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,~~°-• i~U056~
<br />IINIFCIRM COYENAN7S. Borrower and Lender crn'enant and agree as follows:
<br />L PatYmeat of Pefnclpid mid Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />ittdebtcdness evidenced by the Note, prepayment and Tate charges as provided in the Note, and the principal of and interest
<br />on any Futvre Advances secured by this Mortgage.
<br />2. It1ot~ for Tasss sad Insaranee. Subject to applicable taw or to a written waiver by Under. Borrower sha16 pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Nate, until the Nate is paid in folk
<br />a stmt (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 />6me 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 yniaranteed by a Federal or
<br />state agency fincfuding Lender it Lender is such an institution). Lender shat! apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge tar so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest an the Funds and. applicable law
<br />permiu Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution Df ihlJ
<br />Mortgage chat interest nn the Funds shall he paid to Borrower, and unless such agreement is made or appticable law
<br />requires such interest to be paid, Lender shaft not the required to pay Borrower any interest or earnings cn the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds skewing 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 />Iff 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 regard to Borrower or credited to Borrower an monthly 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 tail due,
<br />8orroc~er 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 fuB of all sums secured by this Mortgage. Lender shall prompth• refund to Burrower any Fonds
<br />held by Lender. If under pazagraph 18 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 a[ the Propetty ar its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by the Mottgage.
<br />3. Application of Payments. Unless appticable law prodder atherw~ise. alt payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounzs payable to Lender by Borrower
<br />under paragraph 2 hereof, then to inie:est payable un the ` rte, then to the principal of the Ncte, and the.^. to interest and
<br />principal on any Future Advances.
<br />4. l:harges; Lies. Borrower shalt pay all taxes. assessments and other charges, fines and impositions attritrutable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments ar 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 Lender all nauces of amounts due under this 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 pnonty over [his Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so tong as Borrower shall agree in wrung to the payment of the obligation secured by
<br />such Gen in a manner acceptable to Lender, or shall in good faith contest such Beta by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the hen or forfenure of the Property or ary part thereof.
<br />S. Ilaxard Iogttranee. Borrower shall kup the improvements nou existing ar hereafter erected on the Props,*ty insured
<br />against loss by fire, hazards included within the term "extended aaverage", and such ether hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required ro pay the sums secured by [his Mortgage.
<br />"I'he insurance carrier providing the insurance shall be chosen by Harrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasonably withheld. All premutms on insurance policies shall he paid 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 />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall mch,de o standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right [o hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish [o Lender all renewa3 notices and all receipts of paid premiums. in the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and l..ender. Lender may make prop[ of foss iF not made promptly
<br />la}' BnrrDWCF.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied in restoration or repair of
<br />the Property damaged, provided such restoration or repair is cconamicaliy feasible and the security of th[s lvior[gage is
<br />no[ thereby impaired. if such restoranon or repair' is not ecanomicaify feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the scans scoured by this Mortgage, with the excess, if any, paid
<br />to Borrower. [f :he Property is abandoned by Borrower, or iL Borrcwer faits to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier otTers to Bettie a claim for insurance benefits, Lender
<br />is authorized to collect. and apply the insurance proceeds at lender's option either to restoration ar repair of the Property
<br />oc to the suau secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds. to pnneipal sitxll not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs i and Z hereof or change the amount of
<br />stick installments. If under paragraph 18 hereof the Properly is acyuired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and fo the proceeds thereof resulting from damage to the Property prior w the safe
<br />or acquisition Shalt pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Presen:a6on and Maintenance of Property; Leaseholds: Condominiums: Planned Usiit i)evelopmenis. Borrower
<br />shag keeg the Property in goad repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with zhe provisions of any lease if this a4lortgage is on a leasehold. If this Mortgage is an a unit in a
<br />condomiaium or a planned unit development, Borrower shall perform ail of Borrowers abiigat[ons uttdc; the dcc,a[a oa
<br />or covenants creating or governing the condominium ar planned unit development. the by-laws and regulations of the
<br />CtbttdOmi[iiutn or platmed urge development. and consiiiuent documents if a condominium or planned unit development
<br />rider is exeristect by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be tncorporated into and shall amend and suppIcment the t:ovcnan;s anti agreements cf this Mortgage as if the rider
<br />were a part heaeof.
<br />'}, Ptrotectioa of fender's Security'. [f Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, ot• if any acting ur prtxxuting is rommeuced which matcriaity affects l..ender's interest in the Property,
<br />'including, heat nut limited ia, eminent domain, insolvency, Dods enforcement, or arrangc..ments os prenr..edings involving a
<br />batil:rupt or det:et3ent. then Lender ai Lender s option, upon notice [o Borrcwer, may make such appearanc4.;, dishurx su: h
<br />xttms and, take sorb action. as is necessary to protect lender's interest, including. but [sot limited to. disbursuniera ut
<br />reastut86ie attarttey`s fees and entry upon the Property to make repairs. t[ Leander reyuired [nottgage inswnnca- z
<br />condition of making [he loan secured by this Mortgage. Berxowce shaft pay the prcm;ums regmred to inalnta,n .uc!x
<br />atAUr2rlce in enact uaul ouch timt as the ruyuiremeni fur cucla ,asursn c termisss ,n acorda:+cc wa[h Boriti,wers [fad
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