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<br />79-- ~U4209
<br />Uxrvoart Covexex•rs. Bortawer and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptty pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Nate, and the principal of and interest
<br />on any Future Advances secwcd by this Mottgage.
<br />2. Fonds for Taaa sod Itrwrance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day nwnthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Properly, if any, plus one-twelfrh 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 institutior. the deposits or accounts of which are insured or guaranteed by a Federal or
<br />stag agency (including Lender if Lender is such an institution}. Lender shalt apply the Funds to pay said taxes, assessments,
<br />itssurance 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 applicabte law
<br />permits Lender to make such a charge. Borrower and Ixnder may agree in writing at the time of execution of this
<br />b`.ortgage that interest on the Funds shat! be paid to Borrower. 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 />shall give to Borrower, without charge, an annual acwunting 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 />by this Mortgage.
<br />If the amour[ of the Funds held by Lender, together with the future monthly installmenu of Funds payable prior !o
<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 Lender shall not be sttflicient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower 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 by this btortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender If uadet paragraph 18 hereof the Propert3~ is sold or the Property is otherwise acquired by Lender, Lender
<br />shall 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 Pstyments. 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 />under paragraph 2 hereof, tben to interest payable on the Note, then to the principal of the Note, and [hen to interest and
<br />pnacipal on any Future Advttrtces. '
<br />4. Chsrg~; Idetrs. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which tray attain a priority over this Mortgage, and leasehold payments 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 />payce thereof. Borrower shalt promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall pro[nptty discharge any lien which has priority over this Mortgage; provided, ehat Borrower shall not be
<br />required to discharge any such lien so long as Borrower shelf agree in writing to the payment of the obligation secured by
<br />stint lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such Peer. in,
<br />legal proceedings which operate to prevent the enforcement of the ben or forfeiture of the Property or any part thereof.
<br />5. Hazsrd Iru®mur.- Borrower shall keep the improvements now existing or :reafter erected on the Property insured
<br />against loss by 5re, hazards included within the term "extended coverage". and such other hazards as Lender may require
<br />and in Bitch amounts and for such periods as Lender may require: provided, that Lender shall not require [hat the amount of
<br />su-:h rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The itrsuraoce cazrier providing fire insurance shall be chosen by Borrower subject [a approval by Lender; provided,
<br />that such approval shall not be trnreasonabiy withheld. All premiums on insurance golic,ies shall be paid in the manner
<br />provided under parag.-aph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to tfie
<br />ittstxranct earner.
<br />Alt insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />ctatne in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Leader all renewal novices and all receipts of paid premiums. Ir. the even[ of loss,
<br />Ilorrowez shall give prompt notice to the insurance carrier and Lender. Lender 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 io restoration or repair of
<br />[he Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />trot thereby impaired. If such restoration of repair is not economically feasible or if the security of this Mortgage would
<br />bt unpaired, the insurance procceds shall be applied to the sutras 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 notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim Tor insurance benefits, Lender
<br />is authorizai to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to t)g. sums seevtral by this Mortgage.
<br />Unlras Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpoce the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If tinder paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in attd to say insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or aegnisitian shall pass to Lender to the extent o[ [he sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />& Preaet7atioa aa8 Maintenance of Property; Leaseho{dam Candominiums; Planned Utrit Ihvelopments. Borrower
<br />shalt keep the Property is good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply whit the provisions of any leaise if this Mortgage is on a leasehold. [f 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 />ar covenants ctrantrg or governing the condominium er planned unit development, the by-laws and regulations of the
<br />soadomaittm or planned ttttik development, and constituent documems. If a condominium or planned unit development
<br />tldn• is etceeuted by Borrower atul recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag be sticotporated into and shag amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a pats hereof.
<br />T. Pttttrhetloo of Le~der'e Secir~. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any atzion or proceeding is commenced which materially effects Lender's interest in the Property,
<br />including, but tto! limited to, emittem domain, ittaolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or deft, rhea Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums artd take wch 8[X1071 85 is necessary [o protect Lenders interest, including, but not limited to, disbursement of
<br />rearonable sttoruey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />eonditien of making the loan secured by this Mottgage, Borrower shalt pay the premiums required to maintain such
<br />irtsurana in elfut tmu7 such tt~ as the requirement for such insurance terminates in accordance with Borrower's and
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