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79--UU2~42
<br />Uxrnotut COVHNAN7s. Harrower and Lender covenant and agree as follows:
<br />1. Payment tai 1°dnclpal anti 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 end interest
<br />en any-Future Advances secured by this Mortgage.
<br />Z. krands for'Paita tual lasttr.nse. Subject to applicable law or io a wrtten waiver by Lender, Harrower 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 o[ she 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 initia!!y and from
<br />time to time by loader 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 tincluding Lender if Lender is such an institution). Lender shad 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 />of 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 time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borzower, and unless such agreement is made or applicable taw
<br />tequirrs such intetast to be paid, Leader shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shaft glut to Borrower, without charge, an annual accounting of the Funds showing crediu and debits to the Funds and the
<br />purport 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 cite amount of the Funds head 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 />assessments, insurance premiums and ground rents as they fail due, such excess shall be, at Borrowers 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 />Harrower shall pay to Lender any amount aecessaty to make up the deficiency within 30 days from the date noose is mailed
<br />by Leader to Borrower tegtresting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />tteid by Lender. If under paragraph I$ hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />stall apply, no later than immediatey prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Leader at the time of application as a credit against the runts secured by this Mortgage.
<br />3. Appticatioa of PtlYtaents. Unless applicable law provides otherwise, all payments received 6y Lender under the
<br />Nate and paragraphs t sari 2 hereof shalt be applied by Lender 5rst in payment of amounts payable to Lender by Borrower
<br />wader paragraph 2 he.-eof, then to interest payable on the Note, then to the principal of the Nose, and then to interest and
<br />principal on any Future Advantxs.
<br />4. C Iitas, Borrower shall pay all taxes. assessments and other charges. fitter and impositions attributable to
<br />the Property which tnay attain a prioriry• over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or. if nox paid in such manner, by Borrower making payment, when due, ditxttp to the
<br />payee ti4eteof. Botrowez shaft promptly furnish to Lender all notices of amounts due ~!nder t;,is paragraph, and in the event
<br />Borrower shall make payment directly, Borower shall promptly iumish to Lender receipts evidencing such payments.
<br />9ortower steal! promptly discharge any lien which has priority over this Mortgage; provided, chat Borrower shaft not be
<br />required to discharge any such lien so long as Borrower shalt agree i:r writing to the payment of the obligation secured by
<br />stxh lim in a maaaer acceptable to Leader, 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 forieiture of the Property or any part thereof-
<br />5. I~aatd Iasiuaere. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agsiast loss by tits, hazards i>Kluded within the terns "extended coverage', and such other hazards as Lender ma}' require
<br />and in such amounts and for such periods as Lender may requite: provided, that Lender shall not inquire that the amount of
<br />such coverage ercetd that amctmt of coverage required to pay the sums secured by this Mortgage. -
<br />The imtttaace carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shag not be ttnreasanabN withheld. All premiums on insurance policies shalt be paid in the manner
<br />provided varier paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />AB insurance poticits and renewals thereof shall be it form acceptable to Ixnder and shall include a standard mortgage
<br />clause in favor of and is form acceptable to Lender. Leader stroll have the right to hold the policies and renewals thereof,
<br />earl Borrower shad pmmpdy furnish to Lender ail renewal notices and alt receipts of paid ptsmiums, In the =vent of loss,
<br />Borrower shalt glut prompt notice to the insurance carrier and Lender. tinder may make proof of loss if not made promptly
<br />by Bottotret.
<br />Unless troller and Borrower otherwise agree in writing, insurance proceeds shalS be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is ecoaornicslly feasible and the security of this Mortgage is
<br />not tltrr~y impaired. If such ratoration or repair is not economically #easible or if the security of this Mortgag- would
<br />be impaired. the iruuranct proceeds shat: be applied to the sutras secured by this Mortgage, with the excess, if any, paid
<br />to Bstrrosrer. l# the Property is abandoned by Borrower, or if Borrower faits to respond to Lender within 30 days from the
<br />date notice is maim by I.endrr to Borrower that the inuurance carrier .,flats to settle a claim for insurance benefits, Lender
<br />is atNlsorisd to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the ramss sxmsd by this Martgt,@e.
<br />Uniew Lender and Borrower o-bervvise agree in writing, an}° such application of proceeds to principal shall nor extend
<br />or pastpoae the dtte date of the rnontlily installmenu referred to in paragraphs 1 and ~ hereof or change the amount of
<br />wrh iasialltrnents. If under paragraph }g hereof ttu Property is acquired by Lender, aH right, tick and interest of Borrower
<br />is anti Ea arty ittstrrance pdicits arm is and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Leader to tlx extent of the sums secured by this Mortgage immediately prior to such sale or
<br />4 stet Aloe ~ Property; i.eaaekotds; Ce>sdomioiams; Ptaatce+' Veit IOevdopmrots. Borrower
<br />sltalf hceP the Property in good repair and shall not commit waste or permct impairmem or deterioration of the Property
<br />and slssldl comply with the provisions of any lease if this Morsgagc a on a Ieasehoid. If this Mortgage is on a unit in a
<br />cmdoeminittm a a piatrned unit devtlopateni, Borrower shall perform alt of Borrowers obligations under the declaration
<br />ce cosrerraeas cnatirtg r governing the condorinium or plantttd unit development, the by-laws and regulations of the
<br />t+asdmniaium ce d- :d tt~ ~velopmeat, and constituent doctunents. !f a condominium or planned unit development
<br />tidtr a esecvted bl' Harrower and rccordaf tagettrer with this Mortgage., the covenants and agreements of such rider
<br />~ ht itttwcpotstad into and shall ameati and srrppiemem the covenants and agretmrnts of this Mortgage as if the rider
<br />wort, a ptr;t Itetaat.
<br />T. itrNetNa® oI ]toia'a if Borower :ails to perform the covenants and agreements contained in this
<br />llttartg~e, or if nay aexiun or prae>eecGng is c~snmtmtxd which materially affcets tender's interest in the Property,
<br />. heft trot Gatittd to, eminent domain, iasotvetttcy, code enforcement, or arrangements or proceedings involving a
<br />baeirs~rt ~ tlaeedmy then Lertdta at Lwder'a option, upon notice to Borrower, may make such appearances, disburse such
<br />trim one! sake such asxion as is teary to prmtxt Lender's interest. including, but not limited to, disbursement of
<br />rtaatnable attorney's foes sad tatty upon the Property to make repairs. If Lender required mortgage insurance as a
<br />cottditiaa of t9aking the Innn aecttred by this Mortgage, $atrower shall pay the premiums required to maintain such
<br />imuranex is elftct tmal such tit>ae as the requirement for sash insurance tenninates in accordance with Borrowers and
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