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79-•u~4047
<br />Urttt=oaty[ CovertxNTS. Borrower and Lender covenant and agree as fellows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest nn 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. Ftmds for Taxes and Insurance. Subject to applicable taw 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 full,
<br />a sum (herein "Fonda") 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 ene-twelfth of yearly premium installments for hazard insurance,
<br />plus Otte-twelfth of yearly premium installments for mortgage insurance, if any, al! as reasonably estimated initially and from
<br />time to bate by Lender on the basis of assessments and hills and reasonably estimates thereof.
<br />The Funds shall be Geld 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 instimtion). Lender shall apply the Funds to pay said taxes, assessments,
<br />:nsurance premiums and ground rents. 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 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 applicabte law
<br />requires such interest to be paid, Lender shag not be required to pay Borrower any interest or earnings on the Funds. Ixnder
<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 />6y 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 Borrowers opting either
<br />promptly repaid to 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 renu as they fall due,
<br />Borrower shall pay to Lender nay 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 sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof [he Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shad apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Linder at the time of application as a credit against the sums secured by this Mortgage.
<br />3. AppBeatbe of Payments. 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 />trader paragraph 2 hereof, then to interest payable on [he Note, then to the principal cf the Note, and then [o interest and
<br />principal on any Future Advances.
<br />4. Charges; Lkffi. Borrower shall pay alt taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and teasehold payments or ground rents, if any, in the manner
<br />provided under pazagraph 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 event
<br />Borrower shall make payment directly, Borrower shzll promptly famish 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 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. $aaard Iesttrance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agaiastloss 6y fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall not reyuire that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the instuaz,ce shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval sLt~til not be unreasonably withheld. All premiums on insurance policies shat! be paid in the manner
<br />provided trader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />inc+. nev C8rrler.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />Clause in favor of and in form acceptable to Lender. Lender shalt have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish [o Lender alt renewal notices and all receipts of paid premiums. In the event of loss,
<br />$orrowet shall give prompt native [o the insurance carrier and Lender. Lender may make preof 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 thereby impaired. if such restoration or repair is not economically feasible or if the security of this Mortgage woutd
<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 Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date mtiCe is mailed by Leader to Borrower that the insurance carrier offer to scale a claim for insurance benefits, Lender
<br />is attihorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of rite Property
<br />or u; tbe sums secured by this Mortgage.
<br />Unless Leader and Borrower otherwise agree in writing, any such application of proceeds to principal shalt not extend
<br />or postpone the due date of the monthly installments referred tC in paragraphs 1 and 2 hereof or change the amount of
<br />st~h irestallmems. If reader paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in need to any insurance policies and is and 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 [his Mortgage immediately prior to such sale or
<br />aCgttisition.
<br />6. Pmervatio® sad MaFotettance of Property; Leaseholdfi Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall no[ commit waste or permit impairment or deterioration of the Property
<br />atxl shelf Comply with the provisions of any lease if tfiis Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a glowed trait development, Borrower shall perform alt of Borrower's obligations under the declaration
<br />ar covettaats creagng or governing the condominium ar planned unit development, the by-taws and regulations of the
<br />candominittm or planned trait development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded togetber with this Mortgage, the covenants and agreements of such rider
<br />shall be.int:orporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />weer a paR he[n~.
<br />3. Proteetlpe of Leader's 3eearSty. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />iitChtding, but riot limited to, esniaeaY domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />;::dvtept or dxedeat, the Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />aunty and take such- action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasontibh attotaey's fete-and eatery upon the Property to make repairs. If Lender required mortgage insurance as a
<br />Condition of making the loan secured by ibis Mortgage, Borrower shall pay the premiums required to maintain such
<br />inaurattce in effeM until-such time as the requitement for such insurance terminates in accordance with Borrowers and
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