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<br />79d. ts[~4298
<br />Uttmoatt Cttvaxntvrs. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest. Borrower snail promptly pay when due the principal of and interest a;. 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 secured by this Mortgage.
<br />Y. Ifinds for Tales attd Iasnrance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lander on the day monthly installments of principal and interest are payable under the Nate, until the Note is paid in full,
<br />a stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may atta.n priority ever this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments far hazard insurance,
<br />plus onctwelfth of yeazly premium installments far mortgage insurance, if any, all as reasonably estimated initially and from
<br />titre to tame by Leat~r on the basis of assessments and bibs and reasonable estimates thereof.
<br />The Funds shalt be held in an institution the deposits or accounts of which are insured or guaranteed b}• a Federal or
<br />sate agency (including Lender if Lender is such an institution). Lender shall apply the 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 />of vtrifyiag 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 agrce in writing at the time 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 />regaites such interest to be paid, Lender shall not be requited 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. "Ihe I•'unds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />Jf the atnouat of the Funds hel3 by Lender, together with the future monthly installments of Funds payable prior to
<br />ttte 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 regaid to Horrower or credited to Borrower oa monthly installments of Funds. If the amount of the Funds
<br />held by Lander shall no[ be sufficient to pay taxes, assessmenu, insurance premiums and ground rents as theq fall due.
<br />Harrower shall pay to Lender any amount necessary io make up the deficiency within 30 days from the date notice is mailed
<br />by Leader tp Borrower requesting payment thereof.
<br />Upon payment in full of all stuns secured by this Mottgage. Lender shall promptly refund to Borrower any Funds
<br />he~.t by r~v.t~.~ Ir u ~ ,,,Ma.e,.t. , °rayc,~j is --
<br />~.~..r.,, ,8 .`° n;t t he r - ,old ar the Property is otherwise acquired by lender, lender
<br />shat! apply, vo 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. AppiietKioo 01' Palymenis. finless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 7 and 2 hereof shalt be applied by Lender first in payment of amounts payable to Lender b}• Borrower
<br />under paragraph 2 hereof, [hen to interest payable en the Note. then to the principal of the Note, and then to interest and
<br />principal an any Future Ad-+axes.
<br />4. Chta;es, 73en. Borrower shall pay all razes, assessments and other charges, fines and impositions attributable [o
<br />ttte Property which may anain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided ender paragraph 2 hereof or, if not paid in such manner, by Barrow_r making payment, when due, dirxtly to the
<br />payx thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make pavmsni directly, Borrower shall pmmptiy furnish to Lender receipts evidencing such payments.
<br />Borrower shat? promptly discharge any lien which has priority ever this Mortgage; provided, [hat Barrnwer shag not be
<br />eequirod to discharge any st,ch lien sa long as $orrower shall agree in writing to the payment of the abligatian secured by
<br />such fKn in a manner acceptaSle to Lender. or shall in good faith contest such lien by, er defend enforcement of such lien in,
<br />kgai proceedings which operate io pre+ratt the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. 13aard 1 Botrowcr shall keep the improvements raw existing ar hereafter erected on the Property insured
<br />agaittc: brs by fire, hazards included within the term "exiendtd coverage", and such other hazards as Lender may require
<br />sad ra arch amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such cmxrage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />Ttte insttraace carrier providing the insurance shall bt chosen by Borrower subject to approval by Lender, provided,
<br />that ouch approval shall not be unreasonably withheld. Ali premiums on ensurance policies shall '•e paid in the manner
<br />Provided, tradtr paragraph 2 hermf or, if not paid in such manner. 6y Borraw-er making pa}'ment, when due, dirtxtly to the
<br />iaaua>re carrier.
