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79- U(~385~
<br />Untaottat COVENANTS. Borrower and Lender covenant and agree as fogows:
<br />1. Payment of Prncipal 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 ant interest
<br />on arty Future Advances secured by this Mortgage.
<br />2. Treads for Taxes and ]lasarnnce. Sub}ect to applicable law or to a written waive: by Lender, Borrower sha8 pay
<br />to Lender on [he 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 onedwelfth 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 Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution [he 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 />instrraaca premiums and ground rents. i.ender 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 law
<br />requires such interest to be paid, Lender shalt not be required to pay Borrower any interest or earnings on [he Funds. Lender
<br />shalt 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. TLe Funds are pledged as as;ditional 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 [axes, assessments, insurance premiums and ground rents, shall exceed the amount required tc pay 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 />held by Leader shall not be sufficient 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 header to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, lender shall promptly refund io Borrower any Funds
<br />held by Lender. If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sate of the Property or its acquisition by Lender, soy Funds held by
<br />Lender at the time of application as a credit aga;nst the sums cured by this Morigage.
<br />3. Applfcatlon of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note aztd paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Burrower
<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 />4. Charles; ][.teas. 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 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 famish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make gayment directly, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which haz 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 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 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. Hassrd Irtsarance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by Sre, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods az Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed thzt 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 shag not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided user paragraph ~ hereof or, if not 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. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shalt promptly famish to Lender all renewal notices and alt 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 />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration of repair of
<br />the Property damaged, provided such restoration or repair is economically feasible 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 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 Borower, or if 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 authorized to collect and apply the insurance proceeds at Lender i option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lemler 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 installments referred io in paragraphs [and 2 hereof or change the amount of
<br />such installments. If under paragraph l8 bereof the Property is acquired by Lender, alt right, title and interest of Borrower
<br />in sad to say insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />ar acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale ec
<br />acquisition.
<br />6. Pmervatbs aed Maiateoaace of Property; Leazeholds; Condomioietms; Planned Unit IDeveMpments. Borrower
<br />shall kelp the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />arm shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned wait development, Borrower shall perform alt of Borcower'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 />condominium or planed unit development, and constituent documents. If a condominium or planned unit development
<br />riser is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be it~orporated into sad shag amend and srpplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Pmtse#IOn of Leader's 5ecsrity. If Borrower fails to perform the covenants and agreements contained in this
<br />)ldarfgage, or if Stay acflan or proceeding is commenced which materially affects Lemter's interest in the Property,
<br />•i~ldding, bin trot limited to, t~inem dtmtava, inso{vency, code enforcement, or arrangements or proceedings involving a
<br />badltititpt ar decedeatt, then Leader at Leg's option,-upon native to Borrower, may make such appearances, disburse such
<br />sums attd take sash anion as is necessary to protect Leader's interest, including, but not limited to, disbursement of
<br />reawnabk attorney's fees sad entry upon the Property to make repairs. If Lender required mortgage insurance az a
<br />condition of mskiag the Inert secured b}' this Mortgage, Borrower shall pay the premiums required to maintain such
<br />imura~ in effeM tmtil such time az the requirement for such insurance terminates in accordance with Borrower's and
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