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<br />79- ~~,~ ~ ~ X38
<br />Utvrpotts,t Cot2NS.rrrs. Borrower and Leader covenant attd agree as follows:
<br />I. Prytnef4 of Prtacipal sad liffiemat. Borrower shall promptly pay whin due the priceipal of and ineerest on the
<br />indebtetlttess evidenced try the Note, prepayment and late charges as ptovidtd in the Nae, and the pritxipal of a~ interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Elands for Tam sad Iasmaatt. Subject to applicabk law or to a written waiver by Leader, Harrower shall pay
<br />to Leader on the day r!tonthty installments of principal and inicmt are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds") equal to oce-twelfth of the yearly taxes and assessmenu which may attain priority over this
<br />Mortgage, and ground rats on the Property, if any. plus one-twelfth of yearly premium ittsiallments for hal8td iasuranct,
<br />plus one-twelfth of yearly premium inttaflmenu for tnortgagt insurance, if any, all as reasonably estimated initially and from
<br />tirce to tune by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in 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 shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and grotmd rents. Lender may not charge fir so holding and 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 at the lime 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 />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 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 due dates of tarts, 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 Borrowei 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 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. AppticsAioa 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 [.ender by Borrower
<br />trader 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. Charges; Lien. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which tray 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 Leader all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly fumish io Lender receipts evidencing such paymenu.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />ttquired 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 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 />S. Harard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may require
<br />sad 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 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 shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />prm+ided trader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dira:6y to the
<br />instuatme carrier,
<br />All insurance pahcies 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 all receipts of paid premiums. In the event of loss,
<br />$otrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lass 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 />no[ 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 Borrower, or if Borrower tails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that [he 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 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 nut 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 hereof the Property is acquired by Lender, all right, title and interest of Harrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Properly prior to the sale
<br />or acquisition shall pass to Leader [o the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Praervalion and Maiutea!tnce of Property; Leaseholds; Condominiums; Planned Unit Developments. harrower
<br />shah kelp the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in u
<br />condominium or a planned unit development, Borrower shall perform elf of Borrower's obligations under the declaration
<br />or ~vtnamts creating or governing the condominium or planned trait development, the by-laws and regulations of the
<br />condomusitrm or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed 6y Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall 6e incorporated into-and shall amend and supp)ement the covenants and agreements of this Mortgage as if the rider
<br />were apart hereof.
<br />T. Protection of Lender's Secmlty. 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 />~includiag, but not limited to, emicent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lemder's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums -and take such action as is necessary m protect Leader's interest, including, but not limited to, disbursement of
<br />reasonable attornty's fete 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 sha)1 pay the premiums required to maintain such
<br />iceruaace in eff~t tmu'1 such titce as the requirement for such insurance terminates in accordance with Borrower's and
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