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V.Jxrcnaxrr Cavg[aa,taas. Borrower and Lender covenaant a.nd agree as followr;:
<br />t. Paymeat of I"rlttripai anal intt=rest. l3arrower ;hall promptly pay when due the principal of and interest ~:,n Rhe
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future P,dvancas secured by this Mortgage.
<br />Z. Funds for ~•saes and insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Fznder ar, the day monthly installments of princioal and interest are payable under the Note, until the Note is paid in full,
<br />a sum fherein "Foods'") 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 for hazard insurance,
<br />e'!~ plus one-Lwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />Nu time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed 6y 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 real charge for so holding and applying the Funds, analyzing said account,
<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 time of execution of this
<br />Mortgage that interest en the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest [o 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 [he Funds and the
<br />purpose for which each debit m the Funds was made. The Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />[f the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the dur, 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 Bormwer'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 due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 3U days from the date notice is mailed
<br />by Lender Yo Borrower requesting payment thereat.
<br />Upon payment in full of alt sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. if under paragraph 18 hereof the Property is said 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 by Lender, any Funds held b,'
<br />Lender at 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 6y Lender under the
<br />ivote and paragraphs i and 2 hereci sitaii be applied by Lender first in payment of amounts payable [o 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 />~. Charges; Liens. Borrower shall pay all tuxes. 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, 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 />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priariq~ 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 [he payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in gaol faith contest such hen 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. Hazard insurance. Borrower shalt keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fin, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and far such periods as Lender may require; provided, that Lender shalt not require that the amount of
<br />such leverage exceed that amount of coverage required to pay the sums secured 6y this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to apprnva! by Lender; provided,
<br />that such approval shall not be unreasonably withheld. Ali premiums on insurance policies shall be paid fn the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, b}' Borrower making payment, when due, directly to the
<br />inStirenc6 CarricP~
<br />All insurance palieies and renewals thereof shall be in farm acceotable to Lend.-r and shall include :t standard marteaee
<br />clause in favor of and in form ac:.eptabie to Lender. Lender shall have the right to bald the policies and renewals thereol.
<br />°- ---~,wer shall prariptly° fsrraish to Lender ail renewal notices an3 ail receipts of paid premiums. [n thr event of less.
<br />Borrower shall sine promgt notice to the insurance carrier and Candor. Lender may make prtu>f o€ loss if not made promptly
<br />by Borrower. v
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoratiat 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. [f such restoration or repair is not economically feasible 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 />&~ Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to [_ender within 3U days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier oRers to settle a Balm ter insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds ut Lender's opuan 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 not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof' or change the anwunt of
<br />such installments. 11 under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and is any insurance policies and in and ro the proceeds thereof resulting tram d;unage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the runts secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservattan and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Deveiapments. Borrower
<br />shall keep the Property in goad repair and shalt not commit waste ar permit impairment or deterioration of the Property
<br />and shall comply with rho pravisiors of any lease if this Mortgage is an a leas::hoid, if this Mix[gaga is err a unit in a
<br />' eandaminium or a planned unit development, Borrower shall perform all vF Borrc~wt:r'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 canstiatent documems. If a condominium ar planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such cider
<br />shall be incorporated iota and shall 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. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, ar if any action or praceedmg is commenced which materially affects 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 decedent, then Lender a[ Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lenders 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 />canditioa of making the lawn secured by this Mortgage, Botrawet shall pay the premiums required to maintain such
<br />utsurance in eriect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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