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79--~j~,.1Y,~7
<br />UxmoaM Covex,txrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Prindpal sad Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and la*.e charges as provided in the Note, and the principal of and interest
<br />an nay Future Advances secured by this Mortgage.
<br />2. Ftmds for Tares 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 premium 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 thereof.
<br />The Funds shall be held in an institution the deposits oe accounts of which are insured or guaranteed 6y 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 />insurance premiums and ground tents. Lender may not charge for so holding and applying the Funds, analyzing said accot[nt,
<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 at tl:e time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />esquires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings oa the Funds. Ixndar
<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 secured
<br />by this Mortgage.
<br />If tbe 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 />assessmenu, insurance premiums and ground rents zs they fall due, such excess shalt be, at Borrowers 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 Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lettder any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting- payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph Ig Hereof the Property is sold or the Properly ,s otberwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acqutsinon 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. Appilcatioa 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 b}+ Lender fist in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable an the Note, then to the principal of the Note, and then to interest and
<br />principal on any Futtre Advances.
<br />4. Charges; I3eas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />tbe Property which may attain a proriry over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under pazagraph 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 />Harrower shall promptly discharge any lien which has priority over this Mortgage; provided, that $orrower 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 />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of Bart thereof.
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any p
<br />5. Hazard liosvrasce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by firs, 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. that Lender shall not require that the amount of
<br />such coverage exceed ffiat amount of coverage required to pay the sums secured 6y this Mortgage.
<br />The iffiurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />thaE such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided umber paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />iawrraare carrier.
<br />All ;nom^rs,nce 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 hold the policies and renewals thereof,
<br />and Borrower shall promptTy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of lass,
<br />Botmwer shalt give prompt Mice to the insurance carrier and Lender. Lender may make proof of }oss if not made promptly
<br />6y 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 i~uraace proceeds shall be applred to tbe sums secured by this Mortgage, with the excess, if any, paid
<br />m Borrower. u the Pmpert}' is abandot[ed by Borrower, or if Borrower fails 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 Lendei s option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Leader and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone tbe due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />each iastallmeats. If under paragraph t8 hereof the Property 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 Heine to such sale or
<br />acquiaiuon.
<br />~ Preservation and Maatersmce of Property; Leaseholds; Condominiums; Planned Unit Ihvelopmeats Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment er deterioration of the Property
<br />and shall c~iply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium ar a planned unit developr>rent, Borrower shall perform all of Borrowei s obligations under the declaration
<br />or covenants creating of governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned trait development, and constituent documents. if a condominium or planned unit development
<br />rider is executed by Horrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorpotttted into and shall amend and supplement the covenanu and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />9, Peafecttaa d I.eoder's 9ecsrity. If Borrower fails to perform the covenants and agreements contained in this
<br />II¢ortgage, ar if nay action or proceed'etag is commenced which materially affects Lender's interest in [he Property,
<br />sactudiog, but not limited to, eminent dotttain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />baaknrpt or dot, then Leader at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />auras and take such action 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 tbe loan secured by this Mortgage, Borrower shall pay [he premiums required to maintain such
<br />insurance In sffxt until such rims as the rcaltt~ement far such insurance terminates in accordance with Borrower's and
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