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1.'ri4[FO[t?.t CaYEN,4NYS. Borrower and Lender c¢nrarat;t and agree as ft>llows:
<br />I. Faymteat of Principal and Iateres!t. Borrower shall promptly pay •rvlxen dine the principaq of ,and interest an the
<br />v'rtdebtednesa evidence:'1 by the Norte, prepayment and late charges as provvided in the 1*7 ote, and cite pn incipal of ark in tercel.
<br />on cry Future Advances secured by this Mortgage.
<br />2 Funds far Tales and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender en the day monthly installments of principal and intense are payable under the Note, umi! the Note is paid in full,
<br />a sum !I[erein "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 far hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender nn the basis of assessments and bills and reasonable estimates thereof.
<br />Ttye Funds shall he held in an institution the deposits or accounts of whkh are insured er guarameed by a Federal or
<br />.oats agency tincluding Lender if Lender is such an inslitutionl. fender shall appl}• the Funds to pay said taxes, assessments,
<br />assurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account.
<br />ar verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />p:rmiu 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 />reyusr~ such interest to be paid, Lender shall not be reyoired to pay Borrower any interest ar earnings or 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 htartgage.
<br />t~3 if the amount of the Funds held by Lender, together with the suture monthly installments of Funds payable prier to
<br />I~ 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 ffiey fall due, such excess shall be, at Bormwer's option, euher
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. [f 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 m Lender any amount necessary to make up the deficiency within 3U da}s fmm the date notice is mailer
<br />by Lender to Borower reuuesung pa}•ment thereof.
<br />Upon payment m full of al! some secured by this Mortgage, Lender shall promptly refaod to Borrower any Funds
<br />held by Lender Ii under paragraph 18 hereof the Property is sold or the Property is athencise acqu+red by Lender, Lender
<br />shall apply, nu later than immediately prior to the sale of the Property or its acyuisuion by Lender, any Funds held 6y
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. AppUcation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and aaraaraahs 1 and 2 hereof shall be aoolied by Lender first in payment of amounts payable to Lender b}• Borrower
<br />under paragraph ?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 />d. Charges; Liens. Borrower shall pay all taxes, assessments and other chz-ges, 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 to the
<br />payee thereof. Borrower shat! promptly furnish to Lender all notices of amounts due tinder 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 tang as Borrower shall agree in writing m 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 lien or forfeiture of the Property ur 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 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 shalt not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />'Cho insurance carrier providing the insurance shall be chosen by Borrower subject to approve! by Lender, provided,
<br />that such approve! shall eat bt ttnreasonably withheld. Ali premiums on insurance policies shat! be paid in Yht: 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 cturier.
<br />AB insurauce policies and renewals thereof she!! bt: in form acceptable to Lender and shag include a standard mortgage
<br />clause ir: favor ..f and in for-_ ac:,eptahle to Under. Lender shall have the right to hold the policies and r€newals therea€,
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid preniums, in the event of lass,
<br />Borrower ;hall give prompt notice to the insurance carrier and Lender. I_endor may make proof of lass if not made promptly
<br />oti Borrower.
<br />Unless l.cnder 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 eat economically feasihle or if 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, paid
<br />to Borrower. if the Froperry is abandoned by Borrower, ur it' Borrower fails to respond to Lender within 3U days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a Jahn for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration ar repair of the Property
<br />or to [he surtu secured by this Mortgage.
<br />Cinless Lender and Borrower otherwise agar in writing, any such application of proceeds to prinetpai shalt not extend
<br />or postpone the due date of the monthly installmenes referred to in paragraphs I and 2 hereof or change the amount of
<br />such mstaliments. lF under paragraph I8 hereof the Property is acyuired by Linder, alt right, title and interest of Borrower
<br />in and to any insurance policies artd in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition steal! pass to Lender to the extent of thu sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Prerervativa cad l+faiatettance of Preperty; Leaseholds; Condominiums; Flanned Unit Deve[vpmeats. Borrower
<br />shag keep the Propeny in good repair and shall not commit waste ur permit impairment or deterioration of the Property
<br />' and shall comply with the provisions of any lease tf this Mortgage is on a leasehold. If [his Aortgage is on a unit in x
<br />cardomininm ar a planned unit development, Borrower shall perform off ot` Borrower's obligations under the declura[ian
<br />or covenants cr:at+ng ar gav¢rn:ng the cundemm:um ar glsttred unit development, the by-laws and regalatians of the
<br />condominium ar platuted unit development, and constituent dixumenu. IC a condominium or planned unit devebpntent
<br />rider is executed ley Borraw•er and rceotded together with this Mangage, thr covenants and agreements at' such rider
<br />shall be incorporated into and shag amend cad supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection oP Leader's Security. If Borrower fails ro perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property.
<br />including, but eat limitt:d 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 atd take such action as is necessary to protect Lenders interest, including, but not limited to, disbursement of
<br />reasonable attotney's fens and entry open the Property to make repairs. If Lander required martgagc insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain 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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