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79- U(137~~
<br />LINIPORM Covertetvrs. Borrower and Lender covenant and agree as follows:
<br />f. Payment of Principal 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 />Z. Fonds for Ta:es and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a soar (herein "Funds") equal [o one-twelfth of ehe 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 Lender on the basis of assessments and bills and reasonable estimates the:cof.
<br />The Funds shall be held in an iastitutiorz the deposits or accounu 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 shall be paid to Borrower, and unless such agreement is made or applicable taw
<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 />purpose for which each debit to [he Funds was made. The Funds are pledged az addi[ianai security for the sums secu:~d
<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, shalt exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents az they fall due, such excess shall be, a[ 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 taxes, assessments, insurance premiums and ground rents az 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 paymem thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund [o Borrower any Funds
<br />held by Ixnder. If under paragraph IS hereof the Propen_v is sold or the Property is otherwise acquired b_y Lender, Lender
<br />shat) apply, no late: than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<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 shall be applied by Lender first in payment of amounts payable [o Lender by Borrower
<br />tinder paragraph 2 hereof, then to interest payable on the Nc[e, then to the principal of the Note, and then to interest and
<br />principal on any Fuh~re Advanrxs.
<br />~. C4tegesti Bens. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
<br />the Property which tray attain a priority over [his Mortgage, and Ieasehoid payments or ground rents. if any, 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 />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the even[
<br />Harrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priori[}• over this Mortgage; provided, that Borrower shall not be
<br />tequind to discharge any such lien so long az Horrower shalt agree in writing [o the payment of the obligation secured by
<br />such lira in a manner acceptable [o 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. 13scnrd laataraaee. Borrower shat! keep the improvements non existing or hereafter erected oa the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards az Lender may reyuire
<br />and in such amount, and for such periods az Lender may require; provided, [hat Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured b}• this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall no[ be unreasonabl}' withheld. All premiums on insurance policies sh:.ll he paid in the manner
<br />provided utxler paragraph 2 hereof or, if not paid in such manner, 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 mortgage
<br />clause in taupe of and in farm acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Bormw~er shall promptly furnish to Lender aL 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 promptly
<br />by Borrower.
<br />Utdess Leaner and Borrower otherwise agree in writing, insurance proceeds shall be applied [o restoration or repot! of
<br />rite Property damaged, provided such restoration or reparr is econrnnically feasible and the security of this Mortgage is
<br />tat thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured be thts Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, ar it Borrower fails to respond to Lender within 30 days from the
<br />date notice is matted by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Ixnder
<br />is authorized Yo collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propert}'
<br />ar io tilt sums sa-.tired by this Mortgap~.
<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 iastalimenis referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to [he Property prior to the sale
<br />ar acquisition shall pass to Lender to the extort[ of the sums secured by this Mortgage immediately prior to such sale or
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<br />6. Feteservarion and Mainteoaace of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shalt keep the Peoptrty in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and sha31 comply with the provisions of any lease if this Atartgage is on a leasehold. If [his Mortgage is on a unit in a
<br />wndominitun or a planned unit development, Borrower shall per[orm all of Borrower's obligati, ns under the declaration
<br />or covenants creating or governing the rnndominium or planned unit development, the 6y-laws and regulatiors of the
<br />condominium or planned unit development, and constituem documents. If a condominium or planned unit development
<br />[idea is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag be intbrpoiated into and shalt amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Prdatiea of tinder's Se+eariry. 1# Borrower fails to perform the covenants and agreements contained in this
<br />Mottgatge, or if any action or proceeding is commenced which materially affects Lender's interest in the Property.
<br />~ittclttding, brit not limiter to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender a[ Leader's option, upon notice to Borcower, may make such appearances, disburse such
<br />sttras and take such action as is necessary to protect Lender's interest, including, but no[ 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 />coadilioa of making tbe loan secured b} this 3ortgage, Ber-over sh~l[ oa} the nremiums required to maintain such
<br />i»aurmce in etfeet uaal such time az the requirement for such insurance terminates in accordance with Borrower's and
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