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79- Uu3722
<br />79-vU2721
<br />Uxmon[.t CoveNxraTS• Borrower and Lender covenant and agree as foµhen •due the principal of and interest on the
<br />I. Payment of Ptiadpal sad Interest. Borrower shaFl promptly pay
<br />indebtedness evidenced 6y the Note, prepayment and Tate 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 Taxes and Irtsunnce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Leader 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 is an institution the depasits or aceaunts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shalt apply the Funds to pay said taxis, assessments,
<br />insurance premiums and grotmd 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 Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall no[ be required to pay Borrower any interest or earnings on the Funds. Lender
<br />p ditrpose for wh ch each debt to the Funds wasamade. uThe Fundseare pledged as addinon 1 security forthhe 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 poor 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 />hdd by Lender shall not be sttificient 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 />held by Lender. If un.-`sr gazagraph 33 ![ereof-he Property's sold or [he Property is otherwise acquired by Leader, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisaion by Lender, any Funds helu' b-y
<br />Leader 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. all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shalt 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 />pri~ipal on any Future Advances.
<br />4. Charges; Lleas. Borrower shall pay all taxes. assessments and ether charges. lines 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 manner
<br />provided under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Harrower shall promptly furnish to Lender all 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 />required to discharge nay such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />-~-'„,,, ;~°, et: 3ma:err acceptable [o Lender, or shall in good faith contest such lien bv, or defend enforcement at such lien in,
<br />legal proceedings which operate to prevent the enforcement of rho '.tort er forfeiture of the Ptopert}' or any part thereof.
<br />5. tifaurd Imaraace. Borrower shall keep the improvements now eaisung or hereafter erected on the k'roperry i~ist;t'w
<br />agaiostloss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amot:nts 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. rovided,
<br />The insurance carrier providing the insurance shalt be chosen by Borrower subject to approval by Lender, p
<br />that such approval shall ant be tmreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if ant paid in such mancer. by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mertgagt
<br />louse in favor of and in form acceptable to Lender. Lender shalt have [he right to hold the policies and renewals thereof,
<br />mower shall give promp~ ~n!u to the iasurancef carrier and tLender.d LenderEmay omake proof cL+f loss f not made promptly
<br />6y Borrower.
<br />Unless Lender and Harrower otherwise agrce in writing, insurance proceeds shall be applied ro restoration or repair o
<br />the Property damaged, provided such restoration or repair is econumicall}' feasible and the stturity of this Mortgage is
<br />not thereby impaired. If such resmration or repatr is not ecottomkalty feasible or tt the secunty of this Mortgage would
<br />be imPairsd, the insurance proceeds shelf be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the propem' is abandoned 6y Borrower, ar if Borrower fails to respond to Lender within 30 days from the
<br />dais notice is mailed by Lender to Borrower that rite insurance carrier offers to Bettie a claim for insurance bonefits, lender
<br />is authorized to collect and apply the insurance proeesds at Lendei s option either to restoration or repair of the Property
<br />or to the Bruns secured by this Mortgage-
<br />Unisss Lender and Borrow°sr otherwise agree in writing, an)' such applicauon of prxesds to prmctpal shall not extend
<br />or postpone the due data of the monthly irsstalltrtents referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such iastallrrxats- B under paragraph i8 hereof the Pmpert)' is acqutreG h}' Lender, all right, tide and interest of Borrower
<br />in and to any insurance policies aad in and to the proceeds thereof resulting from damage to the Propert} prior to the sale
<br />or acquisition shall pass io Lender to the extent of the stuns secured by [his Mortgage immediately prior to such sale or
<br />acotrisition-
<br />t;, Preavatios sad Ma~teatmce of property; [,saaebolds: Condominiums; PFanrted Unit Developments. Borrower
<br />shall keep the property is good repair and shall not comnut wasce or permit impairment or deterioration of the Property
<br />aad shall comply with the provisions of any lease i[ this Mortgage is on a leasehold. If this Mortgage is on a trait in a
<br />condoIItinium or a planned trait development, Borrow•sr shall perform a!1 of Borrower's obligations under the declarauon
<br />or covenants creating or goverain$ the condominium or planned unit development, the by-laws and regulations of the
<br />condominitm or planned unit devdopment, and constituent documents. If a condominium or planned unit developmem
<br />riha~ll be irpo~r ~ unto aad shall ramead and~uppkmentt the[coeM'enantsand agreements of this Mortgage as if the rider
<br />was a part hereof.
<br />;. Fta$eetloa of I.ea~s Secarity. if Harrower fails to perform the covenants and agreements contained in this
<br />Mmtgage, or if nay atxiost or proexding Is commenced whicfi materially affects Lender': interest in the properly,
<br />inducting, but mat limited to, aninent domain, ir[solvsncy, code enforcement, ar arrangements or proceedings involving a
<br />bankrupt or dexd~t, then Lender at Gender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums aad take snch action as is necessary to protect Lendcis interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees aad entry aeon the Property to make repairs. If Lender required mortgage insurance as a
<br />^ssd~rnt o€ making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as ttte teyuire~.~tit far .=~!'- i^surance terminates in 2ccordance with Borrowers and
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