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79- t; t,`~329
<br />Ur+raoatt CovErtetvrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Prindpal and Interest. Borrower shalt 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 and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fonds for Ta=es tiro] Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender en the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full.
<br />a stun (herein "Funds"} equal to one-twelfth of [he 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, ail as reazonably estimated initially and from
<br />time to time 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 ground rents. Lender may not charge 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 Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shalt be paid to Borrower, and unless such agreement is made or applicable law
<br />requites 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 Farads showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. i'he Funds are pledged as additional security for the sums secured
<br />by Wis Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior m
<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 fall due, such excess sF.NI 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 Leader to borrower requesting payment thereof.
<br />Upon aavment in full of all sums secured by this Mortgage, tender 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, Lende•
<br />shall apply, no later Wan immediately prior to the sale of the Propert or its acquisition by Lender, any Funds held by
<br />Leader at We time of application as a credit against the sums secured by this Mortgage.
<br />3. Applicatlon of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />dote 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 on We Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. C(ateges; [3errs. Borrower shalt pay alt taxes, assessments and other charges, fines and impositions attributable to
<br />the Propertp which may attain a priority over this 1•iortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee Wereof. Borrower shat! promptly furnish to Lender all notices of antounts due under this paragraph, and in the event
<br />Borrower shall make payment &rectly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<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 Borrower shall agree in writing [e [he payment of the obligation secured by
<br />such lien is a mentor acceptable to Lander, 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 />5. Heard lasaraace. 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 in such amenn[s and for such periods az Leader 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 caner providing the insurance shall be chosen by Borrower subject to approtal by Lender: provided,
<br />Wat such approval shall not be tmreasonabiy withheld. All premiums 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 payment, when due, directly to the
<br />itmLL*ance carrier.
<br />All insurance policies and renewals thereof shalt 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 till renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Linder. Lender may make proof ~f loss if not made promptly
<br />by Borrower.
<br />Unless Let!d=r tied Boaower 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 rat economically feasible or if the security of this Mortgage wrould
<br />be impaired, the insurance proceeds shall be applied to the stuns secured by this Mortgage, with the excess, if any, paid
<br />w Borsower. Lf tbe Property is abandoned h}' Borrower, ar if Borrower fails [o respond [o Linder within 30 days from the
<br />date ttotice is mailed by [..ender to Borrower that the insurance carrier afters to settle a claim for insurance benefits, Lender
<br />is authorized to collect and app]} the insurance proceeds at Lender's option eiWer m restoration or repair of the Property
<br />or to the sums sectu~ by Wis Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to pnncipal shall not extend
<br />or postpone the due dale of the monthly iasialtments referred to in paragraphs i and '_ hereo€ or change the amount of
<br />such installrneats. If under paragraph 18 hereof We Property is acquued by Lender, all right, title and interest of Harrower
<br />in and to any insurance policies tied in and to the proceeds thereof molting from damage [o the Property prier to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by thu 3fort¢age immediately prior to such sale or
<br />acquisition.
<br />6. Pteaervatian and Maintenantt of Property; Leaseholds: Condomindums: Planned Unit Developments. Borrower
<br />shall keep We Property is good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply wiW the provisions of any lease if Wis Mortgage is on a leasehold. if this Aorgage is on a unit in a
<br />c~domiaium or a planned unit development, Borrower shall perform all of Borrowei s obligations under the declaration
<br />oz covettaots creating or governing the condominium or planned trait development, the by-laws and regulations of the
<br />condominitun or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag ire inootpozated into and shalt amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. PretMlon of Leader's Secnrity. If BoROweI fails to perform the covenants and agreement, contained in this
<br />Mortgage, or if any action or procxding is commenced which materially affects Lender's interest in the Property,
<br />indttding, but trot Iitttittd to, emir!,nt dotttain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />baaluvpt or decedent, then L.atder at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action az is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees 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 shall pav the premiums required to maintain such
<br />irstaatice La efleri until setth :ime as ttta tr~qui;emzn[ for such insurance !erm~nates in ~;.~ardancc wish Borrower's and
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