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Utvar+atM CtavBNrtY15. Borrower and Lender covenant and agree as follows: $2"4 ~, v *-' ~ ` 1
<br />I. Payment of PrEncfpa! and Interest. Borrower shall promptly pay wfien due fhe principal of and interest on the
<br />indebtedness evidenced 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. P'ands for Toltec aed frtserance. Subject to applicable law or to a written waiver by Lender, Borrower shalt pay
<br />to Lender on the day montfily installments of principal and interest are payable under the Nate, until the Note is paid in fuB,
<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 />T7ae Funds shat! 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 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 wmpiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<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 ro 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. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and rho
<br />purpose foe which each debit to the Funds was made. The Funds are pledged as additional security far the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Linder, 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 repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<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 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 full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 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 of the Property or its acquisition by Lender, any Foods held by
<br />Lender at the time of application as a credit against the sutras secured by this Mortgage.
<br />3. Appikation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs t 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. Char;es; Liietts. Borrower shall pay all 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 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 notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shalt promptly furnish to Lem;er receipts. evidencing such payments.
<br />Borrower shall promptly discharge any hen 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 ;hall in good taith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien ar forfeiture of the Property or any part thereof.
<br />S. Huard [nsarantt. Borrower shall keep the improvements now existing ar hereafter erected on the Praperty 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 no[ require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing ,5e insurance shalt be chosen by Borrower subject to approval by Lender, provided..
<br />that such approval shall rani be unreasonably withheld. All premiums an insurance policies shall 6e paid in the manner
<br />provided under paragraph 2 hereof or, if not paid an 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 io Lender and shalt 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 shalt promptly furnish to Lender a]! renewal notices and a13 receipts of paid premiums. In [he evens 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 />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economicahy feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not ec;onomicatly feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by !his Mortgage, with the excess, if any, paid
<br />20 Borrower. If the Property is abandoned by Borrower, or ii 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 to tLe 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 installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph lg hereof the Praperty is acquired by Lender, all right, title and interest of Borrower
<br />in atuito any insurance policies and in and [o [he proceeds thereof resulting from damage to the Property prior to the 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. PEtraervafioa and 3laiatenauce of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shalt keep the Property in good. repair and shall not commit waste or permit impairment or deteriorazion of the Property
<br />and shalt comply with the provisions of any lease if this Mortgage is an a leasehold. ]f this Martgage ss on a trait in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obtigations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium nr plannLe,.d unit development, and constituent documents. if a condansinium or planned unit development
<br />rider ES eXCCUte(i by u4rrnweT and recorded rogether with this Mortgage, the covenants and agreements of such rider
<br />shall beineorporated into. and. shall amend and supplericttt fhe covenants anti agreements of this Mortgage as if the rider
<br />were a Qart hereof.
<br />7. Protectioe of Lender's Security. if Harrower faits to perform the covenants and agreements contained in this
<br />?vtortgage,~or if any. action ar proceeding is commcaced which materially t:Elects C,coder's interest in tits Property,
<br />including,but not Gmitedto, eminent domain, insolvency, ctule enfarcemena. ar arrangetneats or proceedings invoh~i:ng a
<br />bankrupt nr decedent, then Lander a[ Lender's apcian, upon notice to Borrower, may make such appearances, ciisbursc such
<br />steno and. take such action as is necessary to prt>tict l..endir', interest, including. but nut iiatitid to, disbutscmcnt of
<br />reasunabl4 attorney's fees anti entry upon the Property xa make repairs. id Lender required mortgage insurance as a
<br />erxidition of making Lha loan secured icy this Mortgage. Borrower shad! pay the premiums required to maintain such
<br />insurance in effect unzi} sttcft time as the reyuirentcnt far such insurance 1crtrEittates in accordance with Harta~wc„.*'s and
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