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<br /> Urtrnow.t Covexexrs. Borrower and Lender wvenant and agree as foltows :
<br /> 1. Paymant of Fstncipal aad Infeccsl. Borrower sl�all promptly psy :vhen due the principa! of and interest on the
<br /> indebtedness ovideaced by the Note, prepayment and Iate charges as provided in the Note, and the principal of and interest
<br /> I on any Future Advances secured by this Mortgage.
<br /> 2. Fands [or T�es and Imuranca Subject to appticable !aw or to a written waiver by Lender, Boaower shall pay
<br /> to I.ender on tl�e day monthty installments of principal and inrerest are payable under the Note, until the Note is paid in full,
<br /> , a sum (herein "Funds•� equat to one-twelfth of the yeady taxes and assessments which may attain priority over this
<br /> +�1 Mortgage, and ground renta on ffie Property, if any, plus ono-twelfth of yearly premium instaliments for hazard insurance,
<br /> +�i plus ono-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> j� time to time by Lender on the basis of assessmenu and bips and rcasonable estimates thereof.
<br /> (�j The F�nds shall be held in an institution the deposiu or accounts of which are insured or guaranteed by a Federel or
<br /> � state agency (including Lender if L.ender is such an institution) . Lender shall apply the Funds to pay said taxes, assessments,
<br /> � insurance promiums and ground rents. Lender may not charge for so holding and applying the Funds, anatyzing said account,
<br /> or verifying and compiling said assessments and bilis, unless Lender pays Borrower interest on t6e Funds and appticable law
<br /> � permits I.ender to make such a charge. Borcower and Lender may agree in writing at the ume of execution of this
<br /> q� Moctgage that interest on the Funds shatl be paid to Borrower, and unlus such agreement is made or applicable law
<br /> !\ requires such iaterest to be paid, I.ender shall not be required to pay Borrower any interest or earnings on tbe Funds. Lender
<br /> shall give to Borrower, without charge, an annual accounting of the Funds show•ing crediis and debits to the Funds and the
<br /> purpose for which each debit to the Funds was made. 'Ihe Funds are piedged as additional secnrity for the sums secured
<br /> by ffiis Mortgage.
<br /> If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to ,
<br /> - the due dates of taxes, asseasments, insurance premiums and ground rents, shall exceed the amount required to pay said taxa,
<br /> assessments, insurance premiums and ground ronu as they fall due, such excess shall be, at Borrower's option, either
<br /> promptly repaid to Borrowet or credited to Borrower on monthiy installmen4s of Funds- If the amount of the Funds
<br /> held by Lender shalt not be su�cient to pay taxes, essessments, insurance premiums and ground rents as they fall due,
<br /> Borcower shalt pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by L.ender to Borrower requesting' payment thereof.
<br /> Upon payment in full of all aums secured by this Mortgage. Lender shalt prompUy refund to Borrower arty Fnnds
<br /> held by I.ender. If under pazagraph 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 acquisition by Lender, any Funds hdd by !
<br /> Lender at the time of application as a credit against the sums secured by this Mortgage. ,
<br /> ; 3. Application of Yayments. Unless applicable Iaw providu otherwise, all payments 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 /> under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intuest and
<br /> principal on any Future Advances_
<br /> 4. Cha�gea; Liens. Borrower shall pay all [axes, assessments and other charges, fines and impositions attributable to
<br /> the Property which msy attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br /> pzovided under paragraph 2 hereof or, if not paid in such man�er, by Borrower making payment, when due, direcUy to the
<br /> payee thereof. Borrower shall prompdy fumish to Lender all notices of amounts due under this paragraph, and in ffie event
<br /> ; Borrower shatI make payment directly, Borrower shall prompHy furnish to Lender receipts evidencing such paymmss. �
<br /> Borrower shall prompdy discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> required to discharge any such tien 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 Iien by, or defend enforcement of such lirn in,
<br /> legal ptoceedings which operate to prevent the enforcement of the Iien or forfeiture of the Property or any part thereof.
<br /> ' ;:, 5. Hazard Insarnnce. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured
<br /> againat loss by Sre, hazards induded within the term "extended coverage", and such other hazards as L.ender may require
<br /> " and in such amaunts and for such periods as Lender may require; provided, that Lender shall not requice that the amount of
<br /> j; such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. '
<br /> � T6e inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, '
<br /> that such approvat shall not be uareasonabty withheld. Ali premiums on insurance policies shalt be paid in the manner _
<br /> ;; provided uader paragraph 2 hereof o. if not paid in such manneq by Bocrower making payment, when due, direcfly to the
<br /> insurance carrier.
<br /> k' All insurance policies and reaewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> t clause in favor of and in form acceptable to L,ender. Lender shall have the right to hotd the policies and renewats thereof,
<br /> - �, and Borrowec shall prompdy furnish to Lender all renewal notices and atl receipts of paid premiums. In the event of Ioss.
<br /> " Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> ' Q by Borrowu.
<br /> p Ualqs Lender and Borrower otherwise agree in writing, insurance praceeds shalt be applied to restoration or repair of
<br /> i, the Property damaged, provided such restoration 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 procxds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> 'i. to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> ; date aoUce is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> � is authoriud to collect and apply the insurance proceeds at Lender's option either ro restoration or repair of the Property
<br /> r or to the sums sewred by this Mortgage.
<br /> Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal s6a11 not extend
<br /> t or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> ' t such installments. If under paragraph 18 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 shall pass to Lender to tbe extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> ; acquiaition.
<br /> � 6. Pa+nerradon and Mainte�nce of Property; Leaseholds; Condominiums; Planned Unit Devdopments. Borrower
<br /> shall keep the Property ia good repair and s6a11 not commit waste or permit impairment or deterioration of the Property
<br /> and shall comp7y with the provisions of any lease if this Mongage is on a leasehold. If this Mortgage is on a unit in a
<br /> condominium or aplanned unit development, Borrower shall perform all of Borrowers obligations under the declaration
<br /> or covenants creating or goveming the condominium or planned unit development, the by-laws and regulations of the t
<br /> condominium or planned unit development, and constitnent documents. If a condominium or planned unit developmert ,,�,., ' ,
<br /> rider is executed by Bornower and rewrded together with this Mortgage, the covenanu and agreements of such rider -�- r—: �.; .;
<br /> ahalt be incorporated into and shall emend and supplement the covenants and agreemenu of this Mortgage as if the rider '�
<br /> werc a part hcreof. ` :�
<br /> Z Protecttou o[ Le�er's Secudty. If Borrower fails ro perform the covenants and agreementa contained in this `� ,'
<br /> Mortgage,; or if any actioa. or proceeding�is commenced which materially affecis Lender's interest in the Property, `
<br /> including, `but aot limiud to, eminent. domaim, insolvency, code enforcement, or arrangements or proceedings involving a " '
<br /> � � baalwpt or deeedent, then L.ender at Lender's option, upon notice to Borrower, may make such appeannces, disburse such � . * " ,<..,� w
<br /> sums aad take auch action as is necessary to protect Lender's interest, i�luding, but not limired to, disbursement of �� y "'�-
<br /> � teafonable attorney's fees and entry upon the Propertg to make mpairs. If Lender required mortgage insurance as a `''" ' '�' = � `
<br /> condition .of maicing the loan seeured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br /> � i�urance in eE#ect nntil such time as the requirement for such insurance terminates in accordance with Borrower's and
<br /> '.:�.�,.g . . � . �. . . .
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