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002620
<br />UNtroust CoVBNANTe. Borrower and Lender covenant and agree as follows:
<br />i• Paywemt of Pdocipal sad Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />r indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />r at any Ethane Advances secured by this Mortgage.
<br />2. Fork fW Tames amt lumraRee. 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 tinder the Note, until the Note is paid in full,
<br />a atln (bx+ein "Funds ") equal to one - twelfth of the yearly taxes and assessments which may attain priority over ibis
<br />Mort#W 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 />OM to time by Lender on the basis of assessments and hills 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 />s state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />f insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />f or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Leader to snake 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 be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. tender
<br />i shaft give to Borrower, 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 tb,: 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 />assen ents, insurance premiums and ground rents as they fall 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 tip the deficiency within 30 days from the date notice is mailed
<br />by Leander to Borrower requesting payment thereof.
<br />Upon payment in fall of all sums secured by this Mortgage, lender shall promptly 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. Lender
<br />SW 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. Alin" 111ea of Paymeab, 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. Clrrgeg lints. 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 die, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due 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, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />egsl proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. lidssud Iaaurarrce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage ", and such other hazards as tender 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 />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 die, directly to the
<br />insurance curia.
<br />AN 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 />sad 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 proof of loss 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 />no thereby impaired. If such restoration or repair is not economically 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 Borrower. If the Property is abandoned by Borrower, or it Borrower fails to resoonud to Lender within 30 days from the
<br />daft 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 />Of to the sauna secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />of poelpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such imtalttmeats. It unda paragraph I be+sof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to amy insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />of acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />fk Psthervsiasa anti Maipdwamae of Properly; Leaaebolis; Co Planned Umit Developaenq, Borrower
<br />s keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and doll comply with the provision of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />cOOdOmbum rr
<br />of a planned start development. Borrower shall perform all of Boower's obligations under the declaration
<br />Of COVOR&NO creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condomWum or planned unit development, and constituent documemc. If a condominium or planned unit development
<br />ride is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />slap be i into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />rxtse a put huaof.
<br />7, Ptsbcd m Of i *dWe flsetrrm If Borrower fails 10 perform the covenants and agreements contained in this
<br />Of if amy action or proceeding is commenced which materially affects [.@rider's interest in the Property,
<br />but 00 limited Io, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />hewkrupt w docirderm. then tender at L.eodrres option, upon notice to Borrower, may make much appeararices, drshurse such
<br />sum j
<br />and take such action as is necessary to protect Lender's interest, mcluding, but not limited to, disbursement of
<br />rsme" atloraey's to" and entry upon the Property ro rnake repairs If Lender r"ifircif mortgage insurance a% a
<br />cgrA.Aran of madning the loan !"wed by this Mortgage, Borrower shall pay the premiums required to maintain %rich
<br />i rime's In @fffct 110111 AWII time a% file requtremns0t for such insurance terminates m Accordance with Borrower's and
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