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<br /> 78- U01170
<br /> Uxrnon�.t Covs�vwNrs. Borrower and Lender covenant and agree as fotlows :
<br /> 1. Payment of Principal and Inferpt. Borsower shall promptly pay when due the principal of and interest on the
<br /> indebtednens evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and intemt
<br /> on any Futurc Advancu secured by this Mortgage.
<br /> i 2. Fouds for Ta=cs and Iosurance. Subject to applicable law or to a written waiver by Lender, Horrower shall pay I
<br /> [o Lender on the day monthly installments of principai and interest are paya6le under the Note, until the Note is paid in full,
<br /> a sum (herein "Funda•') equal to one-tweifth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground rents on the Property, if aay, plus one-twelfth of yearly promium installments for hazard insurance,
<br /> plus bM-twelfth af yearly prcmium instaliments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> dme to time by Lender oa the basis of assessments and bills 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 such an insti[ution) . Lender shall apply the Funds td pay said taxes, assessments,
<br /> insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and wmpiling said assessments and bilis, unless Lender pays Bortower interest on the Funds and applicable law
<br /> permits 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 suc6 agreement is made or applicable law
<br /> requires such interat to be paid, Lender s6atl not be required to pay Borrower any interest or earnings on the Funds. Lender
<br /> shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and ffie
<br /> purpose for which each debit to the Funds was made. 'Ihe Funds are pledged as additeoaa! security for the sume secured
<br /> by this Mortgage.
<br /> If the amount of the Funds held by Lender, together with the future monthly installrnents of Funds payable prior to
<br /> the due data of taxes, asseysments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either
<br /> prompUy repaid to Bormwer or credited to Borrower on monthly installments of Fuods. If the amount of the Funds
<br /> 6eld by Lender sha11 not be sutTicient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br /> Borrower s6a11 pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by Lender to Borrower reques:ing' payment thereof.
<br /> Upoo payment in full of all sums secured by this Mortgage, Lender shall 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 /> 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 time of application as a credit against the sums secured by this Mongage. '
<br /> 3. ApplScation o[ 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 Note, then to the principal of the Note, and then to interest and
<br /> principal on any Future Advances.
<br /> 4• CLa�$es; Llens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> the Property which may attain a priority over this Mortgage, and teaschold 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 shall prompdy furnish to Lender all notices of amounts due under this paragraph, and in the event
<br /> Borrower shall make payment directly. Borrowcr shall promptly furnish to Lender receipts evidencing such payments.
<br /> Borrower shall prompUy disc6arge any lien which has priority over this Mortgage; provided, that Borrower 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 /> suc6 lien in a manner aceeptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br /> legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or a�y part thereof.
<br /> 5. Hazard Insurance, gurrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> aBainst loss by Sre, hazazds included within the term '•extended coveragc", and such other hazards as Lender may require
<br /> and in such amouots and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br /> such coverage excced [hat amount of coverage required to pay the sums secured by this Mortgage.
<br /> Ttrc 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 /> i provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcUy to the
<br /> ; insurance cazrier.
<br /> ": All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> r clause in favor of and in form acceptahle to Lender_ Lender shall havc the right to hold the policies and renewals thereof.
<br /> � aad Borrower shall prompdy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
<br /> ; Borrower shall give prompt noGce to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> � by Borrower.
<br /> Unless Lender and Horrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> '. 't the Property damaged, provided such res[oration or repair is economically feasible and thc security of this Mortgage is
<br /> Fnot thereby impaired. If such restoration or repair is not economically fcasible oc 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 /> 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 aotice is mailed by Lender to Borrower that the insurance carrier offen to settle a claim for insurance benefits, Lender
<br /> is authorized to collect and apply the iosurance proceeds at Lender's option either to restoration or repair of che Property
<br /> 4 or to the sums secured by this Mortgage.
<br /> ` Unless Lender 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 iostalJmenu referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> { such installmenu. If under paragraph t 8 6ereof the Property is acquired by I,ender, all right, tiUe and interest of Borrower
<br /> , in and to aay insurance policies and in and to the proceeds thereof resutting from damage to the Property prior to the sale
<br /> or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> ,� acquisition.
<br /> 6. Preaervs8on and Malntenance of Property; Leaseholds; Condom(niums; Planned Unit Developments. Borrower
<br /> s6a11 keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> '�° and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> condominium or a planned u�it devclopment, Borrower shall perform alI of Borrower's obligations ander the declaration
<br /> � or covenants creating or goveming the condominium or planned unit devdopment, the by-laws and regulations of the
<br /> condominiwn or planned unit development, and constituent documents. lf a condominium or planned unit development t
<br /> rider is dcecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br /> shall be incorporated into and shall amend and supplement the covenanu and agreements of this Mortgage as if the rider ��` � ���
<br /> were a part hereof. -- �
<br /> 7• Protcedon of Leoder's Secudty. If Borrower fails to perform the covenants aad agreements containcd in this � "
<br /> Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br /> including, but not limited to, eminmt domain, insolvency, code enforcement, or arrangemenu or proceedings involving a
<br /> banlwpt or decedent, then Lender at LendeYs option, upon notice to Borrower, may make such appearances, disburse such � �s
<br /> sums and take auch actioa as is aecessary to protect Lenders interest, including, but not limited to, disbursement of `M� . �
<br /> reasonable attornay's fees and entry upon the Property ro make repuirs. If Lender required morigage insurance as a '
<br /> conditinn of making the loan secured by this Mortgage. Borrower shall pay the premiurns requircd to maintain such +�a j.
<br /> � imurana in effect anG7 such time as the requiremeat for such insurance terminates in accordance witb Borrower's and
<br /> $ J
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