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<br /> U�rorttK CovstNnxrs. Borsower and Lender covenant and agree as foltows:
<br /> 1. Payment of Pcincipal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br /> s indebtedneaa evidenced by the Note, prepayment and late charges as provided in the NoCe, and the principa► of and interest
<br /> on any Future Advaneu secured by this Mortgage.
<br /> � 2. Fnnds tor Ta=es and 7neurance. Subject to applicable law ar to a written waiver by L.ender, Boaower shalt pay
<br /> � w Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full.
<br /> a sum (2�erein "Funda'7 equal to ono-twelfth of the yearly taxes and assessmmts which may attain priority over this
<br /> Moctgage, and ground rents on the Property, if any, plus ono-twelfth of yearly premium instaliments for hazard insurance,
<br /> ` plus onrtwelfth of yesrly premium installments for mort&age insurance, if any, all as reasonably estimated initially and from
<br /> ; 6me to time by L.ender on the basis of assessmtnts and bills and reasonable cstimates thereof.
<br /> ( The Funds shall be hetd in en institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br /> ' � state agency (iacluding Lender if Lender is such an institution ) . Lender shalt appty the Funds to pay said taxes, asseuments.
<br /> ! insuranx premiums and ground rents. Lender may not cha�ge 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 applicable law
<br /> ' � permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of exccutfon of this
<br /> ! Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or appticable law
<br /> � rcquires such interest to be paid, Lender shall not be required to pay Borrower aay irtteresL or eamings on ihe Fnnds. Lender
<br /> � O shall give to Bonower, without charge, an annual accounting of tt�e Funds showin� credits and debits to the Funds and the
<br /> ; purpose for whi¢h each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br /> � by this Mortgage.
<br /> � If the amou�t of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br /> i ^ the due dates of taxrs, assessmcnu, insurance premiums und ground rents, shatl exceed the amount required to pay said taua.
<br /> assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bozrowe�s opiion, either
<br /> promptty repaid to Borrower or credited to Borrower on monthly installmcnts of Funds. If the amount of the Funds ;
<br /> ; 6eld by Leudee shall not be sufficie�t to pay taues, assessments, insurance premiums and ground rents u they fatl 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 requesung' payment thereof.
<br /> � Upon payment in full of ali 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 later than immediately prior to the sale of the Property or ixs acquisition by Lender, any Funds held by
<br /> ' Lender at the timt of applicauon as a credit against the sums secured by this hfortgage.
<br /> { 3. ApplicaHon of Yryments. Unless applicabte law provides otherwise, aIl payments received by Lender undec the
<br /> Note and paragraphs 1 aad 2 hereof shall be applied by Lender fiist in payment of amounts payable to Lender by Borrow•er
<br /> under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br /> ' principal on any Future Advances.
<br /> ; 4. Charges; Lieas. Bonower 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 paymenu or ground rents, if any, in the manaer
<br /> j provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whrn due, dieectly to th�
<br /> t payee theteof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the evmt
<br /> Borrower shall make paymeat direcNy, Borrower shall prompdy fumish to Lender receipts evidencing such payments.
<br /> � Borrower shall promptly dixharge any lien which has priority over this Mortgage; provided, that Borrower shall not be "!
<br /> required to discharge any such lien so long as Borcower shall agree in writing to the payment of the obligation secumd by i
<br /> � such liea in a manner acceptabte to Lendeq or shall in good faith contest such lien by, or defend enforeement of such lien in, i
<br /> ) legal proceedings which operace to provent the enforcement of the lien or forfeiture of the Property or any part thereof. ?
<br /> ` 5. Ha�rd Iasacance. 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 /> 5 and in such amounts and for such periods as Lender may require; provided, that Lender shall not roquire that the amount of
<br /> t such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br /> fThe insurance carrier providing the insurance shall be chosen by Sorrower subject to approval by Lender. provided,
<br /> ; that such approval shall not be unreasonably withheld. All premiums on insurance poticia shall be paid in the manoer
<br /> � provided under paragraph 2 hereoE or, if aot paid in such manner, by Borrower making payment, when due, dircctly to the
<br /> { insuraux carrier.
<br /> All insurance policies and renewals thereof shall be in form acceptabte to Lender and shall include a standard mortgage
<br /> clause in favor of and in form acceptable to Lendea Lender shall have thc right to hold the policies and renewals thereof.
<br /> � and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
<br /> Borrower shalt give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> i by Borrower.
<br /> j Unless Lender a�d Borrower otherwise agree in writing, insuraace 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 /> inot thereby impaired. If such restoration or ropair 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 nny, paid
<br /> ' j to Borrowec lf the Property is abandoned by Horrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> idate notice is mailed by I.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> � is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Proper[y
<br /> ? or to the sums secund by this Mortgage.
<br /> � Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> or postpone the due date of the monthty installments referred to in paragraphs t and 2 hereof or change the amount of
<br /> i such installments. If under paragraph 18 hereof the Property is acquired by I.ender, alt right, tiUe and interest af Borrower
<br /> 1 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 acquisitioa shalt paas to Lender to t6e ractent of the sums secured by this Mortgage immediately prior to such sale or
<br /> Eacquisition.
<br /> � 6. Proservatlon and Mdntenance of PropeRy; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br /> � shall koep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> � and shall wmply with the provisions of any Iease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> � condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br /> 3 or covwants creating or governing the condominium or planned unit development, the by-laws and regulations of the e
<br /> condominium or planned uait development, and constituent documents. If a condominium or p�anned unit development
<br /> � rider is executed by Botrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br /> s6a11 be incorporated into and shal/ amend and supplement the covenants and agreements of this Mortgage as if the rider �
<br /> ' - � were a part hereof. ., :
<br /> 7. Protee8on of LendePs Secudty. If Borrower fails to perform the covenants and agreements contai�ed in this
<br /> � ' Mortgage, or if any action or proceeding is commenced which materially aHects Lender's interest in the Property, : i ^
<br /> includi[�g, but Aot Iimited to, eminent domain, insolvency, code enforcement, or arrangemenu or proceedings involving a
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<br /> bankrupt oYdecedent, then Lender at Leader's option, upon notia to Borrower, may make such appearances. disburse such ` �
<br /> ! su[as sud takt auc� action as is necessary to protect L.ender s interest, including, but not limited to, disbursement of
<br /> � ieasoaable attoiacy's fees and cn[ry upon the Property to make repairs, if Lender required mortgage insurance as a . ` y� ' ��
<br /> conditioa of malting We loan secured by this Mortgage, Borrower ahall pay the premiums requirod to maintain such
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<br /> imuraaa in effect until such time as tha requiremrnt for such insurance terminates in accordance with Borrower s and
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