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79- tjtj~~.347
<br />UtvrnoatK Covexertrs. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Ptinclpa! and Interest. Borrower shalt promptly pay when due the principal of and interest on Ute
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of aced interest
<br />on any Future Advances secured by this Mortgage.
<br />3. i?~nds for Tsaes and Insuronce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on tbe 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 yeazly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mor[gzge insurance, if any, all as reasonably estimated initially and from
<br />time to time by Leader an 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 a,eocy (including Leader if Lender is such an institution). Lender shalt apply the Funds to pay said taxes, assessments,
<br />insurance premituns a~ ground retrts. Lender [nay no[ eharge for 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 Leader may agree in writing at the time of execution of this
<br />Mortgage that interest en the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such inieresi io be paid, Leader shall not be required to pay &orrower any ioierest or earnings on the Funas. Lender
<br />shall give to Borrower, without charge, an annul! 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 Utis Mortgage.
<br />If the amount of the Funds Geld 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 pramit[ms and ground rents as they fall 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 to-.es, asessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender nay amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />Cj 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 Lsnder. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shag apply, oo latu than immediately prior to the sale of the Property or its acquisition by Lender, nay Funds held by
<br />LCIIQCr at [he time of application as a ertdii against the sir,Tis ~;urd by t, ~ kiortga6~.
<br />3. Applicuion o[ Payments. Unless applicable Jaw provides otherwise, all payments received by Lender coder the
<br />Note and paragraphs 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 oa the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />0. Chnr>st~ liens Boaower shall pay alt taxes, assessments and other charges, fines at~d impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />providM under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shalt promptly furnish to Lender all notices of amounts due under this paragraph, and in the event.
<br />Borrower shag make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly dischazge any lien which has priority over this Mortgage; provided, [hat Borrower shall no[ be
<br />required to dischazge any such lien so long as Borrower shall agree in writing [o the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in gaol faith contest such lien by, er 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. Berard Ismranee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against lass by fire, 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 txcced that amotmt of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier groviding the instuance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be t[nreasonably withheld. Ali premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 bereof or, if not paid in such manner, by Borrower making payment, when dtre, directly to the
<br />insurance carrier.
<br />AB insurance policies and renewals thereof shalt be in form acceptable to Lender and shall include a standard mortgage
<br />clause is favor of and in farm 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 psid premiums. In the event of loss,
<br />Boaowtr shall give prompt notice to the insurance carrier and Lender. Ltnder may make proof of loss if not made promptly
<br />by Borrower.
<br />Unleu Leader sad 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 thc*eby impaired. If ssh restoration or reg~~r is not ecoru_+mically feasible or if the securi=.y of this Mortgage would
<br />be impaired, the ittsuraace groceeds shall be applied to the stuns secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Propetty is abandoned by Borrower, or if Borrower Eails to respond to Lender within 30 days from the
<br />daft notice is mailed by Lender to Bortower that the insurance carver offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect sad 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 />Uttiws Lender and Borrower aUterwire agree in writing, any such application of pracetds to principal shall not extend
<br />or postpone the due dace of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. 1f under paragraph l8 hereof tbe Property is acquired by Leader, ail right, bite and interest of Borrower
<br />in sad to any imurance policies a^d in and to the proceeds thereof resulting from damage to tl[e Property prior to the sate
<br />or acquisition shall peas to Lender to the extent of the stems secured by this Mortgage immediately prior [o such sale or
<br />acquisition.
<br />(, Prad•vaflon mtd Msuateaaace of Property; Ixmeholdx Coadominiotns; Planned Unit AeveMpmettts. Borrower
<br />shall keep the Property io good repair and shag not commit waste or permit impairment or deterioration of the Property
<br />sad shall txxaply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />camdamiaitrat of a planned unit deve)opment, Borrower shall perform all of Borrower's obligations under the declaration
<br />or ;xsvenaats ctiatiag or govtrttiag the condominium or planned unit development, flu; by-laws sad regulations of the
<br />c~doaziaium or plmoed unit development, and constituent documents. If a condominium or planned [mil development
<br />ride is executed by Borrower and tseatded together with this Mortgage, the covenants and agreements of such rider
<br />shill tz iaco[porated into sad shag amend and supplement the covenants sad agreementx of this Mortgage as if the rider
<br />were a put hereof.
<br />7. Prttn d tLeotlst's ;3eeielty. if Borrower fails to perform the covenants and agreements contained in this
<br />Mortga~, or if any notion or proceeding is commenced which materially affects Lender's interest in the Properly,
<br />iatlttdiog, but not timittd to; eminent domain, ittsolveacy, code enforcement, or arrangements or proceedings involving a
<br />bankrupt of decodeat, thin Leader at Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />Sams a~ take such action as is cecessary to protect Lender's interact, including, but not limited to, disbursement of
<br />reasattablt attotaty's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />eoadition of making tax loan secured by ibis Mortgage, Borrower shall pay the premiums required to maintair, such
<br />insurance in effect until such tint ss the requirement for such insuuance terminat.s in accordance with Borrower's and
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