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<br />79- ~u4197
<br />Uxtsoata CoveNerirs. Borrower and Lender covenant and agree as folknvs:
<br />i. Payment of Principal end Interest. Borrower shall promptly pay when due the principal of and interest on thF
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the yrincipal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />1. 1?oods for Ta><es and Iurnrance. Subjer_t to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on tht day monthly irtstallmenis of principal and interest are payable under the Note, until the !Vote is paid in fait,
<br />a sum (herein "Funds") equal to orte-twelfth of the yearly taxes and assessments which may attain priority over ibis
<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, i[ any, all as reasonably tstimated 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 guarant_ed 6y a Federal or
<br />state agtncy (including Lender if Ltnder is such an institution). Lender shalt apply the Funds to pay said taxes, assessments,
<br />insurance premiums and grotmd 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 [o Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required [o pay Borrower any interest or earnings on the Funds. Lender
<br />shag 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 Furtds was made. The Funtl: 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 />6etd by Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrowtr 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 all sums secured 6y this Mortgage, Lender shat! promptly refund to Borrower any Funds
<br />held by Ixnder. If under pazagraph 18 hereof [he Property is sold or the Property is otherwise zcquired by Lender, Lender
<br />shall apply, ao 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 Paymeala. Unless applicable law provides otherwise, alt payments received by Lender under tht
<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. Charges; Liens. Borrower shall pay al[ taxes, assessments and other charges, fines and impositions attributable to
<br />[he Property which may attain a priority aver this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under pazagraph 2 hereof or, if net 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 pazagraph, and in the evens
<br />Borrower shall make payment directly, Borrower shah promptly famish to Lender receipts evidencing such payments.
<br />13orrow-u shall promptly dischazge any tien which has priority over this Mortgage; provided, that Borrower shall no[ be
<br />rsquitxd to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such ben in a manner acceptable to Lender, or shall in gcod faith contest such lien by, or defend enforcement of sack 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. Hazard Irearance. Borrower shall keep the improvements now existing or hereafter erected an the Property insured
<br />against loss by ftte, hazards included within the term "exlended 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 shat! not require that the amount cf
<br />such coverage exc~d that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing [be insurance shall t>e chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in s3ch manner, by Borrower making payment, when dare, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable [o Lender and shat! include a standard mortgage
<br />etarrst in favor of and in form acceptable to Lendtr. Lender shall have the right to hold the policies and renewals thereof,
<br />a~ $orrower shalt promptly famish to Leader all renewal notices and all receipts of paid premiums. !n the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and [xnder, lxnder 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 Proptrty 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 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. If the Property is abandoned by Borrower, or if Borrower faits 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 autltorired to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender sad Borrower otherwise agree in writing, any such application cf procteds to principal shall not extend
<br />or postpone the due daft of the monthly installments referred to in paragraphs t and 2 hereof or change the amount of
<br />such installments. If under paragraph IS hereof the Property is acquired by bender, al! right, title and interest of Borrower
<br />!n sad to say insurance policies and in 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 iF.is \Sortgage immediately prior to such sale or
<br />acquisition.
<br />6. 1lRnervafioa sad MsiMenance of Property; Leaseholds; Coodouriniums: Planned Ume Developments. Borrower
<br />shall keep the Property in good repair and shall nos commit waste or permit impairment or detericration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. It this Aiortgage is on a unit in a
<br />condominitmt or a planned unit development, Borrower shall perform all of Borrower's oblegations under the declaration
<br />or covenants creating or governing the condominium or planned unit development. the by-Saws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rides is exer.,it~ by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incatporated into and shall amend and supplement rite covenants and agreemenu of this Mortgage as if the rider
<br />were a part bairn€.
<br />7. Pen of Lender's Security. Tf $orrower fails to perform the covenants and agreements contained in this
<br />Mortgage, of if any ac4on or pioceediag is commenced which materially affects Lender's interest in the Property,
<br />inclnding, but not limited to, emintm domain, insolvtncy, code cnforeemtnt, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />s+,ma sad take mch action as is necessary to protest Lender's interest, including, but not limited to, disbursement of
<br />teasonabk attorney's fees and entry upon t~ Property to [Hake repairs. IF Lender required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shat! pay [he premiums required to maintain such
<br />itBUrance in effect until such time as the toga"cement for such insurance terminates in accordance with Borrower's and
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