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<br /> ' 78-. 0 0 2 '7 0 8
<br /> Utvrnoxnt Cov$rrexa's. Horrower and Lender covenant and agree as follows:
<br /> 1. Paymmt ol Pdncipd and Iateresf. Borrower shall prompdy pay when due t6e principal of and interest on the
<br /> indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest �
<br /> i . on any Futum Advances secured by this Mortgaga
<br /> i 2. Fanda [or Tazes aod Imuiance. Subject to applicable law or to a writcen waiver by Lender, Borrower shall pay
<br /> ' to I.ender on the day monthly installments of principal and intcrest are payable under the Note, until the Note is paid in full,
<br /> a sum (herein "Funds'� equal to ono-twelfth of tho yeady taxes and assessments which may attain priority over this
<br /> ! Mortgage, and ground nnts on the Property, if any, plus ono-twelfth of yearly premium installments for hazard insurance.
<br /> plus oactwelfth of yearly premium installments for mortgage insurance, if aay, ali as reasonably estimated initially and from �'
<br /> time to time by Lender oa the ba�is of assessments and bills and reasonable estimates thereof.
<br /> The Funds shall be held in an institution the deposits or accounu of which are insured or guaranteed by a Federat or
<br /> Y state agency (including Lender if L.ender is such an institution) . Lender shatl apply the Funds to pay said taxes, assessments,
<br /> insurance promiums and ground renu. Lender may not charge for so holding and apptying the Funds, analyzing said account,
<br /> or verifying and compiling said assessments and bills, unless I.ender pays Borrower intwest on the Funds aod applicable law
<br /> permits L.ender to make such a charge. Borrower and L.ender may agree in writing at the time of execudon of this
<br /> Mortgage i6at interest on the Funds s6a11 be paid to Botrower, and unless such agreement is made or applicable law
<br /> zequires such interest to be paid, Lender shalt not be requ�red to pay Borrower any interest or earnings 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 each debit to t6e Funds was made_ 'Ihe Funds are pledged as additional security for the sums secured
<br /> by this Mortgage.
<br /> If the amount of the Funds held by Lendeq together with the fumre moothly instailments of Funds payabte prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground ronts, shatl exceed the amount required to pay said taxes.
<br /> assessments, insurance premiums and ground rents as they fall due, such excess shalt be, at Borrower's option, either
<br /> ; promptly npaid to Borrower or credited to Borrower on mon[hly installments of Funds. If the amount of the Funda
<br /> held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br /> �, Borrower s6a11 pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by Leader to Borrower requesting" payment thereof.
<br /> Upon payment in full of all sums secured by tkis Mortgage, Lender shall promptly refund to Borrower any Funds ;
<br /> ! held by L.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 its acquisitiort by Lender, any Funds hetd by
<br /> s I.ender at the time of application as a credit against the sums secured by this Mortgage.
<br /> 3. Appllcatton of Paymeata. Unless applicable 1aw provides otherwise, alI paycnents received by Lender under the
<br /> ` Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> � uoder paragraph 2 hereof, ffien 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 /> j: 4. Charges; Lens. Borrower sha13 pay all [axes_ assessments and other charges, fines and impositions atvibutable to
<br /> the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br /> 'y pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
<br /> payee thereof. Bonower s6a11 prompdy furnish to Lender all notices of amounts due under this paragraph, and in the evenc
<br /> � Borrower shall make payment diroctly. Borrower shall promptly furnish to Lender receipts evidencing such paymenu.
<br /> � Bortower shall prompdy discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> required to discharge any such lien so long as Borrower shall agree in writing to t6e 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 /> ` legal proceedings which operate to prevent the enforcement of the lien or forfeiture of tlx Property or any part thercof. � ,
<br /> r 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Propercy insured "
<br /> i against loss 6y Sre, hazards included within the rerm "extended coverage", and such other ha7ards as Lender may require ;
<br /> , ¢ and in such aznounts and for such periods as Lender may require; provided, that Lender shall not require that thc amount of
<br /> � such covcrage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br /> The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> that such approval shall not be unreasonably withheld. All premiums on insurance policies shal! be paid in the manner
<br /> provided uader paragraph 2 hereof or, if aot paid in such manner, by Bonower making payment, whe� due, directly to the
<br /> insuraace carrier.
<br /> AII insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> clause in favor af and in form acceptable to L.ender. Lender shall have the right to hold the policies and renewals thereof.
<br /> and Borrower shall promptly furaish to l.ender all renewal notices and all receipts of paid premiums. In the event of loss,
<br /> Horrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> by Bonower.
<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 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, t6e inaurance proceeds shall be applied to the sums secured by this Moetgagc, 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.endu to Borrower that the insurance carrier offers to settle a claim for insurance benefiu, Lender
<br /> is suthorized to coilect aad apply the insurance procxds at Lender's option either to restoration or repair of the Property
<br /> g 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 poatpoae the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br /> such installments. If under paragraph I S hereof the Property is acquired by Lender, all right, tiUe 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 shalt pass to Lender to the extent of the sums secured by this Mortgage irnmediately prior to such sale or
<br /> acquisitioa.
<br /> 6. Preeervadon and Mdntennnce of Property; Leaseholds; Condominiums; Planned Uoit Developments. Borrower
<br /> , � shall keep the Propecty in good repair and shall not commit waste or permit impairmeat or deteriorauon of the Property
<br /> and shall complg with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> ; condominium or a pianned unit development, Borrower shall perform all of Borrower's obligations under the declaration �
<br /> or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the '
<br /> ' coadominium or planned uait development, and constituent documents. If a condominiom or planned unit development �:=`' ^k,� `
<br /> �' .. rider is executed by Borrower and recocded togethrs with this Mortgage, the covenants and agrcements of such rider " r—•-' ' '+�t ?
<br /> shall be,incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider ; .f
<br /> wece a part hereof. _ `� V' a� � ,
<br /> Y� 7, Protectlou of Lendee's Secudty. If Borsower fails to perform the covenanu and agreements contained in this s`
<br /> Mortgage,, or if any action or pracxding `is commenced which materially affects Lender's interest in the Property, �r, ,
<br /> r including, but not litnited to, eminrnf domain, insolvoncy, code enforcement, or arrangements or proceedings involving a ..
<br /> - �� i banlcrupt or deeedent, then I.enderat Lender's option, upon notice to Borrower, may make such appearances, disburse such x � "
<br /> sums ' and' take such attion as is necessary to protect Lenders interest, including, but not limited to, disbursement of ; � '�'
<br /> j, reaaonable attomey's feea and entry upon the Propeny to make repairs. If Lender requircd mortgage insurancc as a `'�
<br /> ; � coaditioa . of making the loan secured by this Mortgage. Borrower sha11 pay the premiums required to maintain such
<br /> � , iasorance in eHect untal such time as thc isquirement for such insurance terminates in accordance with Borrowers and
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