A' '
<br /> ' y� bdnkrupt ocdeoeden4 �en Lender at I.endu's opdon, upon notice to Borcower. may make such appearances, disburse such i + , , 'r"�
<br /> • � swns and take such action as is neoessary to protect Lender's interest, including, but eot limited to, disbursement of ` '` i�q�
<br /> reasonable attoraey'a feea and entry upon the Properry to make repairs. If Leoder requircd mortgage insurance as a ^� '- '
<br /> ' condifion of makin the 1oa� secured b this Mort a e, Borrower shal(
<br /> g , y g g pay the premiums rcquired to maintain such
<br /> � ia��saxe in effect �mtil such time as the tequ'uement for such insurance terminates in accordance with Borcower's and
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