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<br /> 78- UU3052
<br /> UwrnoxM Covtrurrrs. Borrower and L.ender covmant and agree as follows :
<br /> 1. Paymmt of P�iaclpal and Intercs4 Borrower shall prompUy pay when due the principal of and interest on ffie
<br /> 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 Mortgaga
<br /> 2. Fmde for Tua a� Insurance. 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, undl the Note is paid in full.
<br /> a sum (herein "Funda") equal to one-twetfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and grouad rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
<br /> plus oao-twelfth of yearly premium installments for mortgage insurance, if any, alt as reasonably estimated initially and from
<br /> dme 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 ) . Lender shall apply the Funds to pay said iaxes, assessments,
<br /> insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, „
<br /> or verifying and wmpiling said assessmenu and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br /> permiu Lender to make sueh 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 unless such agreement is made or applicable law
<br /> requires such interwt to be paid, Lender shatl not be required to pay Borrower any interest or earnings on the Funds. Lender
<br /> shall give W Bonower, 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 monthiy instaliments of Funds payabie prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground rmts, shall exceed the amount required to pay said taxes.
<br /> sasessments, insurance premiums and ground renu as they fall due, such excess shall be, at Borrower s option, either
<br /> prompdy ropaid to Borrower or credited to Borrower on monthiy installments of Fu�ds. 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 I.eader to Borrower requesting payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage, Lender shall prompdy 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. L.ender
<br /> shall appiy, 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. Application of Paymeats. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> Note and pazagraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Gender by Borrower
<br /> under paragraph 2 hereof, then to interest payable on the No[e, then [o the principal of the Note, and then to interest and
<br /> principal on any Future Advances.
<br /> 4. Chatges; Lleos. 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 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, direcUy to the
<br /> payee thereof. Borrower sha11 prompUy furnish to Lender all notices of amounu due under this paragraph, and ia the event �
<br /> Borrower shall make payment directly, Borrower shall promptly fumish to l.ender receipts evidencing such payments.
<br /> Bonower shall prompUy discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be �
<br /> required to diuharge 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 l.ender, or shall in good faith contest such Iien by, or defend enforcement of such lim in,
<br /> legal proceedings which aperate to prevent the enforcement of the lien or forfeiture of the Property or any part thercof. � *..,.y ,
<br /> S. Hazard Insarance. Borrower shall keep the improvements now existing or hereafter erected on the Properry insured
<br /> � against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may requiro � � .
<br /> and in such amounts and for such periods as Lender may require; provided, that Lender shatl not require that the amount of
<br /> such coverage exceed that amount of coverage required to pay the sums secured by this Mortgaga
<br /> 'Ibe insurance carrier providing the insurance shali be chosen by Borrower subject to approval by I.ender, provided, �;;. .,,
<br /> that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br /> provided uader paragraph 2 hueof or, if not paid in such manner, by Borrower making payment, when due, direcUy to the =
<br /> insurance carrier.
<br /> All insurance policies and renewals thereof shall be in fortn acceptable to Lender and shall include a standard mortgage
<br /> clause 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 prompUy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br /> Borrower shall give prompt notice to the insurance carrier and Lender_ Lender may make proof of loss if no[ made promptly :
<br /> by Boaower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> the Proper[y damaged, provided such restoration or repair is economically teasible and the security of this Morigage is
<br /> not thereby impaired. If such restaration or repair is not economicalty 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 Bottowec 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 I.ender to Borrower chat the insurance carrier offe� to settle a claim for insurance benefiu, 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 i.eoder aad 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 amount of
<br /> such installments. If undei patagrap6 18 hereof the Property is acquired by Lender, all righ[, 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 I.ender to the extent of the sums secured by this Mortgage immediately prior to such sate or
<br /> acquisition.
<br /> 6. Prcaervatlon and Maintenance of Properly; Leaseholds; Condominiums; Planned Unit Devdopments. Borrower
<br /> shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> and shall comply with the provisiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> condomiaium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration t
<br /> or coveaants cnating or governing the condominium or planned unit development, the by-laws and regulations of the
<br /> condominium or planned unit development, and constituent documents. If a condominium or planned unit development "`� .
<br /> rider is pcecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider " �`A � �; �
<br /> shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider ;` '
<br /> � were a part 6ereof. � ' ; � �_ �
<br /> 7. PmtecHon oE LendePs Security. If BQrcower fails to perform the covenants and agreements contained in this � x
<br /> Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, r � �
<br /> including, buE not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a y�,s
<br /> bankrupFor decedent, then Lender at Lender's opuon, upon notice to Borrower, may make such appearances, disburse such � '
<br /> sums and take such action as is necessary to protect Lenders interest, induding, but not limited to, disbursement of . ,,� - , ">
<br /> f reasonable attomey's feea and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br /> :� condition of making the loan securcd by this MoRgage, Borrower shall pay the premiums required to maintain such
<br /> � insursax in effect uatil such time as the requirement for such insurance terminates ia accordance wich Borrower's and
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