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79-- t~t.f.~326
<br />Uturnoa;vt Covnxnxrs. Borrower and Lender covenant and agree as follows:
<br />I. Payment of i-einclpai 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 Noee, and the principal of and interest
<br />tan any Future Advances secured ;.y this Mortgage.
<br />2. iFoadq for Tares and Insurance. Subject to applicable law ar 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 stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Iviortgage, and ground rents on ftte Property, if any, plus one-twelfth of yearly premium ins[a4ments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />fime [o time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt be held do an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution}. Lender sha[I 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 assessments and bills, unless Lender pays Borrower interest an the Funds and applicable law
<br />permits Lender to makA such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shaft 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 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 debiu to the Funds 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 Mortb..ge.
<br />If the amour[[ of the Funds held by Lender, together with the future monthly installments of Funds payable prior io
<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, ae 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 3t) days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of alt sums secured by this 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. Appllcatlon of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and T hereof shalt be applied by Lender first in payment of amounts payable tc Lender by Borrower
<br />under pazagraph ~ hereof, then to interest payable on the Note, [hen to the principal of the Note, and Then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shalt pay all taxes, assessments and other charges, fines and impositions attributable to
<br />ttte Property which may attain a priority over this Mortgage, and leasehold payments ar 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 shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall 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 />h ;ten in a .uarrar acceptable w Lender, or shall in good faith i.omes[ such ;ten bp, or defend enforcement of such Tian in,
<br />lega3 pr~eedings v~hich operate to prevent the enforcement c# the hen or forf,.iturc of the Property or any part *heraof.
<br />5. Berard Ia4araace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against Ions 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 require; provided, shat Leader shalt not require that the amount of
<br />such coverage exceed that amount of coverage required to nay 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 />chat such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if nor paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies aad renewals thereof shall be LR form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable io Lender. Lender shat! have the right to hold the policies and renewals thereof,
<br />and Borrower shalt promptly furnish to 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 not 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 />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 or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Harrower, or if Harrower faits to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that 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 [o restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agrce to writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments reterred to in paragraphs I and 2 hereof or change the amount of
<br />such installntents. If under paragraph I$ herea€ the Property is acquired by Lender, all right, titre and interest of Borrower
<br />in end to any insurance policies and in and to slte proceeds thereof resuhing from damage to the Property prior to the sale
<br />or acgttisitioa shall pass io Lender to the exten[ of the sums secured by [his .',iortgage immediately prior to su_h sale or
<br />acquisition.
<br />tS. Preservation and Maintea$nce of Property; Lcasehoids; Condominiums; Planned Urrit Developments. Borrower
<br />shall keep the Proger[y in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shalt comply with dte provisions of any lease if this Mortgage is on a leasehold. If this &iortgage is on a unit in a
<br />coadontinium or a planned unit development, Borrower shalt perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regtriations of the
<br />condominium or planned unit development, and constituent docum°nts. Ii 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 />shat tar incorp;.:_ ^~? to and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />•>rerc a part hereof.
<br />7. Peoteetion of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action of proceeding is commenced which materially affects Lender's interest in the Property,
<br />irtolttding, but not limited ta, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, ilten Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take- ouch acGoa as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shalt 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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