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7J-- X10 i~ 918
<br />UxrFOttss Covexexrs. Borrower sod Lender covenant and agree as follows:
<br />1. Payment of Principal a~ 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. Fends far Tazea and Insnnnce. 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 foil,
<br />a aura (heroin "Funds") equal to ono-twelfth of the yearly taxes and assessments which may attain prority over this
<br />Mortgage, and ground renu on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus Otte-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 the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lander shall apply the Funds to pay said taxes, assessmenu,
<br />insurance premiums and ground renu. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessmenu and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />ptrmiu Linder to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage Utat interest on the Funds shall be paid to Borrower, and anless 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 />shag give to Borrower, without charge, an annual accounting of the Funds showing crediu 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 Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installmenu of Funds payable prior to
<br />the dot dates of taxes, assessments, insurance premiums and ground renu, shall exceed the amount requited to pay said !axes,
<br />asses~ents, insurance prcmiutns and ground renu as they fall due, such excess shalt be, at Borrower's option, either
<br />pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda
<br />held by Lender shall trot be sufficient to pay taxes, assessments, insurance premiums and ground renu as they fall due,
<br />Borrowtr shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by tender to Borrower requesting payment Utettof.
<br />Upon payment in full of all sums secured by this Mortgage, 1_ender shalt promptly refund to Borrower arty Funds
<br />held by Lender. If under paragraph 1g fiereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />snail apply, no iau:r than ir~trteoiatei-y p~iar to the sale of the Property ar irs acquisition by Ltna'er, any ruaiu htid v`y
<br />Leader at the aloe of application as a credit against the sums secured by this Mortgage.
<br />3. APpliestion of Papmenis. Unless applicable ]aw provides otherwise, all payments received by Lender under the
<br />Nott and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lendtr by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Nate, then to the principal of the Note, and then to interest and
<br />ptit[cipai on any Future Advances.
<br />4. Clurges, Bens. Borrower shall pay a!1 taxes, assessmenu and other charges, fines and impositions attributable to
<br />Ure 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 N such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall prompdy furnish to Ltndtr all notices of amounu due under this paragraph, and in the event
<br />Borrower shall make payment dirtcUy, Borrower shall promptly famish to Linder receipts evidencing such paymrnu.
<br />Borrower shall promptly discharge any tits which has priority over this Mortgage, provided, that Harrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the paymene of the obligation secured by
<br />such hire in a manntx acceptable to Leader, or shall in good #aith contest such lien by, or defend enforcement of such lien in,
<br />leggy proceedings which operate to prevent the enforcemrnt of the lien or forfeiture of the Property or any part tbereof.
<br />S. Bstsgd Insaraece. 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 ocher hazards as Lender may require
<br />and i7 ouch amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage excad that amount of coverage required to pay the sums secured by this Mortgage.
<br />The imurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be uttreawnably withheld. Alt premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payttterit, when due, directly to the
<br />imttnxt arrier.
<br />AB insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause is favor of and in form acceptable to Leader. Linder shall have the right to hold the policies and renewals thereof,
<br />oral Borrower shalt promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of foss,
<br />Borrower shall give prompt ttotlce to the iffiurance 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 or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thert:by impairtd. 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 [he sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. if the Property is abandoned by Harrower, or if Borrower faits to respomi to Lender within 30 days from the
<br />dart notice is mailed by Lender to Borrower that the insurance carrier offers to sonic a claim for insurance betitfiu, Lender
<br />is attihorittd to collect and apply the insurance proceeds at Lender's option either to restoration ar repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lendtr and Borrower athervrise agree in writing, any such application of proceeds to principal shall not arced
<br />or postpone the due date of the monthly installmenu referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such itutallments. If under paragraph l8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance p~icice and in and to the proceeds thereof resulting from damage m the Property prior to the sale
<br />or acgtdsition shall pass to Lender to tht extent of the sums secured by this Mortgage immediately prior to such salt or
<br />acquisition.
<br />6. Preservation and Maintenance of Prtrperty; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />ahal! keep the Property in good repair and shall not commit waste or permit impairment ar deterioration of the Property
<br />and shall Comply with the provisions of arty ]rase if this Mortgage is an a leasehold. If this Mortgage is on a unit in a
<br />Condominium or a planned unit development, Borrower sfiall perform a8 of Horrower's obligations under [he declaration
<br />or cavenaais creating or governing the condominium or planned unit developmrnt, tht by-laws and regulations of the
<br />Condominium 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 agreemenu of such rider
<br />shall be intxxpaaied into and shaII arcead acid supplement the mvrnanu and agreements of thin Mortgage as if the rider
<br />were a part bereaf.
<br />7. Proteetian of London's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, ar if any action or proceeding is commenced which materially affecu Lender's interest in the Property,
<br />inchidiog, but eat limited to, eminent domain, iasolvenry, code enforcement, or arrangements or proceedings involving a
<br />6ankritpt of decedent, then LrAder at Loader's opting upon notice to Borrower, may make such appearances, disburse such
<br />sums a~ takt teach action as u necessary to protect Lenders interest, including, but not limited to, disbursement of
<br />:easonabk attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of tootling the loan starred i)y this 1!Martgagt, Borrower shall pay the premiums required to maintain such
<br />i~uaace in effect uod7 atieh time as the requirement lot such insurance terminates in accordance with Borrower's and
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