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7~~. c,~`~o~s
<br />Uxtroara Covnanxrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />int~btedneas evidenced by the Nofe, 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 />Z. Fmtds Gar Ta=~ sad Insurance. Subject to applicable law or to a written waiver by Candor, Borsower 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 full,
<br />a stem (herein "Funda'7 equal to one-twelfth 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 estimaea;s thereof.
<br />The Funds steal! be held in an institution the deposits or accounts of which are insured or guaranteed 6y 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 Bound tents. Lender may no[ 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 chazge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest an the Ftmds 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 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 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 to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held try Lender shall not be su6cent to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower steal! pay to Lender any amount necessary to make up the deficiency within 30 days feom the date notice is mailed
<br />by Lender to 13orsower requesting payment thereof.
<br />Upon paytnenr in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under oaraaraoh 18 hereof the Procertv is sold or the Procerty is otherwise acquired by Lender. Lender
<br />-shall apply, tw later than immediately prior to the sale of the Property or its acquisition by Lender, soy Funds held 6y
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application ~ Prtymeatc 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 />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. Lens, Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
<br />the PtnpeRy which tray 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 furnish to Leader alt notices of amounts due under this paragraph, and in the event
<br />Borrower shall [Hake payment directly, Borrower shat! promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has 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 [o 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 lies in,
<br />legs! proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. $mrd ismw+- Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />againseloss by 5re, harardsincluded 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 exceM that amount ±f coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier prov~irtg the insurance shall be chosen by Bersower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. Ail premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 ltcreof or, if twt paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance rattier.
<br />M iguana policies and renewals thereof shalt tae in form acceptable to Lender and shall include a standard mortgage
<br />cJattse in favor of and in form acceptable to Leader. )..ender shall have the right to hold the policies and renewals Ybereof,
<br />and Borrower shat! promptly furtriah to Lender all renewal notices and all receipts of paid premiums. in the event of loss,
<br />Borrower shall give prompt notice to tbe insurance carrier and Lender. Lender may make proof of toss 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 ratoration or repair is economically feasible and the security of this Mortgage is
<br />mot 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. Tf the Property is abandoned b}' Borrower, 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 euthorimd to collet and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />ar ur the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agrce in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly instaltmcros referred to in paragraphs I and 2 hereof or change the amount of
<br />such iffitagaxnu. If under paragraph L8 hereof the Property u acquired by Lender, all right, title and interest of Borrower
<br />let next to any insurance policies and in and io 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 />6. Prraaxvafloa and Maintetrance of Property; Leaseholds: Cottdominiutns; Planned Uoit Developttxnls. Borrower
<br />shag keep the Property in good repair and shall not commit waste of permit impairment or deterioration of the Property
<br />cod shat! 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 unit development, Borrower shall perform 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 />condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Doaower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />sLraJl tae incorporated into and shall amend and supplemem the covenants and agreements of this Mortgage as if the rider
<br />wire a part luerarf.
<br />'7. P+aifesda^ of I.etadar's Security. If Borrower .fails to perform the covenants and agreements contained in this
<br />Mortgage, s:r if say action or proceeding is cornmenecd which materially affects Lender's interest in the Property,
<br />including, btH trot Limited to, eminent domain, ittsolveney, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or deadatt, then Lettdv at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />stems nerd take such action as is necessary to protect Lender's interest. including, but not limited to, disbursement of
<br />reamnsbk attotsmy's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making tLte loan secured by this Mortgage, Borrower shalt pay the premiums required to maintain such
<br />itatn-anee in eHcct tmtB such time as the requiretneat far such insurance terminates in accordance with Borrower's and
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