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79- ;~(~3333
<br />UNmoast Covetvnr[•rs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Prlnclpal and 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 and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Ftads for Taxes amt Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />[o 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 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 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 Leader 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 shat( 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 r^unds shall be paid to Borrower, and uaiess such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Barrower 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 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 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 />Geld 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 />Geld by Lender. If under paragraph 18 hereof the Property is sold or [he Pr^perty 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. Application of Payments. Unless applicable law provides otherwise, alt payments received by Lender under the
<br />Note and paragraptvs I 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 the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. t_harges; Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in [he manner
<br />provided under paragraph 2 hereof or. if not paid in sack manner, by Borrower making payment, when due, directly to the
<br />payce thereof. Borrower shall promptly furnish to Lender alt notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. 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 />requir.•d to discharge any such Lien so long as Borrower shaft 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 />5. HatJrd [awratce. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, ha~rds included within the term "extended rnverage", and such other havtrds 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 exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The iffiurance carrier providing the insurance shall be chosen 6y Borrower subject to approval by Lender, provided,
<br />that such approval shall oat be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provi~ under paragraph 2 hereof or, sf not paid in such manner, by 9orrower making payment, when due, directly to the
<br />;~~~ carrier.
<br />4ll inurance policies sad renewals thereof sisal; >>e in farm acceptable to Lender and shall include a standard mortgage
<br />dame in favor of sad in form acceptable to Lender. Lender shah have the right to hold the policies and renewals thereof,
<br />and Barrower shalt promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made popmpdy
<br />by Borrower.
<br />Unless Lrnder and Borrower otherscsse agree in writing, insurance proceeds shat(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 [hereby impaired. If such rntoratlon or repair is not economically feasible or if the security of [his Mortgage would
<br />be impaired, BsE insurance proceeds shalt be applied w the sums secured by [his Mortgage, with the excess, if any, paid
<br />to Borrower. 4 the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lrnder to Borrower that the insurance carrier offers to settle a claim for imurance benefits, Lender
<br />is autl~rized to collect arsd appty 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 not 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 1$ hereof the Property is acquired by Lender, elf right, title and interest of Borrower
<br />in and to any insurance policies and is and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />ar acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sate or
<br />acquisition.
<br />6. Preservation std Maiateeaatt of Property; Leaseholds; Condominiums, Planned Unit llevelopments. Borrower
<br />shall keep the Property in good repair sad steal! not commit waste or permn impairment or deterioration of the Property
<br />nerd shall comply with the provisions of any lease if this Mortgage is en a leasehold. If this Mortgage is on a unit in a
<br />emsdottsinium or a planned unit development, Borrower shalt perform ail of Borrower's obhgations under the declaration
<br />or covetraots creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominitmt or p{armed unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Barrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be irtcorporared into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part laermf.
<br />7. Pratetetiet of LetdePs Seearidy. 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 io the Property-,
<br />including, but [tot limited to, eminent domain, insolvency, code en(orcemeni, or arrangements or proceedings involving a
<br />bankrupt or dteedent, then Lender at Leer's option, upon notice to Borrower, may make such appearances, disburse such
<br />sutm and take such action as is necessary to protect Lenders interest, including, but not limited to, disbursement of
<br />reasonable attotTiey's foes 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 pay the premiums required to maintain such
<br />insurance in effect until such time as the repuirement for such insurance terminates in accordance with Horruwe.*'s and
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