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<br />Uhvromtet C.ovenerits. Borrower and Lender covenant and agree as follows: ~ ~ ~'° (~ ~ 1
<br />L Paymearmt Paincipat and tntetest. Borrower shall promptly pay when due the principal of and interest on the
<br />inetaihtedness evidenetd by the Note, prepayatent and late charges as provided in the Note, and the principal of and interest
<br />~-^ otr any: Future Advances secured by this Mottgage.
<br />S 2. )Funds Eor Tal=es ate inmaa~ce. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />m Lender an the_day monthly installments of principal and interesa are payable under the Note, until the Note is paid in fail,
<br />a sttm (herein "Funds") equal to one-twelfrh of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground renu on the Property, if ?ny, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, alt as reasonably estimated initially and from
<br />time to-timeby Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />'Ihe Funds shalt be held in an institution the deposin or acwunts of which are insured or guaranteed by a Federal or
<br />state agency firtcluding Lender if Lender is such art institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />" insttt'ance premiums and grotmd rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and comp8ing said assessrrretts and bills, unless Lender pays Borrower interest on the Funds and applicable taw
<br />petmits Lender to make such a charge. Harrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable taw
<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 debit to the Foods 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 Mottgage.
<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, assessnxttts, insurance premiums and ground rents, shall exceed the amount required eo pay said saxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess >hall be, at Borrower's option, either
<br />promptly repaid to Harrower or credised to Harrower on monthly installments of Fonda. If the amount of the Funds
<br />held by Lender shall not be sufficient i a pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Harrower shag pap to Lender any amount necessary to make tap the deficiency within 30 days from the date notice is mailed.
<br />bgt Leer to Harrower requesting payment thereof.
<br />Upon payment in full at ail sums secured by [his bler[gage. Lender shall promptly refund to Horrower any Funds
<br />held lay Lender. If under paragraph 13 hereof the Propem• rs sold or the Property as otherwise acquired by Lender, Lender
<br />shalt apply, no lacer than immediately prior to the sale of the Prapem• or its acquisiton by Lender, any Funds held by
<br />Lt.•nder ar the time of applirztian as a credit against the sums secured by this kfattgage.
<br />3. A~lication of Paymeatts. Unless applicable law provides otherwise, al! pavmtnis received by l,endor under the
<br />Note attd paragraphs i and 2 hereof shall be applied by Lender fist rn payment of amounts payable tv [.ender by Borrower
<br />under paragraph Z hereof, then io interest payable vn the Note, then to the principal of the Note, and then is interest and
<br />principal an any Future Advances.
<br />4, Cltargt~; Lfeaa. Harrower shall pay all taxes, assessments and other charges, fines and tmpositions atuibutable to
<br />the Property which tray atUin a priarty over dais Isfortgage, amt tezse.hold payments ar ground tunas, if any, in the manner
<br />provided under paragraph :. hereof or. if not peed in such manner, is}• Borrower making pa}•ment, when due, directly io the
<br />pays thetwf. Harrower shalt promptly furnish to Lender all notices of amounts dire under this paragraph, sad in the event
<br />Barrown shalt make payment directly, Borrower shah promptly furnish to I:cndcr receipts evidencing such payments.
<br />Borrower shag promptly discharge aay hen which has pnonry aver slits Mottga,¢e: provided, tfaat Bvrrowes shat) net be
<br />required to discharge any such lien so long as Borrower shat! agree in writing to the payment vi the obligation secured by
<br />steel lien in a manner acceptable to Lender, or shall in gvtad faith contest such lien by, or defend eoforcament of such lien in,
<br />legal proceedings which operate to prevent the cnferccment of tht^, lien ar farfeiturc of the Praperiy ar any part thereof.
<br />5. Iiatiatrd Ituruaace. Borrower shall keep the improvements now ctisung yr hereafter crested an the Property insured
<br />against loss by fire, hazards included within the acrm "extends:d coverage", and such other hazards as Li:ndcr may require
<br />and insttt:ta amounts and for such periods as Lender may roquirr; provided. that i.encler shall not require [hat the, amount as:
<br />such coverage exetxd than amount of Ga[rerage rcyuired to pay the yams secured by ibis Al'ortgage.
<br />The iatsuntnce carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that such approve] shall eat tee unreasonably withheld.. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if eat pall in such manner, try Harrower making payment, when due, directly to the
<br />insttratx:e carrier.
