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<br />7s-' ~~4194
<br />Ut+tt+oanr Coverrnr+ts. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Prlndpal and 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 provides in [he Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Farads for Ta:es rend Iasunace. 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 Naie, until the Note is paid in ful{,
<br />a stun (herein "Funds"j equal [o one-twelfth of titz yearly taxes and assessments which may attain priority aver this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments far heard insurance,
<br />plus Otte-twelfth of yearly premium installments for mortgage insurance, if any, all as [easonably estimated initially and ftum
<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 imstitution 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). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground tents. Leader may not charge for so holding and applying the Funds, analyzing said account,
<br />ttr veriiyfng and wmpiling said assessments and bills, unless Leader 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 Boaower, 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 />shag give to Borrower, without charge, an annual accounting of ?he 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 foe the sums secured
<br />by this Mortgage.
<br />If the amoumt 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 to pay said taxes,
<br />assesstrtents, insurance pretnituns and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower of credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay Saxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay fo Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader 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 1$ 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, any Funds held by
<br />Lender at the time of applgtioa as a credit against the sums secured by this Mortgage.
<br />J, Application of Payateats. Unless applicable law provides otherwise, alt payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />uadee paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and Yhen to interest and
<br />principal on any Futtue Advances.
<br />4. C~rEesl L&ns. Borrower shall pay all taxes, assessments and other charges, fixes 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 pazagraph 2 hereof or, if not paid in such meaner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Leader all notices of amounts due under this paragraph, aad in the event
<br />Borrower shall make payment directly, Borrower shall 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 Len so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />stub 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 />3. B1ir>ard Isreurance. Borrower shat! 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 other hazards as Lender may require
<br />aad in such amounts and for such periods as Lender may require; provided, that Lender shalt not require that the amount of
<br />suc!t coverage exceed that amount of coverage required to nay 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 shsB not be utueasonably withheld. All premiums on insurance policies shalt be Faid in the maamer
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whin due, directly to the
<br />iffiuraace 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 steal! have the right to hold the policies and renewals thereof,
<br />and Borrower shaft promptly furnish io Lender all renewal motives and al! receimts of paid premiums. In the evens of loss,
<br />Borrower shalt give prompt aatice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Harrower.
<br />Unless Leader aad Borower 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 aad the security of this Mortgage is
<br />not thereby impaired. If such rrtoration or repair is rani economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sutras secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. ff the Property is abandoned by Harrower, or if Borrower fails to respond to Lender within 30 days frnm the
<br />date notice is mailed by Leader to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is atrthoriud to collect and apply the insurance proceeds at Lender s option either to restoration or repair of the Property
<br />or re zhe sums xcttted by this Mortgage.
<br />Dales: Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the dui date of the monthly inuaBments referred to in paragraphs l and 2 hereof or change the amour,[ of
<br />stub iaataBmettts. If under paragraph 1$ hereof the Property l acquired b} Leader, all right, title and interest of Borrower
<br />i4 and to arty insurance policies and in and to the proceeds thereof residing from damage to the Property prior to the sale
<br />or acquisition ahali pass [o Linder to tht extent of the sums secured by this Mortgage immediatefy prior to such sale or
<br />aCgntAtlalt.
<br />6 Pnserratioa smd Af~otetutaee of Property; Leaseholds; Comdomiaiums; Planned Unit Developments. Borrower
<br />shag kelp tht Property is good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />sari ahaB carapty 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 ail of Borrower's obligations under the declaration
<br />ar covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />rnadnmittitutt or planned ursit development, and constituent documents. If a condominium or planned unit development
<br />rids is exeeut~ by Borrower attd retxsrded together with this Mortgage, the covenants and agreements of such rider
<br />shag be i~rpo[ated Sato and shall amend and suppleaten[ the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Proteetinn of bender`s Secy. If Borrower fails to perform the covenants and agreements contained in this
<br />MOrf$a$t. of if nay action or proceeding is commenced which materially a$ects Lender's interest in the Property,
<br />indudittg, buk no[ )imitat to, eminent dot»aia, ittsotvency, code enforcement, or arrangements or proceedings involving a
<br />Itaalrtupt or decedeax, then Lender tN Layer's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums acrd take sndt actum as is aecesaary +-~ protect Lenders interest, including, but not limited to, disbursement of
<br />rearonable attorney's fete arm entry upon the Progeny to make repairs. If Lender required mortgage insurance as a
<br />canditioa of malting the loan secured by [his Mortgage, Borrower shall pay the premiums required to maintain such
<br />iasurana in e$eM until such time as the regttiremeat for such insurance terminates in accordance with Borrower's and
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