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<br />Usmo[ut CoverrexTS. Borrower and Lender covenant and agree as folinws: i~IT ~~ {~ ~ ~ L w
<br />f. Payttuot of PrfodQaiatrd Interest. Borrower shall 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 securest by this Mortgage. -
<br />2. Fonr~ for Taxes sled Durttace. 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 under the Note, untiLthe Note is paid in fu6, -
<br />a sttm (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-twetfih of yearly premium installments for mortgage insurance, if any, alt as.reasonably estimated initially and -from. - -
<br />time fo 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 araccounts of which are insured or guaranteed by a Fedet'at~or- -
<br />stale 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 amI compiling said assessments and bills, unless Lender pays Borrower interest on.[he Funds and. applicableaaw
<br />permits Gender to make such a charge. Borrower and Lender may agree in writing at the---time-af execution ~ot this - - -.
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement- is -made. or- agplicatile -taw - -
<br />requires such interest to be paid, Lender shalt not be required to pay Borrower any interest or earnings on the Ftinds. Lender -
<br />shah give to Borrawer, without charge, an annual accounting of the Funds showing credits and debits ~to the Funds and the _
<br />purpose fur which each debit to the Funds was made. T'ne 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,ptiot to
<br />the due dates of taxes, assessments. insurance premiums-and ground rents, shall exceed the amount required to pay said taxes, -
<br />assessments, Insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers--option, either-. _
<br />promptly repaid to Borrower ar credited to Borrower on manthly installments of Funds. If the amount of the.Funds- _ -
<br />held by Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fail dub, -
<br />Borrower shalt pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed.. -
<br />6y Lender to Borrower requesting payment thereof.
<br />Upon payment in frill of a6 stuns secured by this Mortgage, tender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph I g hereof the Property is sold or the Property is otherwise acquired by Cendeq Lender -
<br />shalt apply, no later than immediately prior m 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 itangage. -
<br />3. AppBcation of Payments. Unless applicable law provides a[herwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall he applied by Lender sirs[ in payment of amounts payable to Lwder by-Borrower -
<br />under paragraph Z hereof, then [o interest payable on the Note, then ;o the principal of the Note, and then to interest and -
<br />principal on any Future Advances. -
<br />4. Charges; Dens. 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 nr ground rents, if any, in the manner -
<br />provided tinder paragraph 2 hereof or, if not paid in such manner, by Harrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all noaces of amounts clue under this paragraph, and in the event - - -
<br />Borrower shalt make payment directly, Borrower shaft promptly famish to Lender receipts evidencing such payments. - - -
<br />Borrower shall promptly discharge env lien which has pnanty over this Mortgage: provided. that Borrower shall not be --- -
<br />required to discharge any such lien sa long as Horrower shall agree in venting to the payment of the obligation secured by - - -
<br />sueh lien in a manner acceptable to Lender, or shall in goad faith canrest Bach lien hy, or defend enforcement of such lien in, -
<br />legal prtxeedings which operate to prevent the enforcement of rte lien or forfeiture of the Property or any part thereof. -
<br />S. Hazard Durance. Borrower shall keep the improvements now existing or hereafter erected an the Property insured
<br />against loss by f[re, hazards included within the term "extended coverage", and such ether hazards as 1_ender may require
<br />and in such amounts and for such periods ss Lender may require: provided that Lender shah not require that the amount of -
<br />such coverage exceed the[ amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shat! be chosen by Borrower subject to approval by Lender: provided,
<br />that such approval shah not he ^nreazonably withheld. All premrams on insurance policies shall 6e paid in the manner
<br />provided under paragraph 2 hereof ar, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals [hereof shall lx in farm acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. 1_ender shall have dte right is bald the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lander all renewal notices and all receipts of paid premiums. [n the event of Lass,
<br />Borrower shall give prompt notice to the insurance earner and Lender Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Barr¢wer 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 (casible and the security of this Mortgage is
<br />not thereby impairod. If such restoration or repair is oat econanically feasible or i( the security of this Mortgage would
<br />be impaired, the innocence proceeds sha8 be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Hortvwer. If the Property is abandoned by Borrower, ar it Borniwer tats to respond m Lender within 30 days from the
<br />date notice is matted by bender to Borrower that the insurance carrier offers to senle a claim foe insurance benefits, I-ender
<br />is authorized to collect artd apply the itirurance proceeds at Lender's option either to restoration or repair of the Propen}•
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m venting, any such application of proceeds to principal shall not extend
<br />ar postpone the due date of the manthly installments referred to in paragraphs t and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Pmpern~ is acquired by Lender, all right, title and interest of Aorrawer
<br />in and to any instuance policies and in and m the proceeds thereof resulting from damage to the Properly prier 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 />acgttisitioa.
<br />6. Preservation and Mr»nteaance ¢f Property; Leaseholds; Condoraininms; Planned Unit Developments. Horrower
<br />shat{ keep the Property iq good repair and shah not commit waste or permit impairment or deterioration of the Property - -
<br />am! shah comply wiW the provisions of any tease if this Mortgage 1s on a leasehold A this Mortgage is an of unit in a
<br />cnad¢minium ar a planed troll devciaptnem. Borrower shall pedarm all of Borrower's abhgations under the declaration
<br />or covettaxus creating ar governing the condominium ar planned unit Jevelapmeut, the 6y-laws and rcgulstions of the
<br />eoadotninittm or planned t[nii development, and constituent docume[ats. If a condominium ar planned amt developmem
<br />rider is executed. ty e¢rr¢wet and recorded together wrth this Mortgage, the Covenants and agreements of such rider _ ,
<br />atiall be inc¢tporated-into and sbaB amend and supplement the covenants and agreements at ibis Mortgage as if the rider
<br />were a part hci+oof.
<br />7. ProtecNpn of I.tader's 5ccirrity. If Borrower (ails to perform [hc covenants and agreements contained in this
<br />Mortgage, or if nay action car ptmeedtng :s commenced whtch msteria2iy affects Letder's tnterest in the Properly,
<br />including: taut not Iimitttd-[¢, eminent rf¢tnain, insolvency, code- enforcement, or arrangrments er proceedings involving a
<br />baakrttpl of doced~t. than lendor at-Leader's option, upon nofrce to Borrawer, :nag make such appearances. <listwrsc sash
<br />sttaas and take-such. atYi¢n x is necessary t¢ protect Lender's interest, tncludtng. but r~x timntd to, aisbursemen[ at
<br />retyt¢.oaltla attot7iey`s fees and c¢try upon the Prapcrty €a rnake. rcp[tirs, if 1-znder regaimd mortgage insurance as a
<br />zond'iti~ of making t!>e loan scented by this Mortgage, Born+wer s@a'd psy the prtmiums required to maintain such
<br />irattitpnc~r in oilers untd curl} Brno as the tcquitctnent far such msurBn,:e tcuni¢ates m accordance .with Horxx+wer`s :rod
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