<br />Alt insurautcc policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />dAatse in fame of attd in farm acs-.eptabte to Lender. Lender shalt have the right to hold the policies and renewals thereof,
<br />attd Horrower shall peomptty furnish ao Lender alt renewal naticc~s and all receipts of paid premiums. (n the; event of loss.
<br />Hcaranwer stall give prompt notice to the insurance carrier and !.ender. tender naay make proof of loss if n.at made promptly
<br />by Harrower.
<br />Unless Lender sad Borrower otherwise agree ire wnnng, insurance proceeds shalt be applied to restoration or repair of
<br />the Property damaged, provided such restaratian ar repair is ecoiaomically feasible and the security of this Mortgage is
<br />naa thereby impaired.. tf such restoration or repair is eat ecunomicahy feasible or if the security of this lvlortgage would
<br />be impaired, the insurance proceeds shall lac applied to the sums sp:ured by this Mortgage, wirh the excess, if any, paid
<br />to Borrower, if ttre Propcrey is abandoned by 13orrawer, ar i,` Horrrntier faits to respond to Lender within 30 days from the
<br />', date nOUCe is mailed by Lender to Borrower that the ansuraru:e carver vffets to settle a claim for insurance benefits, !..ender
<br />is aWltarixed to collect and apply ile insurance proceeds at Lendea's option either to restaratian yr repair of the Property
<br />or ter the sums scented by this Mortgage.
<br />UtrdessLender and Borrower otherwise agree in writing, any such application of proceeds io principal shall not extend
<br />of postpone ttte due date of the monthly installments referred to isa paragraphs i and 2 hereof or change the amount of
<br />such insaallrnents. tf under paragraph 1 S hereof the Property is acquisexl by Lender, all right, tide and interesa of Borrower
<br />in sad to airy insurance policies and is and to tfae proceeds thereof rt-salting from damage as the Propt:rty prior to the sale
<br />ar acquisition. shall pass to Len ter so the extent of the sums secured by this Mortgage immediately pricer na such sale ar
<br />acquisitiatt.
<br />6. 'Irtesetvat3oo t~ Maintenance of Property; Leascttaids•, Candomittiums; Planned Unit IAevetopments. Borrower
<br />shelf keep tltePmperty in good repair and shalt not commit waste ar permit impairment or deterioration of the Property
<br />' and shall Comply with the'. provisions of any lease if this Mortgage is on a Icasehald. If this bfortgage is aaa a trait in a
<br />irondantinitun or a planned anti development, Borrower shalt perform all of Bos•cc>wer's obligations under the dcclaranon
<br />i~r eovcuants ucating or govetnipg the condominium or planned unit dcvciopment, the by-laws and regulations oC the
<br />eandaminium,or planned tet»t development, and constituent dsxaamcnts. if' a condominium or planned unit development
<br />rider is excelled by Borrower and roweled together wish this Mvrtgag~ the cavaxaants and apzecmants crt such rider
<br />shalt to iaecorlwrattid lute and shall amend and supplement ttae covenants :end agreements of this Mortgage as if Ilse rider
<br />wets a pint hereof.
<br />?. PrMecalaar of L,caderas Sectirtty. If Borrower tails tea }acrform the covenants and agreements contained in this
<br />;Ofortgags, yr rf slay action, of ptorxeding rs armmen.;ad which ma~naliy .ellecta !.cutler's iauenst in the Propcsty,
<br />including, lint ;i:at limited t0. t:miraettt dttuaain. ittsalvency, code enfo€cenaetat, <~ar arrangements yr prcaceedings involving a
<br />haszitrupt or d9: cdent, then Leander of twettdcr's option, upnn notice to $anower, nay make such appaaratnety, Disburse such
<br />tutnS:rod take such action. as is trec>rssary Eu prot~L t.cnder"s interes#, including, taut real limited [a, disburcmcnt of
<br />rexsanabte attarnev s fees and entry upon the Pr[rperty to make repairs. If Leader ragaiircii mortgage rwttranee :r. a
<br />ccraxlaizan nr making ti3e lawn sai.:ured. by this Mortgage, Burrower shat! racy the t±remuma required tes maintain sufr
<br />ismurancean ttfai arr31i1 cinch. tame as the requirctrtant fns sorb mstatartcc iertriinatcs in accordance with Borr.:au^er'c a,td
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