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79- UU~013
<br />Uxtaoart CovEx~xrs. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest. Borrower shall promptly pay K'hen due [he principal of and interest on [he
<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 Mongage.
<br />2. Footle For Teats arM Inst:rance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly itstallments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Foods") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Propeny, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mongage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessmems and bills and reasonable estimates [hereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />stagy: agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground Tents, 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 a[ the time of execution of this
<br />Mortgage that interest on the Ftmds shall be paid to Borrower, and unless such agreement is made or applicable Saw
<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, ~.vithout 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 Mongage.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />[he duedates of faxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid [o 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 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 Lender to Borrower requesting payment thereof.
<br />Upon payment in full of ail sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Propeny is sold or the Property is otherwise acquired by Lender, Lender
<br />shah apply, no 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. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and gazagraphs t and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by 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 />4. Charges; I3eas. Borrower shall pay all [axes, assessments and other charges, fines and impositions attributable to
<br />the Property which tray attain a priority overthis Mongage, and leasehold payments or ground rents, if any, in the manner
<br />provided tinder 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 io the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shad promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />regtdred io discharge any such lien so long as Bsrrawer 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 ia,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pan sherenf.
<br />5. Bmrd Iawratttx. Borrower shall keep tbe improvements now existing or hereafter erected on the Propeny insured
<br />against loss by file, herards included within the term "extended coverage", and such other hazards az 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 exixed 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 shah not be uttreasonably 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, 6y Bonower making payment, when due. directly to the
<br />insurance carrier.
<br />Alt insurance policies and renewals thereof shall be in form acceptable to Lender and sfiall include a standard mongage
<br />clause in favor of attd in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />atx! Borrower shall grompHy furnish to Lender all renewal notices and a!I receipts of paid premiums. In the event of loss,
<br />Harrower shat] give prompt notice to the insurance carrier and Lender. Lender may make proof of lass if not made promptly
<br />by Borrower.
<br />Unless Leader and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ae repair of
<br />the Progtxty damaged, provided such restoration or repair is economically feasible and the security of [his Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible ar it the security of this Mortgage would
<br />6e 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 Borrower, or ;f 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 [o settle a claim for insurance benefits, Lender
<br />is autlwriud to collect and apply the insurance proceeds a[ Lender's option either to restoration or repair of the Property
<br />or to the stems secured by this Mortgage.
<br />Unkss 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 installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph l8 hereof the Property is acquired by bender, all tight, title and interest of Borrower
<br />iu and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or aegttisi6rrt shalt pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sak or
<br />acquisition.
<br />6. Pta+tervaNon and M~tote.+9+.e. of Property; Leaseholds; Condominiums; Planned Unit I}evelopments. Borrower
<br />shall kelp the PraperCx in good repair attd shall not commit waste or permit impairment or deterioration of the Property
<br />anti Shalt comply with the provisions of any lease if this Mortgage is on a leasehold. If [his Mortgage is on a unit in a
<br />condominium ar a planned unit development, Borrower shall perform al! 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 />tbndomirtium or planned trait development, and constituent documents. If a condominium ar planned trait development
<br />rider is eaecu[ed by Borrower and recorded together with this. Mongage, the covenants and agreements of such rider
<br />shall be incorporated-info and stiaB amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a pan tteteof:
<br />- -- -7.- ?rete[t~n ai- ILrath~s 8txarky. If Botrowtr fails to perform the covenants and agreements contained in this
<br />MoM$age,. at•,if say acflon or proceedi~ is commenced which materially affects Lender's interest in the Propeny,
<br />~ snit itiM limited ta, eminent domain, itrsalveney, code enforcement, or arrangements or proceedings invo}ving a
<br />banltrupt.ar decedatt, tlmn Lender at I-eau's option, upon notice to Borrower, may make such appearances, disburse such
<br />atitna'ttnd take st2clt action as is necessary to prateM Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fns at2d ontry upon u Property to make repairs. I[ Lender required mongage insurance as a
<br />caaditioa of maToag the loan secuued by this Ma :gage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such titre as the tequiremeot foe such insurance terminates in accordance with Borrower's and
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