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79- UG2844
<br />Utizroaxr Cover+nxrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Prioclpal attd Interest. Borrower shall promptly pay when due the principal of gad interest on the
<br />indebtedness evidenced by the Note, prepagmeat 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. )ean~ far Trues and Insttranee. 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 sttm (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 Propetty, 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 oa the basis of assessments and bills and reasonable estimates thereof.
<br />"I~te Funds shall be held in as institution the deposit or accounts of which gee insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Leader shalt apply the Funds to pay said taxt~, assessments,
<br />insurance premiums and ground rents. Leader may not charge far so ho(dirg 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 time of execution of this
<br />Mortgage that interest on the Funds shall be paid 20 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 />shalt give to Borrower, without charge, an annual accounting of the Funds showing credit 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 Leader, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, oscessment, insurance premiums and ground rent, shall exceed the amount required to pay said taxes,
<br />assessment, insurance premit'mc and ground rent as they fall due, such excess shall be, at &nrrower's option, either
<br />promptly repaid to Botmwer or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be su6rcient to pay taxes, assessments, insurance premiums and ground rent 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 Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower arty Funds
<br />held by Lendez. If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no Later than immediate[y 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 sums secured by this Mortgage.
<br />3. Applkatloa of Payments. Unless applicable law provides otherwise, all payment received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amouns payable to Lender by Borrower
<br />under paragraph 2 hett:of, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal as any Futtue Advances.
<br />4. Charges; Iieas. Borrower shall pay all taxes, assessment and other charges, fines and impositions attributable to
<br />the Ptaperty which may at.aia a priority over chis Mortgage, arwl leasehold payments or ground rents, if any, in the manner
<br />provided ttttder paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, direcL'y to the
<br />payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, gad is the event
<br />Borrower shall make paymem directly, Borrower shall promptly tumish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: provitbd, that Borrowe; shall not be
<br />required to discharge any such lien so long as Borrower shalt agree in writing to the pa}intent of the obii8ation secured by
<br />attch lien in a manrter amptable 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 ar any part thereof.
<br />5. Hmrd Iasarance. Borrower shall keep the imprevements 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 as Lender may require
<br />and in stiehh amounts and far such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />sutdt coverage exrxed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The inuraaee carrier providing the insurance shall !x chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall got be unreasanabty withheld. All premiurm on insurance policies sha':I be paid in the manner
<br />provided under paragraph Z hereof or, if not paid in such manner, by Borrower making payment, when due, directly to The
<br />inuuattse carrier.
<br />AB insurance policies acrd renewals thereof shalt be in form acceptable to Lender and shall include a standard mortgage
<br />rdaust in favor of and is form acceptable to Leurkr. Leader shall have the right to hold the policies apd renewals thereof,
<br />gad Borrower shall proraptiy fazrnbb to I.-ender elf renewal noti-•~s and nit rz~.:,ipts of paid przmiums. In the t:vent of loss,
<br />Borrower shall give prompt notitx to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Linder 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 />Ix 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 b~ $orrr>wer, or if Borrower faits 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 benefi[s, Lender
<br />~ aus>mrirsd m mikct and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />a to tits sums secured by this Mortgage.
<br />Uakss Lender gad Borrower otherwise agree in writing, any such application of proceeds fo principal shall not extend
<br />or postp:me the due date of the monthly installment referred to i^ paragraphs I and 2 hereof or change the amount of
<br />strtdr installrneats. If under paragraph i8 hereof the Propert} is acquired by Lender, all right, title and interest of Borrower
<br />in and to an}' Insurance polities and in and to the proxeds thereof resulting from damage to the Property prior to the sale
<br />or acxfuisitioa shall pass to Leader to the extent of tbe sums secured by ibis Mortgage immediately prier to such sale or
<br />k. Innervation ad MalNsnaace of Praputy: I.taeeketlds; Cnadoroinlumst Planned Ualt Developments. Borrower
<br />strain ~ [he Property in Food repair attd shall aoi commit waste or permit impairment or deterioration of the Property
<br />tad shall comply with the pmvisitms of any lease it this Mortgage is on a leasehold. If this Mortgage is on a trait in a
<br />candaminium or a planned trait development, Borrower shall perform all of Borrower's otriigations under the declaration
<br />or covenants creatirrg or governing the condominitun or planned unit development, the by-laws and regulations of the
<br />emtdoraiaittm or pla* cd unit development, and constituent documents. [t a condominium or planned unit deveiapmerzt
<br />rider is extxtttec! t, Borrower anti recordxt toe then wult this !vtorfgage, the covenants and agreements of such rider
<br />ahaU bt inroorgeuated into arm shall amend and supplemem the covenant and agreement of this Mortgage as if the rider
<br />were a put hveof.
<br />7. 1!m d I.attler'a Seet~f. If Botrottxr fail to perform the covenant and agreernent comained in this
<br />~. tx if arty aciian or priming is ::ortnaetsced w°hsch materially affects Lender's interest in the Property,
<br />.roc-ktdE:.g, but not limited m, eminent domain, insotvetrcy, code enforrmtent, or arrangement or proceedings involving a
<br />tt~[rnpt 9r dac+l~t, ihw Latdta at lan3cr's onion, upon tmiice to Borrower, may make such appearances, dishurse such
<br />sums gad fate atult actioe as is necessary to protest Leader's interest, including, but nut limited to, disbursement of
<br />tasonahle attorney's fees red entry upon the Properly To make repairs. If Lender required mortgage insurance as a
<br />co4etitittn of ataittat the haan sectrrtd by this Mortgage, Borrower shall pay ttw premiums required to maintain such
<br />~nrattce in effoet tattiJ such lima as the reytrirement for such insurance terminates in accardence with Borrower's and
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