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<br /> Uxrnoxt�t CovatveNrs. Borrower and i.ender covenant and agree as follows :
<br /> L Payment ot Pdndpai and Intens4 Borrower shalt promptly pay when due the principal of and interest on the
<br /> indebtedness evidenced by the Note, pnpayment and late charges as provided in the Note, and the principal of and interest
<br /> i ' on any Future Advancp secured by this Mortgaga
<br /> � ' 2. Fands for Tua and Ineurance. Subject to appiicable law or to a written waiver by Lender. Borrower shail pay
<br /> to Lender on the day monthly instaliments of principal and interest are payable under the Nou, until the Note is paid in full,
<br /> � , Q� a sum (hereia `•Funds'7 equal ro ona-twelfth of the yearty taxes and assessments which may attain priority over this
<br /> � Mortgage, and ground ronts oa the Property, if any, ptus one-twelfth of yearly premium installments for hazard insurance.
<br /> p� plus one-twelfth of yearly premium installments for mortgage insurance, if any, ali as reasonably estimated initially and from
<br /> � t�me to timt by Lender on the basis of assessments and bills and reasonable estimates theceof.
<br /> � T6e Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br /> � state agency (incTuding Lender if Lcnder is such an insNtution) . Lender shall apply the Funds to pay�said taxes, assessmrnts,
<br /> insarance premiums and ground rrnts. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> � � or verifying and compi►ing said assessments and bitls, unless Lender pays Borrower interest on ffie Funds and applicable law
<br /> � Op permita Lender to make such a charge. Borrower and Lender may agrce in writing at the time of execution of this
<br /> n Mortgage chat interest on the Funds shall be paid to Borrower, and unless suc6 agreement is made or applicable law
<br /> ; ' nquins sueh interut to be paid, Lender shall not be required to pay Borrower any interest or eamings on the Funds. Lender
<br /> shall give to Borrower, without charge, an annual accou�ting of the Funds showing credits and debiu to the Funds aud the
<br /> purpose for which each debit to the Funds waz made. The Funds are pledged as additional security for the sums sxured
<br /> by t6is Mortgage.
<br /> � t If the amount of the Funds held by Lender, together with the future monthly instaliments of Funds payable prior to
<br /> the due dates of taues, assessments, insurance premiums and ground rents, shaIl exceed the amount required to pay said taxes,
<br /> ; ; aasessmrnts, insurance premiums and ground renu as they fall due, such excess shall be, at Borrower's option, eithw
<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 sufficient to pay taxes, assessments, insurance premiums and ground rents as they fail due,
<br /> Borrower s6a11 pay to Lender uny amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by Leuder to Borrower mquesting' paymrnt thereof.
<br /> Upon payment in full of all sums secured by this Mortgage, Lender shall prompUy refund to Borrower any Funda
<br /> held by Lcader. If under paragraph 18 hereof the Property is sotd or the Property is otherwiu acquirod by Lender, Lender
<br /> shell apply, no larer than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br /> Leader at t6e time of application as a credit against the sums secured by this Mortgage.
<br /> 3. AppllcaHon of Paymenta. Unless applicable law provides otherwise, alt payments received by Lender under the
<br /> Note and paragraphs 1 and 2 hereof shail be applied by Lender first in payment of amounts payable to Lendtrr by Borrower
<br /> under paragraph 2 6ereof, then to interest payable on the Note, then to the principal of the Note, and then to intercst and
<br /> principal on any Future Advances.
<br /> 4. C6argee; Liens, gonower shall pay alt taxes, assessments and other charges, fines and impositions attributable to
<br /> 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 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> payee thereof. Borrower s6a11 promptly fumish to Lender all notices of amouats due under this paragraph, and in the avent
<br /> Borrower shall make payment directly, Borrower shal! promptly fumish to Lender receipts evidencing such payments.
