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<br />UMtFOxM Goyn'fansv-i•s. Borrower and Lender covenant and agree as fellows:
<br />I, Psryment of Priraeipal and Interest. Borrower shall promptly pay when due the principal of and interest ntr the
<br />indebtedness evidenced by the Nate, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Ma, gage.
<br />2. Fonds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to under on the day monthly installments of principal and interest are payable under the Note, uneil the Nate is paid in full,
<br />a sum (herein "Funds"i equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and around rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />Pius one-twelfth of yearly premium installments far mortgage insurance, if any, all as reasonably estimated initially and from
<br />time io Yime by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall he held in an institution the deposits or accounts of which are 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, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, anatyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest nn the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shalt oat be required to pay Borrower atn• interest or earnings on the Funds. Lender
<br />shall give to Barrawer, 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. The Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of lire 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 excced 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 o; credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be suSlicient to pay taxes, assessments, insurance premiums and ground rents as they Tali due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is marled
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, i.ender shall promptly rciund to Borrower any Funds
<br />held by Lender. !f under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, nn . rter than immediately prior to the sale of the Property or its acyuisition by Lender, any Funds held by
<br />Let[der rt the time of application as a credit against the sums secured by this Mortgage
<br />3. Application of Payments. Unless aoplicable law provides otherwise, a!i payments received by Le.^.der under *.he
<br />Nate and paragraphs i and 2 hereo' 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 to interest and
<br />principal on any Future Advances.
<br />4. Changes; biers. Borrower shall pay all taxes, assessments and ether charges. fines and impositions attributable to
<br />the Property which may 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 Eo [he
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Barrawer shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shalt prompfly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in wrifmg 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 eo prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. I7azard Insurance. 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 ss 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 />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />Tire insurance carrier providing the insurance shall he chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasonably withheld. All premiums nn insurance policies shall be paid ht the manner
<br />provided under paragraph 2 hereof or, if oat paid in such manner. by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance F~ltctEs acrd renewals thereof shall fir: ir, form acceptable to lendee and sltali include :r standard ntartgagt
<br />clause in favor of and in form acceptable m lender. Lender shall have the right to hold the policies and rettewalc thereof,
<br />and Harrower shah promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of lass,
<br />Borrower shall ~ ye pro~ipt notice to tfie insurance earner and Lender. Lender may make proof of Inss if oat nutide promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. if such restoration or repair is not economically feasible or tf the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, patd
<br />to Borrower. If dte Propern' is abandoned bs Harrower, or it Harrower fails to respond to Lender within 30 days tram the
<br />date notice is mailed 6y Lender to Borrower that the insurance carrier otTcrs to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds xt lender's option either to restoration ur repair of the Property
<br />or to the stuns secured by this Mortgage.
<br />Unless Lender and Harrower otherwise agree in writing, ttny such application of pnx;eeds to prtncipal sh:;ll art extend
<br />ar postpone rho due date of the monthly installments referred to in paragraphs I and ~ hereof ur change the amount of
<br />such installments. II under paragraph ItS hereof the Property is acyuired by lender, alt nght, title and interest of iiormwer
<br />itt and to any insurance policies and in and ice the proceeds thereof resulting from damage to the Property prior to the sale
<br />nr acquisition shall pass to Lender to the extent u[ the sums scoured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />b. Presenalion and Maiotenanec of Property: Ixnseholds; Candominiums; Planned Unit Uevelupments. Barrawer
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioratitat of the Property
<br />and shat comply with the provisions of any lease if this Mortgage is un a leasehold, if this Mortgage is on a unit itt a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the deci:tratian
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and cnnstihrent documents. IF a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with the Mortgage, the covenants and agreements of such rider
<br />shell be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if rho rider
<br />-ware a part hereof.
<br />7. Protection of I,emler's Security, If Borrower fails to perform the covenants and agreements contained in this
<br />.Mortgage, or if any action or proceeanng is commenced which materially affects tender'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 decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and fake such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making rho loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect unlit such time as the requirement for such insurance terminates in accordance with Borrowers and
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