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<br />Uxmoxht Covsxnxrs. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest. Harrower shalt promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and fate charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Treads for Tales and Iosuranee. Subject to applicable law ar to a written waiver Ely Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note Ss paid in full,
<br />cuercin •'F°°~*,', ~yuar t ^~-ixelfth at the yearly zaaces and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Ptuperty, if any, plus one-twelfth of yearly premium installments far hazard insurance,
<br />oIus one-Twelfth of yearly premium installments far mortgage insurance, if any, all as reasanairly ~iimattd initially and tra=m
<br />lime to time by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />' ,I~ Funds-shalt be held in ar, instiiutian the deposits ar accounts of which are insured ar guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />itrsurautn premiums and ground rents. Lender may not charge for so hoid'eng and 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 ai the time of execution of this
<br />Mortgage that interest an the Funds shall be 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 Harrower any interest or earnings on the Funds. Lender
<br />shaII give to Borrower, without charge, an annual accounting of the Funds showing credits and debits ter the Funds artd the
<br />purpose for which each debit to the Funds was made. T'hc Funds are pledged as additional security for the sums secured
<br />try this Mortgage.
<br />If the amount of the Funds held by Lenaer, together with the future a~anihty irstalfzteats of Funds payable- prior to
<br />ilic 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 Borrowers option, either
<br />promptly repaid to Borrower ar credited to Harrower on monthly installments of Funds. If the amount of the FuntLs
<br />Geld by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fail due,
<br />$txrower shall pay to Lender any amount necessary to make up the defieiertcy within 30 days from the dau notice is mailed
<br />by Lender to Borrower requesting' payment thereof.
<br />Upon payment in full of alt sums secured by tfris Mortgage, Lender shall promptly refund to Harrower any Funds
<br />held by Lender. if under paragraph IS hereof the Property is sold or the Properly 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 />Le€tder aE the time of application as a credit against the sums secured by this Mortgage.
<br />3. stippliestioa of Psvmeats. Unless applicab}e taw provides otherwise. all payments received by Lender under the
<br />Note amt paragraphs I sad 2 hereof shall be applied by Lender first in paymem of amounts payable to Lender by Borrower
<br />under pazagraph 2 hereof, then to interest payable an the Note, then to the principal of the Nate, and then to interest and
<br />principal an any Future Advances.
<br />4. Charges; Lkns. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
<br />[he Property which rosy attain a priority over this Mortgage, and leasehold pay~rtents 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. Borsawer shall promptly furnish to Lender all notices of amounts due wader this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shad promptly furnish to Lender receipts evidencing such payments.
<br />Barrow r shall promptly dscharge any Lien which has priority over this Mortgage; provided, that Harrower shall noL be
<br />required ra discharge any such Lien so long as BarruwFr shaft agree in writing to the payment of the obligation secured by
<br />sash lien in a manor acceptable io Lender, ar shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate ra prevent the enforcement of the liar, ar farfeiit:r; of the Pr~,~Tty ar any part thereof.
<br />5. hazard Irtsuraace. Borrower shall keep the improvements now existing or hereafter erected on the Property irissred
<br />against loss by fir, hazards included within the term "extended coverage", and such other hazards as Leader may requite
<br />sad in such amounts and for such periods as Lender may require; provided, that Leader shall not require that the amount of
<br />such coverage exceed that amount of coverage required to gay the sums secured by this Mortgage.
<br />The insurance cazrier providing the insurance shall be chosen by Borrower subject to approve! by Lender; provided,
<br />L;at latch approval shall not be unreasanabfy withheld. All premiums on insurance policies shall be paid fn the manner
<br />provided writer paragraph 2 hereof or, if not paid in such manner, by Harrower making payment, when due, direciiy to the
<br />insrrrattxx carrier.
<br />AfI insurance pn4icies and renewals thereof shalt be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shalt have ehe right to hold the policies and renewals thereof,
<br />ar_d Harrower shall promptly furnish is Leader ail renewal notices and ail receipts of paid premiums. In the went of lass,
<br />Harrower shalt give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Harrower.
<br />Unless Lender and Harrower otherwise agree in writing, insurance proceeds shaft be applied to restormtion ar repair of
<br />the Property damaged, provided such restoration ar repair is economically feasible and the security of this Mortgage is
<br />teat thereby impaired. ff such restoration or repair is not economically feasible ar if the security of this Mortgage would
<br />besmpaaed, the insurance proceeds shall be sppifed to the sums secured by this Mortgage, with the excess, if any, paid
<br />is Borrower. if the Property is abandoned by Borrower, or if Borrower faits to respond to Lender within 3t~ days from the
<br />date native is mailed by Lender to Borrower chat the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authoriz~l to callet;t and apply the insurance proceeds at Lender's a~fan either io restoration or repair of the Property
<br />ar Lo the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shoji not extend
<br />or postpone the due date of the monthly installments referred zo in paragraphs 1 and 2 hereof ar change the amount of
<br />such installments. If under paragraph l8 hereof the Property is acquired by Lender, all right, title and interest of Horrower
<br />in and to any insurance policies anti in and to the proceeds thergt reszilting from damage to the Property prier to the sate
<br />or acquisition shalt pass To Lender to the extent of the sut?ts secured by this Mortgage immediately prior to such sak or
<br />acquisition.
<br />b. Prrsenatian atnl Mwinteaance of Property, Leaseholds; Cortdomiaitrnrs; Planed Unit Ikve~ptaeats. Horrower
<br />shall keep the Frapz€t; in good repair and shall not commit waste or permit impairment or detertaration of the Property
<br />artei shall comply with the provisrotts of any lease if this hlorigage is an a Ieasettofd if this Mortgage is an a unit in a
<br />catidamftttum ar a planned unit development, Harrower shaft perform alt of Borrower's obligations under the declaration
<br />ar eavenaats creating ar governing the condominium ar planned unit development, the by-Saws and regulations of The
<br />wndaaiinit~t ar planrttd unit development, and constituent dosumersts. 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 />shall lee incorporated-iota artd shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />werti.a pa*t her~tf.
<br />7: Protectiua of Lender's Severity. if Harrower fails to perform the covenants and agreements contained in this
<br />Mattgage; or if any astian or proceeding is cotnrarens~d which materisllp aSects Lender's interest in the Prol>a:rty,
<br />iiicludrng, but oat limited to, eminent domain; insalvenay, code enforcement, or arrangements nr proceedings involving a
<br />l}aaktrgi ar dect:dcnt, Ihert Lander. at I.endei's option,-upon notice to Harrower, may make such appearances, disburse such
<br />sut~ and tare such acuca as is necessary to protect Lender's interest, including, but not limited To, disbursement of
<br />reasonable attorney's fees and entry upon the Pro~rty to make repairs. If Lender required mortgage insurance as a
<br />condition of making the kran scoured by this Marigage, Borrower shall pay the premiums required to maintain such
<br />ittsutsnee in effect until suck time as the r+~urrement for such insurance terminates in accordance with Borrowers and
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