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<br />Urtmoant Cover+nrrrs. Borrower and Lender covenant and agree as follows: `~ ~l ~'i J ~ `j
<br />1. Payment of Prfncipa! and Interest. 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 Advances secured by [his Mortgage.
<br />2. Fonda for Toes and Insurance. Subject to applicable law or 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"} 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 premitun 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 the:eoF.
<br />The Funds-shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including lxnder if Lender is such an institution). 1_ender 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 compiling said ass ~sm~.^.ts 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 [hat interest vn the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Burrower any interest or earnings on the Funds. Leader
<br />shall give to Bortower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit tv the Funds was made. The Funds are pledged as additional security for [he 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 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 malted
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by [his 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 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 />Note and paragraphs !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. 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 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 Lender receipts evidencing such payments.
<br />Borrower shat) promptly discharge any lien which has priority veer this Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in wric::g to the paymene of the obligation secured 6y
<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 />Iggal proceedings which operate to prevent the enforcement of the lien yr forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property 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 reyuire; provided, that Lender shall not require that the amount of
<br />such coverage exceed [hat amount of coverage regwred 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 on insurance policies shalt be paid in the manner
<br />provided under paragraph 2 hereof or, if nut paid in such manner, 6y Burrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in fumy acceptable to Lender and shah include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Under shall have the right w hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish ;o Lender all renewal notices and all receipts of paid premiums. In the event of loss.
<br />Borruwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if no[ made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt be applied to restoration yr repair of
<br />the Property damaged, provided such restoration or repair is economically Feasible and the security of this Mortgage is
<br />nut thereby impaired. If such restoration or repair is nut ewnomically leusible or it the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the runts secured 6y this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Burrower, or if Borruwer fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurauce carrier offers to scale a claim fur 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 [o the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shalt not extend
<br />or postpone the due date of the monthly installments refermd to in paragraphs t and ?hereof yr change the amount of
<br />such installments. 12 under paragraph IS hereof the Prvpeny is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the 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. Preservation and Maintenance of Property Leaseholds; Condominiums; Planned Unit lSevelopmenls. Borrower
<br />shall keep [he Property in govd repair and shall Dot commit waste err permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any !ease rf this Alvrtgagc is on a leasehold. IC this Mortgage is on a nail in a
<br />condominium or a planned unit development, Borrower shall perform alt of @orrower's vbhgations under the declaration
<br />or covenants t;reairrg or governing the cordvminium yr planned unit development the by-laws and regulations of the
<br />eondominittm or planaed unit development, and constituent dceumeuts. It a condominium yr planned unit development
<br />rider is executed by Borrower and recorded together wuh this Mortgage, the covenants and agreements of such rider
<br />shag be incorporated into and shall amend and supplement the covenants and agreements of this t~4ortgage as if the rider
<br />ware a Dart hereof.
<br />7. Protection of Lender's Security. II' Borrower fails to perform the covenants anc! agreements a,ntuured in this
<br />Mortgage, or if any action v[' proc:eedi[tg is commenced which mutnrialty affects Lender's interest in the Property.
<br />`itcluding, but r[at limlted.ty, eminent domain, inmr:vene}, code enforcement, or ;urangements c,r pr:<:edings involving a
<br />battktupi or decedent, thin t.endcr at Lender's option, upon notice to Borrower, may make such apps.-.. ,, dishurse such
<br />aums and teke such action as n rteaek+ary m pmteet L,ender's m[nr~st, mtludiryy. but n.,t 1Ln+tc t ,.. ,;~abursemunt of
<br />feaa0Aab1C att0[tMV'3 fees and entry up?u t}fc Ptt+peny nr make repairs. 1f Lender required rnurtgage i_n.oraurc ;as :+
<br />coru5tion of nuking the loan su;iue-d by thlx Mongagc, 6cr+>wer ,hail pay zhe prrm;uota required to maintain s,+ah
<br />iraatuartce in effect unt$ such time us eta reyuirement Ivy srreh rns[eran~ terminates in aeaxdavec `.i~ith Born7wer's un+i
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