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<br /> ��� 001618
<br /> Uxrnoxaf Cover+wNrs. Borrower and I.ender covenant and agree as follows :
<br /> 1. Papmeut oE Prfneipa! and Interat. Borrower shall prompUy pay when due flie prineipal of and interest on the
<br /> indebtedness evidenced by the No[e, prepayment and late charges as provided in the Note, and the principal of and inteceat �
<br /> on any Futuro Advances secured by ihis Mortgage.
<br /> ; - 2. I+unds lor Ta=es znd Insuranca Subject to applicable Iaw or to a written waiver bp Lender, Bocrower shall pay
<br /> to Lender oa the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br /> a aum (6erein "Fands'7 equal to ono-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground renta on the Fmperty, if any, plus one-twdith of yearly premium instaliments for hazard insurance,
<br /> pius one-twelfth of yearly premium installments fot mortgage insurancc, if any, ail as reatonably estimated initially and from
<br /> time to lime by I,endar on the basis of assessments and biUs and reasonable estimates thereof. •
<br /> The Funds shall be hetd in an institution the deposiu or accounts of which are insured or guarantetd by a Federul or
<br /> state agency (including Lender if I.ender is such an institution) . Lender shall appiy the Funds to pay said tases, assessmenu,
<br /> i ' insurance pmmiums and ground rents. Lender rnay not charge for so holding and apptying the Funds, analyzing said account,
<br /> ot verifyeag snd compiling said assessmenu and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br /> permiu Lender to make such a charge. Barrower and I.ender may agree in wri6ng at the time of execution of this
<br /> Mortgage that interest on the Funds shall be paid to Barrower, and ualess such agreement is made or appticable law
<br /> ttquires such in4emst to be paid, Lender shall not be required ro pay Borrower any interest or earnings on the Funds. Lender
<br /> shall give to Borrower, without charge, an annuat accounting of the Funds showing crediu and debits to thc Funds and the
<br /> purpose for which each debit to the Funds was made. The Funds are plcdged as additional security for the sums secueed
<br /> by this Mortgage.
<br /> If tha amount of the Funds held by Lender, tagether with the future monthly installments of Funds payable prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground rents, shatl exceed the amoudt required to pay said taxes,
<br /> assessments, inaurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
<br /> promptly repaid to Borrower or credited to Borrower on monthly insiallments of Funds. If the amount of the Funda
<br /> ' held by Lender shail mae be suf&cient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br /> , ' Borrower shall pay to I.ender any amount necessary to make up the deficiency within 3Q days from the date notice is mailed
<br /> by Lender to B�rrower requesting payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage. Lender shalt prompdy refund to Borrower arty Funds
<br /> I�eld by L.ender. If under paragraph 18 hereof the Property is sold or the Proporty is otherwise acquimd by Gender. Lender
<br /> s6all apply, 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 /> 3. Applicatlon of Payments. Uniess applicable law provides otherwise, ali 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 Hprrawer
<br /> � undez paragraph 2 hereof, then to interest payable on the Nute, then co the princ4pal of the Note, and then to interest and
<br /> principal on any Fulure Advances.
<br /> " 4. Chaeget; IJens. Borrower shall pay alI taxes, assessments and other charges, fines and impositians attributable to
<br /> �` the Property which may attain a priority over this Mortgage, and leasehold p3yments 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, direcfly to the
<br /> payee thereof. Borrower shall prompqy furnish to Lender all notices of amounts due under this paragraph, and in the event
<br /> �,' Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such paymenu.
<br /> ' � Borrower shall promptly discharge any lien whicfi has prioriry over this Mortgage; provided, [hat Borrower shall not be
<br /> � required to discharge any sueh lien so ]ong as Borrower shall agree in writing to the payment of the obligation secured by
<br /> ;' such liea in a manner acceptabte to Lender, or shall in good faith contest such licn 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 thereof_
<br /> 1� 5. Hazard Insucanca Boaower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> ,; against loss by Sre, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br /> �' aad in such amounts and for such periods as Lender may require; provided, that Lender shall not rcquire that ihe amount of
<br /> such covcrage exceed that amount of coverage required to pay the sums secured by this Mortgaga
<br /> o: "!he insurance carrier providing the insurance shall be chosen by Borrowcr subject to approval by Lender, provided.
<br /> i� that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br /> '�� provided uader paragraph 2 hereof or, if not paid in such manneq by Borrower making payment, when due, directly to the
<br /> insurance carrier.
<br /> ` All iosurance policies and renewals thereof shall be in form acceptable to Lender and shall indude a standard mortgage
<br /> $ clauae in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br /> ,� and Sorrower shall promptly furnish to Leader 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 Lender. Lender may make proof of loss if not made prompUy
<br /> �` by Horrower.
<br /> rUnless Lrnder and Bonower otherwise agree in writing, insurance proceeds shal! be applied ro restoration or repair of
<br /> the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br /> a aot thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br /> T be impaircd, the insurance proceeds shall be applied to the sums sccured by this Mortgage, with the excess, if any, paid
<br /> ' x to Sorrower. If the Property is abandoned by Borrower, or i[ Borrower fails to respond to Lender within 30 days from tbe
<br /> € date notice is mailed by I.ender to Borrower that the insurance carrier offeis to settle a claim for insurance beoefits, Lender
<br /> R is authorized to collect and apply the insurance procceds at Lender's option either to restoration or repair of the Property
<br /> � or W the sums secured by this Mortgage.
<br /> Unless L.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> or poatpone the due date of the monthly installments refermd to in paragraphs i and 2 hereof or change the amount of
<br /> � such installments. If uader paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br /> ia and to any insurance policies and in and to the proceeds thereob resulting from damage to the Property prior to the sale
<br /> or acquisition shall pass to Lender to the extenc ot the sums secured by .this Mortgage immediately prior to such sale or
<br /> � acquiaitioa.
<br /> 6. Prpecvation aod Maintensnce of Property; Lesseholds; Condominiums; Planned Unit Developments. Borrower
<br /> shall keep the Property ia good repair and shall not commit waste or permit impairment or deterioration of the Propecty
<br /> and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> condomutium ora planaed unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br /> or covenants crea6ng or governing the condominium or planned unit development, the by-laws and regulations of the
<br /> coadominium or planned unit development, and constituent documents. IE a condominium or planned unit development �
<br /> rider is wcecuud by Borrower aad recorded together with [his Mortgage, the covenants and agreements of such rider ��
<br /> shall be incorporated into and shall amead and supplement the coveaants nnd agreements of this Mortgage as if the rider r 'i
<br /> were a part hereof: � , , �
<br /> 7. Prot�cUon of Leader'a Secudty. If Borrower faiLs to perform the covenants and agreements contained in this - •r
<br /> Mortgage, or if any action or .proceeding is commenced which materially affects Lender's interest in the Property, k ' '
<br /> ' ' includ" bu't not l�ited to, emineat dotnain, insolvenc code enforcement, or arran emrnts or `' " '
<br /> �8. Y. S proceedings involvin8 a � � ��
<br /> banknspt or decedent, then I.ender at 3.ender's option, upon notice to Borrower, may make such appearances, disburse such " ' `�':; ,,`-
<br /> sums and take such action as is necessary to protect Lender's inmrest, including, but not limited to, disbursemmt of ' , `'"�
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<br /> teawnable' atWmey's fea and entry upon the Property to make repairs. If Lender required mortgage insurance as a �
<br /> � coadition of malcing the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br /> iffiurance in effect until such time as the reyuirement for such insurance terminates in accordance with Borpower's and
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