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<br />U%'i"R t CovENVQty. Borrower and Lender covenant and agree as follows:
<br />1. tilwnr a d IhMesest Borrower Mall promptly pay when due the pnncipd of and interest on the
<br />mde+t �t� evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
<br />Y secured by this 1Mangage.
<br />2 Fosses for Taxes tsar L- I I Subject to applicable law or to a written waiver by Leander, 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 step therein "Funds" I equal to am-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mort;age, and ground rents an the Property, if any, plus orse rwelhh of yearly premium installments for hazard isurapee,
<br />plus am- twelfth of yearly Premiums histaliotents for mortgage insurance. if any.. sip as m asonably estimated initially and from
<br />time to time by lender on the psis of usessments and hills and reasonable estimates thereof.
<br />7lie Funds %half he Reid in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state acency t including Lender if Lender is such an institution I . Leader 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. analysing said accOuK
<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 />Mangage 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 nor be requited to pay Borrower anv interest or earrings oa the Funds. Leader
<br />Shall give lo Borrower_ without charge, an annual accounting of the Funds showing credits and debits to ibe Funds and the
<br />Purpose for which each debut to the Funds was made. The f=unds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br /># the amount of the Funds held by Leader, together with the future monthly installments of Funds payable prior 20
<br />the due dates of taxes, assessments, insurance premiums and ground terns. shall exceed the atmottpI regtIIled to pay said taus
<br />assess[ pasts. insurance preraiutns and ground rents as they fatl due, such eactxs shall be, at Borrowers option, either
<br />promptly repaid to Borrows or credited to .Borrower on monthly Installments Of Rinds. If the amount of the Funds
<br />held by Lender shall not be ad iciest to pay taxes. assessQnents, insurance premiums and ground tents 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 Leader 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 We of the Property or its acquisition by Leader, any Funds held by
<br />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />3• A!lficai6w of Paymeare. 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 amours payable to Lender by Borrower
<br />under paragraph 2 hereof. then to interest payable on the %ore. then to the principal of the Note. and then to interest and
<br />principal on any Future Advances.
<br />f. Chart= lies. Borrower shall pay All taxes, assessments :md other charges. fines and impositions attributable to
<br />the Property which may attain a priority over this "Mortgage. and leasehold payments w ground rents, if any. in the marewr
<br />provided under paragraph 2 hereof or, if riot paid in such manner. by Borrower making payment, when dire, directly to the
<br />Payee thereof. Borrower shall promptly furnish to Lender all notices of amounts dice under this paragraph, and in the event
<br />Borrower shall make payment directly. Horrow'cr shall prompt!% 'urnnh to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any Iren 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 »riling to the payment of the obligation secured by
<br />sties lien in a manner acceptable to Lender, of shall m good faith Conte%' such lien ay, or defend enforcement of such lien m.
<br />legal proceedings which operate to prevent the enforcement of the Len or forleaurc of the Property or any pan thereof.
<br />S. Hazard insurance. Borrower shall keep the improvemeii ;, now evisiing or hereafter crected on the Property insured
<br />against loss by 5re. hazards included within the term "e %tended coverage ". and such other hazards as Leader may require
<br />and in such amounts and for such periods as Lender may require: provided. ;hat Lender stall not require thai the amount of
<br />such coverage exceed that amml unt of coverage required to pay the sums seciired In. this Mortgage.
<br />MW insurance earner 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 ranted.
<br />Provided udder 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 thereat shall he 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 />and Borrower shall promptly furnish to Lender all renewal notices and ail 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 />Unlex 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 econornKally feasible and the security of this Mortgage is
<br />not thereby impaired. It such restoration or repair is not economically feasible or 11 the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the e%cess, if any, paid
<br />to Borrower If the Property is abandoned b% Borrower, or d Borrower falls io 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 />Vakss Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br />such installmients. It udder paragraph IS hereof the Property is acquired by Lender. ail 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 />Of acquisition shall pass to Lender to the extent of the sum secured by this Mortgage immediately prior to such sale or
<br />tt"lluotioa.
<br />b. Pkwwvarion MW Alaialanmm of Peoples Y; IererriNs: Ci>ndewissiusss: Planner Vert Dew olganenb Borrower
<br />shaft keep the Property in good repair and shah ism commit waste or p"mn impalement of deterioration of the Property
<br />and "I comply with the provisions of any lease if this Mortgage is on a kasehold. If this Mortgage is on a .,nit in a
<br />cundoroiuum or a planned unit development. Borrower shall perform all of Borrowers obligations under the decraration
<br />ar C*Wea t creating of Sove rnwg the condominium or planned unit development• the by -laws and regulations of the
<br />coadomininm or plimaad unit development, and constituent documents. It a condominium or planned unit development
<br />rider is executed by Bonawiet and recorded together with this Mortgage. the covenarNs and agreements of such rider
<br />shalt lu trcotporated Into and shall amend and suppkmeat the covenants and agreements of this !Mortgage as if the till" a
<br />L was a part hereof
<br />f .
<br />7, eafti hftw Of lwuist's 3ecw* it Borrower fails to perform the covenants and agreements wnlarned in the
<br />Mortgage. or if say anion or ptoceediag is commenced which materially affects Lender's interest in the Property, r.
<br />including, but nol limited to, eminent domain. Ift"i'ency. code entorcemerel. of artangaments or proceedings involving a db
<br />bankrupt or decedem. then Lender at Lender's option, upon notice Io Borrower. may make such appearances. dahune such
<br />sums and take such "Ibon as is recessary, to protect Lender s rnuerest. including, but not limned to, disbursement of
<br />reasonable aitvmey x fees and miry upon the Proprriy to make repair, It I ender trwiirrd mortgage insurance as a
<br />: mdam,n rat melon= the Itian ecureti by this M,rietage. Rorfo-cr shell pa% Ilic t+remtuins tcgiiired to maintain rich
<br />.As,urancf in t11ro awil I'me as the rc4uuetnem for xukh ;n+urarrct sc!'nimate% n .,.ordsnce wnh B rrcrwer's and
<br />W',
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