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<br /> 7s- p02860
<br /> Utvmont.t Covexerrrs. Borrower and Lender covenant and agree as follows:
<br /> 1. Payment of Principd and Interat. Borrower shalt prompUy pay when due the principai of and interest on the
<br /> iadebtednesa evidenced by the Note, prepayment and lau charges as provided in the Note, and the principal of and interest
<br /> on any Future Advances secured by this Mortgaga �
<br /> 2. Fbnde forTasea and Imurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br /> to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full.
<br /> a aum (herein "Funda") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground renu on the Property, if any, plus one-twelfth of yearly premium installmenu for bazard insurance.
<br /> plus ono-twelfth of yearly premi�un instaliments for moRgage insurance, if any, all as reasonably estimared initially and from
<br /> time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br /> The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br /> ' state agency (including Lender if Lender is such an institution) . l.ender shall apply the Funds to pay said taxes, assessments,
<br /> 3� insurance premiums and ground rents. Lender may not charge for so holding and applying t6e Funds, analyzing said account,
<br /> or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable 2aw
<br /> f 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 Fands shal! be paid fo Borrower, and unless such agreement is made or applicable law
<br /> requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. i.ender
<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 whieh eac6 debit to the Funds was made. The Funds are pledged as additional security for the sums suured
<br /> by this Mortgage-
<br /> If the amount of the Funds held by Lender, together with the fuwre monthly installments of Funds payable prior to
<br /> the due dates of taxes, assessmenu, insurance premiums and ground rents, shalt exceed the amount required to pay said taxes,
<br /> asses^_:ents, insurance premiums and ground rents as they fall due, such excess shalt be, at Borrower's option, either
<br /> prompdy 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 su�cient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br /> Borrower shal! 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 full of all sums secured by this Mongage. Lender shall prompdy refund to Borrower any Funds
<br /> held by Lendec If under paragraph I8 hereof the Property is sold or the Property is otherwiu acquired by Lender, Lender
<br /> shall apply, no later than immediately prior ro the sale of the Property or its acquisition by Lender, any Funds held by
<br /> Lender at the time of application as a credit against the sums secured by this Mortgage.
<br /> 3. Appllcation of Paymenta Unless applicable law provides otherwise, all payments received by Lender under the
<br /> Note and paragraphs 1 and 2 hereof shall be applied by Lcnder first in payment of amounzs payable to Lender by Borrower
<br /> under paragraph 2 hercof, t6en to interest payable on the Note, then to the principa] of the Note, and then to interest and
<br /> principal on any Future Advances.
<br /> 4. Charge� Liens. Borrower shall pay all taxes, assessments and other charges, fines and imposi[ions attribu[able to � � � � �
<br /> the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manMr
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> t payce t6eceof. Borrower shall promptly furnish to Lender all notices of amounu due under this paragraph, and in the event
<br /> � Borrower shall make payment directly, Borrower shall prompUy furnish to Lender receipts evidencing such paymenu.
<br /> ; ; Borrower shall promptly discharge any lien which has priority over this Mongage; provided, that Borrower shall not be
<br /> rcquired to discharge any such lien so long as Borrower shall agree in writing to the payment of che obligation secured by
<br /> j such lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, or defend enforcement af such lien in,
<br /> 1 legat proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br /> 4 5. Ha�rd Insorance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> � against loss by fire, hazards inciuded within the term "extended coverage", and such other hazards as Lendcr may requirc `
<br /> � : and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br /> ; such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br /> ; T6e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> i6at such approval shall not be unreasonably withheld. All premiums on insurance policia shall be paid in the manner
<br /> provided under paragraph 2 hereof or, if not paid in such maaner, by Borrower making payment, when due, directly to the
<br /> � insurance carrier.
<br /> Alt insuranee policies and renewats thereof shall be in form acceptablc to Lender and shall include a standard mortgage
<br /> { clauae in favor of and in form acceptable to Lender. Lender shall have the right to hotd the policics and renewals thereof.
<br /> � and Borrower shall prompdy furniah to L.eader all renewal notices and all receipts of paid premiums. In the event of Ioss.
<br /> rs Borrower shall give prompt notiee to ihe insurance carrier and Lender. Lender may make proof of loss if not made pramp[ly
<br /> ; by Borrowea
<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 feasibte and the security of [his Mortgage is
<br /> - $ not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br /> j be impaired, the insurance procceds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> to Borrower. If t6e Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> + da[e notice is mailed by Lender to Borrower that Ihe insurance carrier oRers to sente a claim for insurance benefru, Lender
<br /> - e is authorized to collect and apply the insurance proceeds at Lrnder's option either to restoration or repair of the Property
<br /> ` S 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 postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amouot of
<br /> ' ', such installments. If under paragraph 18 hereof lhe Property is acquired by Lender, all right, title and interest of Borrower
<br /> , s in and to any iasurance policies and in and to the proceeds thereof ruulting fram damage to the Property prior to the sale
<br /> or acquisition shall pass to Lender to t6e extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> ', acquisition.
<br /> + 6. Preservallon and Maiateaance of Property; Leaseholds; Condominiums; planned Unit Developments. Borrower
<br /> ` ahall kap the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> � and shall comply 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 planned unit development, Borrower shall perform all of Borrower's obligations under the dednration !
<br /> -� or covenants creating or goveraing the condominium or planned unit development, the by-laws and regulations of the
<br /> � condominium or planued unit development, and constituent documents. I[ a condominium or planned unit development _ *
<br /> � rider is executed by Borrower and recorded together with this Mortgage, the covenants and agroements of such rider ""' "`�
<br /> shatt be incorporated into and shall amend and supplemmt the covenants and agreements of this Mortgage as if the rider
<br /> ; � wece a part heceof. ;�
<br /> 7. Protection of Lender's 9ecurlty. If Bortowcr fails to perform the covenanu and agreements contained in this
<br /> Mortgage, or if . any actioa or proceeding �is commenced which materially affects Lender's interest in the Property,
<br /> ,_ ; including, but noC limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a '" sn� , �7
<br /> � banlcrupt or deoedent, then Leader at Lender's option, upon notice to Borcower, may make such appearances, disburse such _ �
<br /> ` sums and take auch action as ia necessary to protect Lender s interest. induding, but not limited to, disbursement of , ` �, " ""`
<br /> � reasonablr attozaey's fees and entry upon tlae Property to make repairs. If Lender required mongage insurance as a
<br /> conditioa of making the loan secured by t6is Mortgage, Boaower shall pay the premiums requirod to maintain s��ch
<br /> � insurance in eHect unt7 such time as thr requirement for such insurance terminates in accordance with Borrower's and
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