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<br /> UNtront� Covexwr�rs. Borrower and Lender covenant and agree as follows :
<br /> 1. Faymmt of Prindpat and Intereat. Borrower s6a11 promptly pay when due the priacipal of and interest on the
<br /> iadebtedneaa evideaced by the Note, prepayment and late charges as provided in the Note, and the principal of and intenst
<br /> on any Future Advances secured by this Mortgage.
<br /> �' 2. Fands [or T�es and Iffiurance. Subject to applicable law or to a written waiver by Lendeq Boaower shall pay
<br /> to Lender on the day mouthly installments of principal and interest aro payable under the Note, unul the Note is paid in fult, ;�
<br /> f' a sum (6erein •`Funds'� equal to onotwelfth of the yearly taxes and assessments which may attain priority over this �
<br /> ' Mortgage, aad ground nnts on the Property, if any, plus ono-twelfth of yearly premium ins[allmena for hazard insurance, ' `
<br /> plus ono-twelfth of yearly pmmium iastalimmts for mortgage insurance, if any, all as reasonably estimated i�itially and from S `
<br /> dme to time by Lender on the basis of assessments and bills and reasonable estimates thenof.
<br /> r ' 'Tt�e Funds s6a11 be held in an institution the deposiis or accounts of which are insured or guaranteed by a Federal or
<br /> t state agency (including Lender if Lender is such an iostitution) . Lender shall apply the Funds to 'pay said ta�ces, assessmrnts,
<br /> insurance premiums and ground rents. Leader may not charge for so hotding a�d applying the Funds, analyzing said account,
<br /> � or verifyiag and wmpiling said asscssmrnts and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br /> ' `.' permiu Lender to make such a charge. Borrower and Lender may agree in writing at the time of exeeution of this
<br /> Mortgage that interest on the Funds shall bc paid to Borrower, and unless such agreement is made or applicable law
<br /> requires such interest to be paid, I.ender shatl not be required to pay Borrower any interest or eamings on the Funds. i.ender �
<br /> shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br /> purpose for which each debit to the Fuads was made. 'Tbe Furtds are pledged as additional secarity for the sums secured �'
<br /> by this Mortgage.
<br /> If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> aasessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either `
<br /> ' ? prompQy 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 fall due,
<br /> � Boaower 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 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 /> Leader at the time of application as a credit against the sums secured by this Mortgage.
<br /> 3. Application of Paymenta. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> i Note and paragraphs 1 and 2 hereof shal� be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> i; under paragraph 2 hereof, the¢ to in[erest payable on the Note, then to the principal of the Note, and then to interest and
<br /> t principal on any Future Advances. �
<br /> ? � 4. C6rrges; Liens. Bo�rower shall pay all taxes, assessments and other charges. fines and impositions attribu[able to � �, . �
<br /> ; ! the Property which may attain a prioriry over this Mortgage, and leasehold payments or ground rents, if any, in the manner i
<br /> j provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the e
<br /> payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event i
<br /> Borrower shall make payment direcUy, Borrower shall promptly fumish to Lender receipts evidencing such payments. �
<br /> Borrawer shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be f
<br /> rcquired to diuharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br /> such tien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, �
<br /> j legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. ;
<br /> � 5. Haserd Ineuraoce. Borrower shalt keep the improvements now existing or hereafter erected on the Property insured
<br /> . � against loss by 5re, hazards included within the term "extended coverage", and such other hazards as Lender may require f
<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 coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. �x
<br /> The insurance carrier providing the insurance shalt be chosen by Borrower subject to approval by Lender, provided, i
<br /> t6at such approval shall no[ be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br /> provided under paragraph 2 hereof or, if not paid in such manneq by Borrower making payment, when due, direcUy to the
<br /> insurance carrier.
<br /> All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standa�d mortgage �
<br /> clausa in favor of and in form acceptabie to Lender. Lender shall have the right to hotd [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 loss, .
<br /> Borrower shall give prompt notice to the insurance carrier and Lendec Lender may make proof of loss if not made promptly
<br /> by Borrower.
<br /> Unless Lender and Bonower 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 the security of this Mortgage is
<br /> not thereby impaired. If such restoration or repair is not economicaUy feasible or if the security of this Mortgage would
<br /> be impaired, t6e insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> to Borrower. If t6e Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> date aotice is mailed by I.eader to Horrower that the insurance carrier oHers to settle a claim for insurance benefits, Lender
<br /> � is anthoriud to wllect 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 Mortgaga
<br /> UNess Lender and Borrower otherwise agree in wri[ing, any such application of proceeds to principal shall not extend
<br /> or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> such installmenu. If under paragraph 1S hereof the Property is acquired by L.ender, all right, tide and interest of Borrower
<br /> ia and to any insurance poiicies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br /> d or acquisition shall pass to Lender to the eactent of the sums secured by this Mortgage immediately prior to such sale or
<br /> , � acquisitioa
<br /> 6. Pt+eaervalion and Maiatenance of Property; Leaseholds; Condominfums; Planned Unit Developme�rfs. Hortowe[
<br /> ahall iceep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> _ ` � and slaall comply with the provisions of any Ieaae if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> condaminium or a planned unit dcvelopment, Borrower shall perform all of Borrower s obligatioas under the declaration
<br /> or covenants creafing or governing the wndominium or planned unit development, the by-laws and regulations of the
<br /> coadominium or planned t:nit devNopment, and constituent docoments. If a condominium or planned unit development t
<br /> rider is executed by Borrower and recozded together with this Mortgage, the covenants and agreements of such rider
<br /> ahall be incorporated into aad shall ameu3 and supplement the covenanu and agreements of this Mortgage as if the rider _
<br /> wcre a part hereof. , :�
<br /> j ' 7 Protectlon of Lendela Secudty. If Horrower fails to perform the covenants and agreemenu contained in this �
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<br /> Mortgage,: or if any action or proceeding is commenced which materially affects Leader's interest in the Property, , i+ ', �
<br /> inclu�ng, but not limited to, 'eminent domain> insolvency, code enforcement, or arrangements or proceedings involving a ( ;' •,
<br /> � - banYrnpf ordxedent, then I.ender`at Lender's option, upon notice to Borrower, may make such app�arances, disburse such �, ' -
<br /> ° sums and take such actton as is necessary W protect Lender's inrerest, induding, but not limited to, disbursement of ' �
<br /> reasoaable attorney's feea and entry upon the Property to make repairs. If Lender required moRgage insurance as a " A "�'�`.:a
<br /> �,� condition of making the 7oan secucecl by this Mortgage. Bortower shall pay the premiums rcquircd to maintain such "" "' '
<br /> e imuraace in eHect unt� such time as the requirement for such insurance terminates in accordance with Borc+owcr's and
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