<br /> Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borcower shall not be
<br /> required 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 faith contest such lien by, or defend enforcement of such lien ia,
<br /> legal proceedings which operate to prevent the enforcement of the tien or forfeiture of the Property or any part thereof.
<br /> 5. Hazard Insunnce. Borrower shalt keep the improvements now existing or hereafter erected on the Property insured
<br /> i � against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br /> i and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br /> such coverage exceed t6at amount of coverage required to pay the sums secured by this Mortgage.
<br /> "I'�e inaurance carrier providing the insurance shali be chosen by Borrower subject to approval by Lender, provided,
<br /> that such approval shall not be unreasonably withheld. Ali premiums on 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 /> insurance oarrier.
<br /> All insurance policies and renewals thereof shall be in form acceptabte to Lender and shall include a standard mortgage
<br /> clause in favor of and in form acceptable to Lender. Lender shall have the rig6t to hold the policies and renewals thereof.
<br /> aad Botrower shall promptly furnish to Lender aIl renewal notices and all receipts of paid premiums. In the event of ]oss.
<br /> Borrower shal! give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompNy
<br /> by Borrower. �
<br /> ; ; Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to ratoration or repair of
<br /> the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgnge is
<br /> not thereby impaired. If such restoration or repair is not economically feasible or if the securiry of this Mortgage would
<br /> be impeired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the exceu, if any, paid
<br /> to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to L,ender within 30 days from the
<br /> date natice is mailed by L,ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> �' is authoriud to cotlect and apply the insurance proceeds at Lender's option eiffier to restoration or repair of [he Property
<br /> or to the smas secured by this Mortgage.
<br /> �; Unless I.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eztend
<br /> ,� or postpone the due date of the monthly installments referred to in paragraphs t and 2 hereof or change the amouni of
<br /> �; such installmenu. If under paragraph 18 hereof the Property is acquired by 7.ender, alt right, tiUe and interest of Borrower
<br /> in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Properry prior to the sale i
<br /> or acquisition shall pass to I.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> i acquisition.
<br /> � 6. Preaervatlon and Maintenance of Property; I.easeholds; Coodomtniums; Planned Unk Devdopments. Borrower
<br /> shall keep the Propetty in good repair and shall aot commi[ waste or permit impairment or deterioration of the Property
<br /> : i and shall comply with the pzovisions of any lease if this Mwtgage is on a leasehold. If this Mortgage is on a unit in u
<br /> a condominium or a planned unit development, Borrower shalt perform all of Borrower's obligations under the declaration
<br /> � or covenants creatiag or goveming the coedomi�ium or planned unit development, the by-laws and rcgulations of the
<br /> � condominium or plaaned unit developmrnt, aad constituent documents. If a condominium or planned unit development t
<br /> rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider y� ,
<br /> , � shall be incorporated into and shall amend and supplement the covenants and agreements of this Mongage as if the rider __- �:
<br /> were a part hereof.
<br /> 7. BrolecNoo of I.ender'a SecarNy. If Borrower fails to perform the covenants and agreemenis contained in this � r ' x e
<br /> Mortgage, or if aay actioa or proceeding is commenced which materially affects Lender's interest in the Property, ;
<br /> . includ'mg, but not lunited to, eminrnt domain, insolvency, code rnforcemen[. or arrangements or proceedings involving a r . :;,�
<br /> ; bankrupt or decedent, thea L.ender at Lende�s option, upon notice to Borrower, may make such appearances, disburse such ; �
<br /> aums and` take such action as is necessary to protect Lender's interest, including, but not limited to, disbucsement of r ;,?`;
<br /> reseonablc attomey's fees and entry upon the Propeny to make repairs. If Lender required mortgage insurance as a ''' ^�+Y';
<br /> condition of makiag the ]oan secured by Wis Mortgage, Borrower shall pay the premiums required to maintain such �'' r-'`
<br /> - � , iffiuraaee in effcet until such time as t6e iequirement for such insurance terminates in accordance with Borrowers and
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