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<br /> � s�� 01311 .
<br /> Utvrnonnt CoveNexas. Borrower and Lender covenant and agree as follows :
<br /> 1. Payment o[ Prtncipal and Intereet Borrower shall promptly pay whm due the principal of and interest on the
<br /> ; indebtedneas evideaced by the 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 /> a 2. Funds tor Taea and L�surance, Subject to applicable Iaw or to a written waiver by Lrnder, Borrower shall pay
<br /> i to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in fulb
<br /> � a aum (herein "Funda•7 equal to one-twelfth of the yearly taxes and assessmenu which may attain priority over this
<br /> � ; Mortgage, and ground rents on the Properry, if any, plus one-twelhh of yearly premium installments for hazard insurance,
<br /> ) plus ono-twelfth of yearly premium installments for mortgage insurance, if any, all as reesonably estimated initially and from
<br /> ` ' time to time by L.ender on the basis of assessments and bills and reasonable estimates thereof.
<br /> The Funds shall be Leld in an i�stitution the deposits or accounts of which are insured or' guaranteed by a Federal or
<br /> state agency (including Lender if Lender is such an institution) . Lender shall apply the Funds to 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 compiling said assessmmu and bills, unless Lender pays Borrower 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 such agreement is made or applicable law
<br /> requires such interest to be paid, I.ender shall not be required to pay Borrower any inrerest or eamings on the Funds. Lender
<br /> shall give to Borrower, wit6out charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br /> purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br /> by this Mortgage.
<br /> i If the amount of the Funds held by Lrnder, 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 /> asscaaments, insurance pnmiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br /> promptly repaid to Borrower or credited to Borrower on monthty insiallments of Funds. If the amount of the Funds
<br /> held by Lender shatl not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br /> Bortower shall 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 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 L,ender. 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 acquisi[ion by Lender, any Funds held by
<br /> Lender at the time of application as a credit against the sums secured by this Mortgage.
<br /> � 3. Appltca8on of Payments. Unless applicable Iaw provides otherwise, all payments received by Lender under the
<br /> � Note and paragraphs 1 aad 2 hereof shall be applied by Lender first in payment of amounts payable to Lend'er by Borrower
<br /> ` under paragraph 2 heroof, then to inrerest payable on the Note, then to the principal of the Note, and then to interest and
<br /> ? principal on any Future Advances.
<br /> j , 4. Chnrges; L(ens. 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 leasehold payments or ground rents, if any, in the manner
<br /> !; provided under paragraph 2 hereof oq if not paid in such manner, by Borrower making payment, when due, directly to ffie
<br /> i payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br /> ; ; Bonower shall make payment direcUy, Borrower shall promptly furnish to Lender receipts evidencing such paymenu.
<br /> : ; � Borrower shall prompdy discharge any lien which has priority over this Mortgage; provided, that Borrower shall oot be
<br /> ; � required to discharge any such lien so long as Borrower shatl 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 in,
<br /> � : legal praceedings which operate to preveni the enforcement of the lien or forfeiture of the Property or any part thereof.
<br /> , 5. Hayard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Properry insured
<br /> � against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may requiro
<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.
<br /> 5 � The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, :
<br /> 4 , that such approvat 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 manner, 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 standard mortgage
<br /> : E : dause in favor of and in form accep[able to Lendec Lender shatl have the right to hold the 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 />� ( Boaower shal! give prompt notice to the iasurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />� j; by Bonower.
<br />,€' }; Unless Lrnder 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 the security of this Mortgage is
<br /> not thereby impaited. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />� � be impaired, the insurance proceeds shall be applied to [he sums secured by this Mortgage, with the eaccess, if any, paid
<br />; �, , to Borrowec If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />: s date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a daim for insurance benefits, Lender
<br />� C; is avthoriud 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 /> �I Unless Leader and Bonower otherwise agree in writing, any such application oF proceeds to principal shall not extend
<br />; � or postpone the due datc of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br /> such iostallmenu. If under pazagraph 18 hereof the Property is acquired by Lender, all 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 Propeny prior to the sale �
<br /> f' or acquisiflon sha11 pass to Lender to the eatent of the sums secured by this Mortgage immediately prior to such sale or
<br />` t acquisidon.
<br /> Y 6. PRaervation and Malntenance of Pro ert LeaseAol p
<br /> ds; Condomin(ums; Planned Unit Develo ments. Borrower
<br /> , s6aI2 keep the Property in good repair and shall a t� commit waste or permit impairment or deterioration of ffie Property
<br /> k and shall comply with the provisions of any lease if this Mortgage is on u leasehold. If ihis Mortgage is o� a unit in a
<br />, � condominium or a planned unit development, Borrower shalt perform al� of Borrower's obligations under the dedaration
<br /> or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br /> condominium or planned unit development, end constituent documents. If a condominium or planned unit development
<br /> ridcr is executed by Borrower uad recorded together with this Mortgage, the covenants and agreements of such rider
<br /> shslt be incorporated into and shall amend and supplement the covenants and agreements of this Mongage as if the rider V
<br /> wec� a part hereof.
<br />� 9. Prohctton of Lender'e Secartty. If Borrower fails to perform the covenanu and agreemrnts contained in this J
<br /> Mortgage, or if any action or proceeding is commenced which ma[erially aftects Lender's interest in the Property,
<br /> iucluding, but not limited to, eminent domain, insolvency, code enfomement, or arrangements or proceedings involving a
<br /> banYrupt or decedent, then Lender at I.endu's option, upon notice to Borrower, may make such appearances, disburse such
<br /> suma and take auah actioa as is aecessary to protect Lenders incerest, including, but not Iimited to, disbursement of
<br />;;� resaonable attorney's fees and eniry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />.i condition oF inalting the loan secured by this Mortgage, Borrower shal! pay the premiums required to maintain such
<br /> i inEurance in effect vnffi suc6 time as t6e iequirement for such insurance terminates in accordance with Borrower's and
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