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<br />il'JmroaM C:o'^.'r:?v,ar+rs. Borrower and I-ent9er covenant and .agree as fdlllows•.
<br />fl. Paymeat of Prirralpal and Interest. Borrower shall promptly pay when. due the principal of and interest reel the
<br />indebtedness evidenced by the Note, prepayment and fate charges as provided iu the Note, and the principal of and interest
<br />on any Furore Advances secured by this Mongage.
<br />2. rr'unds for Taaes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shah pay
<br />to Lender on the day monthly installments of principa! and interest are payable under the Note, until the Nute is paid in foil,
<br />a sum Cnerein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over us
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for 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 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 by a Federal or
<br />state agency (including Lender if Lender is such an institution}. Lender shall apply the Funds to pay said taxes, assessmenu,
<br />luxe-ranee premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account.
<br />or verifying and compiling said assessments and bills, unless Lender pays Borcower interest on the Funds and applicable law
<br />pernrits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />ibfortgaga that interest on the Funds shalt 6e paid to Borrower, sad 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. T'.te Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds 7ayable 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 shat! be, at Borrowers option, either
<br />promptly repaid to Burrower or credited to Borrower on monthly installments of Funds. If [he 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 30 days from the dale notice is mailed
<br />by Lender to Borrower requesting' payment thereo[.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower arty Funds
<br />held by Lender. If under paragraph lti 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 by Lender, any Fords held by
<br />Lender at [he time of application as a credit against the sums secured by this Mortgage.
<br />3. Application ;;: Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and par graphs ;and 2 hereof 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. >rharges; Liens. Borrower shall pay al! 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, 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 pazagraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Burrower 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 stall agree in writing 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 to prevent the enforcement of the lien or forfeiture of the 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 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 carrier providing the insurance shall be chosen 6y Borrower subject to approval b_y Lender; grovided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Burrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shalt be in fomt acceptable to Lender and shall inclatde a standard mortgage
<br />cause in t'avor of grid in form acceptable to Lender. Lender shah hove the right to hold the policies and renews}s thereof,
<br />and Borrower she!! promptly furnish to Leader all renewal notices and all receipts of :aid premiums. fn the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender mss make procE of loss if nut made promptly
<br />by Borrower. '
<br />Unless Lender and Borrower otherwise agree in wrung, insurance prtxecds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is econanucally feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if [he security of this Mortgage would
<br />be tmpaued, the insurance proceeds shall be applied to the s.tms secured by this Mortgage, wuh the excess, if any, patd
<br />to Borrower. !t the Property is abandoned by Borrower, or if Borrower fails to respond ro Lender within 30 days irum the
<br />date notice is mailed by Lender to Burrower that the insurance carrier utters 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 •ar repair of the Property
<br />o.- to the sums secured h}' this Mortgage.
<br />Unless Cinder and Borrower otherwise agree m writing, any such application of proceeds to pnnctpa) shall net extend
<br />er postpone the due date of the monthly installments referred to in paragraphs f and 2 hereof or change the amount of
<br />such installments. if under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest of Borrower
<br />iu and to troy insurance policies and in and to the proceeds themof resulting Prom damage to the Property prior to the sots
<br />or acquisition shall pass to Lender to the extent o[ the sums scoured by this Mortgage unnrediatcly pear to >uch sale i+r
<br />acquisition.
<br />d. Preservation end Mainteutmce of Property; Leaseholds; Condominiums; Piannrd Utah Developments. Borrower
<br />shalt keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with rho prnvisiorts of any lasso it' this Mortgage is on a leasebold. If this Mertgaga is t;n 3 unit in a
<br />condominium or a planned unit development, Borrower shall perform a!I of Buret+wer's ubhgunons under the declaration
<br />or covenants cresting or governing the condominium or planned unit development, the by-taws and regulations of the
<br />condominium or planned unit development, and constituent dot:uments. 1[ 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 shelf amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Proteeiion of Leader's Security. If Borcawet faits to perform the covenants and agreements contained in this
<br />Nlartgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but not limited [o, eminent domain, insolvency, coda enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lende• s option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take 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 the loan secured by this Mortgage, Harrower sh2l{ 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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