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<br />UNiroRns L`OV$NANTS. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Prineipsl and Inlerest. Brrawer shat( promptly pay when due the principal of and interest on the
<br />iadebfedness 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. iYnads for Tatres amt insurance. Stybjsct to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on the day monthly installments of principal and interost are payable under the Nate, until the Note is paid in full,
<br />a aura tnt:rsin "Funds"; squat to ohs-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents an the Prapert~•. if any, plus anc-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of ye-arty premium instalsme,^.ts fur tnarigag~snsurares, if any, a!1 as reasonably estimated initially and from
<br />time to time by Lender an the basis of assessments and bills and reasonable estimates thereof.
<br />Tt[e Ftmds shall be held in an institution the deposits or accaums ot" which arc insured or guaranteed by n Federal or
<br />state agency {insintiing Lender if Lender is such an institution?. lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and groumi rents. Lender may pat charge for sa holding and applying the Funds, analyzing said account,
<br />ar verifying and compiling said ttasessmants and bills, unless Lender pays Harrower interest on the Funds and applicable ]aw
<br />pet7niis Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />3vfortgags chat interest on the Funds shall lee paid to Borrower, and unless such agrcement is made or applicable taw
<br />requires such interest to be pzid, Lender shall not be required to pay Borrower any interest or earnings an the Funds. Lender
<br />shall give io Harrower, without charge, an annual accounting of the Fund,° showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additianaF security for the sums soured
<br />by this Mortgage.
<br />Tf Ehe amount of the Funds held by Lender, together with the future monthly installments of Funds payable pricer 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 tall due, such excess sha!1 be. at Borrower's option, either
<br />promptly repaid to Harrower or credited to Borrower on montF.ly installments of Funds. If the amount of the Futtds
<br />held by Lender shaIi not be sufficient to pay taxes, assessments. Insurance premiums and ground rents as they fail due,
<br />Borrower shall pay to Lender spy zmaunt necessary to make up the deficiency withirs 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment ehereof.
<br />Upon payment in full of all sums secured by •:tis Mortgage. Lender shall promptly refund to Harrower any Funds
<br />held by Lender. if under paragraph IS hereof t:te property is sold ar the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to :rte sale of the Property or its acquisition by Lender, any Funds held by
<br />Leader ai the tithe of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Paymenxs. Unless applicable law provides citherwice, alt payments received by [.ender under the
<br />Nate and paragraphs I and 2 hereof shall be applied by Lender fasten payment of amounts payable to Ixnder by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, rhea to t1.e principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />A. Charges; Idens. Borrower shat) pa}' all saxes, assessments and of per charges, fines and impositions attributable to
<br />the Property which tray attain a priority over this Mortgage, and tQasehold payments or ground reres, if any, in ehe (popper
<br />provided under paragraph Z hereof or, if not paid in such manner, by Harrower making payment, when due, directly to the
<br />payee thereof. Borrower shall prompt{y furnish to Lender alt notices of amounts due under this paragraph, and in the event
<br />Borower shall make payment directly, Boreawer sitatl prampdy furnish to Lander receipts evidencing such paymenu.
<br />Botta-.ver shall promptly discharge any Lin which has priority over this ivfartgage; provided, that Borrower shall not be
<br />required to discharge any such lien so sang as Harrower shaft agree in wriung to the payment of the obligation secured by
<br />such lien in a moaner accepiabk to Leader, or shall in goad faille contest such lien by, or defend snforctment of such 1'_ T,
<br />legal proceedings which operate to prevent rite onfarcemont of the ilea er forfeiture of the Property ar any part thereof.
<br />5. iiszard insnrarx. Harrower shalt kelp the improvements now existing or hereafter erected on the Proptr[y insured
<br />againsitoss by fire, hazards included within the tercet "extended coverage", and such other hazards as Ler=dcr may require
<br />and in such amounts and for such periods zs 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 />T7ts insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; providr~,
<br />xhat such approval shah not be urtreasanably withheld. Ali premiums on insurance policies shall be paid in the manner
<br />provided wader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to xhe
<br />insurance carrier.
<br />Ail insurance policies sad renewals thereof shall be in farm acceptable to Lender and shall include a standard mortgage
<br />clause in Faust a€ and in fotYtt acceptable to Leer. Lender shall have the right to hold the policies and renewals thereof.
<br />and Harrower shall promptly furnish io Lender all renewal notices and al't receipts of paid premiums. In the even of loss,
<br />Boaower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of foss if sot made promptly
<br />by ~•~rrawer.
<br />Uaiess Lender and Borrower otherwise agree in w'riiing, 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 ar repatr s not economically feasible or if the security of this Mortgage wou;d
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mangage, with the excess, if any, paid
<br />to Borrower. [f the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to $orrewer that oho insurance carrier offers to settle a claim for insurance beneftts, Ixnder
<br />is authorized to collect sad apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />ar to xhe stuns secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agrex in writing, any such application of proceeds to principal shall nai extend
<br />or postpone the due Sate of the monthly ins€allments referred to in paragraphs I and 2 fiereof ar change the amount of
<br />such installments. if under paragraph If hereof rho Property is acquired ny Ixnder, all right, title and interest of Borrower
<br />in and to any insurance policies and in and ie 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 6y this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. i'rsaervatlon and Maiatcasnte of Property; Leaseholds; Condotainiuttts; Platsaed UNt llewelopatenta Borrower
<br />shag keep the Property in good repair and shall pat commit waste or permit impairment ar deterioration of the Property
<br />sad shalt comply with the provisions of any Lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a gunned uaiC development, Borrower shall perform all of Borrower's obligazians under the declaration
<br />ar cpvenants creating or governing the condominium ar p{upped unit development, the by-laws and regulations of the
<br />eandominium or giant~d unit development. and constituent documents. If a condomin-rum or planned unit development
<br />rider is executed by Botxower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />s6ali !x inenrporated into sad shag amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />-wore a part h~roaf.
<br />1, Prentecttaa of Letttier's Becttrity. If $orrawer fails to perform the covenants and agtesments contained in this
<br />Mo rjlago, or if any action ar proceed"eng is commenced which materially affects Lendei s interest in the Property,
<br />including, but pat limited to,,cminont domain, insolvency, code enforcement or artxngements ar proceedings involving a
<br />bankrupt or decedent,-Then Lendor at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />stuns atni take such action as is necessary ro protect Lender's interest, including, but not limited to, disbursement of
<br />seasonable attotttey's fees sad entry upon the Property to make repairs. if Lender required mortgage insurance as a
<br />condixion of making fhe loan secured by this Mortgage, $arrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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