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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 8 10;3692
<br />1. psyment of lrineitNll and interest. Borrower shall promptly pay when due the principal and interest
<br />indebtedness evidenced by the Note and late charges as provided in the Note.
<br />2. Funds for Tans and 14rnawce. Subject to applicable law or a written waiver by [Antler. Borrower %hall pay to
<br />IF Under on the day monthly payments of principal and interest are payable under the Note, until the Note is paid in
<br />Dull. a sum (herein "Funds ") equal to one- twelfth of the yearly taxes and assessments (including condominium and
<br />planned unit development assessments, if any) which may attain priority over this Mortgage and ground rents on
<br />the Property. if any. plus one,twelfth of yearly premium installments for hazard insurance, plus one - twelfth of yearly
<br />premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by
<br />Lender on the basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make
<br />such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage or
<br />is
<br />deed of'tru%t if such holder is an institutional lender.
<br />If liorrowe:r pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are
<br />insured or guar: sited by a Federal or %tare agency ( including tender if Lender is such an institution). Lender shall
<br />apply the Fund% to pay said lase%, assessments, insurance premiums and ground rents. Lender may not charge for %o
<br />holding and applying the Fund%, analyzing %aid account or verifying and compiling said assessments and hills. unless
<br />lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />lender may agree in writing at the time of execution of this Mortgage that interest on the Funds %hall he paid to
<br />is Banrower, and unlc%s such agreement is made or applicable law requires such interest to be paid. Lender shall not boa
<br />required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower. without charge. an
<br />annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the
<br />Fund% was made. The Fund% are pledged a% additional security for the sums secured by this Mortgage.
<br />it the amount of the Funds held by LArder, together with the future monthly installments of Funds payable prior to
<br />the due date% of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said
<br />taxes. assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option,
<br />either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the
<br />Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall
<br />due. Borrower shall pay to Lens ler any amount necessary to make up the deficiency in one or more payments as Lender
<br />may require.
<br />Upon payment in fell of ail sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by lender. It under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Leander.
<br />Lender %hall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds
<br />held by Lander at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />the Nonc and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by
<br />Borrower under paragraph 2 hereof, then to interest payable on the Note, and then to the principal of the Note.
<br />4. Prier MMgotim and Deeds of Trost; Chargm; Liens. Borrower shall perform all of Borrower's obligations
<br />under any mortgage. decd of trust or other security agreement with a lien which has priority over this Mortgage,
<br />including Borrower'% covenants to make payments when due. Borrower shall pay or cause ill be paid all taxes.
<br />a%%e%smcnt%and %niter charges. lines and impositions attributable to the Property which may attain a priority over thi%
<br />Mortgage. and leasehold paymcnl%orground rents, ifany.
<br />S. Hazard l onrance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against hiss by tire, hazards included within the term "extended coverage ". and such other hazards as Lender
<br />may require and in such amounts and for such periods as lender may require.
<br />The insurance carrier providing the insurance shall he chosen by Borrower subject to approval by Lender: provided.
<br />that such approval %hall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form
<br />acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender.
<br />Lender %hall have the right to hold the policies and renewals thereof. subject to the terms of any mortgage, deed of trust
<br />or other %ccurily agreement with a lien which has priority over this Mortgage.
<br />In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof
<br />ill has it not made promptly by Borrower.
<br />If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date
<br />notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender is
<br />authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of' the Property
<br />our to the sums secured by this Mortgage.
<br />`. Peesenalbn and MahNenance of Property; LeaKIW&-, Condominiums; Planned Unit Developments. Bor-
<br />raver shall keep the Property in good repair and shall no: commit waste or permit impairment or deterioration of the
<br />Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a
<br />unit in a condominium our a planned unit development, Borrower shall perform all of Borrower's obligations under the
<br />declaration or eovenanls creating or governing the condominium or planned unit development, the by-laws and
<br />regulations of the condominium or planned unit development, and constituent documents.
<br />7. Protection of Lender's Seevily. If Borrower fails to perform the covenant% and agreements contained in this
<br />Mortgage, or if any action or proceding is commenced which materially affect% Lender'% interest in the Property. then
<br />Lender. at Lender's option, upon notice to Borrower. may make such appearance%, disburse such sums, including
<br />reasonable attorneys' fees, and take such action as is necessary to protect Lender's interest. If lender required mortgage
<br />insurance a% a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required io
<br />maintain such insurance in effect until such time as the requirement for such insurance terminate% in accordance a iih
<br />loo rrower's and Lender's written agreement or applicable law.
<br />Any amounts disbursed by Lender pursuant to this paragraph 7. with interest thereon, at the Note rate. %hall
<br />fm-omte additional indcMednem of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other
<br />terms of payment. such atruunts shalt be payable upon notice from Lender to Borrower requesting payment thercol.
<br />lathing contained in this paragraph 7 shall require Leader to incur any expense or lake any action hereunder.
<br />A. luspertion. Lender may make or cause to he made reasonable entries upon and inspection% of the Property.
<br />provided that Lender %half give Borrower noire prior to any such inspection specifying reas,onahic cause therefor
<br />related io IAtukr' %infant fn the Property.
<br />N. Con demaatMn. The preas-enf% of any award or claim for damage%, direct or con%egocntial. in connccuon %,till
<br />env condcrtnumn to o0wr taking of the Properly, opt part thercol, in for coovey:etrcc in 1' •u ,uf pcop;lroortu,m my
<br />her *by assigned and %hall he paid to Lander, sub* -1 uo the term %of any, mortgage. decvl of tnntaeir,+it�ur,eecurn%
<br />"wen with a lien whwh hes prltrrily over this Mortgage.
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