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Un°t[~oatvt CavetvANrs. Borrower and Lender cuvenanz and agree as follows: ~ G i° ~ °J " ~ ~ Q,
<br />t. Payment of Piittcipal aiad Interest. Borrower shall promptly gay when due the principal of and interest on the
<br />frtdebtetlness evidenced by the Nate, prepayment and late charges as provided in the Notc, apd the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />Z. llttuas !or Ta.rea cad Insurance. Subject ro applicabM taw or to a written waiver by Lender, Borrower shall gay
<br />to Lender on the day monthly installmems of principal and interest are payable under the Note, until the No[e is paid in full,
<br />a stem (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which inuy attain priority aver this
<br />Mortgage, and ground rents on the Prop~rty,rf any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium ins4a11ments for mortgago insurance, if any, all as reasonably estimated initially and from
<br />time to time by lender on the. basis of assessments and hilts and reasonable estimates therea#.
<br />The Funds shalt 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). Lender shall apply the Funds to pa}' said taxes, assessments,
<br />insurance premiums and grout[d rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compi@ing said assessments and bills, unless Lender pays Borrower irttcrest on the Funds and applicable law
<br />permits Lender io make such a charge. Borrower and Linder may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shalt k,e paid to Borrower, and unless such agreement is made or applicable law
<br />requitrs such interesE 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 aceounting 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 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 tall due, such excess ~'+sli be, at Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Fonds. If the amount of the Funds.
<br />held by Lender shall not be sufficient to pay tares, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessar,,• to make up the deficiency within 30 days from the date notice is mailed
<br />bl' Lender to Borrower requesting payment thereof.
<br />Upon payment in full of at] sums secured by this Mortgage. Lender shalt promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph 1 S hereof the Property is sold or the Propetty 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. Arpt@catioa 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 1_ender first in payment of amounts payable to Lender by Borrower
<br />under pazagraoh 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. Gtutaes; Liras. Borrower shall pay alt taxes, assessments and other charges. fines and impositions attributable to
<br />the Property which may attain a priority over this :vfortgage, 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 ftunish to Lender all notices 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 priority over this Mortgage: provided, that Borrower shall nut be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the paymem of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in goad faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of :he lien or forfeiture of the Property or any part thereof.
<br />5. Haaard losurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by 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 require; provided, that Lender shall not require that the amount nF
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance cazrier providing [he insurance shall be chosen try Borrower subject [o approval by Lender: provided,
<br />that such approval shall not be unreasonably withheld. Alt premiums on insurance policies shall be 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 shalt include a standard mortgage
<br />clause in favor of and in form acceptable to Linder. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shalt prampdy 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 ituurance carrier and Leader. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless. Lender and Borrower otherwise agree in writing, insurance proceeds sha@I be applied to restoration or repair 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 cconomicaily feasible 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- Sf the Property is abandoned by Borrower, or if Borrower faits 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 l:,ender's option either to restoration or repair of the Property
<br />or to the sums secured by this 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 instailmentt referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph i8 hereof the Property is acquired by Lender, ail right, title and interest of Burrower
<br />in and toany. insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sake
<br />or acquisition shall pass to Lender to the extent of [he sums secured by this Mortgage immediately prior to such sate or
<br />acquisition.
<br />6. Ptreservatlou and btaotettance of Property; Leaseholds; Condominiums; Planned Unit llevelopments. Borrower
<br />shall keep the Property in good repair and shall oat commit waste or permit impairment or deterioration of the Property
<br />and shall comply wish. the provisions of any lease if this lvlortgage is on a leasehold. if this Mortgage is o^ a unit in a
<br />cuudominuni nc. a pla.:~d sit d?vzlapment, Borrower shall perform all nt Borrower's obligations under [he d~clara[ion
<br />oc c;ovenaois creating. or governing the condominium or planned unit development, the by-laws and regulations of the
<br />wndaminiutrt or planned unit development, and constituent documents. if a condominium or planned unit developrent
<br />rider is executed 5y Borrower and recorded together with than Mortgage, the covenants and agreements of such rider
<br />shalt be incorporated into and shall amend and supplemem the covenants and agreements of this Mortgage as if [he rider
<br />were,a part. hereof.
<br />?. PrWecfiwn of Lender's 5ecurily. 1f Bortawer fsils to perform the covenants and agr+:ensents contained. in this
<br />Mortgage, or if any actioat or proceeding es commenced which materially affects Lender's interest in the Properly,
<br />including, but. not limited to, eminent domain, insolvency, code enforcement, or arrangenrcnts or prtceedings involving a
<br />bankrupt oc decedent, fhtin Lender at Lender's optipp, upon notice ro Borrower, pray make such appearances, disburse such
<br />swiss and lake such action as is necessary to protect. Ih;nder's interest. ,nclnding. but ^o[ limited to, disbursement of
<br />reasonable a4totnc}''s tees. and entry upon [he Property to rna&e, repairs. tf Lender required mortgage insurance as :+
<br />comlicion of xuaking. the loan sct:ured try this Mc'ortgan~c, Borxowu shall pay the pruniams required to rnaintam such
<br />ia:arncc in eflecx unite such time as rite requirement tnr sect: insurance terminate:; .n accordance wuh tiortaawer' and
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