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<br /> �$- U02465
<br /> Urrrnox�.t CovsHerrrs. Borrower and Lender covenant and agree as fotlows:
<br /> 1. Payment of Principal and Interest. Bo�rower shall promptly pay when due the prinaipal of and interest on the
<br /> indebtedneu evidenced by the Note, prepayment and Iate charges as provided in the Note, and the principal of and intercst
<br /> ( on any Future Advsnces secured by this Mortgage.
<br /> 2. I�nds tor Tuts and Inaurance. Subject to applica6le Iaw or to a written waiver by Lcnder, Borrower shall pay
<br /> to I.ender on the day monthly instaliments of principal and interost are payable under the Note, until the Note is paid in full.
<br /> a sum (heroin "Funda^) equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground rmis on the Property, if any, ptus one-twelhh of yearly premium installments for hazard insurance,
<br /> plus ono-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> dme to time by L.ender on ffie bacis of assessmenu and bills and reasonable estimates thereof.
<br /> T6e Funds shall be held in an institution the deposits or accounu of which are insured or guaranteed by a Federal or
<br /> state agency (including Lender if Lender is such an institution) . Lender shall apply the Funds to pay said taxes, assessments,
<br /> insuranx 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 Bonower interest on the Funds and applicable law
<br /> permits I,ender to make such a charge. Bo�rower and Lender may agree in writing at the time of execution of this
<br /> p: Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br /> requires such interest to be paid, Lender shalf not be required to pay Borrower any interest or earnings on the Funds. L.ender
<br /> sball give to Bvaower, withoat charge, an annuat accountirtg oE the Funds showing credits and debits to [he Funds and the
<br /> purpose for which eac6 debit to the Funds was made. 'I'he Funds are pledged as additional security for the sums secured
<br /> by this Mortgage.
<br /> If the amount of the Funds 6eld by Lender, together with the future monthly installmenls of Funds payabte prior to
<br /> the due dates of taxes, assessmeats, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> assessments, insurance premiums and ground renu as t6ey fall due, such excess shall 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 suf&cient to pay taxes, assessments, insurance premiums and ground rents as they fall 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 requesting' payment thereof.
<br /> Upon payment in futl of al] sums secured by this Mortgage, Lender sha(I promptly refund to Borrower any Funds
<br /> held by Lxadec If under paragraph 18 hereof the Property is sold or the Properry is otherwise acquired by Lender, Lender
<br /> shall apply, no later than immediately prior to the sate of the Property or its acquisition by Lender, any Funds held by
<br /> Lender at the time of applicadon as a credit against the sums secured by this Mortgage.
<br /> 3. Applicat(oo of Paymenls. Unless 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 paymen[ of amounts payable to Lender by Borrower
<br /> ' under paragraph 2 hereof, [hen to interest payable on tE�e Note, then to the principal of the Note, and then to interest and
<br /> � r principal on any Future Advances.
<br /> `l 4• CLa�ges; Lieos. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> �: the Property which may attain a prioriry over this Mortgage, and leasehold payments or ground renu, if any, in the manner
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcUy to thc
<br /> ;: payee thereof. Bonower shait promptly furnish to L.ender all notices of amounts due under ihis paragraph, and in the event
<br /> Ji Borrower shall make payment directly, Borrower shall prompdy furnish to Lender receipts evidencing such payments.
<br /> �� Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrawer shall not be
<br /> required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br /> ; !; such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br /> k legal .pmceedings which operate to prevent the enforcernent of thc lien or forfeiture of the Property or any part thereof.
<br /> �' S. Havard lasurance. Sorrower shall keep the improvements now existing or hereafter erected on the Property insured "`" °�'"
<br /> � against loss by Sre, hazards included within i6e term "extended coverage", and such other hazards az Lender may require
<br /> and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the arnount of
<br /> P such coverage exceed ihat amount of coverage required io pay the sums secured by this Mortgage.
<br /> The insurance carrier providing the insurance shall be chosen by Borrower subject ro approval by Lender, provided,
<br /> � that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br /> � provided under paragcaph 2 hereof oq if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> insurance carrier.
<br /> All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> ' , ( clause in favor of and in fotm acceptable to Lender. Lender shalt have the right ta hold the policies and renewals thereof,
<br /> �2 and Borrower shall promptly furnish to Leader all renewal notices and all recei ts of aid
<br /> ; ! Borrower shall ve P p premiums. In the event of loss.
<br /> gi prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> by Borrower.
<br /> Unlese Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> the Property damaged, provided such mstoration or repair is economically feasible and the security of this Mortgage is
<br /> not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br /> ` , be impaired, the insurance proceeds shall be applied ro the sums secured by this Mortgage, with the excess, if any, paid
<br /> � � [o Borrower. If ihe Pmperty is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from ffie
<br /> date notice is mailed by Lender to Borrower cha[ the insurance carrier of[ers to settle a claim for insurance benefits, Lender
<br /> is authorized ro collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> . � or W the sums secured by this Mortgaga
<br /> ! Unless L.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shatl not extend
<br /> i or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> � such installrnents. If under paragraph IS 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 /> or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> $CQUISIt10A. . �
<br /> 6. Preaervatlon and Mainte�nce of Pmperty; Leavehotds; Condominium� Planned Un(t Developments. Borrowcr
<br /> shalt keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> and shall comply wiffi the provisions of any leax if this Mortgage is on a leasehold_ lf this Mortgage is on a unit in a
<br /> - � condominium or a planned unit developmen� Borrower shall perform all of Borrowers obligations under the declaration x
<br /> or covenants creating or governiag the conduminium or planned unit development, the by-laws and regulations of the
<br /> condominium or planned unit development, and constituent docummts. If a condominium or planned unit development "�� ,
<br /> rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider "-
<br /> s6all be incorporated iato and shall aznend and supplement the coveaants and agreements of this Mortgage as if the rider �"` `- _
<br /> were a part 2fereof. � �"' ' g„,:
<br /> 7• Yrotectioo of LendePs Securlty. If Borrower . fails to perform ffie covenants and agreements contained in this
<br /> Mortgage, or if any action or proceeding is� commenced which materially aHects Lender's interest in the Property, . �
<br /> !� includ'wg, but aot limited to, eminent domain, insolvency, code enforcement, or arrangemenu or proceedings involving a ; ` , ;�
<br /> banhvpt or decedent, tbrn I,eader at I.ender s option, upon notice to Borrower, may make such appearances, disburse such
<br /> aums and take such action as is necessary to protect L.ender's interest, including, but not limited to, disbursement of � „ `"''
<br /> reawnable attorney's fees and entry upon the Property to make repairs. if Lender requimd mortgage insurance as a '�'
<br /> "� ` coadition of making the loan secured by this Mortgage, Borrower shall pay the premiums reqvired to maintain such
<br /> � insurance in eHect until such time as tha reqairement for such iasurance terminates in accordance with Borrowers and
<br /> t: ^y. . . . � - .
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