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<br /> 78-y 003160
<br /> ; Ururow�s CovBxwr�rs. Borrower and Lender covenant and agrec as foUowa :
<br /> f ' L Payment of Princlpal aod Intereat Borrower sha11 prompNy pay when due t6e principal of and interest on the .
<br /> F iadebtedness evidencedby the Note, prepayment and late charges as provided in the Note, and the principal of and interest '
<br /> i on any Futuro Advanc.es secured by this Mortgaga
<br /> j , Z. Fands tor Taea �nd Imar�nce. Subject to appiicable law or to a written waiver by Lender, Bocrower shall pay '
<br /> ; � to Leader on the day monthly installments of prinipal and interest are payable under the Note, until the Note is paid in full, �
<br /> ' a sum (hereia `•Fuada'� equal to ono-twetfth of the yearly taxes and assessments which may attain priority over this
<br /> � ' Mortgage, :and ground nnts on the Property, if any, plus o�o-twelfth of yearly premium instaliments for hazard insurance,
<br /> pIus one-twelfth of yearly premiwa installmente for mortgage insurance, if any, all as rcasonably estimated initially aad from
<br /> � time to dme by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br /> i 'I7�e Funds shall be held in an institution the deposits or accounts of which are insured or guaranued by a Federal or
<br /> � state agency (inNuding Lender if Lender is such an institution) . Lender shall appty the Funds to pay said taxes, assessmenu,
<br /> imurance premiums and ground rents. Lender may not charge for so holding and apptying the Funds, analyzing said account,
<br /> f or verifying and compiling said assessments and bills, unless Lender pays Borrower ioterest on the Funds and applicable law
<br /> � permits Lender to make such a charge. Borrower and I.ender may agree in writing at the time of execution of this
<br /> , : Mortgage that interest on the Funds s6a11 be paid to Borrower, and unless such agreement is made or applicable law
<br /> � °, requires such interest ta be paid, Lender shaIt not be required to pay Borrower any interest or earnings on the Funds. Lender •
<br /> shall give to Borrower, wiffiout charge, an annual accounting of ffie Funds showing credits and debits to the Funds and the '
<br /> � purpose for which eac6 debit to the Fuods was made. 'Ihe Funds are pledged as additional security for the sums secured
<br /> + % by this Mortgage.
<br /> $ ; If the amount of t6e 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 taxes,
<br /> ' asscuments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br /> -, � ,, promptly ropaid to Bonower or credited to Borrower on monthly installments of Funds. If the amount of the Funds �
<br /> � held by Lender shall not be sulHcieat 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 datc notice is mailed ` '
<br /> � ' by Lender to Bonower mquesting' payment thereof. r
<br /> ' ` Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds `
<br /> � held by I.ender. If under pazagraph 18 hereof the Property is sold or the Propeny is otherwise acquired by Lender, Lender <
<br /> s6a11 apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, aoy Fuods held by %
<br /> � ; Lender at the time of application as a crodit against the sums sewred by this Mortgage. *
<br /> � ; 3. AppIIcatloa of Paymenls. Unless applicable Jaw provides otherwise, all payments ceceived by Lender under the s + <
<br /> J� Note and paragraphs 1 and 2 hereof shall be applied by Lender fi�st in payment of amounts payable to Lender by Borrower ,
<br /> ( � under paragraph 2 hereof, thea to interest payable on the Note, then ro the principal of the Note, and then to interest and � i�%
<br /> 1 i ptincipal on any Future Advances. ,
<br /> � 4. Cha�ges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to � �^
<br /> � the Property whic6 may attain a priority over this Mortgage, and leacehold payments or ground rents, if any, in the manner
<br /> � provided undet paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcHy to the � _ , �;
<br /> t - payee t6ereof. Borrower shall promptly furnish to Lender all nodces of amounts due under this paragraph, and ia the event ; �
<br /> Borrower shall make payment directly, Borrower shatl prompdy fumish to Lender receipts evidencing such paymcnts. 4`
<br /> Borrower shall prompUy discharge any lien which has priority over this Mortgage; provided, that Borrower shalt not be ' :�'
<br /> ' j required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by ; `�s
<br /> { such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such Jie� in, i � y` �
<br /> legal proceedings which operate to prevent the enforcement of the Iien or forfeiture of the Property or any part thereof. i
<br /> ' S. Hazard Insurance. Bonower shall keep the improvements now existing or henafter ereaed on the Property insured ;
<br /> . � against loss by 8re, hazards induded within ihe term "extrnded coveragd', and such other hazards as Lender may require ;
<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 /> � The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> � thai such approval shall not be unreasonably withheld. All premiums on insurance policies shaU be paid in the manner
<br /> provided under paragraph 2 hveof or, if not paid in such manaer, by Borrower making payment, when due, direcUy to the - �'
<br /> P �insurance carrier. .
