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.2_ 85-- 000612
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest
<br />indebtedness evidenced by the Note, including any variations resulting from changes in the contract rate, and other
<br />charges as provided in the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or waiver by Lender, Borrower shall pay to Lender on
<br />the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full, a sum
<br />(herein "Funds ") equal to one - twelfth of the yearly taxes and assessments (including condominium and planned unit
<br />development assessments, if any) which may attain priority over this Mortgage and ground rents on the Property, if any,
<br />plus one - twelfth of yearly premium installments for hazard insurance, plus one - twelfth of yearly premium installments
<br />for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of
<br />assessments and bills and- reasonable estimates thereof. Borrower shall not be obligated to make such payments of Funds
<br />to Lender to the extent that Borrower makes such payments to the Holder of a prior mortgage or deed of trust if such
<br />holder is an institutional lender.
<br />If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are
<br />insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply
<br />the Funds to pay said takes, assessments, insurance premiums and ground rents. Lender may not charge for so holding
<br />and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender pays
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may
<br />agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless
<br />such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower
<br />any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds
<br />showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are
<br />pledged as additional security for the sums secured 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
<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 Lender any amount necessary to make up the deficiency in one or more payments as Lender
<br />may require.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender.
<br />Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds
<br />held by 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, or unless interest on the Note is
<br />precomputed, all payments received by Lender under the Noce and paragraphs I and 2 hereof shall be applied by Lender
<br />first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable at the
<br />applicable contract rate, and then to the principal of the Note. '
<br />4. Prior Mortgages -and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations
<br />under any mortgage,..dcgd of trust or other security agreement with a lien which has priority over this Mortgage,
<br />including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes,
<br />assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this
<br />Mortgage, and leasehold payments or ground rents, if any.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by firL, 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 be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall 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 forth acceptable to Lender.
<br />Lender shall have the right to hold file policies and renewals thereof, subject to the terms of any mortgage, deed of trust
<br />or other security 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. Leader may make proof
<br />of loss if 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 dale
<br />notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, I ender Is
<br />authorized to collect and apply the insurance proceeds at Lcndcr's option either to restoration tit repair of the Property
<br />or to the sums secured by this Mortgage.
<br />6. Preservation and Maintenance of Property; Leaseholds Condominiums; Planned Vnit Developments.
<br />Borrower shall keep the Property in good repair and shall nor commit haste or permit inipatl'Iticiv lit dclerioratloll of the
<br />Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this %lollpage is oil a unit
<br />in a condominium or a planne.i unit development. Borrower shall perform all of Borrower's „bligattons under the
<br />declaration or covenants creating or governing the condominium of planned unit development• the he -laws and
<br />regulations of the condominium or planned unit development, and constituent documents.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and av,reenn•nts eonlalned in Ihts
<br />Mortgage, or if any action or proceeding is commenced which materially affects I edict's Interesl in the 11rttpetly, Ihcn
<br />Lender, at Lender's option, upon notice to Borrower, play make such appcararn:cs, disbnrw such 'llm" In:hadulg
<br />reasonable attorneys' fees, and take such action as 1s necessary to protect !.eider's tntcrcsi. if] ender requned me rtgaarc
<br />insurance as a condition (if rnakln,il Ilse 10;ln `.0011'Cli by Illls %loritiagc, liollmker shall pap tilt• prennunts tcqunld Ir
<br />j.
<br />Maintain such insurance in effect until •itch tittle a" the tequlrcmenl lot such insurunrr It'Itltlnale, ill ac'oldAllt, tsllh
<br />Borrower's and Lender's written airrernlent or applicable law.
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<br />Any amounts dishursed by !.ender pursuant ell tills paragraph 7, uith interest thereon al the ;Ippil "It +dr'01 lfa't ta1C,
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<br />shall ba:cntne adtGtiorral indebtedness I,f Horrt,wcr secured be this Mt,rffagc. t!nIV- ltt,ltnwet anti l cndcl Ir:lrr Itt piper
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<br />leans of paytltenl, "(Sill amounts ah;all he pavablc npon nol.cc frntnt I ender lit 11oll icl IcqursUnr• h.n no t >i Il,ty r,f
<br />Nothing o.onfiiniml In Iles patagraph 7 shall Ic(I1111e I t' lit let I,, I Ilk 'tlt ;111A Clpellse (n IFikt' ,1111 a, I1,�11 ht 'I I'll I MCI
<br />n. Inspection. I ender nlaV make to Defuse III ht- made fi,aSinut1.1" on11l", I;I"r11 ,Intl snln, ium, . , I the I'i,'I,rtl,,
<br />provided I Ili l I rndrr ,h'iII vIR' florIower notice ptlot 1,+ 111, Inch 10 1111"?1.111 sl,,', ll,rnc ,c;l wahl, , III r IIICI, I,n ; I'l -tI
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