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85s = oo4288
<br />UNt6tfRTN C`OV1°.l�r.svls. Hon tower and Lender covenant and agree as follows:
<br />1. Payment of Principal sad Interest. Burrower shall promptly pay when due the principal of and interest oil 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 fender 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 i..�tially and from
<br />time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
<br />The Funds shall beheld in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if 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 eu 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 be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall 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 the future monthly installments of Funds payable prior to
<br />the dire dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance preriums and ground rents as they fall due, such excess shall be, at Borrower's 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 ba 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 deficiency 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. 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 />shall apply, no later than immediately prior to the sale of the Property or its acquisition by fender, 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 hercol 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. Ckwges; Liens. Borrower shall pay all taxes. assessments ;ind 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 due, 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 hen 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 w 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 />legal proceedings which operate to prevent the enforcement of the hen 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 Propeay insured
<br />against loss by fire, hazards included within the tent "extended coverage ". and such other hazards as Lender may require
<br />and In such amounts and for such periods as Lender may require: prosrded, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coceragc required to pay' the sums secur d M 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 be in torm iccepiab1c• t0 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 Borrower shall promptly furnish to Lender all renewal notices and 311 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 />not thereby impaired If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance procceds 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 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 Lender and Borrower Otherwise agree In writing, arty such application of proceeds to principal shall not extend
<br />or postpone the due dale of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br />such installments. It under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any Insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Pre erralion aid Malilttettance of Property; Leaseholds; o
<br />olds; Conm(rriums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />acid 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 />condominium or a planned unit development, Borrower shall perform all of Borrower's ubhgations under the declaration
<br />or covenants creating or governing the condominium or planned unit development• the by-laws and regulations of the
<br />"indoninitmn or planned unit development. and constituent documents. It a condominium or planned unit devclopmtent
<br />rider is exscuted by Borrower and recorded together with this Mortgage, the covenants and agrecmcnts of such rider
<br />shall be incorporated Into and shall amend and supplement the covenants and agreements of this Mortgage as if the tiller
<br />Wert a part hereof.
<br />L
<br />T, Protection of Leakr9 Security. if Borrower fails to perform the covenants and agreements contained in Ihi5
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lcnder's interest in the Property, t
<br />including. wt not limited to, eminent domain. insolvency. code enforcemenl, or arrangements or proceedings involving a
<br />bankrupt or decedent, that Lender at Lender's option, upon nuUCe to Borrower. No make such appearances, disburse such
<br />sums and take such action as is necessary' to protect Lendcr's interest, including, but not limited lo, disbursement of t
<br />reasonable afturney's fees and envy upon the Proprrty to (MAC repairs I! Lender rryu;nd nungage nrsuraice : +x :+
<br />tondrtil +n -�l rsi.king the Inan secured by On% Miutgage, Borrower shall pay the tiremnuu, tequned In maintain suer
<br />Insurance in effect -mill such time as the requirement for such insurance terrnmatcs m .1- ordanrc "I) Botwiker'. surd
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