<br />Ail insurance policies and renewals thereof shall be in farm acceprahte to Lender and shall include a standard mortgage
<br />etattse in fever of and in form acceptable to Long. Larder shall have the sighs is hold the policies and renewals thereof,
<br />sad Ba'tos~r shall promptly flattish to Leader ail renewal notices and ail re opts of paid premium:. In the event of loss,
<br />Borrower shall give prompt rroiice to the insurance carrier and Lttrdtr. Lender may make peck t of loss if rat made pmmptiy
<br />[1r~ Lender tad Borrower otherwise egret in w rittng. inwran.x pm.-etds shah be applied ro restoration or repair of
<br />the Property damagod, provided such restoration or rrpatr is tranamicaily tensible and the security of this Mottgage is
<br />~ thereby ttvparred. If seen restoration. or repair is n, t econaxically feasible or tf iht security of this Mortgage would
<br />be imp:irtd, the instttamx proceeds shall be applied to the sums secured by this Mortgage, with the excess, if an}•, paid
<br />to Borrower. if the Propun' u abandoned b} Borrower, or .f Borrower fail<_ to respond [a Lender within 30 days from the
<br />date nc>Sioe is rttailed by Lender to Borrower that the insuratrx tamer offers to settle a claim for insurance benefits, Lender
<br />~ authorized to collect and apply the insurance proceeds at Lender's option tither ro restoration or repair of the Propert}°
<br />ar m ~ sautxs secured by this Mortgage.
<br />C3~ i ~r and Be+rrsarr at'srr~•isr tgree in carting, any such appiiw[ian of prxrxds to principal shah not extend
<br />or poatpons the due dau of the monthly installments rtftrred ?o in paragraphs I and 2 hereof ar change the amount of
<br />seen irs~nr~,.M If tinder' paragraph l8 hereof the Pmpem' is acquved by Lrnaer, all right, title and interest of Borrower
<br />is and to nay insutatrce policies and in and m tht proceeds thermf resulting from damage to the Propett}' prior to the sale
<br />~ atxttrisitioa shall pan to Lender to tht extent of the sutra secured by this Mortgage immediately prior to such sale or
<br />~ ttad !tftsieteaanre ~ Property; Leaseholds; Coadomiaia~ )?t8aned fJrdt t]tvdopacents. Borrower
<br />shat! kecg the Property in good repair and shall tint commit waste or permit impairment or deterioration of the Property
<br />a~ shall cotairly wixh the prtrvtsioas of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />caadomiaitmt ar a planned taut development, 8armwer shall perform all of Borrower's obligations under the declaration
<br />ar covenants creating or governing rbe condominium or planned unit development, the bylaws and regulations of the
<br />tx~adaattmam or ptaaaed unit ttevelop®ent, and covitittxnt dacumenu. If a condominium or planned unit development
<br />rxkr u ettetvted by Harrower and recorded togtther w•tth thts bfortgage, the covenants sad agreements of such rider
<br />t;balt Ire incorporated into and snail amtad and supglemen[ the covenants and agreemenu of this Mortgage as if the rider
<br />worn a part hereof.
<br />7. Peelsriiaa of Iassdas'a Seead/y. If Bermwrr fails to perform the covenants and agreements contained in this
<br />Mort, or iI arty aetim or proceeding u rr.mm.~o.d which materially affects Lender's interest in the Property,
<br />toeiudmg, bra tort Lmttai m, etmiaettt domain, iasalveticy, colt enforcement, or arrangemenrs or proceedings lunching a
<br />battiwpt or aecedtat, then Lender at Leader's option, upon narice to Borrower, may make such appearances, disburse such
<br />cams sad tall arch action as is trxrsaary to protect Leader's interest, including, but not limited to, disbursement of
<br />teaaeaable aitome}r's tea amt entry upon the Proactty io make repairs. If Lender required mortgage insurance as a
<br />couditioa of mating the boa secured by this Mottgage, Borrower shall pay the premiums required to maintain such
<br />matt'aatx m rdxt ttvhl such time as the requiretaeat for such insurance terminates in accordance with Borrowers and
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