<br /> All insurance policies and renewals thereof shall be in form 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 Sorrower shall prompdy fumish to Lender all renewal notices and all mceipts 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 toss 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 economically feasible and the security of this Mortgage is
<br /> not fhereby unpaire� If such mstoration or repair is not economically feasible or if the security of this Mortgage would
<br /> be impaired, the insorance proceeds shall be applied to the sums secured by this Mortgage, with ffie excess, if any, paid
<br /> W Horrower. If the Propeny is abandoned by Borrower, or if Borcower fails to respond to Lender within 30 days from the
<br /> date notice is mailed by I.eader to Borrower that the insurence carrier offers to settle a claim for insurance benefits, Lender
<br /> " j is authorized to collect and apply the insurance proceeds at Lender's option eit6er to testoration or repair of the Property
<br /> or to thEsums secured by this Mortgage.
<br /> Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shalt not extend
<br /> or postpoae 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 acquired by Lender, all right, tiUe and interest of Borrowe� '
<br /> in aad to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br /> or acquiaition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sate or
<br /> acquiai6on.
<br /> z: 6. Preaervatbn and Maintenance of Property; Lease6olds; Condomtniums; Planned Unit Devdopments. Borrower
<br /> shsil keep the Property in good repair and shall not �rommit waite 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 /> � condoannium or a 'planned unit developmen4 Borrower shall perform all of Borrower's obligations under the declaration
<br /> ° ` o[ covenan4s creating or governing the condominium or planned unit development, the by-laws and regulations of the '
<br /> coadomiaium or plamed unit development, and constituent dxuments. If a condominium or planned unit development ,,, �_ ,.,.. ''
<br /> ` ridcr is pcecuted by , Borrower and ncorded together with this Mortgage, the covenants and agrcements of such rider �
<br /> $ ' ahail be incorporated "mto and shall amend and supplement the cwenants and agreements of this Mortgage as if the rider ' ' `
<br /> rdece a gaR hereof. . '
<br /> 7. Protection �of Lendcr's Security. If Borrower fails to perform the covenants and � � 'V '
<br /> agretmmts contained in this , �y .,
<br /> Mortgage, or rf any _action or,. proceeding � commenced which matenally affects Cender's interest in the Property,
<br /> r iaC�lduig,, biit noYlitnited to, eminent doinain, insolvency, code enforcement, or arrangements or proceedings involving a ��'� : �
<br /> bau7ctvpCor.decedenE, lhen' Ixader 'at I.ender'sbption, upon` notice to Borrower; may mnke such appearances, disburse such `*" "
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<br /> sium hnd take wch action 'as '„is to rotect Lender's . intercat, ic�cludin but not limited to, disbucsement of '�"�` "� " `
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<br /> reatouab7e attomey's 'fees aud entry `�upso�n the Property to make repairs. If L.e der required mortgage insurance as a � ��Ln ,
<br /> � condition. ob making ;the loan secured by this Mortgage, Borrower ahall pay the premiums required to maintain such
<br /> iwuraax-in,'effect uotil sueh time as the requiremept for suah insurance terminatcs in accordance with Borrawer's end
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