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<br />~9-- ~~'~~79
<br />Uxmottat CmENAN73. Borrower and Lender covenant and agree zs follows:
<br />1. Iti~est of Yt sad fmsmst. Borrowu shall promptly pay when due the principal of and interest on the
<br />indeotedness evidenced by the Note, prepayment and lace charges as provided in the Note, and the principal of and interest
<br />oa any Future Advaacts secured by this Mortgage.
<br />2. Feeds for Toes and Itswtraaee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installmenr~ of principal and interest are payable under the Note, until the Nate is paid in full,
<br />a sttm (herein "Funds") equal to one-twelfth of the yP°arly taxes and assessments which tray attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-tweifrh of yeazly premium ittstailmenzs for hazard insurance,
<br />plus one-ta+elfth of yearly premium installments for mortgage insurance, if any, alt as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which aze insured or 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 />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying aed compiling said assessments and bills, unless Lender pays Borrower interest on the Ftmds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless soh agrcement is made or applicable law
<br />rrquires 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 secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the dtu 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 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 30 days from the date notice is mailed
<br />by Lender 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 bender. If under paragraph 1$ 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 tfaymenis. Unless applieable taw provides otherwise, all payments receivtd by Lender under the
<br />Note and pazagraphs 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. Cftarges; Liens, Borrower shall pay all taxes, assessmenzs and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over thi<_ 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 payrrtenzs.
<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 $orrower 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 such -ien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pan thereof.
<br />S. Btanrd losuraece. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and io such amounts and for such periods as 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 />The insurance carrier providing the insurance shat! be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shag not be unreasonably withheld. All oremiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paymen4 when due, directly to the
<br />insurattx carrier.
<br />AB 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 hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and alt receipts of paid premiums. In the evens of loss,
<br />Bortowtr shalt give prompt notice to the insurance carrier and Lender. Lender may make proof of foss 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 restora[iori or repair is economically feasible and the security of this Mortgage is
<br />not whereby 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 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 insuranec benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by 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 inaWlments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any instuance pclicies and in and to the grnceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the Burns secured 6y this Mortgage immediately prior to such sate or
<br />acquisition.
<br />6. Fraervadaa and Maurteesnce of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />alts!! keep the Property in good repair and shall tot commit waste or permit impairment or deterioration of the Property
<br />sand snail comply with the provisions of any lease it this Mortgage is on a teasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform ail of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condoadeium or planned unit development, and constituent documents. It a condominium or planned unit development
<br />rider is exceutcd by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />ahaB be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Pmteetlon ~ Ltader'a Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />~insluding, but not limited to, eminent domain, inso]vency, code enforcement, or arrangements or proceedings involving a
<br />hankrapt cr d:acdent, risen Lersder at Lender's ogtior., upon r.Mice to Borrower, may make such appearances, disburse such
<br />sums and take su.^h at;tiaa as is tree>_ssary to protect Landers interest, including, but not limited to, disbursement of
<br />reasonable attorney's fen mad entry upon the Property to make repairs. if Lender required mortgage insurance as a
<br />condition of making rho loan secured b} this Mortgage, Borrower shalt pay the premiums required to maintain such
<br />iwtuanea in effect until such tittle as the requirement for such insurance terminates in accordance with Borrowers and
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