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<br />79-- u~,379U
<br />UrrrnottM CoveNerr'rs. Borrower and Lender covenant and agree a~ follows:
<br />1. 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 [he principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. ]Funds for Teller and Iasurance. 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 a:e payable under the No[e, until the Note is paid in full,
<br />a stem (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on [he 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, alt as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reaspaable estimates thereof.
<br />The Funds shall be held in an institution the deposits or aceoun[s 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 far so holding and applying the Funds, analyzing said accoun~
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on [he 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 shat! not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give [o Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />• purpose far 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 pa}' said taxes.
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />beld by Lender shag not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay [o 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 />l~,,,'„1 by I..,°.ndsr. If under paragraph 1R ftrreof the Property is sold or the Property 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 head by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Applicatan 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 to Lender by Borrower
<br />tinder 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. Charges; L3eas. Borrower shall pay all taxes, assessments and other charges, Snes 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 paragraph 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 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 dischazge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to dischazge any such lien so long as Borrower shall agree in writing to [he pa}'ment 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 liep in,
<br />legal praetxIirtgs which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. Heard Ilnsarance. 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 regmre
<br />and in such amaunts and for such periods as Lender ma}' 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 iosurtmce carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasonably 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 Bortower making payment, when due, directly to the
<br />itrsttranct carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shat! 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 shalt promptly furnish to Lender alt renewal notices and all receipts of paid premiums. In the event of loss,
<br />Botrowtr shall give prompt notice to the inusuraace carrier and Lender Lender ma}' make proof of Toss if rot made promptly
<br />by Borrower.
<br />Unless Linder and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />tht Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not tbereby impaired. It such restoration or repair is not economicall}' feasible or it the security of this Martgage would
<br />be impaired, the insurance proceeds shall be applied to the stems requred b}' this Mortgage, with the excess, if any, paid
<br />fo Borrower If the Property is abandoned by Borrower, or if Borrower fails to respond to Leader within 30 days Tram the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offtrs to settle a claim for insurance benefits, Lender
<br />is sutborized to collect and apply 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 m writing, any such application of proceeds to principal shall no[ extend
<br />or postpone tbe due date of the monthly iastatlments referred to in paragraphs t and ? hereof or change the amount of
<br />such iastalhceats. If under paragraph f 8 hereof the Property is acquired by Lender, alt right, title and interest of Borrower
<br />in and to any imurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acgttisrtion shah peas ui Ld4.'n^.r :a :!ro e-t°-^-? ^f the sums secured 6}' this Mortgage immediately prior to such sale or
<br />acquisitioa.
<br />6. PreaervatFos and Main[easnce of Property; Leaseholds: Condomineums Planered Unit Developments. Borrower
<br />shall keep the Property in gaud repair and shall not commit waste er permit Impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. tf this Mortgage is on a unit in a
<br />condominium ar a planned unit developtent, Barrawer shall pcriorm all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development. the by-laws and regulations of the
<br />coadominitrm or planned unit development, and constittrent ooeumettts- 1! 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 />shall be incorporated into and shall amend and supplement the cotenants arni agreements of this Mortgage as if the rider
<br />Wert a part hereof.
<br />7. Protection of Leader's Security. If Borrower fails to perfarm tlw covenants and agreements contained in this
<br />Mortgage, of if any action or proceeding is commenced which materials} adccts Lender's interest in the Property,
<br />inclttiiing, but not limited to, emirr_nt domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt of tktxden4 then Lender ax Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />tstmts attd take such action as is necessary to protect Lender's interest, including, but not limited ta, disbursement of
<br />_ reasonable attorney's fees and entry ci:on the Property to make repairs. If Lender required mortgage insurance as a
<br />~~ ~ ~ ~i:on3ltitia tiimeiti6g`tiieiu::iru;,airtd-by L~%~ '.u-srrtgag?..Anrr°`"-'er,shall pay the premiums required to maintain such
<br />insurance is effect tmtil such time as the requirement for such insurance terminates m accorriau~e »a1: ~c :--rn~cr's gad
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