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79- ~~r;3339
<br />Uxrnoat~r Covexnxrs. Borrower and Lender covenant and agree as `ollows:
<br />I. Payment of Prlnclpal sad 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 imerest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fonds for Toes and Iasusaoce. Subject to applicable law or eo a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest arc 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 instaltments 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 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 />ar 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 Ftmds shall be paid to 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 />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />propose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />by ibis 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 Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. tf the amount of the Funds
<br />held by Lender shat! not be su$tcieat 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 foil of ail sums sec;tred by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Leader. If under pazagraph 18 hereof the Property is Bald or the Property is otherwise acquired by Lender, Lender
<br />- apply, ro 1-a uaa~taiciy pn- t.,e laic va the P:opea~r r sts acqu „a.on by ,_erd°-, any Funds herd by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage. `
<br />3. APplieatdoo of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, rhea to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal an any Fugue Advances,
<br />4. Charges; Bens. Borrower shall gay alt 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 the mantter
<br />provided cadet pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payce thereof. Borrower shall promptly furnish to Lender ail 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 paymenzs.
<br />Borrower shad 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 to the payment of the obligation secu*ed by
<br />such &en in a manner acceptable to Leader, ar 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 say pan thereof.
<br />5. flstard hotaoce. Hortower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by tire, hazards included within the term "extended rnverage". and such other hazards as Lender may require
<br />and is such amounts and for such periods a. Lender may require; provided, that Lender shall not require that the amount of
<br />such +mverage exceed that amount of coverage required to pay the sums secured by thss Mortgage.
<br />The itutrrance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender: provided,
<br />that such approval shall trot be unreasonably withheld_ All premiuas on insurance policies shall be paid in the manner
<br />provided cadet paragraph 2 hereof or, if no[ paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />AB insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Leirder shall have the ri¢itt to hold the policies and renewals thereof.
<br />sad Borrower shall gromptly 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 inswance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower othetu•ise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, providcd such restoration or repair is economically feastble and the security of [his Mortgage is
<br />not thereby impaired. If such restoration or repair is oat economically feasible or if the security of this Mortgage would
<br />be 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 by Borrower, or ii Borrower fails 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 benefits, Lender
<br />is autharired to collect and apply the insurance proceeds at Lender's option either to restoratior. or repair of the Property
<br />tsr 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 tht monthly installments referred to in paragraphs 1 and ?hereof or change the amount of
<br />sirh installments. if under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest of Borrower
<br />in artd to any insurance policies and in and to the prxeeds [hereof resulting from damage to the Property prior to the sale
<br />ar aegttisitian shall pass to Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preavr>d3on aivd Mal®teasece of Propertyi Leaseholds; Condomiaioms; Planned Unit Developmtnts. Borrower
<br />shalt kelp the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />a~ shall comply with the pmvisions of any hest if this Mortgage is on a leasehold. If [his Mortgage is on a unit in a
<br />cadaminitraa or a planned unit deceiopmeat, Harrower shall perform all of Borrowers obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development. the by-laws and regulations of the
<br />caadontinium or planned unit dtvelopment, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recot~d together with this Mortgage, the covenants and agreements of such rider
<br />shall be incot'pottted iMO and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />wetY a part hereof.
<br />?. ) ~ Leaie:'a 9. Lf Harrower fails to perform the covenants and agreements contained in this
<br />~m'tgage, ar if any action or proaediag is commenced which materially affects Lender's interest in the Property,
<br />including, hot tttst limited to, eatirtent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or dexdeai, then Len:ier at Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take sitch action as is necessary to protect Lenders interest, including, but not limited to, disbursement of
<br />reasimabk attamey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />coaditiaa of malting the loan secured by this Mortgage, Bortt+wer shall pay the premiums required to maintain such
<br />i>mruance in effect untti stub rime as thx regt:iremeat for such insurance terminates in accordance with Borrowers and
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