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<br />84 ---~, C 0711
<br />UNtFOaM Coverrstvrs. Borrower and Lender covenant and agree as follows:
<br />1. PayeteN of Prhtelpl atad Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment end late charges as provided in the Note, and the principal of and interest
<br />~.., ~ on any Future Advances secured by this Mortgage.
<br />2. Ftteds for Tua and Innraeee. Subject to applicable law or to a wntten waiver by Lender, 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 s[tm (herein "Funds'? equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground cents on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />' plus otte-twelfth of yearly premium installments for mortgage insurance, if any, all 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). i,ender 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 he paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not he 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 Mortgago.
<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 the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />' promptly repaid to Borrower or credited ro Borrower on monhly 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 [all 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 [his 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 acgwred by Lender, Lender
<br />shall apply, no later than immediately prior to the sale oC the Property or its acquisition by 1_ender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by ihts Mortgage.
<br />3. AppBcation of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and Z hereof shall be applied by Lender first m payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then ut the principal of the Note. and then to interest and
<br />principal on any Future Advances.
<br />4. Chnrtses; Liens. Borrower shall pay all tears, assessments and other charges. fines and impositions attributable to
<br />the Property which may attain a priority over flits 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, 6y Burrower making payment, when due, directly to the
<br />payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, earl in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower abaft promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br />requved to discharge any such lien so long as Borrower shalt 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 enfurcemenl of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Htvard Inwrance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against lass 6y 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; provided, [hat Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by flits 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 mamter, by Borrower making payment, when due, direcaly to the
<br />insurance carrier.
<br />All 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 />and 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 toss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in venting, insurance proceeds shall be applied to restoration nr repair of
<br />the Property damaged, provided such restoration or repair is economieally feasible and the security of this Mortgage is
<br />- not thereby impaired. If such restoration or repair is not econom[cally feasible ar if the security of this Martgage 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 Barrower, or it Borrawer 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 [he insurance proceeds at Lender's option either w restoration or repair of the Property
<br />or to the sums soured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to pnneipal 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 installments. If under paragraph l& hereof the Property is acquired by Lender, alt right, tide 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 shalt pass to Lender to the extent of the sums secured by this Mvrtgage immediately prior to such sale or
<br />acquisition.
<br />& Pteserralion [uW Maiofetrtmce o[ Properly; Leaseholds; Condominiums; Planced Uoil Uevelopmenls. Borrower
<br />shalt keep the Property in good repair and shall not commit wasie or permit. impairment or deterioration of the Property
<br />- and shall comply with the provisions of any lease if this Mortgage is on a leasehold. 1[ this Mortgage is on a unit in a
<br />condominium or a ptatmed unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating ar governing the condominium or planned unit development, the 6y-laws and regulaUOns of the
<br />condominium or planned unit development, and constituent documents. It a condominium nr planned unit development
<br />rider is executed by Borrower acrd recorded together wuh this Mortgage, the covenants and agreemems of such rider
<br />shall he iocorpoeated into artd shat} amend and suppferuent the covenants and agrcements of flits Mortgage as d the rider
<br />` were a part hetroC.
<br />jr ?, Profecdnn of Ltnder's SecarGy. If Borrawer faits to perform the covenants and agreements contained in this
<br />~j AfarigagC, of if aoy autiata or procnnding is commertcut which materially atTtxts f.endur's interest in the Property,
<br />igcJttding, but net limited to, eminent domain, insolvency. code enforcement, or arrangements or prexeedings involving a
<br />b~wittttpt or decedent, thou Lender at Lender's option, upon notice to Borrower, tray make such appearances, disburse such
<br />stuns and twice suds action as is necessary eo protrct. Lender`s intcresi, mcluding, but not limited ro, disbursement of
<br />etsaarmahle attoroey`s fare and t:ntry upon the Froprrt}• W make repairs. If Lander requited mortgage insereance as a
<br />corufition of makin; flirt loan secured by this Martgage, Barrower shalt pay the prenuums required to maintain such
<br />iaswanea in afY~t trot such time as the rtyuiremcnt for sueh Insurance tcrminatcs m aceordance with Borrower's and
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