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<br /> � $-' U01464
<br /> UNmoxn�t CoveN�N'rs. Bonower and Lender covenant and agree as follows:
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<br /> 1. Payment of Princlpal and Interest Borrower shall promptly pay when due the principat of and interest on the
<br /> iadebtedness evidenced by the Note, propayment and late charges as provided in the Note, and the principal of and interest
<br /> , on any Future Advences secured by this Mortgage.
<br /> � 2. Fauds for Ta=es and Imuranca Subject to applicable law or to a written waiver by Lendor, Borrower shall pay
<br /> , � to I.ender on the day monthly i�taliments of principal and interest are payable under the Note, until the Note is paid in futl,
<br /> a sum (herein "Funds'� equal to one-tweifth of the yearly ta�ces and assessments which may attain priority over this
<br /> sMortgage, and ground rents on t6e Property, if any, plus ono-twelfth of yearly premium iostallments for hazard insurance,
<br /> � . plus onrtwelfth of yearly promium installmenta for mortgage insuranee, if aay, all as reasonably estirtated initially and from
<br /> ; time to time by Lender on the basis of assessmenu and bilis and rwsonable estimates thercof.
<br /> ; T6e Funds shall be held in an institution the deposiu or accounu of which are insured or guaranteed by a Federal or
<br /> ' � atate agency (induding Lender if Lender is such an institution) . Lender shall appty the Funds to pay said taxes, assessmenu,
<br /> insuranx premiums and ground mnts. Lender may not charge for so hoiding and applying the Funds, analyzing said account,
<br /> ; or verifying and compiling said assessmenu aod bills, unless Lender pays Bonower interest on the Funds and applicable law
<br /> '� permits Lender to make such a charge. Bonower and Lender may agree in writing at the time of execution of this ,
<br /> Mortgage tha! interest on the Fuods shall be paid to Borrower, and unless such agreement is made or appticable law
<br /> : ; nquires such interest to be paid, Lender shall not be required to pay Sorrower any interest or earnings on the Funds. L.ender
<br /> :. t sha71 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 Funds was made. The Funds are pledged as additional security for the sums secured
<br /> , � by ffiis Morcgage.
<br /> If the amount of the Funds held by Lender, together with the Fumre monthly installments of Funds payable prior to
<br /> ; the due dates of taxes, assessments, inaurance premiums and ground rents, shalt exceed the amount required to pay said ta�ca,
<br /> assesamrnts, insurance premiums and ground rents as they fall due, such excess shail be, at Borrower's option, either
<br /> i prompily 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 su�cient to pay taxes, assessments, insurance premiums and ground renss as they fall due,
<br /> - ; Borrower sha21 pay ro Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by Z.ender to Bo�tower requestiag' 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 I,ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br /> ` shall apply, no la[er than immediately prior to the sale of the Property or its acquisition by Lendeq any Funds hetd by
<br /> `. i Lender at the time of applicatioa as a credit against the sums secured by this Mongage. i
<br /> j 3. ApplicaUon of Paymenta. Unless appticable law provides otherwise, all payments received by Lender under the `
<br /> ' Note and paragraphs 1 and 2 hereof shall be applied by Lender fitst in payment af amounts payable to C.ender by Barrower i
<br /> under paragraph 2 hereof, thea to inrerest payabte on the Note, thcn to the principal of the Note, and then to interest and
<br /> ' � principal on any Future Advances.
<br /> 4. C6a�ges; Liens. Borrower shall pay a11 taxes, assessments and other charges, fines and impositions atvibutable to
<br /> ;: i the Property whiah may attain a priority over this Mortgage, and leasehold paymenu or ground rents, if any, in the manner
<br /> '• provided under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to t6e ;
<br /> payee thereof. Borrower shall prompdy furnish to Lender all notices of amounu due under ttiis paragraph, and in the event
<br /> i Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipa evidencing such payments.
<br /> � Borrower shall prompdy discharge any lien which has prioriry over this Mortgage; provided, that Borrower shall not be
<br /> � required to discharge any such lien so long as Borrower shall agrce in writing to the payment of the obligation secured by ;
<br /> - i such lien in s manner acceptable 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 any part thercoF.
<br /> 5. Haard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> � ageinst loss by 6re, hazards included within the term "extended coverage", and such other hazards as Lender may rcquire i
<br /> ` 1 aad ia such amounts and for such periods as Lender may require; provided, that Lender shall not requice that the amount of '�
<br /> t � such coverag� exceed that amount of coverage required to pay tbe sums secured by this Mortgage.
<br />� , .� The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br /> ^ ' � that such approval shall not be unteasonably 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 /> i iasurance carrier.
<br /> ' # All insurance policies and renewals thereof 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 /> r` ; and Borrower shall promptly furnish to Lender all renewal notices and a11 receipts of paid premiums. In the event of loss.
<br /> ; Borrower shall give prompt notice to the insurance carrier and Lender_ Lender mny make proof of loss if not made promptly
<br /> Y ! by Bonower. '
<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 restoration or repair is economically feasible and the security of this Mortgage is `
<br />?' i not thereby impaired. If such restoration or repair is not economically feasible or if the sewrity of this Mortgage would
<br /> r- � be impaired, the insuraace 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 I.ender to Horrower that the insurance carrier oHers to settle a cleim for insurance benefits, L.ender
<br />% ; is auffiorized to collect and apply the insurance proceeds at Lender's option eithcr 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 principal shall not extend
<br /> � or pwtpone the due date of the monthly installments referrod to in paragraphs I and 2 hereof or change the amount of
<br /> ,� such installments. If under paragraph 18 hereof the Property is acquired by Lender, 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 Property prior to the sale
<br /> or acquisition s6a11 pass to L.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> acquisition.
<br /> - i 6. Preservrtion and Malntenance of Propecty; I.easeholds; Condominiuma; Planned Unit Devdopments. Boaower
<br />: � shall keep the Property in good repair and shall not commit waste or permit impairment or deteriorauon of the Property
<br /> and shaU comply with the provisions of any lease if this Mortgage is on a leasehotd. If this Mortgage is oa a unit in a
<br />•': � condominium or a planned unit development, Borcower shall perform all of Borrower's obligations under the dedaration
<br />` � or wveaants croatiag or governing the condominium or planned unit development, the by-laws and mgulations of the
<br /> condominium or planned unit development, and constitumt documents. If a condominium or planned unit development
<br /> rider is acecuted by Borrowec and recorded together with this Mortgage, the covenants and agreements of such rider
<br /> ahall be: incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider "' r<
<br /> were a part hercof.
<br />-� 7. Probec800 of Leade�a Secorlty. If Borrower fails to per[orm the covenants eod agreemenis contained in this (
<br /> Mortgage, or if say action - or proceediag is commenced which materially affects Lender's interest in the Property,
<br /> x�?, t including, bnt not limited to, eminent domain, insolvency, code rnforcement, o� arrangemenu or proceedings involving a
<br />, � bankrupt or decedent, thm I:ender at L.eader's option, upon notice to Borrower, may make such appearanca, disburse such
<br /> suma and take such aetion as ia necessary ro protect Lender's interest, including, but not limited to, disbucsement of
<br />�. . ,? �i'eaaonable �attomty's fep and entry upon � the � Property to make rcpairs. If Lender required mortgage insurance as a
<br /> condilion of making the Ioan sectued by this Mortgage. Borrower shall pay the premiums required to maintain such
<br />, { ' iasurance .in effect unL7 such time as the requirement for such insurance terminates in accordance with Bormwer's and
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