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<br />7~-v~4205
<br />Uxmoattt Covexnxrs. Borrower and Lender covenant and agree as follows:
<br />1. Paymettt 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. IFnads for Tares and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender an the day monthly installments of principal and interest are payable under the Note, until the Nate is paid in fast
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Moetgagq and grotmd rents on [he 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 estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal er
<br />state agency (including Lender if Lender is such an institution). Lender shalt apply Lhe Funds to pay said [axes, assessments,
<br />Insurance premiums and ground rents. Lender may not charge fur so holding and applying the Funds, analyzing said account,
<br />or verifying and compiting 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 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 law
<br />requires such interest Lo be paid, Lender shalt not be required t~ 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 [he Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for Lhe sums secured
<br />by this Mortgage.
<br />D the amount of the Funds held by Lender, together with the iu[ure monthly insfalimenzs of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shat! exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall Ire, 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 by Lender shall ao[ be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lander any amotmt necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Bortower 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 pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shag apply, no 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 Payments. Unless applicable law provides otherwise, alt payments received by Lender under the
<br />Note and pazagraphs 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 [o interest and
<br />principal on any Future Advances. '
<br />4. Chuges; ]Hens. Burrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
<br />[he Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provides under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower sball promptly famish to Lender alt notices of aroounzs due under this paragraph, and in the event
<br />Borrower shall make payment directly, Berrvwer shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over tl-pis Mortgage; provided, that Borrower shall not be
<br />requited to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured 6y
<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 [o prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. B~azard Ifnsnraace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, 6eaards included within the term °ex[ended coverage", and Bach other hazards as Lender may require
<br />and in such amounts and for sash periods as Lender may require; provided, that Leader 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 insurance carrier providing the insurance shall be chosen 6y Borrower subject to approval by Lender; provided,
<br />that such approval sh:El not be unreasonably withheld. Al! premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid is such manner, by Borrower making payment, when due, directly to the
<br />insurance cartiu.
<br />AB insurance policies a~ renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause io favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall ptamp[ly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrowu sha[I give prompt ttotice to the insurance carrier and Lender Lender may make proof of toss if not made promptly
<br />by Borrower.
<br />Unless Linder and Borrower otherwise agree in writing, insurance proceeds shalt be applied to restoration or repair of
<br />[he Proporty damaged, provided such restoration or repair is economically feasible and the securit}' of this Mortgage is
<br />not thereby impaired. If such tesmtation 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 :he excess, if any, paid
<br />to Harrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender [o borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collxt and apply the insurance proceeds at Leader's option either to restoration ar repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agrce in writing, any such application of proceeds to principal shalt not extend
<br />or po¢tpone the due date of the momhly installments referred to in paragraphs I and 2 hereof or change the amount of
<br />such installtcena. If under paragraph 18 hereof the Property is acquired by Lender, a21 right, title and interest of Borrower
<br />in and to any insurance policies sad in sad to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass io Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />a~trisition.
<br />ti. Ihaervatioa sad Maintenance of Property; Leaseholds; Coadomiainms; Plattned Uait Developments. Borrower
<br />steal! keep tht Property in good repair sad shall not commit waste or permit impairment or deterioration of the Property
<br />sad shag canply with the provisions of any Rase if [kris Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />c~doraiaittm or a platmed trait develapment, Borrower shat! 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 />condominitmt or planned trait developmem, and constituent documents. If a condominium or planned unit development
<br />ride is uxuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be ititbrporated into and shall amend and supplement the covenants and agreements of this Mortgage as i[ [he rider
<br />wire a part hereof.
<br />7. Prakeetioa of Il.eaier'a Secarity. If Boaawer fails [o perform the covenants and agreements contained in this
<br />Mortgage, or if any action or prttceeding is commenced which materially affects Lender's interest in the Property,
<br />incituling. btrt not limited to, eminent domain, insolvency, code eoforcemen[, or arrangements or proceedings involving a
<br />bantrnpt or detxdettt, then Lender at Lender's option, upon notice io Borrower, rosy make such appearances, disburse such
<br />sttms ate take such action as is necessary Lo protect Lenders interest, including, but not limited to, disbursement of
<br />reasonaby attorney's fees and tntry up^-n the Property to make repairs. If Lender required mortgage insurance as a
<br />:,onditioa of making the Iona secured hY this Mortgage, Borrower shall pay the premiums required to maintain such
<br />imurance in e$ect tantB such time as the requirement for such insurance terminates in accordance with Borrower's and
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