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<br />Uxt:~oaM Covaxnxrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Ptinelpal end 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 this Mortgage.
<br />2. Farads for Traces sad 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 `rands") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mort~gge, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />The Ftmds shall be held in an institution the deposits or accounts of which are insured or guaeanteed by a Ftderal or
<br />state agency (fttcltrding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance gremiums and ground rents. Lender may not charge for so holding aced 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 intezst on the Funds shall be paid to Bottower, and unless such agreement is made or applicable taw
<br />requites 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 debits 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 securd
<br />by Ehis 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 taxers,
<br />assessrents, insurance gremiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower of credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by I-ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shalt pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all stems 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. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 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. C>mrges; I1eos. Borrower shall pay all taxes, assessments and other charges, floes 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 mancer
<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 noGccs cf amounts due under this pa-agraph, and in the event
<br />Borrower shall make paymPnr directly, Borrower shall promptly famish 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 dis:luuge any such lien so long as Be~rov,~er shall agree in writing to Ere payment of the obligation secured by
<br />su:.h l.~n in a ma^~ * a^~tp*~~t~ to L~ndgr, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Aaxard Iasarance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the tetra "extended coverage". and such other hazards ss Lender may require
<br />and is such amounts and for such periods as Lender may require; provided, that Lender shalt not require that the amount of
<br />such coverage exceed that amount of coverage required 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 shalt not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />p<ovided under paragraph 2 hereof or, if not paid in such mattuer, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />ASl insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to bald the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Leader all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shalt give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrowtr.
<br />Unless Lender and Borrower otherwise agree in writing, insurance procceds shall be applied to restoration or r•epasr of
<br />the Property damaged, provided such restoration or repair is economicatly feasible and the security of this Mortgage is
<br />trot thereby impaired. If such restoration or repair is not ewnomiwlly feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds sha[i be applied io the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower If the Property is abandoned by Borrower, or if Borrower fails to respond to Lander within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insuuance carrier offers to settle a claim for insurance benefits, Lender
<br />tie authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or tB the stmcs secured 6y this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 heztof the Property is acquired by Lender, al( right, tide and interest of Borrower
<br />in and to any insurance policies and en and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shaft pass to Lender to the extent of the sutras secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservatlm and Mts~tettaace of Property; Le~etnotds; Condomiaittats; Planned Uait Ikvetopmeats. Borrower
<br />shat! keep the Property in good repair and shall oat commit waste or permit impairment or deterioration of the Property
<br />aced shall c~mgly 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 planned trait development, Borrower shall perform all of Borrowers obligations under the declaration
<br />of covenants creating ar go;,saing t1~ condominium or planned unit development, the by-laws and regulations of the
<br />condominitmt or planate unit development, and constituent documents. If a condominium or planned unit development
<br />rider is exeeuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shat bt iacbrporated into and shalt amend and supplement the covenanu and agreemenu of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protccttoa of Leader's Secaritg. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action of proceeding is commenced which rnaterialiy affects Lender's interest in the Property,
<br />iachsdirtg, but not limited to, eminent domain, iasotvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt ur decedent, then Leader at Lender's aptiou, upon notice to Borrower, may make such appearances, disburse such
<br />stems and take such action as is n~sary to protect Lender's interest, inciudimg, but not limited to, disbursement of
<br />reasonable-attorney's free and entry upon the Property to make repairs. If Lender required mortgagernsurance as a
<br />rnnditiaa of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such tune as the requirement for such insurance terminates in accordance with Borrower's and
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