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<br />Utvtrotttvt Cnvt:tu,sxrs°. Barrowtr and ,Lender cowenant and agree as follows:
<br />I. Paymeu^ of Prlnaapai and Interest. Borrower shall promptly pay when due the principal of and interest an ehe
<br />indebtedness evidenced by the Noie, prepayment and (ate charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />~. Ftirads far'raxes and Insatrattce. Subject to applicable law or to a writtan waiver by Lender, Harrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a stem (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />?iortgage, and ground rents on the Property, if any, plus one-twelfth of yeazly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, atI as reasonably estimated initially and from
<br />time to rim: by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall Ere held in an institution the deposits or accounts of which ate insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessrrtents,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and cnmpiiing said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable taw
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing ai 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 />requires such interest to be gold, Lender shall not bt required to pay Borrower any intetca2 or earningr> or, the Funds. Lender
<br />shall give to Harrower, without chazge, 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. 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 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 not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fail due.
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mat€u
<br />by Lender to Borrower 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 Lencic~. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no Inter 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. AppBcation of Payments. Unfeu applicable taw provides otherwise, all payments received by Lender under the
<br />Nate and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Barrowtr
<br />under paragraph ?hereof, then to interest psyable on the Note, then to the principal of the Nott, and then to interest and
<br />principal on any Future Advances.
<br />~. Charges; Llens. Harrower shall pay al? taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may stain a priority over ibis Mortgage, and leasehold payments ar 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 shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Harrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Hotrawtr shall promptly discharge any lien wfiich has priority over this Mortgage; provided, that Horrowtr shall not !~
<br />required to discharge any such lien so long 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 in,
<br />legal proceedings which operate to prevent the enforcement of the ?ten or forfeiture of the Property or any part thereof.
<br />S. I3szsrd Ittscrantt. Borrower shall keep the improvements now existing or hereafter erected on 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 />Birch coverage exceed th;Et amount of cesErage required to pay the sums secured by this hiorfgage.
<br />Iitt, insurance ::artier prodding the iusuranct shall be ehosta by Barrowtr subjtet to approval by f.:nder, prt+vid.
<br />that such approval shall not ce unreasonably u;ithhs td. All premiums on insurance palieits steal! be paid in tt~ mant[tt
<br />araviderl tinder asraoranh 2 h~rrnf ur, if not paid in such manner, lay Harrower making payment, when dare. directly to the
<br />insura~e carrier.
<br />All insurance elicit. and rtrtt:Baia thereat steal? be in fotzrt aectptab?c to Lender rind shaft ine?tsde a sand-:nI rnortoa~
<br />clause in favor of and in farm acceptable to Lender. Lender shall have the right to hold the policies and renewals thereat.
<br />and ;otrawer shat? proci2ptly furnish to Lender all renewal notices anti all rtz:cipts of paid premium,. In tell event at kit`s.
<br />1?arraw:<r shall glut prompt n~~tice t:, tltc it?suranc,- carrier and i.tnder. Ltndtr may make prat of loss ii not n.ade gromprl}`
<br />by $orrawer.
<br />Un}esx ;.ender and Harrower athenvise agrct in writing, insurance prcx;etds shall be applied to restoration ?r repair at
<br />the Property damaged, provided such restoration or repair is ecanomicrlly 1'easiblt and the security of this Mortgage t~,
<br />not thereby impaired. it su: h ressurati<ut ur repair is niN economically feasible ar it tht secur![y u! thts Mortgage would
<br />be impatred, the insurance proceeds shall be appfitd to the sums secured by this Mortgage. wuh the excess, if any, paid
<br />to Harrower. If the Property is abattdoned by Borrower, or if &xrawer fails to respond [a Lender within 3ti days team 2hc
<br />date notice is mailed by Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option zither to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Clnless Lender and Borrower athenvsst agrtX in writing. any such application of proceeds to l,rtncipal sh,il nut extend
<br />ar postpone the due date of the monthly installnrtnts referred to itt paragraphs 1 and 2 htreot or change the amount ai
<br />such ins#allnttnts. If under paragraph Ill hertaf the Property is acyuired by Lender, all right, title and interest of Borrower
<br />in and to any insurance palieies and in and to the proceeds thtrent resulting from damage to the Property print to the sale
<br />or acquisition shall pass to Lender to the extent of the Burns secured by this Ivtortgage immediately prior to such Batt or
<br />acquisition.
<br />d. Prtservatlon and ?Nainttrwace of Property; t.easeholdst CoadotniWums; Plaatred Unit Ikreiopaweats. Hnrrower
<br />s hall kelp the Property is goad repair and shall not commit waste or pvrmii impairment ar dtttriaration of the Pra;rerty
<br />sled shall comply with the provisions of any least if this hiartgage is on a leasehold. If this Mortgage is on a [unit in s
<br />car,dt,triinium or a planrrtd unit deve?~pment, Bar;awet shall p~rfoem al! of Barraweis ohiigatinns under the dcclaratnin
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />candontitum or planned unit development, and constituent documents, if a condominium or planned unit development
<br />rider s executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall bt incorporated into and shall amend and supplement the covenants and agreements of this Mortgage ns if the rider
<br />were a part hertaf.
<br />9. Pratectiou aF Leader's Strnrity. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, ar if any action or proceeding is commenced which materially afecis Lender's interest in the Property.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or dtctdmt, then Ltndtr at Leader's option, upon notice to Barrowtr, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lenders interest, including, but not limited ta, disbursement of
<br />reasonatsle attorney's free and lofty t[pan the Property to make repairs. If Lander required mortgage insurance as a
<br />condidnn of making the ban secured Isy this Mortgage, Borrower shall pay the premiums required to mnintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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