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<br /> �8-� U03024
<br /> Urrrnow�t Covstvnrrrs. Borrower aad Lender covenant and agree as follows:
<br /> 1. Paymeot of Pdnclptl and Inferest. Borrower shall promptly pay when duc the principal of and interest on ffie
<br /> I indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br /> on any Future Advances secured by this Mortgage.
<br /> 2. Fands for T�es aod I�urance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br /> to I.ender on the day monthly installments of principal and interost are payable under the Note, until the Note is paid in full,
<br /> a aum (herein ••Fuads") equal to ono-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 iostallments for hazard insurance,
<br /> plus ono-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> tima to time by Leader on t6e basis of assessments and bills and reasonable estimates thercof.
<br /> The Funds shall be heid in an institution the deposits or accounu of which are insured or guaranteed by a Federal or
<br /> state agency (including Lender if Lender is such an institution) . Lender sha�l appty the Funds to pay said ta�ces, assessments,
<br /> insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analycing said account,
<br /> or verifying and compiling said assessments and biils, unless Lender pays Borrower in[erest on the Funds and appticable law
<br /> permits L.ender to make such a charge. Borrower and Lender may agree in writing at the iime oF execution of this
<br /> Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreemrnt is made or applicable Iaw
<br /> requircs such interest to be paid, Lender shall not be required to pay Borrower any interest or eamings 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 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 installmrnts of Funds payable prior to
<br /> the due dates of ta�ces, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> assessments, insurance premiums and ground rents as they fall due, such excess shall 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 shall pay to Lmder 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 Lendec If under pazagraph I8 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 Mongage.
<br /> 3. Applicstton of Payments. Unless applicable law 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 pazagraph 2 heroof, then to interost payable on the Note, then ro the principal of the Note, and then to interest and
<br /> nrine�inol nn �nv Fvr..�o A .i..
<br /> f 4. C6arges; Lieas. Borrower shull pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> the Property which may attain a priority over this Mortgage, and leasehold 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 furnisb to Lender all notices of amounts due under this paragraph, aud in the event
<br /> Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments.
<br /> Borrower shall prompdy diuharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br /> required to discharge any such lien so ]ong as Horrower shall agree in writing to the payment of the obligation secured by
<br /> such lien in a manner acceptable to I.ender, 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 the Property or any pan thereof.
<br /> S. Hazard Insa�ance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> againat loss by 5ro, ha7ards included within the term "extended coverage", and such other hazards as Lender may require
<br /> and in such amounts and for such periods az 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 ucured 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 shsll no[ be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br /> ; provided under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
<br /> insuraace carrier.
<br /> All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> clauu in favor of and in form acceptabte to Lender. Lender shall have the right to hold the policies and renewals thercof,
<br /> and Borrower shall promptly furnish to Lender aIt renewal notices and all receipts of paid premiums. In the event of loss,
<br /> Borrower shatl give prompt notice to the insurance carrier and Lender. Lender may make prooF of loss if not made promptly
<br /> ', � by Borrower.
<br /> i 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 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 ihis Mortgage would
<br /> be impaired, t6e insurance procceds shatl be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> ° to Borrowec 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 Lender to Borrower that the insurance carrier offers to settle a claim for insurance bene6ts, Lender
<br />�' ; is auffiorized 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 /> p Unless Lender and Borrower offierwise agree in writing, any such apptication 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 amount of
<br /> such installments. If under paragraph 18 hereof the Property is acyuired by Lender, alI right, title and interest of Borrower
<br /> in and to any insurance policies and in and to the proceeds thereof raulting from damage to the Propeny prior to the sale
<br /> or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> acquiaition.
<br /> 6. Preservatlon and Maintenaott of Property; I.esseholds; Condominlums; Planned Unit Devdopments. Borrower
<br /> - shall keep the Property in good repair and shatl not commit waste or permit impairment or deterioration of the Property
<br />; E and shall comply with the provisions of any lesse if t6is Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> condominium or a planned unit development, Borrower shall perform alI of Borrowei s obligations under the declaration
<br />!;` � or covenants creating or goveroing the condominium or planned unit development, the by-laws and reguletions of the
<br />,., Y condominium or plaaned unit development, and constituent documents. If a condominium or pla�ned unit development _
<br /> , � rider is executed by Borrowet and recorded togcther with this Mortgage, the covenants and agreements of suc6 rider
<br /> shall be incorporated iato and shall amend and supplemmt the covenants and agreements of this Mortgage as if the rider �
<br /> ' � were a part hereof.
<br /> '7. ProtecNon of Lende�e Secudty. If �orrower fails to perform the covenants and agreemeots contained in this
<br /> Mortgage, or if any acrion or proceeding is commenced which materially affecu Lender's interest in the Propeny,
<br />; , � including, but not limited to, eminent domain, insolvency, code enforcement, or armngements or proceedings involving a
<br /> baokrupt ordeadent, then I.ender at L.ender's option, upon notice io Borrower, may make such appearances, disburse such
<br />, ' � snms and take auch action as is necasary to protect Lender's interest, induding, but not limited to, disbursement of
<br /> :easonable attomey's feu and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br /> ;� coadition of making the loan secured by this Mortgage, Bocrower shall pay the premiums required to maintain such
<br /> ,
<br /> insuraax in effect until such time as the requiiement for such insurance terminates in acwrdance with Borrower's and
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