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<br /> Uxa+oxnt Covsrr,wrs. Borrower and Lender covenant and agree as follows:
<br /> 1. Payment of Princlpa! and ]nterest. Borrower shall promptly pay whrn due the principal of and interest on ffie
<br /> indebtedaess evidenced by the Note, pnpaymrnt and !au charges as provided in the Notc, and the principat of and interest
<br /> on any Future Advances secured by this Mortgage.
<br /> ' 2. Fands for Tasp and Imurance. Subject to applicabte Iaw or to a written waiver by Lender, Soaower shall pay
<br /> to Lrnder oa the day monthly instatlments of principal and interest are payable under the Note, untit the Note is paid in full,
<br /> f a sum (6erein "Funda'•) equal to one-twelfrh of the yearly taxes and assessmenu which may attain prioriry over this
<br /> Mortgage, and ground rents on the Property, if any, plus ono-twelhh of yearly premium imtatiments for hazard insurance,
<br /> plus onatwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> time to time by Lender on the basis of asseuments and bills and r�asonable estimates thereof.
<br /> The Funds shall be held in an institution the deposiu or accounts of which are insured or guaranteed by a Federal or
<br /> stau agency (including Lender if Lender is such an institution) . Lender shall apply the Funds to pay said taxes, auessmenu,
<br /> insuraace premiums and ground ronts. Lender may not charge for so holding and applying ffie Funds, analyzing said account,
<br /> or verifying and compiling said assessmenu 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 execution of this
<br /> Mortgsge 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, Leader shall not be required ro pay Barrower any interest or earnings on the Funds. Lender
<br /> shall give to Borrower, without charge, an annual accounting of the Funds showing crediis and debits to the Funds and the
<br /> purpose for which each debit to the Fnnds was made. The Funds are p!ulged as additional security for the sums seeared
<br /> by this Mortgage.
<br /> If the amount of the Funds held by Lender, together with the future monthly instailments of Funds payable prior to ,
<br /> the due dates of [axrs, 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 /> � prompdy repaid to Borrower or credited to Borrower on monthly instaliments of Funds_ If the amount of the Funda
<br /> " i 6dd by Lender shall not be su&cient to pay taxes, asussments, insurance premiums and ground rents as they fall due,
<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 Lender to Borrower requesting' payment thereof.
<br /> �- Upon payment in ful! of all sums secured by this Mortgage. Lender shall promptly refund to Horrower any Funds
<br /> ; hNd by Leadec If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br /> : } shall apply, no tater than immediately prior to the sale of the Property or its acquisition by Lender, any. Funds held by
<br /> ,` Lender at the timt of applicauon as a credit against the sums secured by this Mortgage.
<br /> ' ` 3. ApplicaHon of Paymenfs. Unless applicable law provides otherwise, all payments rcceived by Lender under the
<br /> F Note and patagraphs 1 and 2 hereof shali be applied by Lender Srsi in payment of amounts payable to Lend'er by Borrower
<br /> : under paragraph 2 hereof, thea to interest payable on the Note, then to the principal of the Note, and then to interest and
<br /> � principal on any Future Advances.
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<br /> -: 4. Chargee; I�ens. Borrower shall pay all taxes, assessmenis 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 /> x 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 prompqy fumish to Lender all notices of amounts due under this paragraph, aad in the event
<br /> <' Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments. -
<br /> pBorrower sha11 pmmpdy discharge any lien which has prioriry over this Mortgage; provided, that Borrov✓er shall not be
<br /> - a required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br /> i such lien in a manner acceptable to L,ender, or s6a11 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 thereof.
<br /> ' F 5• Ha�aed Insuranca Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> . ; against loss by Sn, hazazds included within the cerm "extended coverage", and such other hazards as Lender may require
<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 /> T6e insurance carrier providing t6e insurance shnll 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 paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dimtly to the
<br /> insurance carrier.
<br /> All insurance policies and renewals thereof shall be in fortn acceptable to Lender and shall include a standarci mortgage
<br /> clause in favor of and in form acceptable to Lender. Lender shall havc the right to hold the policies and renewals thereof,
<br /> and Bortower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br /> Borrower shal! give prompt notice to the insurance carrier and Lendec Lender may make proof of loss if not made prompdy
<br /> by Borrowea
<br /> Unlesa 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 the security of this Mortgage is
<br /> not thereby impaired. If such cnstoration 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 /> j 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 maited by I,ender to Borrower that [he insurance carrier offers to setUe a claim for insurance benefits, I.ender
<br /> is aathorized 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 Lender and Borrower otherwise agree in writing, any such application of proceeds to principnl shall not extend
<br /> � or postpone the due date of the monthly installments referred ro in paragraphs I and 2 hereof or change the amount af
<br /> f` such installments. If under paragraph l8 hercof the Property is acquired by I.ender, all right, tiUe and interest of Borrower
<br />�' in and to any insurance policies and in and to the proceeds thereof resutting from damage to t6e 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 />� acquiaition.
<br /> p 6. Preseeroallon and Maintenance of Property; Leaseholds; Condominiums; Plaoned Unit Developments. Borrower
<br /> E shall keep the Property in good repair and shall aot wmmit waste or permit impairment or deterioration of the Property
<br />�.: � and shall comply with the provisions of any lease if this Mongage is on a leasehold. If this Mortgage is on a unit in a
<br />° � condominium or a planned unit developmrnt, Borrower shall perform all of Borrower's obligations under the dedaracion
<br />` or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br /> 4` condominium or planned unit developmmt, and constituent documents. If a condominium or planned unit devetopment
<br />�; rider is executed by Botrower and recotded together with this Mortgage, the covenants and agreements of such rider
<br />� shall be incorporated into and sbatt amend and supplement the covenants and agreements of this Mortgage as if the rider
<br /> s' were a part hereof. •
<br /> i' 7. ProtecUon of Lender's 9ecority. If Borrower fails to perform the covenants and agreements contained in this �
<br />�` Mortgage, or if any action or proceeding is commenced which materially aHects Lender's interest in the Property,
<br /> inoluding, but notlimited to, eminent'domain, insofvency, code enfonement, or arrangements or proceedings involving a
<br />� bau�crupE or deadent, then Lender at Lender's option, upon notice to Bonower, may make such appearances, disburse such
<br />� aums, and take such' action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br /> d� teasonable attomay's fxa and entry upon the Property to make repairs. If Lender requircd mortgage insurance as a
<br /> condition of making ;hd ]oan secuted by this Mortgage, Borrower shall pay the premiums required to maintain such
<br /> y a 3nsuraace' in affecC until such time as the requirement for such insurance terminates in accordance with Borrower's and
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