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<br /> LTrtn!ott�+t Covcrtniv�rs. $occower and Lender covanant and agree as fqllows :
<br /> i. Paymenf o[ Princ(pal md Interest; Barrower shalf promptly pay Wl�en due the principal of and interest on the
<br /> indeblednaas evideneed by 4he Note, prepayment and, latt charges as provided 'tn the Note, and the principal of and intenest
<br /> � on any Future Advapces secured by this Moregagc. . �
<br /> 2. Funde for Ta�es and Iosuranee. Subject to applicabie law or Ca a written waiver by Lender, Borcower ahall 'pay . ''
<br /> to Lendv on the day monthly installnoents of ,principal and interest are payabfe under Yhe Note, antil the Note i� paid in full,
<br /> a sum (henin `•Fuqds") equal tu pne-twelfth of the gearly taxes and assessments which may attAin priarity over this
<br /> Mortgage, and ground rents on the P++aperty, if any, plus o�e-tweifth of yaarly �remium instalirnentc f�r ha�ard insurance.
<br /> � plus oqe•twolfth of yearl� pcemi�un installment5 for maetgage inaurance, if any, a11 as reasanably estimated initially and Erom
<br /> �u
<br /> Cf+ time to time by Leoder on the basis of assessments and bllls ancf reasonable estimates thereof.
<br /> +"'ti The Funds shalt be held in an instilution the depusi►s or aceounts of which arc insured or guaranteed by a Federal or
<br /> �j state agen¢y fincludiag Lender iE Lender is such an institutio.n ) . Lender shall apply the Funds to pay said fexes, assessments,
<br /> � insurance pcemiums and gcound rents. Lender may not charge fot so holdin� and applying rhe Funds, analyzing said aceoant,
<br /> � or vtrifying apd compiling said assessmcnrs and Gills, unless Lender pays Horrower interest nn the Fuods and applicable law
<br /> permiU Lender to make su�h a charge. Borrower and I,ender may agree in writing at the time of txecution of Yhis
<br /> Mortgage that iutetest on the Funds shall be paid to Borrower, and unlas such agreement ps made or applicable law
<br /> ^ s6$1l�give t Baccower, wittto�aehargee ar� a'nnual aecounang o[the Fwnds• shuwing ertdits and deb� to the Funds a dnthe
<br /> punpost fqr which each debit ta the Funds was made. The Funds are pledged as additional secutity far the sums sacured
<br /> ' by this Mortgage.
<br /> � If Che amount af the Funds held b Lender, to ether with the fucure ment,hl
<br /> Y S y installments of Funds payable prlor to
<br /> [6e due dates af eaxa, assessments, insnrancs Premiums and grou,nd renu, shalt exeeed the amaunt requircd ta pay said cates,
<br /> sssessments, iosuranee premfums and gaound rents as they fa�P due, such excess shall be, at Borrower's aption, ciiher
<br /> y ' prom.ptlq repaid to Borrawev or cr�drted to Horrower on monthdy insta.lCrttents of Funds. If the umount o[ rhe Funda
<br /> �f held by Lender shall not be sut&cient to pay taares, assessments, insuranre premiums and geound renu as they fall due,
<br /> ? Borrowor shal! pay to Lender any amount necessary to make up the deficiency w•ithin 30 days fcom che date notice is mailed
<br /> � by I ender to Borrower ctquesting payment thereof.
<br /> Upon payment in fUD pf a(1 sums secured by uhis Mortgage, l,ender shatl pr�mAtly sefund to Borrower any Funds
<br /> hold by I.ender. If under paragrap}i 18 hGreo,f the Propeny is sold or the Prc�perty is nt'herwise acquired by I:ender, Lender
<br /> s6s11 apply, no later than imrnediataly prior to the sale �f the Property or its acquisition by l.endee, a�y Funds hCld by
<br /> y ; Lender at the iime of epplication as a credit against the aumti secured by this M-ortgage.
<br /> 3. Appl;cation of PsymenLs. Unless ap�licable law provides otherwise, all payments reeeiv�d by I,cnder under thc
<br /> Note a�nd paragraphs 1 and Z hereof shall be applied by Lender first in paymc.nt oF amaunta payabla xo Lender by Borrower
<br /> under paragraph 2 hereof, then to interest payabin on the Natite, tNen to the prioeipal of t,he Note, and then to intetest and
<br /> principal on any Futute Advahces.
