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<br /> Uxrnorta�t CovaNn�rs. Bo�rower and Lender covenant and agree as follows :
<br /> 1. Paymwt of PrincipW and Inferest. Borrower si�all prompdy pay when due the principal of and interest on the ;
<br /> indebtedaess evidenced by the Note, pnpayment 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. Fmds for Ta=es and Imuranca Subject to applicable law or to a written w�iver by Lender, Borrower shall pay �`'.
<br /> �' to Lender on the day monthly iostallments of principal and interest are payable under the Note, uatil the Note is paid in full, �:� . '
<br /> „ a aum (herein "Funda") equal to oao-twelfth of the yeariy taxes and assessments which may attain priority over this
<br /> x Mortgage, and ground rents on the Property, if any, plus ono-twelfth of yeazly premium installments for haaard insurance, �
<br /> � plua on�twelfth of yearly promium installments for mortgage insurance, if any, alI as reasonably estimated initially and itom �.
<br /> r � dme to time by Lender on the basis of assessments and bills and reasonable cvtimates thereof.
<br /> _ � The Funds shall be held in an institution the deposits or accounts of which are insureJ or guaranteed by a Federal or f:
<br /> � � state agency (including Lender if Leader is such an institution) . Lender shall apply the Funds to pay.said taxes, assessmrnts,
<br /> � insurance pnmiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, �,:
<br /> or verifying and compiling said assessments and bilis, unless Lender pays Borrower interest on the Funds and applicablc law
<br /> O permits Lender to make such a charge. Borrower and Lender may ugree in writing at the time of execution of this +
<br /> ;I, O Mortgage that interest on ffie Funds shall be paid to Borrower, and unless such agreemrnt is made or applicable law
<br /> ' requires such interest to be paid, I.ender shall not be required to pay Borrower any interest 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. "I1x Funds are pledged as additionai security for the sums sccured r
<br /> by t6is Mortgage. �
<br /> If t6e amount of the Funds held by L.ender, together with the fuwre monthly installments of Funds payable prior to E
<br /> i the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes. ,k�
<br /> s aasessments, insurance premiums and gmund rmts as they fa11 due, such excess shall be, at Borcower's option, either
<br /> j promptly repaid to Borrower or credited to Borrower on monthly instaliments of Funds. If the amount of the Funds "rr
<br /> held by Lender shall not be su�cieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br /> 7 Bonower sha11 pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed k
<br /> � by Leader to Borrower requesting payment thereof. �?
<br /> , Upon payment in full of all sums secured by this Mortgage, Lender shail prompdy refund to Borrowe� arty 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 appty, 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 Mortgage. �
<br /> j 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 /> k under paragraph 2 hereof, then to interost payable on the Note, then to the principal of the Note, and then to interest and �
<br /> principal on any Future Advances. '
<br /> 4. C6arges; Ltens. Borrower shall pay aIl taxes, assessments and other charges. fines and impositions attributable to � �
<br /> the Property which may attain a priority over this Mortgage, and leasehold paymenu 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, direcdy to the
<br /> payce thereof. Borrower shall prompdy furnish to Lender all notices of amounts due under this paragraph, and in ffie event �
<br /> Bortower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments. -
<br /> Borrowe� shall prompdy discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> required to discharge any such lien so tong 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 in,
<br /> legal proceedings which ope�ate to prevent the enforcement of the lien or forfeiture of the Property or any part theceof. �
<br /> S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> againat lou by 8re, hazards included within the term "eztended coverage", and such other hazards as Lender may require F
<br /> } and in suc6 amounts and for such periods as Lender may require; provided, that Lender shatl not require that the amount of E
<br /> � such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage_ `
<br /> The insurance carrier providing the iasurance 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 /> provided under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
<br /> insurance carrier.
<br /> All insurance policies and renewals tt�ereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br /> � and Borrower shall promp8y furnish to I.eader aU renewal notices and all receipts of paid premiums. In the event of lass.
<br /> Borrower shall give prompt notice to the insurance carrier and Lendec Lender may make proof of loss if not made promptty
<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 nstoration or repair is economically feasible and the security of this Mortgage is
<br /> not thereby impaind. If such mstoration or repair is not economically feasible or 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 /> to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> is aut6oriud 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 /> Unless I.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> � or postpoae ihe duc date of the monthly installments referred ro in paragraphs 1 and 2 hereof or change the amount of
<br /> such insiallments. IE under paragrapb I8 hereof the Property is acquired by L.ender, all right, title 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 /> or acquisition shall pass to I.ender to the extent of the sums secured by this Mortgage immediately prior ro such sale or
<br /> ; acquisition.
<br /> � 6. Preaervatlon and Maintenance of Property; Lesseholds; Condominiums; Planned Udt Devdopments. Bonower
<br /> shall keep ffie Property in good repair and s6all not commit waste or permit impairment or deterioration of the Property
<br /> � and s6a11 comply w�th the provisions of any lease if this Mor[gage is on a lcazehold. If this Mortgagc is on a unit m a
<br /> condominium or a planned unit development, Horrower shall perform all of Borrower's obligations under the declaration
<br /> � or covenaats creating or goveming the condominium or planned unit development, the by-laws and regulations of the
<br /> � condominium or planned unit development, and constituent documents. If a condominium or planned unit development 4
<br /> rider is acecuted by Borrower and recorded together with this Mortgnge, the covenants and agreements of such rider
<br /> , i s6all be ;incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider ^ ' +st '
<br /> t were a part hereof. „"—. . . , .,
<br /> ; ` Z Protectlon of Leader's Securlty. If Borsower fails to perform the covenants and agreements contained in this �� ;
<br /> Mortgagg or if. any action or proceeding is commenced which materially affects L.endePs interest in the Property, °. ' ±
<br /> including, but aot limited to, eminent domain, insolvency, code enforeement, or arrangements or proceedings involving a ' ' �
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<br /> bankruptor decedent, then I:ender at I.ender's option, upon notice to Borrower, may make such appearances, disburse such y ;, h _ �
<br /> suma snd take snch action as ia 'aecessary to protect Lenders interest, includi�g, but not limited to, disbuTsement of �c' �.,
<br /> teasonable attomey's fees ax�d entry upon the Property to make repairs. 7f Le�der required mortgage insurance as a .. � " >' a
<br /> '� condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such � �"�
<br /> � ' i�urance in eHxi until auch time as [he requinmrnt for such insuranm terminates in accordance with Borrowei s and � - s
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