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<br /> 78--� U008Q7
<br /> Utvrnoal.t Covaxexrs. Borrower and Lender covenant and agree as follows:
<br /> l. Payment oE P�inctpsl aud IntereaL Borrowei shall promptly pay when due the principal of and interut on the
<br /> indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and ffie principal of and interest
<br /> , on any Future Advances secured by this Mortgaga
<br /> ; 2. Fonds for Tues and Imurance. Subject to applicable Iaw or to a written waiver by I.ender, Boaowec shall pay ;
<br /> = to Leader on the day monthly installments of principal and interest are payable under the Note, untit the Note is paid in full, s -
<br /> a sum (herein "Funds") equal to ono-twelfth of the yearly taxes and assessments which may attain priority over this '
<br /> ! Mortgage, and ground renu on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance, %
<br /> plus ono-twelEth of yearly premium installments for mortgage insurance, if any, all as ressonably estimated initially and from '
<br /> dme to time by L.ender on the basis of assessments and bills and reasonable estimates thereof.
<br /> The Funds sball be hetd in an institution the deposits or accounts of which are insured or gnaranteed by a Federal or
<br /> � state agenry (including Lender if Lender is such an instimtion) . Lender shall apply the Funds to pay said taxes, asxssmenu, `
<br /> ', insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, ?
<br /> i or verifying aad compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br /> i permits Lender to make such a charge. Borrower and I,eader may agree in writing at the time of esecution of this
<br /> Mortgage that interest on the Funds shall be paid to Bonower, and unless suc6 agrcement is made or applicable law
<br /> { requires such interest to be paid, Lender shall not be required to pay Borrower any interest or eamings on the Funds. Lender
<br /> shat! givc to Horrower, wiihout charge, an anrtoa! accountiag of the Funds showing credits and debiu ro the Funds and the
<br /> purpose for which each debit to ffie Funds was made. The Fuads are pledged as additional security for the sums secured
<br /> ' by this Mortgage.
<br /> If the amount of the Funds held by Lendeq together with the fumre monthly installments of Funds payable prior to
<br /> the due dates of tanes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> asseasments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either
<br /> � promptly repaid ta Borrower or credired to Borrower on monthly installments 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 shaU pay to Lender any amount necessary to make up the de6ciency within 30 Jays from the date notice is mailed „}
<br /> by Lender to Borrower requesting' payment thereof. r!
<br /> k Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds �
<br /> held by Lender. If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
<br /> " shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by ':
<br /> j Lender at [he time of applicauon as a credit against thc sums secured by this Mortgage. �
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under ffie -
<br /> ( Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower � �
<br /> under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and +
<br /> ; principal on any Future Advances. F
<br /> � 4. C6a�ges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impasitions attributable to ?
<br /> A 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 heroof or, if not paid in such manner, by Borrower making payment, when due, dimtly to the �
<br /> payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and ia the event ; f
<br /> Borrower shall make payment directly, Borrower shall prompdy furnish to Lender receipts evidencing such payments. ; �
<br /> 4 Bonower shall prompdy discharge any lien which has priority over this Mortgage; pravided, that Borrower shall not be , ,
<br /> rcquired to discharge 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 Lender, or shall in good fait6 contest such lien by, or defend enforcement of such lien in, �
<br /> �' legal proceedings which operate to prevent the enforcement of the lien or fodeiture of the Property or any pan thereof. '
<br /> 5. Iiazard Insutance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured �
<br /> against loss by fire, hazards included within the term "extended coverage", and such othcr hazards as Lender may require
<br /> j and in such amounts and for such periods az Lender may require; provided, that Lender shall not require that the amount of !
<br /> such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br /> 11fe 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. All premiums on insurance policies shall be paid in the manner
<br /> ! provided under paragraph 2 herwf or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> insurance carrier.
<br /> ; All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> � clause in favor of and in form acceptable to Lender. Lender shal! have the right to hold �he policies and renewals thereof.
<br /> and Borrower shall prompdy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of ]oss,
<br /> i Borrower shall give prompt notice to the insurance carrier and Lendec Lender may make proof of loss if not made promptly
<br /> i by Borrower.
<br /> Ualess Lender and Borrower otherwise agree in writing, iasurance proceeds shall be applied to restoration or repair of
<br /> � the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br /> � not thereby impaired. If such restoration or repair is not economically fcasible or if the security of this Mortgage would
<br /> be impaired, the insurance procceds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> i to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> � date notice is maited by Lender to Borrower that the insurance carrier oRers to settle a claim for insurance benefits, Lender
<br /> ? is authariud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the• Property
<br /> � or to the sums secured by this Mortgage.
<br /> � Unless L.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> 1 or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br /> f such iostallments. If under paragraph 18 hereof the Property is acquired by Lender, all right, tiUe and interest of Horrower
<br /> y in and to any insurance poticies and in aad to the proceeds thereof resulting from damage to t6e Property prior to the sale
<br /> � or acquisition shall pass to Z.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> ; acquisition.
<br /> t 6. Preservatfon and Maintenance of PropeRy; Leaveholds; Condomioiums; Plan�d UnSt Developments. Borrower �. � �
<br /> 1 shall keep the Property in good repair and shall aot commit waste or permit impairment or deterioration of the Property
<br /> and shall comply with the provisions of any lease if this blortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> � condominium or a planned unit devetopment, Borrower shal! perform all of Horrowers obligations under the dcclaration
<br /> or covenanu creating or goveming the condominium or planned unit devetopment, the by-laws and regulations of the P.
<br /> ` condominium or planned unit development, and constituent documents. if a condominium or planned unit development
<br /> , � rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements of such rider �.. .p:d � �`�
<br /> � ahall be incorporated into and shall aznend and supplement the covenants and agreemenu of this Mortgage as if the rider y �>i'
<br /> , i wero a part hereof.
<br /> 7. ProtecUoo of Lender'e Securily. If Borrower fails to perform the covenants and agreements contained in this * +
<br /> L3 Martgage, or if any aMion or proceeding is commmced which materially affects Lender's interest in the Property.
<br /> 6 including, but not limited to; eminent domain, insolvency, code enforceme�t, or arrangements or proceedings involving a 1 ,; xx
<br /> � bankrupt or decedent, then L.ender' at Lender's option, upoo notice to Borrower, may make such appearances, disburse such e :' '
<br /> � sums and take such action as is necessary to protect Lender's interest, induding, but not limited to, disbursement of
<br /> ' reasona6le attomey's fees and entry upoo the Property to make repairs. If L.ender required mortgage insurance as a �,. ''
<br /> condition of makmg the loan secured by this Mortgage. Bomower shall pay the premiums required to maintain such
<br /> inswaace in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and
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