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<br />1Jtataxortiwt Covexnxars. Borrower and Ixnder covenant and agree air fotlav,s:
<br />I. iF"aytrsent of Prlrncipal and Interest. Bnrrouer s1^.all pro:rtptly pay when due the principal, of artd interest on itte
<br />irtdebiedrtess t:vidanced by the Noie_ prepayment and late ct;arges as provided in the Nrtze, and the principal of ar •t interes€
<br />on any Future Advances secured by this Mortgage.
<br />2. Faads for Taxes and Insurance. Subject to applicable law or to a wr==lien waive: by Lender, Borrower shall pay
<br />to Lender on the day monthly installments e: principal and interest are payable under the Note, until the Nete 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 Property, if any. plus one-twelfth of yeazty premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initial}y and from
<br />time to time by Ixnder on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shal! be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lan;ler if Lender is such an institution). Lender shalt apply the Funds to pay said [axes, assessments,
<br />insurance premiums and ground rents. Lender may not charge far so holding and applping the Funds, analyzing said acwun[,
<br />or verifying 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 agree in writing at the dme 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 paid, Lender shalt 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 €he 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 />h}• 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 fall duo.
<br />Borrower shall pay to Lender any amount accessary to make up the deficiency within 30 days from the date notice is mail: ~t
<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 env Funds
<br />held by Lender. li :-~nder paragraph t8 hereof the Property 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 l;y Lender, any Fends held by
<br />bender a[ the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs I and ~ hereof shall be applied by Lender nrst in payment of ameunis payable to Lender by Bo~uwer
<br />under pazagraph 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 />~. Changes; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, ff 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 famish 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 promptly 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 shalt agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable [o Lender, or shall is good faith contest such lien bY, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of [he Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the t+~rm "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and Eor such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amvun[ of coverage required to pay the sums secured try This Mortgage.
<br />The insurarri:e carrier provsding the insurance shall be chosen by Borrower subject to approval By Leader, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph Z hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance ~:.,licies and renewals ihemni shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thercaf,
<br />at[d Borrower shall promptly furnish to Lander ail renewal notices and all receipts uE pat:; prer.;iums. In tl~ avant uE i ss
<br />Borrower shall giw prompt natiee to the insurance carrier and Lender. Lender may make praaf c?f loss if nest made g~romp[ty
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to etstoraton or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not theeeby impaired. If such restoration or repair is net economically feasible or if the security of this Me;tgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, iE any, paid
<br />to Borrower. Ii the Property is abandoned by Borrower, or if Borrower fails to respond to I_cnder within 30 days Tram the
<br />date notice Ss 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 either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Un_tess Lender and Borrower otherwise agree is writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof ur change the amount of
<br />such instalintents. If under paragraph lit hereof the Property is acquired by Ixnder, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall gals to Ixnder to the extent of the sums secured 6y this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Pt+eservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shalt not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provtisions of any lease if this Mortgage is an a leasehold. If [his Mortgage is on a unit in a
<br />condominium ar a planned unit development, Borrower shall perform all of Borrower's obligations under the dedaratian
<br />or covenants creating or governing the condominium or planned unit development. [he by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with This Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shalt amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection of Lender's Security. I' Borrower faits to perform the cow ~nants and agreements con!ained in this
<br />Mortgage, or if any action or proceeding is commenced which materially afrzcts Lender's interest in the Property,
<br />'including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrtipt or decedent, then Lender at Leader's option, upon notice w Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest, including, taut 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 cf making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in e$ect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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