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<br />84 --001036
<br />UN[FORM Covttnnuis. Burrower and Lender covenant and agree as follows: -
<br />1. Payment of Principal and Interest. Burrower shall promptly pay when due the principal of and interest ou the
<br />indebtedness evidenced by the Nnte. prepayment and late charges as provided in the Nore. and the principal of and interest
<br />on any Future .Advances secured by this Mortgage.
<br />2. Fonds for Taxes and Insunnce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Iznder 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, 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 6e 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 taw
<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 be required to pay Borrower any interest or earnings on the Funds: tender
<br />shalt give to Borrower, without charge, an annual accounting of [he 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 the amount required to pay-said taxes;-
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, az Boi•rowels- option. zifiieF -
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amotint_ ofthe Fundy
<br />held by Lender shall no[ be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fait due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from-the data.-, notice ismaflcd
<br />by Lender to Borrower requesting payment thereof. - - -
<br />Upon payment in full of all sums secured by this Mottgage, Lender shalt promptly refund to Borrower-any :Funds
<br />held by Lender. if under paragraph 1S hereof the Property is sold or the Property is otherwise acquired by Lender,.:Lender.:
<br />shall apply, no later than immediately prior to 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. ail payments received by 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 pazagraph 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. Charges; Liens. Borrower shall pay all rases. assessments and other charges, fines and impositions at[[ibutable to-
<br />the Property which may attain a prtority over this Mortgage, and leasehold payments or ground rents, if any, in the: mantter
<br />provided under paragraph 2 hereof or, if not patd 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 ttiis paragraph;;and°.in=the-event--
<br />Borrower shall make payment directly, Borrower shall promptly furnish 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 />required to discharge any such lien so long as Borrower shall 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-enforcement of such Tien in,
<br />legal proceedings which operate to prevent the enforcement of the lion orforfeiture of-the Property or any.:part thereof.
<br />5. Hazard Insurance. Borrower shall keep [he improvements now existing or hereaftererectedon the Eropertyihsurcd
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lenderimay,require
<br />and in such amotmts and for such periods as Lender may require; provided, that Lender shall-not require-thatthe~amouit[-of
<br />such coverage exceed that amount of coverage required to pay the sums waved by this rvlartgage. - -
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject [o approval by Lender; provided;:.
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid, in'the(mannec-- -
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly 3o=the
<br />insurance cazrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall. include astandard -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 Linder 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 [Wade ;promptly-
<br />by Borrower. -
<br />Unless tender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or rt>pair of
<br />the 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 feasible or if the security of this Mottgage wotild
<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 b}' Borrower, or if Borrower tails 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 [o the sums secured by [his Mortgage.
<br />Unless 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 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by Lender, ail right, title and interest of Borrower
<br />in and to any insurance policies and in and [o the proceeds thereof resulting from damage to the Property prior to [he 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 />acquisition.
<br />6. Pmervalfoo amt Maintenance of Property; Leaseholds; Condominiums; Planned Gott Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste 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. if this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covetants creating ar governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned [tmt development
<br />rider is executed by Borrower and recorded together with this Mottgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7, Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, of if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, thin Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's imarest, mcludiug but not limited ta. disbatsement of
<br />reasonable attorney's fees and entry upon the Property an make repairs. If Lender required mongagc insurance as a
<br />s;ondition of making the loan secured by thts M~rtgagc, Borrower shall pay the premiums regwrad to. maimain such
<br />insurance in effect until such time as the requitement for such msurance termiuates .n accordance wtth Bornwer's and
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