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35-as.: 0Or350
<br />Utartoanf Cove.NANis. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and Interest 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 Future Advances secured by this Mortgage.
<br />2. Funds for Taxes and 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, until the Note is paid in full,
<br />a sum therein "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 one - twelfth 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 he held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (in cluding Lender it Lender is such an institution). Lender shall apply the Funds to pay said taxes, 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 compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender 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 interest to he paid, Lender shall not he required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge. 2n 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 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 />assessments. insurance premiums and ground rents as they tall due, such excess shall be, at Borrowers option, either
<br />promptly 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 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 deficiencv 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. I ender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is cold or the Properev, 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 Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<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; Liens. Borrower shall pay Al taxes assessment .Ind other charges. fines and impositions attributable to
<br />the Property which may attain a priority civet this Mortgage. and leasehold payments or ground rents, if any, in the manlier
<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 furnish to Lender all notices of amounts title under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree In writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, of 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 Len or forfeiture of the Property or any part thereof.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agai:ut loss by fire, hazards included within the term "extended coverage ", 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 wins secured 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 shall not be unreasonably withheld. All premiums on insurance policies shall be paid 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 />insurance carrier.
<br />All insurance policies and renewals thereof shall he in form acceptable to 1 -ender 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 promptly 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 proot of loss if not made promptly
<br />by Borrower.
<br />Una 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 feasthle or it the security of thus Mortgage would
<br />he impaired, the insurance proceeds shall he 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 It Borrower tails 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 benefits, 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 fender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or the due date of the monthly installments referred its In paragraphs I and '_ hereof sir change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by Lender. Al right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting Irom damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums sccured by this Mortgage immediately prior its such sale or
<br />acquisition,
<br />6. Pieservafioa and Maiatentgtce of Property; Leaseholds; Condominiums; Planned hull Developments. 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 provisions of any lean if this Mortgage is on a Icaschold. If this Mortgage is on a unit in a
<br />condominium or ie planned unit development, Borrower shall perform all tit Borrowers obligations under the declaration
<br />tit cove is creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />,oredcamniturre or planned unit development, and constituent documenm if a condorremium or planned unit development
<br />eider tit executed by Borrower and recorded together with thus Mortgage, the covenants and .agreements of such rater
<br />shall be mccerporated into and shall amend and supplement the covenants and agreements of thus Mortgage As It the rider
<br />were a pan hereof.
<br />7. Preelection of Laud*ear %cunt . If Borrower fails to perform the covenants and agreements contained to that
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<br />Mortgage, or if any action tit preceding tx commenced which materially affects 1 ender's Interest in the Property,
<br />Including, hot not limited to, eminent domain, inaalvencv, cede enforcement, or arrangements or pri- weedinies Involving a
<br />hankriapi or decedent, then Lender at I- ender's option, upon notice to Borrower, rnas make, such appearances, dishurxr such
<br />,tuns and lake sixth action as is necexaary to pit ,,tcct I ender'a Iritercal, mcludmet, but not Iirniled to ILshutsement of
<br />reasonable atlorney's tree anti entry upon the Ptoperty to make. repairs If I entirr wqunrd mortgage uismanre it :I
<br />undamn of making the limo Zvi -incil Ly this Mortgage, Borrower thall pay the juemmim lequurcd to maiutam wt,h
<br />rt UrAnkt9 Pr t'llt"ct Instil ', li(h tltiie I, the tegtnteinent fnr 11101 Ill 1min. P 1r,mmilte4 11 Hol't—IP "I , .Ind
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