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<br />~'2' ~11r J73
<br />Utrtt=oivi Covan~.*r't's. Borrower and Lender covenan¢ and agree as follows:
<br />1. Payment of Pdneipa! and lnteresf. Borrower shall promptly pay when due the 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 Advancs secured by this Mortgage.
<br />2. Fonds foe't'uses and fnsutsner. Subject to applicable law or to a written waiver by Lender, Borrower shaft 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 stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over zhis
<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 tune 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 Ft:deral or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply [he Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may net charge for so holding a.nd applying the Funds, analyzing said account,
<br />or verifying and compiling 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 thin
<br />Mortgage that interest on the Funds shall be paid tc Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not he 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 debi¢ to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />ff the amount of the Foods held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessmenu, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fail 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 io 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 $orrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Leader 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 6y 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. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Nore and paragraphs i and 2 hereof shall be applied by i.endcr first in payment of amoums payable to Lender by Borrower
<br />under pazagraph Z hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Futuze Advances.
<br />4. CharSes; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which tray 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 noC paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all ^ouces of amounts due under this paragraph, and in the event
<br />Boaower shall make payment directly, Borrower shalt promptly furntsh to Lender receipts evidencing such payments.
<br />Borrower shall promptly dischazge any lien which has prority over this Mortgage: pmvtded, that Borrower shall not be
<br />required [o discharge any such lien so long as Borrower shall agree in ~a ntmg to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good taith conmst such lien by, or defend enforcement of Bach lien in,
<br />legal proceedings which operate to prevent the enforcemem of the hen ar foricnure of the Property or any pan thereof.
<br />5. Hazard Insurance. Borrower shall keep the improa+ements now existing or hereafter erected on the Property msuzed
<br />against loss b}' fire, hazazds included within the term "extended coverage". and such ocher hazards as Lender may require
<br />and in such amounts and for such periods as Lender may requare; provided, that Lender shall not royuire that the amount of
<br />such coverage exceed that amount o[ coverage reyuued t;. ~,ay ;he soma secured b}' the Mortgage.
<br />The insurance carrier providing the insurance shall be chosen ray Harrower subject to approval by Lender, prevtded,
<br />that such approval shall not be unreasonably withheld. All premtums on insurance policies shat] be paid m the rr-meter
<br />provided under paragraph 2 hereof or, if noC paid in such manner, by Borrower making payment, when duC, dirc'<aly to •he
<br />insurance carrier.
<br />AU insurance policies and renewals thereof shalt be in form accepcabic 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 polices and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal nouces and ail receipts of paid premiums. In the event of loss.
<br />Borrower shaft 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 shall be applied [o the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. IT the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is malted 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 the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to prmeipal shall not extend
<br />or postpone the due dace of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />stub ittstaltments. if under paragraph 18 hereof the Proper*,y is acquired by Lender, ail right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resuking from damage to the Propeny prior to the sale
<br />or acquisition shah pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such safe or
<br />acquisition.
<br />6. Pretervatioa and '.4huiuieaance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shalt keep Ehe Property in good repair add shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply wi¢h the provisions of any lease tf thus Mortgage is on a leasehold. if this aioregagc is o;t a r
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations tinder the declaration
<br />or Covenants creating. or governing the condominium or plaoneci unit d clopruar.;., :` , - a.~ .. rog Latio;ts of the
<br />condominium or planned unit development, =end constituent documents. It a condominium•or planned unit development
<br />eider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of thks Mortgage as if tha rider
<br />were a part hereof.
<br />7. Pmteetioa of Leaders Security. If Borrower fails to perform the revenants and agrcemc:nts contained in this
<br />Mortgage, or if any action or proCeeiling is commenced which materially atfeats Lender's interest in the P-opcny'•
<br />including, buC not limiiCd ta, eminent domain, insolvency, code enfercemcrt, or arrangements ar pr<:Keedings involving a
<br />bankrupt ar dcccden[, then hCnder at Leodei s option, upon notice tr> Borrower, may make such appearances, tlssbu rse such
<br />sums and take such aotaon as a necessary to protect Czndcr's ~nterest, including. but not limited to, disburscrtaeni of
<br />reasonable attdruey's tees and v.ntry upon the Propeny a> rn~ake repairs. ti Lender rcuuirCd mortgage insurance as
<br />condition of making the 9oau secured by the Mortgage, Bcurvwvir sha31 pay the prcmrunu -cgarrrd u> tnauxau; s!rc}a
<br />insurance in ntfesa anti! such time as lEae requirement fur such uasu -ante irrntioatc.a :n ~ucordancc wnh Eorrower', and
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