<br /> 4_ Chr�ges; Liens. Bcrrrower sha11 pay all [axes, assessmencs and othqr eharges, fines and impositions attr'rbwaablc to
<br /> the Property which may attain a priority over this Mortgage, and Ieasehold payments or ground rencs, ef any, in the manner
<br /> ' pmvided under paragraph 3 hereaf or, lf not paid in such rttanner, by� B�rrower making payment, when due. diractly t� the
<br /> ' i payee thereof. Barrower shall pcomptly furnish to Lender a1) notices of amnunts due under this paragraph, and in ihe event
<br /> Borrower shall make payment dimcly, Borrower sha11 prornpdy furnish to Lender reeeip�s �viden¢i�g sueh payments.
<br /> Borrowee shall promptly d'tscharge any lien which has priaeity uver rhis Mlurtgage: pravidtd, that Borrpwet shall not 6e
<br /> required to diseharge any sac11 lien so long as BUrrower shall agree in writing ta uhe payment oF the obligation secured by
<br /> such lieq in a manner acceptable to Lsnder, or shall in good faith conrest such lien fry, qr deFenil enforcement of such lien in,
<br /> legal proceedings which operate to prevent [he enforcement of the lien or forfeiture of the Property or any part thereof.
<br /> 5. Hazard Insunnce. Borrower shall keep the improvements now existing or hereafcer 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 /> and in such amounts acid for such periods as Lender may require; provided, that Lender shall not require chat the amount of
<br /> such coverage exceed that amount of coverage required to pay the sums secured by this Mortgaga
<br /> The insurance carrier providiag the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> that such approval shalt not be unmasonably withheld. All premiums on insurance policies shall be paid in the manner
<br /> provid� under paragraph 2 hereof or, if nat paid in such manner, by Borrower making payment, when due, dimtly to the
<br /> IOSilIBDCC C8[IICi. � � �
<br /> All insurance policies and renewals thereof shall be in form acceptablc to Lender and shall include a standard 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 Borrower shall prompUy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of lou,
<br /> Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> by Borrower.
<br /> Unleas Lender and Bonower otherwise agree in writing, insurance proceeds shall be applied to restora[ion or repair of
<br /> the Property damaged, provided such ms[oration or repair is economically feasible and the security of this Mortgage is
<br /> not thereby impaired. If such rcstoration or repair is not economically fcasible or if the security of this Mortgage would
<br /> be impaired, the insurance proceeds shall be applied to the sums xcured 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 Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, Lender
<br /> is authoriud to coLect 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 offierwise agree in writing, any such application of proceeds to principal shall not extend
<br /> or postpone the due date of the monthly ivstallments referred to in paragraphs t and 2 hereof or change the amount of
<br /> such installmenu. If under paragraph 18 hereof the Property is acquired by Lender, aIl 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 s6all pass to Lender to the extent of the sums secured by this Mortgagc immediately prior to such sale or
<br /> . acquisition.
<br /> 6. PreservaHoo and Maintenance of Properfy; i,easeholds; Condominiums; Planned Unit Developments. Borrower
<br /> shall keep the Property in good repair and shall not commit waste or permit impnirment or deterioration of the Property
<br /> aad 5haI1 comply with the provisions of any lease if this Mortgage is on a Ieasehold. 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 /> or coveaants cteating or governing the condominium or planned unit development, the by-laws and rcgulations of the
<br /> condominium or planned unit devdopment, and constiment documents. If a condominium or planned unit development
<br /> rider u executed by Bprrower and recorded together with this Mortgage, the covenants and agreemenis of such rider - """ ' �`'
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<br /> ahall be incorporated into and shall amend and supplement the covenanLs and agreements of this Mortgage as if the rider ��"Y . '
<br /> were a part hereof. � ,. Y
<br /> 7. Protectlon of Leuder's Secudty. If Borrower fails to perform the covenants and agreements contained in this ;r
<br /> Mortgage, or if aay action or proceeding is sommenced which materially affecu Leader's interest in the Property, „ ,�
<br /> 9nclnding, but not limiud to, eminent domain, insolvency, code enforcement, or arrungements or proceedings involving a \;�,. ,
<br /> banlcrupt or decedent, then Lender at Lender's option, upon notice to Boaower, may make such appearances, disburse such ; ,
<br /> sums s�1 take aucb action as is necessary to protect Lender's intcrest, including, but not limited to, disbursement of = ^�'
<br /> nasonable attomey'a fea and entry upon the Property to make repairs. If Lender required mortgage insurance as a , "'"" � "
<br /> condition of making the loan secured by this Mortgage, Horrower shall pay the premiums required to maintain such
<br /> imurance in effect undl such time as the xzquirement for such insurance terminates in accordance with Borrowcrs and
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