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<br />UxrFOa[.r Covt?N cxrs. Borrower and Lender covenant and agree as follows: j iyf fl / 7
<br />I. Payment of Principal and interest. Borrower shall promptly pay when clue 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 Advances secured by this Mortgage.
<br />2. Fonds far Tares and Insurance. Subject [o applicable law ur to a written waiver by 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"J 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 ene-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 tp time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt be held in an institution the deposits ar accounts of which are insured or guaranteed h}^ a Federal ar
<br />state agency (including Lender if Lender is such an institution). Lender shalt apply the Fonds 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 compiling said assessments and bills, unless Lender pays Borrower imerest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing a[ the time of execution of this
<br />Mortgage chat. interest on the Funds shall be paid [e 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 nn 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 />purppse 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 oT the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of rases, 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 he, at Borrower's option, elther
<br />promptly repaid to $orrower or credited to Borrower on monthly installments of Foods. if the amount of the Fonds
<br />held by Lender shall not be sufficient to pay razes. assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary to make up [he deficiency within 30 days from the date notice is mailed
<br />by Lender Yo Borrower requesting payment [hereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shalt promptly refund to Borrower any Fords
<br />held by Lender. If under pazagraph IR hereof the Property is sold ar the Property is otherwise acquired by fender. Lender
<br />shall apply, no later than immediately prior io the Salo of the Property or its acquisition by I~nder, any Funds held by
<br />Lender at the time of application as a credit against tho sums secured by this 'vlortgage.
<br />3. Application of Payments. Unless applicable law prnvides otherwise, all payments received by Lender under the
<br />Note and paragraphs I 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 cn any Future Advances.
<br />J. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which tnay attain a priority over this 'sfor[gage, and leasehold payments or ground rents, if any. in the manner
<br />provided under paragraph 2 hereof or, if no[ paid in such manner, by Borrower making payment. when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lander all nouces of amaunts due under [his paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shalt promptly discharge any lien 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 Tien 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 Iv prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the irnprnvemenis now existing or here;rher erected on the Pr?pern• insured
<br />against loss by fire, hazazds included within the term °extended covcragt', and such other hazards as I_cnder 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 providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasonably withheld. .All premiums cn 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 [hereof shall be in form acceptable 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 policies and renewals ihereel.
<br />and Borrower shalt promptly furnish io Lender all renewal notices and alt 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 net 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 />[he Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />no[. thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage cvuuid
<br />be impaired, the insurance proceeds shall t>e applied to the sums secured by this Mortgage, with the excess, it any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or it Borrower Tails to respond to Lender within ,0 days from the
<br />date notice is mailed by Lender to Borrower the[ 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 [o principal shall oat extend
<br />or postpone the due date of [he monthly installments referred to in paragraphs i and 2 hereof or change the amotmt of
<br />such iostallments. li under pazagraph !g hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in end to any insurance policies and in and to the proceeds thereof resulting from damage to the Progeny prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by [his Mongage irnn[ediately prior to such sale or
<br />acquisition.
<br />6. Prese.-vation and Maintenance of Property; Leaseholds; Condominiums: Planned Unit Developments. Borrower
<br />shelf keep the Property in good repair and shall not commit waste or permit impairment ar deterioration of the Property
<br />and shaft comply with [he provisions of any lease if this Mortgage is on a leasehold. if this Mortgage is on a unit in a
<br />condominium or a piatned trait development, Borrowe: shall perform all of Borrower's ubliga[ions under tho declaration
<br />or covenanlsereating or governing the condominium or planned unit develapmertt, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a eandominium or planned unit development
<br />rider is. executed by Borrower and recorded together with this Mortgage,. the covenants and agreements of such rider
<br />shalt. be irworpara[ed into and shall amend and supplement the covenants and agreements of this Mortgage as it the rider
<br />were a part hereof.
<br />~. ProleMion of Lender's Security. tt" BUFTOw'Cr fails to perform the covenants and agreements _ontaincd in this
<br />Mortgage, or if any action or proceeding +s commenced which ntaierially affects fender', interest in the Prrpe3-ty,
<br />including, but not iimired ta, eminent domain, inwlvency, Cade enforcement, or' arrangements or proceedings +nvotving a
<br />bankrupt or decedent, then Lender at Lenders option, upon notice to Borrower, may make such appcaranccs t sburso such
<br />sxuxis azld take such action ;es is nec~san' to protect Lender's interest, +nciudutg, but rrat !itmted to. disbarse+tmnt of
<br />reasonable attorney's fees ;Ind entry span the 1'ropcrty to makC repairs, li Lender requlrrd mortgage irsuraance as
<br />cxrn ±;tioa ai :;z:-k::x;; the Ivan u:curcd br tbrs M.orluagc.. Hon ow cz sha;i pay the t: craiunts rt~quired to mainta,+t s+r;:n
<br />insurance In cifect omit such time as the requiresrrent for such ,osnranee tzrminaa~,. .a; accordance with Borr.>wcr`.s nn..l
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