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84 ~. ti00831
<br />Uxrroa>,t Covexexrs. Borrower and Lender covenant and agree as follows:
<br />1, hytent of Prlaelptt/ trd hattereat. Borrower shall promptly pay when due the principal of and. interest an the
<br />ittdebtedneas evidettced by [he Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Fmure Advances secured by this Mortgage.
<br />2. Falls for Ttaoa all Irawtace. Subject to applicable law or to a written waiver by Lender, Boaower shall pHy
<br />to Lender on the day monthly installments of principal and interest are payable under the Note,-until-the Note-is;paid in fnll,-
<br />a sum (heroin "Funds'? equal to one-twelfth of the yearly taxes and assessments- which may -attain priorijy.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,.aU as-reasonably estimated initially and from , -
<br />time to time by Lender on the basis of assessments and bill's and reasonableesflmates-thereof. -
<br />The Funds shag 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 !fie Funds. to pay said'2axea assessments,
<br />insurance premiums and ground rents. Lender may not charge far so holding and applying4he Funds, analyzingsaid account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest onahe Funds and-applicable law
<br />permits Lettder to make such a charge. Borrower and Ixnder may agree in writing of rho"'.time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is-'inadei or applicabk law
<br />regturea-such interest to be paid, Lender shall not be required to payBorrowecany in[erest.orearnings-ontbe Fiinds. fender -
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the:Funds attd the
<br />purpose for which eae6 debit to the Funds was made. The Funds are pledged as additional security for'the-sums-secured:.--
<br />by this Mortgage. - -
<br />lf 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 requiredaq_ paysaid-faxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shalt be, aC Borrower's option; eithEr'~~
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount oE:2he Funds
<br />held 6y Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as..they,: fall dtte.
<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 Lettder 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. [f under pazagraph 18 hereof the Property is sold nr the Property is otherwise acquired by Lender; Lender
<br />shall apply, no later than immediately prior to the sate 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 Paymests. finless applicable law provides otherwise, all payments received 6y Lender under -the" -
<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 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. Chorea; Lktss. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributahle 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 1_ender all notices of amounts due under this paragraph, and io the-.event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing auch--.payrneuts,.-
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower-shall nof.--be _
<br />required to discharge any such lien so long as Borrower shalt agree in writing to the gayment of the-obligationsecpred 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 flea or forfeiture of the Property or -any .par[ thereof: -
<br />5. I/aaud Insttonce. Borrower shall keep the improvements now existing or hereafter erected on the Properly insured
<br />against loss by fire, hazards included within the term "zxtended coverage". and such other hazards as Lender-may require- --
<br />and in such amounts and fur such periods as Lender may require; provided, that Lender shall not require that the amoanC. of -
<br />such coverage exceed that amount of coverage required to pay the sums secured by 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 pazagraph 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 farm acceptable [o Lender uod shalt include a standard mortgage
<br />clattse 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 loss if not made promptly
<br />by Borrower.
<br />Udeas Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ac repair of
<br />[he 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 Ceasible or if the security of this Mortgage 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 Borrower, ar if 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 stems secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shalt not extend
<br />or postpone the due date of the monthly installments referred ro in paragraphs I and 2 hereof or change the amount of
<br />such installments, If under paragraph t8 hereof the Property is acquired by Lender, all right, title and inkres[ of Borrower
<br />in and [o any insurance policies and in and to the proceeds thereof resulting from damage to [he Property prior to the sate
<br />or acgttisi6on shall pass to Lender to the extent of the sums secured try this Mortgage immediately prior to such sale or
<br />acgttisitlon.
<br />6. PtnaervaUOw and Mautenance of Property; Leaseholds; Condominiums, Planned Uoit Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairmem ar deterioration of the Property
<br />agd.shalt comply with the provisions of soy tease if this Mortgage is on a leasehold. If this Martgagz is nn a unit its a
<br />condominium or a planned- unit development, Borrower shalt perform all of Borrower's obligations under the declaration
<br />or wvenwts creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or panned unit development, and constituent documents. If a condominium or planned unit developmenk
<br />rider is executed. by Borrower apd retarded mgether with this Mortgage, the covenants and agreements of such rider
<br />a6all be_ incorporated It7fa attd shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />v.ero a.panthereof..
<br />7. t?roFactiaa of,I~atier'a SaestritY< Tf Burrower fails to perform the covenants and agreemeuts contained in this
<br />MonuEc. ar if any action of procaediog is commenced which materially affects t_endec's interest in the Property.
<br />ittcludiny, but not !united: ic1, emittw3t domain, iasoWency, code enforecment, or arrangements ar proxcedings inverting a
<br />butkntp or dree3etit, ;then Lemier at Letrder's option, upon notice u~r Borrower, may make such appearances, disburse such
<br />slaty and take su¢#t action, as is necessary to prokCt lxnder's interest, including, but cwt limited tn. disbursameut of
<br />raitswtrblo attotttey"s fees and entry upRn the Property to make repairs. It Lender required mortgage insurance as a
<br />ouodition it# ~trtakiog- tba luau secured by thta Mortgage, Banawer shall pay the prerrtiutns required to mainuritt such
<br />itunranca In effect until such ftm+C as rho requiretaat for stash insurance terminates ut acvordance wuh Borrower's atu!
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