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<br /> �8-. UU2986
<br /> Ulviroitat CovExevrs. Borrower and Lender covenant and agree as fotlows:
<br /> 1. Paymeat of Princlpal and Inte�est. Borrower shall prompUy pay when due the principal of and interest on the
<br /> iadebtednesa evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br /> r` on any Future Advances secured by this Mortgage.
<br /> '; 2. Fnoda for Ta�ces and Insurance. Subject to appiicable taw or to a written waiver by I.ender, Borrower shail pay
<br /> to Lender on Yhe day monthly installments of principal and intercst are payable under the Note, until the Note is paid in full.
<br /> a sum (herein "Punds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearty premium installments for hazard insurance,
<br /> plus onatwelfth of yearly premium instaliments for moRgege insurance, if any, all as reasonabty estimated initially and from
<br /> 6me 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 (inctuding Lender if Lender is such an institution ) . Lender shall apply ffie Funds to pay said taxes, assessments,
<br /> insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, anatyzing said account,
<br /> or verifying and compiling said assessmenu and bills, untess Lender pays Borrower interest on the Funds and applicable law
<br /> permiu Lender to make such a charge. Borrower and L.ender 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 snch interest to be paid, Lender shall not be required to pay Borrower any ic�terest or eamings on the Funds. Lender
<br /> shal[ give to Borrower, without charge, an annua( accounting of the Funds showing credits and debits to the Funds and the
<br /> purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br /> by this Mortgage.
<br /> If the amount of the Funds held by Lender, together with the future monthly instaliments of Funds payable prior to
<br /> the due dates of taxes, assessments, insu�ance premiums and ground rents, shall exceed the amount required to pay said ta�ces.
<br /> ! assessmenu, insurance premiums and ground rents as they faii due, such excess shall be, at Borrowers option, either
<br /> promptly repaid to Borrower or credited to Borrower on monthly insiallments of Funds. If the amount of the Funds
<br /> held by Lender shall not be suffcient to pay taxes, assessments, insurance premiums and ground rmts as ehey fall due,
<br /> Bonower 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 full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br /> held by Lender. 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 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. App�icaHon of Payments. Unless applicable law provides 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 payabte to Lender by Borrower
<br /> under paragcaph 2 hereof, then to interest payabte on the Note, then to the principal of the Note, and then to interest and
<br /> principal on any Future Advances.
<br /> 4. Charges; I3ens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> the Property which may attain a priority over this Mortgage, and leazehold payments or ground rents, if any, in the manner
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br /> Borrower shall make payment directly. Borrower shall promptly fumish to Lender receipts evidencing such payments.
<br /> ; Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> required to discharge any such lien so �ong as Borrower shall agree in writing to the payment of the obligation securod by
<br /> ; such lien in a manner acceptable to Lender, or shall in good faith conrest 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 the Property or any part thereof.
<br /> `, 5. Ha�rd Insannce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> against loss by fire, hazards included within ihe term "extended coverage", and such other hazards as Lender may require
<br /> and in such amounts and for such periods as Lender may require; provided, that Lcnder shall not require that the amount of
<br /> such coverage exceed that amount of coverage required to pay the sums secured by this Mottgage.
<br /> The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lendcr, provided.
<br /> that such approval shall not be unreasonabty 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 Sorrower making payment, when due, dimtly to the
<br /> i insuranae carrier.
<br /> ; Al! insurance policies and renewals 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 hold the policies and renewals thereof.
<br /> and Borrower shall prompdy furniah to Lender alt renewal notices and all receipts of paid premiums. In the event of loss,
<br /> ' Borrower shall give prompt notice to the iosurance cazrier and Lender. Lender may make proof of loss if not made promptly
<br /> � by Horrower_ • :
<br /> Unless Lender and Bortower 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 this Mortgage is
<br /> i 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 to the sums secured by this Mortgage, 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 /> i date notice is mailed by I.ender to Borrower that the insurance carrier otTe�s to setde 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 /> or to the sums secured by this Mortgage.
<br /> Unless L.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> ; or postpone che due date of the monthly instatlments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> ', such installments. If under paragraph t8 hereof the Property is acquired by Lendcr, 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 Propeny prior to thc sale
<br />�: ; or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediatety prior to such snle or
<br /> G r acquisition.
<br />� ' 6. Preaervatlon and Maintenance af Property; Leaseholds; Condomininms; Planned Unit Devdopments. Borrower
<br /> f i shall keep the Property in good repair and shalt not commit waste or permit impairmrnt or deterioration of the Property
<br /> j;. : � � and s6a11 comply with the provisions of any leax if [his Mortgage is on a ►tasehold. lf this Mortgage is on a unit in a
<br /> k condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />� F or covenants creating or governing the condominium or planned unit devetopment, the by-laws and regulations of the
<br />� ; aondominium or planned uait development, and constituent documents. If a condominium or planned unit development
<br /> f i rider is wcecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />„; : '�p shall be incorporated into and shall amend and supplement the covenants and agreemenu of ihis Mortgage as if the rider '
<br />� � wue a part txreoE.
<br />[ Z . ProtecNon of Lender's Secodty. If Horrower fails to perform the covenants and agreements contained in ffiis
<br /> i. Mortgage, or if any action or proceeding�is commenced which materially aftects Lender's interest in the Property,
<br /> f� � iaduding, but not limited to, eminent domain, insolvency, code enforcement. or arrangemenu or proceedings involving a
<br /> j � bankrupt or decedeaq then I.ender at Lender's option, upon nodce to Borrower, may make such appearances, disburse such
<br /> r sums and tatce such action as is uecessary to protect Leader's interest, induding, but not limited to, disbursement of
<br /> -+ reasonable attomey's fees and mtry upon the Properry to make repairs. If Lender required mortgage insurance as a
<br /> tcondition of making the loan secured by this Mortgag0. Borrowcr shall pay thc premiums rcquired to maintain svch
<br /> ; i insuraace w eHect uadl such time as t6e requirement for such insurance terminates in accordance with Borrower's and
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