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<br />79- ~~j4~~3
<br />Urtmoxst CoverrnrrTS. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Pt4acipsl and interes4. Borrower shalt promptly pay when due the principal of and interest on 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 try this Mortgage.
<br />Y. Fonda for Ta:ea and Insurance. Subject to applicable law or :o a written waiver by Lender, Borrower shalt pay
<br />[o Lender on the day monthly installments of princ'spai and interest are payable under the Note, until the Note is paid in full,
<br />a stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain prioritry over this
<br />Mortgage, and grotmd rents on the Froperty, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premitun installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />ti.:te to time by Lender en the basis of as.:~.:ments and bills and reasonable estimates thereof.
<br />The Funds shall be held 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 institution). Lender shall apply [he Funds to pay said taxes, assessments,
<br />insurance 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 />perttiits Lender to make such a charge. Burrower and Lender may agree in writing at the lime of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable taw
<br />requites such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on [he Funds. Lender
<br />shall give to Borzower, without chs:ge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which eaoh 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 Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds
<br />held by Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Leader 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 atl sums secured 6y this Mortgage, Lender shalt promptly refund to Borrower any Funds
<br />° °°wr If nt"r°~ ..e.eR.s }, 1R hereof 1Fre Pmrn_rty .s ~Id ar fhe Property is otherwise acauired by Lender, Lender
<br />by L,~., . ro.~.op..
<br />shall apply, no later [Iran immediately prior to the sale of the Property or its acquisition by Lender, an}' Funds held by
<br />Lends at the time of application as a credit against the sums secured by this Iortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, al! payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender 5rst in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then io interest payable on the Note, ttren to the principal of the Note, and then eo interest and
<br />principal oa any Futwe Advances.
<br />4. Charges; Bens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold paytmnts 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 shat! promptly furnish to Lender all notices of amounzs due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall 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 />requited to discharge any such lien so Tong 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 io,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Ilarsrd Irteoraott. Borrower shall keep the improvements now existing or hereafter erected or. the Property insured
<br />against loss by 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 require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />the ittsarance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shalt be paid in the manner
<br />provided [coder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />ittstirance carrier.
<br />AB insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />dauu in favor of and in farm acceptable to Lender. Lender shalt have the right to hold the policies and renewals thereof,
<br />and Borrower shah promptly furnish eo Lender ail renewal ratices and alt receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unitas Lender end Borzower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />[he Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />nor thereby impaired. If such restoration or repair is nor economicaLy 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 fails to respond to Leader within 30 days from the
<br />date notice is mailed by Lender to Borrower that the inswance carrier offers to settle a claim for irsurance benefits, Lender
<br />is autborizod to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to ilx stems secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />ar postpone the due date of the monthly installments referred ro in paragraphs ]and 2 hereof or change the amount of
<br />such installments. If under paragraph IS hereof the Property is acquired by Leader, ail right, title and interest of Borrower
<br />in and to any insarattce policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Ixader to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />b. Prearrvation ate Ma®teeance of Property, Leaseholds; Condominiums; Planned Uni4 Developments. Borrower
<br />shall keep the Progeny in good repair and shall nflt commit waste or permit impairment or deterioration of the Property
<br />sad shall comply with the provisions of any lease if this Mortgage is on a leasehold. 1[ 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 gaverttiog the condominium or planned unit development, the by-laws and regulations of the
<br />condominium ar planned unit devefopmrn6 and constituenr documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incocponted into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />ware a part hereof.
<br />7. Prttlartion of Lmlelsa Security. If Borrower fails to perform the covenants and agreemenzs contained in this
<br />JKattgage, or d soy action or proceeding is cotttmenctd which materially affects Lender's interest in the Property,
<br />iadttdittg, but not limited to, eminent domain, insolvency, code enforcement, ar arrangements or proceedings involving a
<br />bankrupt or deaden!, their Leader at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />stems and take ouch action as is aecessa.j to protect Lender's interest, including, but not limited to, disbursement of
<br />reaaoaabk attorney's fees and entry upon the Property [o make repairs. ]f Lender required mortgage insurance as a
<br />condition of ataldng the loan secured by this Mortgage, Borrower shalt pay the premiums required to maintain such
<br />irovrarta is e$ed tmti! such time as the requiremea! foe such inswana terminates in accordance with Borrower's and
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