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79- uU3$'4U
<br />Ur+>poaut Covertetvrs. Harrower and Lender covenant and agree as follows:
<br />I. Payment of Priaclpal 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. ll+aade for Tares and Irourantt. Subject to applicable law or to a written waiver by Ixnder, Borrower shali pay
<br />to Lender on tbe day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Fundn'7 equal to one-twelfth at the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Pivperty, 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 thereof.
<br />The Fut;ds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />swte agency (including Linder if Lender is such an institution}. Lender shall apply the Funds to pay said taxes, assessmenu,
<br />instuance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying sad compiling said assessments and bills, unless Lender pays Borrower interest on the Funds sad 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 thzt 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 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 the Funds was made. The Funds are pledged as additional security for the sums secured
<br />by this Mortgege.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the duo dates of taxes, assessments, insurance premiums and ground rents, shalt exceed the amount required to pay said taxes,
<br />asseavnents, 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 Ft, .ds
<br />held by Lender shall not be sufficient m pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lander 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 stuns secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, na 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. AppSicaflon of Payments. Unless applicable law provides othernise, all payments received by Lender under the
<br />Note sad paragraphs 1 and 2 6eteof shall be applied try Lender firs[ in payment of amounts payable to Lender 6y 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 />d. Charges; 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 the manner
<br />provided wader pazagtaph 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 even4
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien ahidt has priority over this Mortgage; provided, that Borrower shall not be
<br />required to discha[ge any such lien sa long as Borrower shall agree in writing to ehe payment of the obligation secured by
<br />such ties in a manner acceptable to Lender, or shalt in good faith contest such lien by, or deftnd enforcement of such lien in,
<br />legal prnceeditigs which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />3. 73azud Irrsanece. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agai~t loss by fire, hazards included within the term "extended coverage", and such other hazards 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 insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. Alt premiums on insurance policies shali be paid in the manner
<br />provided under gazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />++~ carrier.
<br />m, AB insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause is favor of sad in form acceptable to Lender. Leader shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event at loss,
<br />Barrows shall give prompt notice to the insurance carrier sad Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender sad Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration ar repair is economically fezsible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance process shall be applied to the stems secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. if the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date aatice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim foe insurance benefits, Lender
<br />is authorized to collect sad apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />of to t>u stems 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 tlu 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 IS hereof the Froperty is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies sad is sad to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preserwtltra aced Mainteaance of Property; Leaseholds; Coadomioiutns; Planned Unit Uevdopmeats. Borrower
<br />shat! keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />sad shall rnmply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominitm or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or xaveaenis creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condotainitmt or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agremmeats of such rider
<br />shall be incorporated into end shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />was a pari hereof.
<br />7. Ptnteetlae d Leader's Secmiq~. If Borrower fails to perform the covenants and agreements contained in this
<br />mgr;, ar if any action or proceeding is commenced which materially affects Lenders interest in the Prapeny,
<br />including, but not limited ta, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />8urtts and take streh-action as is accessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reesatteble attorney's foes and entry upon the ?raperty to make repairs. If Lender required mortgage insurance as a
<br />eonditiaa of ensking the loan securod by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as the requirement far such insurance terminates in accordance with Borrowers and
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