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<br />79- uc~425"7
<br />Ur+rnottnr Cov€rintvrs. Borrower and Lender covenant and agree as follows:
<br />i. Payment of Principal and Interest. Borrower shall promptly pay when due tF.e 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 by [his Mortgage.
<br />2. 1?nitds for Taxes and imaranvv. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Leader on the day monthly instatlments of principal 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 priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />pith 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 />'Ihe Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />Butte agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessmenzs,
<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 />permits Lender [o make such a charge. Borrower and Lrnd~r may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Harrower, 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 accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. 71ie Funds arc pledged as additional security for [he 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 [axes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground renzs as they fall due, such excess shall bP at Borrower's option, either
<br />promptly repaid to Borrower or credited io Borrower on monthly instalments 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 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 ir. full of all sums secured by this Mongage, Lender shalt promptly refund to Harrower any Funds
<br />r e.a.. t ..,,.Sri
<br />held by Lender. If under paragraph 18 hereot the Property is sold or tfie Fropeny is athetwise acqu;~ ~ by ~.......... ---..-_.
<br />shall apply, no later than immediately prior to the sale of the Property or its aceuisition by Lender, any Funds held by
<br />Lender at [he time of application as a credit against the sums secured by this Mongage.
<br />3. Applieatbe of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 cad 2 hereof shat[ be applied by Lender first in payment of amounts payable 20 Lender by Borrower
<br />under paragraph 2 hereof, then io interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Futtue Rdvances.
<br />4. Charged hkas. Burrower shalt pay alt taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mongage, and leasehold payments or ground rents, if any, in the manner
<br />provided tinder paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, whrn due, directly to the
<br />payee thereof. Borrower shalt ptumptly furnish to Lender all notices of amounts due under this paragraph, cad in the event
<br />Borrower shag make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shalt promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />requaed ro discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such Goa in a manner acceptabk to Lender, or shall in good faith contest such lien by, or defend enforcemenS of such lien in,
<br />legal proceedings which operate to prevent the en[orwment of the lien or Corfeiture of the Propen}' or any part thereof.
<br />5. Baa[d lesstaaee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against lass by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such emotion and for such periods as Lender may require; provided, that Lender shall oat require that the amount of
<br />stick coverage exceed that amount of coverage required to pay the sums secured by this Mongage.
<br />2be ifficrance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />Shat such approval shall not be unreasonably withbeld. All premiums on insurance policies shall be p_id in the manner
<br />provided tinder paragraph 2 heaaf or, if not paid in such manner, by Borrower making papmeni, when doe, directly to the
<br />iastrra>re carttu.
<br />All insurance policies and renewals thereo# shall be in form acceptable to Lender and shall +nciude a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shalt have the right to held the policies and renewals thereof,
<br />sad Borrower shat! promptly furnish to Lender all renewal notices and all receipts of paid premiums. in the event of lass.
<br />Borrower shall givt promgi itatlce to the Insurance carrier and Lender. Lender may make praoI of loss if not made promptly
<br />by Borrower.
<br />L'nkss Lender and Borrower otherwise agrce in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such etstaration or rcpaii is economically feasible and the security of this Mongage is
<br />nor thereby impaired. If stxh restora~on or repair is not e-.anemically feasible or if the securin~ of this Ivlangage would
<br />be impaired, the insurance procads shall be applied to the sums secured by this 1longage, wi*.h the excess, if any, paid
<br />to Borrower. F the Propern~ is abandoned h}' Borrower, ar it Botsnwer [ails to respond to Lender within 30 da}'s from the
<br />date notice is mailed by Lender ro Borrower that the insurance carrier offers ro settle a claim for insurance ixae6ts, Lender
<br />is authorized to collect and apply the insurance prat-eels ai Lend=_r's nptian either to restoration or repair of the Property
<br />or to ebe sums secured by this Mortgatc.
<br />Utrks` Leader and 1orrower otherwise agree in writing, any such application of proceeds io principal shall cot extend
<br />or postpone the due date of the monthly installments referred to in paragraphs :and '_ hereof or change the amount of
<br />cock installments. ff uc~r paragraph l8 hereof the Property' is acyuired by Lender. elf right, tide and interest of Borrower
<br />is and w any imtiranee policies andrn and to the proceeds thereof resulting from damage to the Property prier to the sale
<br />or aequisidoa shall pass to Lender to the extent of the sums secured by this lfortgage immediately prior to such sale or
<br />~•
<br />(, Ptesvvatioe cad lNaiaEeeance of Prerperty; Ix~e6olds: foadotaiaiatas; Planned Unit DeveMpritents. Harrower
<br />shall keep the Property in good repair cad shag not commit weste or pertntt impairmen[ or deterioration of the Property
<br />and shag cwnpN with the provisions of any kale ii this Mongage is on a leasehold. If this Mortgage is on a unit in a
<br />werdotninium or a planned unit developrent, Borrower shall perform all of Borrower's obligations under the detlarauan
<br />~ covenants creating or govertiiag the rnndominium or planned unit development, the by-taws and regulations of the
<br />condomirtitim a planned trots development. and eoostituent documents. If a condominium or planned unit development
<br />ride,[ is tutscuted by Borrower and recordsd together with this Mongage, the covenants and agreements of such rider
<br />shag lx inrotponttd into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />wets a Part lteaeof.
<br />1. YiraRectlan of I.eade~'s Severity. If Borrower fails to perform the covenants cad agreements contained in this
<br />jortgage, or if any ~a~ or proceeding is commenced which materially affects Lender's interest in the Propeny,
<br />ring, but not IfH3ited tp, eatiaeat domain, insalretrcy, code enforcement. ar arrangements or proceedings involving a
<br />bankrupt or detxSkttt, then I at I.endet's aption, upon notice to Borrower, may make such appearances, disburse such
<br />sums cad take such action as is necessary to protect Lenders interest, including, but not limited to, disbursement of
<br />seasonabk aitor>iey's ftes and entry upon 4he Property to make repairs. 3f Lender required mortgage insurance as a
<br />condition of making the loan sectired by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />ino•ru+~.r in e[kct tmtil StKh time as the ttxltiiret~nt for such insurance terminates in accordance with Borrower's and
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