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83--~U09'r
<br />Uxmoart Covr.tvnxrs. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principe) and Interest. Borrower shalt 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. Fnnds for Taaes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shalt 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 (herein "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, alt 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 be held 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 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 taw
<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 due dates of taxes, assessments, insurance premiums and ground rents, shall exceed [he amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as the}• fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid [o 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 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 pazagraph 18 hereoF the Propeny is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior ro 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 [he
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under pazagraph 2 hereof, then to interest payable on the Note, then ro the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes. assessments and ether charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehald payments or ground rents, if any, in the manner
<br />provided tinder 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 dtrectly. Borrower shall promptl}• famish 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 />requited to discharge any such lien so long as Borrower shall agree in writing to the payment of the abligation 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 lien or forfeiture of the Property or an}^ part thereof.
<br />5. Hazard It~oraoce. Borrower shall keep the improvements new 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 Lender may require
<br />and in such amounts and for such periods as Lender may reyuire; pravided, that Lender shalt not require that the amount of
<br />such coverage exceed that amount of coverage required to pay tfie sums secured by this hlartgage.
<br />The insurance cazrier providing the insurance shall be chosen by Bonawer subject to approval by Lender; provided,
<br />that such approval shall not he unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under pazagraph 2 hereof or, if not paid in such manner, 6y Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shalt 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 hav°e the right to held the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In [he event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proo[ of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance prweeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is econamically feasible and the security of this Mortgage is
<br />not !hereby impaired. If such restoration or repair is net eamomically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mongage, with the excess, if any, paid
<br />to $orrower. If the Property is abandaned by Borrower, or if Borrower fails to respand to lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier otTers to settle a claim far insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Froperty
<br />or to rho sums secured by this Mortgage.
<br />Unless Lender and Borrower athetwise agree m writing, an}- such application of prtx:eeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and ?hereof or change the amount of
<br />such installments. If 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 rho prxecds thereof resulting from damage to the Propeny prior to the sale
<br />or acquisition shall pass to bender to the extent of the sums set:ured by this biartgage immediately prior to such sale or
<br />acquisition.
<br />b. Praervatioo and Rtaintesance of Ptopertp; Leaseholds; l'ondominiums; Planed Unit Developments. Borrower
<br />shalt keep the Property in good repair and shall not commit waste ar permit impairment or deterioration of the Property
<br />and shall comply with the provisions of an}• tease if this hlartgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit deveopment, Borrower shall perfornt all of Borrower's obligations under the dedaratian
<br />or covenants creating or governing the tv~ndaminium ar planned unit development, the by-laws and regulations of the
<br />crondominitmt or planned unit development, and camtituent dacuntents. 1F a condominium or planned unit development
<br />rit'kr is executt~ by Borrower and recorded wgetber with this hlartgage, the cavenants and agreements of such rider
<br />shall ire incorporated into and shag amend and supplement the cavenants and agreements of this Mortgage as it the rider
<br />were a part hereof.
<br />7. Preteetlon of Leader`s Security, If $ortou•er faits to perfarm the covenants and agreements captained in this
<br />Mortgage, of if any action or proceeding is commenced which materially affects Lender's interest in the Ptapert},
<br />including, btu act Limited to, eminent damain, insalvency, code enforcement, or arrungcntents or pnx:eedings invulving a
<br />btsnkrnpt ar decedent, then Lender at Landers optian, upon notice to Harrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to prated lender's interest, including. fiat net limited to, dishuncmcpt at
<br />reawnabk attotaey`s t«a and entry upon rho Propcrt} to make rcpain. If Lender royairod mortgsge inswance as a
<br />cauiition of making the loan soctrred by this Mortgage, Barmwar shall pay the premiums reymred to maintain such
<br />iaawarrrx in etltxt until such time as the reyttirement for such insurance tanniaates ut accanlance with Borrower's and
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