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iJNtPOanr Covertnrs°rs. Borrower and Lender covenant and agree as follows: ~~ ~~~ 1~l t~P ~ ~ (v\
<br />1. Payment of Principal and IeMerest. Borrower shall prompth' pay when due the principal of and interest on the
<br />indebtedness evidenced by olio Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances seetared by this Mortgage.
<br />Z. Funds for Tares and Iasnt~nce. Subject to applicable law or to a written waiver 6y Lender, Borrower shall pay
<br />to Lender 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 Ya time by Lender on [he 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 Fedora] 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 net charge for so holding and applying the Funds, analysing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permizs 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 />requites such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall gave 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 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 shalt be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. Pf 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 amoum 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. I-ender shall promptly refund to Borrower any Funds
<br />held by Lender. if under paragraph iS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later ehan 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. all payments received by Lender under the
<br />Nate and paragraphs 1 and 2 hereof shalt be applied by Lender 5rsi in payment u2 amounts payable to Le^der by Barrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then ro the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. 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 no[ paid m such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all nonces of amoum 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 Barrower shall not be
<br />required [o dischazge any such lien so long as Borrower shall agree in writing [o 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 lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any par, thereof.
<br />5. Hazard Instttance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within ffie 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 of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providang the insurance shall be chosen by Borrower subject to approve! by Lender; provided,
<br />that such approval shag not be unreasonably withheld. All 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 cazrier.
<br />All insurance policies and renewals Thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender Lander shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender al! 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 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 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 Mortgage would
<br />be impaired, the insurance proceeds shalt be applied to [he sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails 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 [he insurance proceeds at Lender'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 installments referred to in paragraphs i and ?hereof or change the amount of
<br />such instaltmenzs. If under paragraph 18 hereof the Property is acquired by Leader, all right, tide and interest of Borrower
<br />in sad to any insurance Fancies and in and to the proceeds [hereof resulting from damage [o the Property prim to the sale
<br />or acquisition shall pass [o Lender to the extent of the runts secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservatiioa and Maintenance of Property; Leaseholds; Condominiuats; Planned Unit Developments. Borrower
<br />chalk keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />sad shall comply with the provisions o any least i. w,' *".origage i. , 'e'w;: held tv •,y:s Mu::gage i. ., unit in a
<br />condominium or a planned unit development, Borrower'shall perform ell not Borrower's obligations under the declaration
<br />or covenants creating or governing the condomimum or pianaed anti development, ehc by-laws and regu!a!ions of the
<br />condominium or planned unit development, and constituent documents. if a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />sftall be incorporated into and shall amend and supplement the covenants and agreetnenis of this Mortgage as if the rider
<br />were a part hereof.
<br />?. Protecdoa of Lender's Security. [f Borrower fails to perform the coveaams and agreements contained itt this
<br />Mortgage, or if any action or proceeding rs commenced which materially affects Lender's interest ill the Pt.tpcrry~.
<br />including. but not limited to. eminent domain, itisofvcncy, code enforcement. or arrangemenES or proceedings involving a
<br />bankrupt or decedent, then Leader at Lender's option, upon notice to Borrower, ma} make ouch .nppcarances, dishursc such
<br />sums and take such .action as is necessary to protest i..eztder's :nterese, mc!uding. but not limited to, dlsbursent.ent of
<br />rcasanahk attorney's fees and entry upon the Property ev make repairs. ti l.endcr required mortgage. insusancc as a
<br />conditisra of [ttnang the Foan s:.t:urcd try this Mortgage. Borrower chair na} [he ;?rcmittms n:quirctl to maintain such
<br />iasuraaae irz effect until such time as tkx; requiremeue for such rosuran:.e tcnttinates Ir1 :r_<~urdance with $urr<3w~c r'.v and
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