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<br />84 -002028 -
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<br />UNlfflkFt`'(u0~'~N NTa. BnrrOWer and Lender covenant and agree a5 fO110WS:
<br />1. Payment of Prindpal artd InMrest. Burrower shall promptly pay when due the principal of and interest on the
<br />indebtedness e_idenced 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. Fonds for Taxes attd Irounnce. Subject to applicable law or to a written waiver by Lender, Bortower shall pay
<br />to fender 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 asussments 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 irourar[tt,
<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 be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal-or
<br />state agency 1 including Lender if Lender is such an institution ). lender shall apply the Funds to pay said taxes, assessmrnts,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said aCCOUrrt,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicabk-[aw
<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 Bnrtower, and unless such agreement is made or applicabk law
<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 flit Funds was made. The Funds are pledged as additional security for the sums recttred
<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.saidtaxa; .
<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 to Borrower on monthly installments of Funds. If the amount of the Funda-
<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 ro 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 paragraph I8 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than tmmediately prior ro the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the nine of application as a credit against the sums secured by this Mortgage.
<br />3. Ap~ticatloa of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and ?hereof shall 6e applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable tin the Note, then w the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />3. Charges; Lkro. Borrower shall pay .dl taxes. assessments and other charges, fines and impositions attributable 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 hereo[ or, if not paid m such manner, by Borrower making payment, when dtu, directly to the
<br />payee thereof. Borrower shall promptly furnish m Lender till nwses of amounts due under this paragraph, and fn the evgtt
<br />Borrower shall make payment duectly. Burrower ,hall promptly tumish to Lender receipts evidencing such paymenb.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not 6e
<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, ur shall m good faith contest such lien by. or defend enforcement of such Heft-inz-
<br />legal proceedings which operate to prevent the anfurcement of the hen ur forfeiture of the Property or any part thereof.
<br />S. Ilasard lawrance. Borrower shall keep the improvement, now existing ur hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "estended coverage". and such other hazards as Lender may require
<br />and in such amounts and fur such periods as Lender nwy reywre; provided, that Lender shall not require that [he amount of
<br />such coverage exceed that amount of coverage requred 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 premwms on insurance policies shall be paid in' [he manner
<br />provided under paragraph 2 hereof oc +f 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 m 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 nouces and all receipts of paid premiums. In the event of loss,
<br />Borrower shall gtve prompt nonce to the insurance earner and Lender. Lender map make proo[ of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such reswranon or repair is economically feasible and the security of this Mortgage is
<br />not thereby impatred. If such restoratwn or repair is nut economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds ;hall be applied ro the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or it Borrower tails to respond to Lender within 30 days from the
<br />date notice is matted by Lender to Borrower that the insurance carrier utters to settle a claim fur insurance benefits, Lendv
<br />is authorized to collect and apply the insurance proceeds at Lender's option either [o restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m wnnng, any such application of proceeds to princtpal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and :hereof or change [he amount of
<br />such installments. If under paragraph t8 hereof the Property is acyuued by Lender, all right, title and interest of Borrower
<br />in and to any tnsurance policies and in and to the proceeds thereat resulting from damage to the Property prior to the sale
<br />or acquiaiuoo shall pass to Lender to the extent of the sums secured by this Mortgage immediately poor [o such sale or
<br />acquisition.
<br />6 Praervatbn and Maiateoance of Property; Leaseholds; Condominiums: Planned Ueit Developtttems. Borrower
<br />shall keep the Property in good repair and shall rant commit waste or permu impairment or deterioration of the Property
<br />sad shall comply with the ptovis[ons of any lease tf this Mortgage is on a leasehold. It 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 declazation
<br />or covenants creating or governing the condominium ur planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documenu. If a condominium or planned emit development
<br />rider is eaecured by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shag amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a pan hereof.
<br />7. Ptralectian of Lender's Security, If Borrower fads to perform the covenants and agreements contained in this
<br />Mortgage, or 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, cede cnforement, or arrangements or proceedings involving a
<br />bankrupt or decedent. then Lender at l.tndei s option, upon notice to Borrower, may make such appearances, disburse such
<br />stuns and take such action as is necessary to protect L.ender's interest. including. lint nut limited to. disbunemen[ of
<br />reasonably sttama} s fete amt envy upon the Prnperty to make repair If Lender required mortgage insurance as a
<br />cotutirion of making the loan sycurtd by this 4lurtgage. Burrow rr shaft pay the premiums reyuired u• maintain such
<br />insurance in clfrn:t until such amt as the reyuirtmeni for such insurance tcrrn+nates ~n accnrdan:c uuh Bcrrc+w°cr'x and
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