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<br /> �8- U03022
<br /> Urr�oawr CoveNnNTs. Borrower and Lender covenant and agree as follows :
<br /> � 1. Payment oE Princtpal and Interest. Borrower shall promptly pay when due the principal of and interes[ on the
<br /> indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br /> ' � on any Puture Advances secured by this Mortgage. :
<br /> 2. Fands tor Taxes and Imurance. Subject to applicable �aw or to a written waiver by Lender, Borrower shall pay
<br /> to L.ender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br /> a sum (herein "Funds") 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 yearly premium installments for hazard insurance,
<br /> plus onrtwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated 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 (induding Lender if I.ender is such an institution ) . Lender shall appty the Funds to pay said taxes, assessmenu,
<br /> insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, unalyzing said account,
<br /> or verifying and compiling said assessments and bills, unless Lender pays Borrower in[erest on the Funds and applicable law
<br /> permits I.ender to make such a charge. Borrower and Lender may agree in writing at the time of exewtion of ffiis
<br /> Mortgage that interes[ 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 shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br /> shal[ give to Sorrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br /> purpose for which each debit to the Fuods was madc. The Funds are pledged as additional security for the sums secured
<br /> ', by this Mortgage.
<br /> If the amouni of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxa,
<br /> assessments, insurance premiums and ground rents as they falt due, such excess shall be, at Borrower s option, either
<br /> prompdy npaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br /> held by Lender shall not be sufficient 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 full of alt sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br /> held by I,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 acquisition by Lender, any Funds held by
<br /> Lender at the time of application as a cmdit against the sums secured by this Mortgage.
<br /> 3. Application of Paymenfs. Untess 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 payable to Lender by Bonower
<br /> � under paragraph 2 hereof, then 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 /> � 4. Charges; L1ens. Boaower shall pay all taxes, assessments and other charges. fines and impositions attributabl� to
<br /> 1 the Property which may attain a prioriry over this Mortgage, and leasehold payments or ground rcnts, if any, in the manaer
<br /> provided under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> s payee thereof. Bonower s6a11 promptly furnish to Lender all notices of amounts due under this paragrapM, and in the event �
<br /> � Sorrower shall make payment directly, BorrOwer shall promptty fumish to Lender receipts evidencing such payments_
<br /> Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, [hat Borrower shalt not be
<br /> ' required to discharge any such lien so long as Borrower shalt 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 /> legal proceedings which operate to prevent the enforcement of ihe Iien or forfeiture of the Properiy or any part thereof.
<br /> 5. Iiazard I�urance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured �
<br /> against loss by flre, hazards included within the term "extended coverage", and such other hazards as I.ender may requirc �
<br /> and in such amounts aod 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 Mortgaga
<br /> j "lhe insu�ance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> that such approval shall aot be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br /> 1 provided under paragraph 2 hereof or, if not paid in such manner, by Borzower making paymen[, when due, directly to the
<br /> i iasurance carriea
<br /> ` All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> n dause in favor of and in form acceptable to Lender. Lender shall have the righi to hold the policies and renewals thereof.
<br /> i aad Borrower shall promptly furnish to Lender all renewal notices and a�l receipts of paid premiums. In the event of loss.
<br /> f Borrower shall give prompt notice to the insurance carrier and Lendec Lender may make proof of loss if not made promptly
<br /> ; by Borrower.
<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 eeonomically feasible and the security of this Mortgage is
<br /> jnot thereby impaired. If such restoration or rcpair is not economically feasible or if the securiry of this Mortgage would
<br /> be impaired, tLe 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 /> date aotice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> ' is suthoriud to collect and apply the insurance proceeds at Lender's option either to resroration or repair of the Property ;
<br /> Gor ro the sums secured by this Mortgage.
<br /> Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> { or postpone the due date of the manthly instaUments referred to in paragraphs 1 and 2 hereof or chaoge the amount of
<br /> � such installments. If under paragraph l8 hcreof 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 t6e extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> p i acquieition.
<br />� ' 6. Pieeervation and Malntenance of Property; Leaseholds; Condominiums; Plsoned Untt Devdopments. Borcower
<br /> j ; shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> y ; and shall comply with the provisions of any lease if this Mortgage is on a leasehold_ If this Mortgag� is on a unit in a
<br /> condominium or a planned unit development, Borrower shall perform aIt of Borrower s obligations under the declaration
<br />� � or covenants creatiag or governing the condominium or planned unit development, the by-laws and regutations of the
<br />� condominium or planned unit development, and constituen! documents. If a condominium or planned unit development
<br /> " � rider is acauted by Borrower and recorded together with this Mongage, the covenants and agreements of such rider -_
<br /> - ` ' � , ahall be incorporated into and ahall arnead and supplement the covenants and agreements of this Mortgage as if the rider
<br /> E � were a part hereof_
<br />� '7. Prnfectlon of Lender's Secarity. If Boaower fails to perform the covenants and agreements contained in this
<br /> u a Mortgage, or if aay actioa or proceeding`is commenced which materially affects L.ender's interest in the Property,
<br /> inNuding, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invoiving a
<br /> ,' bankrupt or decedent, then : L.ender at LendeYs option, upon notice ro Borrower, may make such appearances, disburse such
<br /> ' ; sums aad take anch action as is aecessary to protect Lender's interest, including, but not limited to, disbursemmt of
<br /> reasonable attomay's fees and entry upon the Property to make repairs. If Lender zequired mortgage insurance as a
<br /> conditioa of maldng the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br /> insurance in eHeci nntil such wne as the requirement for such insurance terminates in accordance with Borrowers and
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