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<br />v rJA^ORAt CovEM A;V'75. Bcl'rmawe;t' and'. I.e'n~der' ~f'.i1;9~'CMna,nl'. ~1YIkd d[,gGi°„e aG tl't?t1F1':lr ,:
<br />1_ Paymen± of Priacipai atut Interes6 F4•rra~~;tvrN~t;r xYtal'1 prra'xnptN„~ p~~agr whets ml ~rlhr- princip~Ap1 of and 'in't¢res~~t on the
<br />arrdebtadness evidenced by the "dote, prepaymem attd gate charges as provided in ?Yte :Note. and the principal of ant? interest
<br />an anq FLrture Adv nre, secured by this Mortgage.
<br />Z. ;t=ynds for'f'taxes and Ynsttrance. Subject ro applicable taw or to a written waiver by Lender. Borrower shah pay
<br />to Lender an the day monthly installments of principal and tmerest are payable undo: the Note, until the Nate is paid in fait,
<br />a surtt {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 fez hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initiafly and from
<br />vme to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt be held in an institution the deposits or accounts of whack are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution}. Lender shalt apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Under may not charge far so holding and applying the Funds, analyzing said amount,
<br />ar verifying and compiling said assessments and Sills, unless Leader pays Borrower interest on the Funds and applicable law
<br />permit; Lender to make such a charge. Borrower and Lender may agree in writing at the time of execu?ion of this
<br />Morcgage 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 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. The Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If Lhe amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />ti;e due dates of taxes, assessments, insurance premiums and ground ruts, 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 Berrowei s option, either
<br />promptly repaid to Borrower or credited to Burrower 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 due,
<br />Borrower shall pay to Lender anv amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to $orrawer requesting eayment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If ;nder paragraph 18 hereof the Property is sold or the Propetty is otherwise acquired by Lender, Lenaer
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time rf application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. IJn[ess applicable law provides otherwise, all payments received by Lender under the
<br />Nate and paragraphs 1 and 2 hereof shall be appbed by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph ?hereof, then to interest payable on the Note, then to the principal of the Nate, and then to interest and
<br />principal on any Future Advances.
<br />d. Charges; 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 payme^!s 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, when due, directly to the
<br />payee thereof. Borrower shalt promptly furnish 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 shalt not be
<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 Iien 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 lien or forfeiture of the Property or any part thereof.
<br />5. Y3arard lnsorence. Borrower shall keep the improvements now existing or hereafter erected cn the Propercy insured
<br />against loss by fire, hazazds 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 />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance ear: er pravidirg the insurance shall be chosen by Burrower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. Ail premiums on insurance policies shall be paid in [he manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />Ali iFtsura_a,_e ~±licies and renews}s thereof sha#E be in fot;;t ar eptable to Lender and shat! include a standard marigage
<br />clause in favor of and in form acceptable to Lender. Lender shalt have the right to hold the policies and renewals thereof,
<br />and.°.t:rrower shall pramptly> furnish eo Lender ail renewal notices and ail receipts of paid premiums. fn the event of lass,
<br />Borraw~r shah give prompt notice to thetnsuranee carrier and Lender. Lentler may make proof of loss if not made pramptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt 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 if the securi±y 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, paid
<br />to Borrower. If the Property is abandoned by Borrower, or it Borrower [ails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized io 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 />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall nut extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof ar change the amount of
<br />such installments. if under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />ir_ and to any insurance policies and in and to the proceeds thereof resulting froth damage to the Property prior to the sale
<br />or zcquisitian shall pass to Lender to the extent of the sums secured h}^ this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shalt keep the Property in good repair and shall hat commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If [his Mortgage is on a unit in a
<br />condominium or s planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<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 constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgnge, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />~. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action ar proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but hat limited to, eminent domain, insolvency, Cade 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 lake such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attamey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of makin¢ the loan scoured by this Mortgage, Berrawer shalt pay the premiums required to maintain such
<br />insurance in effect until such tithe as the requirement far such insurance terminates in accordance with Bert.~wer's and
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