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<br /> 78- U01108
<br /> Utvrnoxni Covexeivrs. Borrower and Leader covenant and agree as follows:
<br /> 1. Payment ot Pdacipal aod Intereet. Borrower shall prompUy pay when due the principal of and interest on the
<br /> indebtednesa cvidenced by t6e Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br /> � on any Future Advances secured by this Mortgage.
<br /> 2. Pbnds tor Tases aed Imurance. Subject to applicable law or to a wriuen waiver by Lender, Bonower shali pay
<br /> � to I.endet on the day monthly installments of principal and interest are payable unde� the Note, until the Note is paid in fuil,
<br /> ! a atun (herein "Funds'� equal to ono-twelft6 of the yearly taxes and assessmenu which may attain priority over this
<br /> 't Mortgage, and ground rents on the Property, if any, plus one-twelhh of yearly premium installments for hazard insurance,
<br /> plus ono-twelfth of yearly premium iastallments for mortgage insurance, if any, atl es reasonably estimated initially and from
<br /> flme to time by Lender on the basis of assessments and bilis and reasonable 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 Lender if Lender is sueh an instimtion ) _ Cender s6at1 apply the Funds to pay said taxes, assessments,
<br /> i insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and compiling said aasessmenLs and bills, unless Lender pays Borrower interest on the Funds and applicable Iaw
<br /> permita 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
<br /> ' � reqaires such interest to be paid, Lender shatt not bc required to pay Borrower any iaterest ar earniRgs on the Fuads. Leoder
<br /> shall give to Horrower, without charge, an annual accounting of the Funds showing crediu and debits to the Funds and the
<br /> purpose for which each debit to the Funds was made. T6e Funds are pledged as additional security for the sums xcured
<br /> , } by this Mortgage.
<br /> ; If the amount of the Fuads held by Lender, together with the future monthly installments of Funds payable prior to
<br /> � the due dates of taxu, assessmeots, insurance premiums and ground renu, shall exceed the amount required to pay said taxes,
<br /> aasessments, insurance premiums aad ground rents as they fall due, such excess shall be, at Borrower s option, either
<br /> � promptty repaid to Borrower or credited to Borrower on monthty installments of Funds. If the amount of the Funda
<br /> � held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents a+ they fall due,
<br /> ,
<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 Borrower requesting payment thereof.
<br /> � Upon payment in full of alI aums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br /> � held by Lender. If under paragraph 18 hereof the Propeny 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 /> Lender at the dme of appGcatian as a credit against the sums securod by this Mortgage.
<br /> f 3. Appllcation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> Note and paragraphs 1 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 Noce, then to the principal of the Note, and then to interest and
<br /> : �. principal on any Future Advances.
<br /> � 4. Chargee; I3ens. Borrower sha11 pay all taxes, assessments and o[her charges, flnes and impositions attributable to
<br /> i the Ptoperty which may attain a priority over this Mortgage, and leasehold payments or grouod rents, if any, in the manner
<br /> prnvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
<br /> ; � payee thereof. Borrower shal! promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br /> � Borrower shall make payment directly, Borrower shall promptly fumish to L.ender receipts evidencing such payments.
<br /> Borrower shall promptly discharge any lien wfiich has priority over this Mortgage; provided, that Borrower shalt not be
<br /> !' required to dischazge any such lien so Jong as Borrower shall agree in writing to the payment of the obligation secured by
<br /> � such liea in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lim in,
<br /> legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thercof.
<br /> 5. Ha�ard Iosarance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> E againat loss by Sre, hazards included within the term "extended coverage", and such other hazards as Lender may requirc
<br /> � and in such amounts and for such periods as Lender may require; provided, that Lender shall not requirc that the amount of
<br /> sach coverage exceed that amount of coverage required to pay ihe sums secured by this Mortgage.
<br /> 'Ihe insurance carrier providing thc insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> ' T that such approvat shall not be unreasonably withheld. All premiums on insurance policies shalt 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 carrier.
<br /> F All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mongage
<br /> E clause in favor of and in form acceptable [o Lender. Lender shall have the right to hold the policies and renewals ihereof.
<br /> � sud Borrower shall prompdy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of Ioss,
<br /> 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 /> � Unless 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 economically feasible and thc security of this Mortgage is
<br /> 4 not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br /> : t be impaired, the insurance proceeds 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 wi�hin 30 days from the
<br /> � date notice is mailed by I.ender to Borrower that the insurance carrier ofters to settle a claim for insurance benefits, Lender
<br /> is authorized to collect aad apply the insurance proceeds at Lender's option eithor to restoration or rcpair of t6e Property
<br />� � or to the aums secuted by this Mortgage.
<br /> Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />� ; or poetpone the due date of the monthly installments referred to i� paragraphs 1 and 2 hereof or change the amount of
<br />�' � such installmenu. If under paragraph 18 hereof the Property is acquired by L,ender, all right, tiUe and interest of Borrower
<br />� in aad to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to thc sale
<br />, y or acquisition shall pass to I.ender to the extent of the sums secured by this Mongage immediately prior to such sale or
<br /> 4 ti acquisition.
<br />� � 6. Prcservation and MAintenance of Propeny; Leaseholds; Condominium� Planned Unit Developments. Borrower
<br />�, , � shall keep the Property in good repair and shall not commit waste or pe�mit impairment or deteriorauon of the Property
<br /> and s6all comply with the provuions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />� condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />'' � or covenants creating or governing the condominium or planned unit devdopment, the by-taws and regulations of the
<br />� � condominium or planned unit development, aad constituent documents. If a condominium or planned unit developmenf
<br />_' rider is executed by Boaower and recorded cogether with this Mortgage, the covenants and agreements of such rider
<br /> i. � shall be ineorporated into and shall aznead and supplement the covenanu and agreements of this Mortgage as if the rider '
<br />�. � were a part herwf.
<br /> y f ' 7. : Pra�ecdou of Lende�s Security. If Borrower tails to perform the covenants and agreements contained in this I
<br />' � Mortgage, or if any action or proceeding is commmced which materially affecu Lender's interest in the Property,
<br />; .� inaluding, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br /> , � baakrupt or decedent, then I.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br /> sums and take auch action as is necessary to protect Lender s intcresi, inc]uding, but not limrted to, disbursement of
<br />, , � reatonable attomey'a fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />' ' 3 conditioa of making We loan secured by this Mortgage, Borrower shalt pay tlic p�emiurtu required to maintain such
<br />`' # insuraace ia e$ect until such time as the req�itement for such insurance terminates ia accordance with Borrower s and
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