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<br /> Ux[rotent Covexeiv�rs. Borrower and Lender covenant and agree as follows:
<br /> 1. Paymeat of Pdncipa� and Interest. Borrower shall promptly pay when due the principal 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 /> � oa any Futuro Advances secuzed by this Mortgaga
<br /> 2. Fonda for Tues and Inaurnnce. Subject to applicable law or to a written waiver by L.ender, Borrower shall pay
<br /> ; . to I.ender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br /> a sum (herein •'Funda'� equal to one-twelfth of the yeady taxes and auessments which may attain priority over ihis
<br /> ` � � Mortgage, and ground renu on t6e Property, if any, plus one-twel8h of yearly premium instailments for hazard insuzance,
<br /> plus one-hvelfth of yearly premium instal�ments for mortgage insurance, if any, ail as reasonably estimated initially and from
<br /> ume to time by Lender on the basis of assessments and biits and reasonable estimates thereof_
<br /> The Funds shall be held in an instituuon the deposits or accounts of which ure insured or guaranteed by a Federal or
<br /> atate agency (including Lender if Lender is such an institution) . Lender shall appiy the Funds to pay said taxes, assessmrnts,
<br /> insuraace premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br /> permiu Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br /> Mortgage that interest on the Funds shall be paid to Borrower, and unlus such agreement is made or applicable law
<br /> ' requires such interest to be paid, I.ender sha(I not be required to pay Borrower any interest or eamings on the Funds. Lender
<br /> shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br /> purpose for which eac6 debit to the Funds was made. The Funds are ptedged as additional security for the sums saured
<br /> by this Mortgage.
<br /> If the amount of the Funds held by Lendeq together with the future monthly installments of Funds payable prior to
<br /> the due dates of [axes, assessments, inaurance premiums and ground rents, shall exceed the amount required to pay said ta�ces,
<br /> assessments, insurance premiums and ground rents as tliey fall due, such excess shalt be, at Borrower's option, either
<br /> promptly 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 sufficient to pay taxes, assessmenu, insurance premiums and ground rents as they fall due,
<br /> Borrower s6a11 pay to Lender any amount necessary to make up t6e deficiency within 30 days from the date notice is mailed
<br /> by Lender to Borrower requesting' payment thereof. I
<br /> Upon payment in full of al! sums secured by this Mortgage. Lender shalt promptly refund to Borcower 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 /> s6a11 apply, no later thao immediately prior to the sale of the Property or its acquisition by Lender, aay Funds held by
<br /> Lender at the time of application as a credit against the sums secured by this Mortgage. �
<br /> 3. AppBcation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> ' Note and paragcaphs I and 2 hereof shall be apptied by Lender first in payment of amounts payable to Lend'er by Borrower '
<br /> ;; under paragraph 2 hereof, then to interest payable on the Note, then to the principat of the Note, and then to inrerest and
<br /> � ' principal on any Future Advances.
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<br /> 1 ' 4. Cha�ges; Lieps. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> the Property which may attain a priority ovcr this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br /> provided under paragraph 2 henof or, if not paid in such manner, by Borrower making payment, when due, direc8y to the
<br /> payee theteof. Borrower shall promptty furnish to Lender all notices of amounts due under this paragraph, and in the event
<br /> :' Borrower shall make payment direcdy, Borrower shatl prompdy furnish to Lender receipts evidencing such payments.
<br /> #' Borrower shall ptomptly discharge any lien which has priority over this Mongage; provided, that Borcower shall not be
<br /> , � required to discharge any such lien so long az Borrower shall agree in writing to the payment of the obligation secured by
<br /> �; sueh lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, or defend enfomement 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. -•'� """`�-
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<br /> i- 5_ Haa�rd Insu�ance. Boaower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> � against loss by Src, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br /> ;. and in such amouots and for such periods as Lender may require; provided, that Lender shall not require that the amoant of
<br /> such coverage exceed t6at amount of coverage required to pay the sums secumd by this Mortgage.
<br /> ` 'Tbe inaurance carrier providing the insurance shatl be chosen by Borrower subject to approval by Lender; provided, •;,,
<br /> f, that such approval shaq not be unreasonably withheld. All 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 /> insurance carrier.
<br /> I All insurance policies and renewats thereof shall be in form acceptable to Lender and shall include a standard moRgage
<br /> �' clause in favor of and in form acceptable to Lender. Lender shalf have the right to hold the policies and renewals thereof.
<br /> � and Borrower shalt promptly fumiah to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br /> e Borrower shall give prompt notice to the insurance cazrier and Lendec Lender may make proof of loss if not made promptty
<br /> ; � by Borrowec
<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 /> f, not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br /> k be impaired, the inaurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> E to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> f date notice is maited by I.ender to Borrower that the insurance carrier oRers 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 Property
<br /> a or to the sums secured by this Mortgage.
<br /> � Unless I.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 referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> ' � such instaltmeats. If under paragraph 18 hereof t6e Property is acquired by I,ender, 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 acqnisition shall pass to Leader to the excent of the sums secured by this Mortgage immediatety prior to such sale or
<br /> i acqtisition.
<br /> � , . � 6. Preservafion aod Mainhnance of Property; Leasehotds; Condominlums; Planned Unit Developments. Borrower
<br /> � shall keep the Property in good repair and sLall not wmmit waste or permit impairment or deterioration oF the Property
<br /> aad shalt comply with the provisions of any lcase if this Mortgage is on a Ieasehold. If this Mortgage is on a unit in a
<br /> � j condominium or a planned unit development, Borrower s6a11 perform all of Borrower's obligations under the declaration S
<br /> j or covenanta creating or governing the condominium or planned unit development, the by-laws and regulations of the -�
<br /> condominium or planned unit developmrnt, and constituent documents. If a condominium or planned unit development " s'=" = " � , ,
<br /> rider is executed by Borrower and recorded together with this Mortgage, the coveoanis and agreements of such rider �,,,, ; � ;
<br /> shaL be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider � � ,
<br /> were a part hereof.
<br /> , 7. Protectlon ot Lender's Secutity. If �orrower fails to perform the covenants and agreements contained in this n�, , � •�
<br /> Mortgage,, or if aay acdon or proceeding is commmced which materially affects Lender's interest in the Property, i "
<br /> induding, but not timited to, .emi�nt domain, insolvency, code enforcement, or arrangemenu or proceedings involving a '. � ` �' {
<br /> bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such � =�
<br /> sums aad take such action u if necasary to protect Irnders inierest, including, but not timited to, disbursement of � � �
<br /> � nasonable attomey's fees and entry upon the Property to make repairs. If Lender requircd mortgage insurance as a
<br /> co�lition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br /> ;'r' ;F imuraace in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and
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