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<br />� U�viroxHr Cov$xnrrrs. Borrower and L,ender covenant and Agres es follows :
<br /> : 1. Payment of Princlpal aod Interest. Borrower shall promptly pay when due the principal of and interest on the
<br /> indebtedness evidenced by the Note, prepayment and Iate charges as provided in the Note, and the principsl of and interat
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<br /> �, oa any Future Advances secured by this Mortgage.
<br /> ' ° Z• Funds for T�a and I�urance. SubjeM to applicable law or to a written waiver by Lender, Bonower sha11 pay ' '
<br /> i to Lender on the da monthl
<br /> � Y y installments of principal and interut are payable under the Note, until the Note is paid in full,
<br /> a sum (herein "Funda'� equal to ono-twelfth of the yearly taxes artd assessments which may attain priority over this
<br /> � Mortgage, and ground rents on the Property, if any, plus oao-twelfth of yearly premium installments for ha7ard insurance,
<br /> � plus ono-twelfth of yearly prcmium installments For mortgage insurance, if any, all as reasonably estimated initially and from
<br /> time to time by Leader on the basis of assessments and bills and reasonable estimates thercof.
<br /> jThe Funds s6all be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br /> ! stau agency (including Lender if Lender is such an imtitution ) . Lender shall appiy the Funds to pay said ta�ces, assessments,
<br /> i �nsu+ance premiums and ground rents, Lender may not charge For so holding and applying the Funds, analyzing said account,
<br /> i or verifying and compiling said assessments and biils, unless Lender pays Horrower interest on ffie Funds and applicable law
<br /> ; permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br /> 3 Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable Iaw
<br /> � requires such inierest to be paid, Lender shall not be required to pay Borrower any inrerest or eamings on the Funds. L,ender �
<br /> � shall give to Bonower, without charge, an annual accounting of the Funds showing credits and debits ro 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 Mortgage.
<br /> If the amount of the Funds held by L.ender, together with the future monthly installroenu of Funds payabie prior to
<br /> the due dates of twces, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> aasessments, insurance premiums and ground renu as ihey fall due, such excess shall be, at Borrower's option, either
<br /> prompUy repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br /> hUd by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they falt due,
<br /> Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is maited
<br /> � by I.ender to Borcower requesting' payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage, Lender shall prompdy refund to Borrower any Funds
<br /> held by Lender. If uader paragrapb 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br /> �� a � Y P p rty or its acquisition by Lender, any Funds held by �
<br /> f pp y, no later than immediatel rior to the sale of the Pro e
<br /> � Leader at ttie time of applicatioa as a credit against the sums secured by this Mortgage.
<br /> 3. ApplicsNon oE Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> ; ; Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower '
<br /> � under paragraph 2 henof, then to interest payable on the Note, then ro the principal of the Note, and then ro intereat and �
<br /> € principal on any Future Advances.
<br /> � 4• Clmcger, Lfens. Borrowcr shall Qzy a11 taxcs, assessments and other charges, frnes and impositi�ns attributable to f
<br /> j the Property which may attain a priori;y over this Mortgage, and leasehold payments or ground rents, if any, in the manner i
<br /> f provided under paragraph 2 hereof oq if not paid in such manner, by Borrower making payment, when due, directly to the '
<br /> + _ payee thereof. Borrower s6a11 promptly fumish to Lender all natices of amouats due under this paragraph, and iu the event
<br /> � Borrower shall rnake payment directly, Borrower shall prompdy fumish to Lender receipts evidencing such payments.
<br /> � Borrower shall prompdy discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> , rcquired to discharge any such lien so Iong as Borrower shall agree in writing to the payment of the obligation secured by
<br /> such liea in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcemeat of auch lien in, �'
<br /> } legal proceedings which operate to prevent the enforcement oF the lien or forfeiture of ffie Property or any part thereof. _
<br /> � 5• Haaard lnsoiance. Borrower 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 /> and in such amounts and for such periods as Lender may require; provided, that Lender shall not reqaire that the amount of
<br /> ) � such coverage excced that amount of coverage required to pay the sums secured by this Moctgaga
<br /> j o0 The insurance carrier providing the insurance shall be chosen by Sorrower subject to approval by Lender; provided, �
<br /> � � that such appmval shall not be unreasonably withheld_ AII 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, direcUy to the
<br /> # O insurance carrier_
<br /> � O All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> clause in favor oE and in form acceptable to Lender. L,ender shall have the rig6[ 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 loss,
<br /> Borrower shall give prompt notice [o the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> � by Borrower.
<br /> ; Unless Lender and Borrower otherwix agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> ' a the Property damaged, provided sucM restoration or repair is economically feasible and ihe security of this Mortgage is
<br /> not thereby unpaired. If such restoration or repair is not economically feasible or if the security of this Mortgage woutd
<br /> �. be impaired, tLe insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> to Borrower. If tl�e Propeny is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> , j date aotice is mailed by L.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 ratoration 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 postpone the dae date of the monthly iastaltments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> suc6 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 /> ; a or acquisiHon s6a11 pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> acqtisition.
<br /> ; , d 6• Pre�ervation �d Maintenance of Property; Le9xeholds; Condominlumr, Planned Unit Developmenta. Borrower
<br /> ahaU keep t6e Property in good ropair and shall not commit waste or permit impairment or deterioration of the Property
<br /> � and shall comply with the provisioas of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> condominium or a plamed unit development, Borrower shall perform ali of Borrower s obligations under the declaration °
<br /> or covenants crwting or governing the condominium or planned unit development, the by-laws and regulations of the
<br /> ;-,:( condominium or plenned unit developmrnt, and wnstituent documents. If a condominium or planned unit development • - -- `" fi , ��
<br /> ' � rider is executed by Borrower and ncorded together with this Mortgage, the covenants and agreements of such rider � � �+ F
<br /> shall be incotporated iato and shall amend and supplement the covenants nnd agreements of this Mortgage as if the rider ��j � ' 3
<br /> were a part hereo� �
<br /> 7• Protecdon oE Lender's Secadly. If $orrower fails to perform the covenants and agreemenb contained in this ; � '
<br /> �; � Morcgage, qr if any aMion or proceeding is commenced which materially affecu Lender's interest in the Pro rt F' ' ��'�
<br /> including, bu} not limited to; eminent domain, insolvency, code enforccment, or arrangemenu or proceedings involv ng a � - `
<br /> £ btnlQup[ or dxedent, then I.ender at Lender's option, upon notice to Borrower, may make such appcarances, disburse such
<br /> � sums aad take auch action as is neeessary to protect Lender's interest, including, but not Iimited to, disbursement of " �� � ^
<br /> reaaonab7e atbmey's fees and entry upon the Property to make rcpairs_ If Lcnder required mortgage insurancc as u
<br /> rt condition of roaking the losn secur�d bv this MoRgage, Borrower ahalt
<br /> , pay ffie premiums rcquirc:l fo maintair: such
<br /> '+, insurance in effect unt�7 such titne as thc requirement for such insurance terminates in accordance with Bonower s and
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