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<br />L%N[FORM Covex+xrs. Borrower and Lender covenant and agree as follows: ~ - ..
<br />1. Payment of Principal and Interot. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note. prepayment and late charges as provided m the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for Taxes and Insorartce. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which mey attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium inatafiments 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 pa}• said taxes, assessments,
<br />insurance premiums and ground rents. 1_ender 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 Borrower interest on the Funds aed 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 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 Dorrower, without charge, an annual accounting of the Funds showing credits and debits to~ihe Ftmds and the
<br />, purpc?se 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 />Sf 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 rent;, shall exceed the amount required 'o pay said taxes,
<br />asseuments, 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 bC sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall paV [o Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender io Borrower requesting pa}'ment thereof.
<br />Upon payment in full of all sums secured by [hu Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 1 N 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 [he Property or its acquisition by Lender, any Funds held by
<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 by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied 6y 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. Charges; Lies. Borrower shall pay all taxes. aaessments and other charges, fines and impositions attributahie 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 Burrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph.:md in the event
<br />Borrower shall make payment directly. Durro\ver shall promptly Furnish to Lender receipts rvidennng such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; proviJed, that Borrower shall nut be
<br />required to discharge any such lien ao Tong as Borrower shall agree in writing to the payment of the obligation ,ecured by
<br />such lien in a manner acceptable to Lendee or shall in good lanh tuntest such lien by. or defend enforcement of such lien m.
<br />Iega1 proceedings which operate to prevent the enforcement of the hen ur torleuure of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the unpro,uments now coating or hereafter erecteu nn dtC Property insured
<br />against loss by fire, hazards included within the term "cstendeJ tovcngd~. and such other hazards as Lender may reyoire
<br />and in wch amounts and for such periods as f.cnder Wray require, provided, rh:u I,cmicr chat) mrt require that the amuum tit
<br />such cuveragC Cxceed that amount of covcragC reyuircd u, pay the ,tints ,ecured by thu Morgage.
<br />The insurance carrier providing the insurance shah be thu,en by Borrower ,ubiett eo approval by LenJer. nrovidcd.
<br />that such approval shall not he unreasonably withheld. :VI prrnuum, on insurana'C puhcres .hall be paid m the manner
<br />provided under paragraph` herrof oe, rl not paid in veach ntan::er, by Borrower ntakutg pavtnent, when due, Jirecdy to [rte
<br />in&UranGC cp([iCr.
<br />Ail insurance Iwiictes and renew als thereof shall he m Corm aeceptat?Ic to Lender .cud ,hall include ., ,t.uuiard monGUge
<br />clause m favor of and in form acceptable w lender. 1_rnder ,hall itaac the right fo hold fhe pulicie, and renew ah thereol.
<br />and $orro?ver shall promptly furnish to Lender all renewal nuuees and all receipts of puW premnnn, In the event of loss.
<br />Borrower ,hail gnu prompt ounce w the insurance tamer and LenJer. Lender ma} make proof of loos d not made prontpdy
<br />by Borrower.
<br />llnlas6 LenJer and Borrower otherw rsc agree u: wrung, nr,uranae ptucceJ, shall be apphCd to resiuratiou ,+r rep.ur of
<br />the Property JamagCd, pruwded such re+turnuun or rcpau n cuewnutally tensible and the ,etunp ut thn Mongugc n
<br />nut thereby impaued. It such re>turauan ur rCpau rs' not c n mcally tcastble or rl the x~ew~np of rhr, Mortgage would
<br />be rropaued, the insurance pt c?cCeds sha!I be applied to rhecw~ securoJ h} thro Mortg,?gc, ,wh the torts, r[ any, paid
<br />to Born?wet It the Pn,pem a ehandoneJ h~ Borrower, or n Burrower htih to tesfwnJ to Lender sv rthm }U Jass !row dtc
<br />date notice 11 ntiIICJ h} 1.C11deI ^r Borrower tha( the tnspr:mce :arner tillers ro sCUle a ilain? by in,urana• heuefiR, 1 ender
<br />is uuthonred to collen and appl} the mauranca• proceeds nt LenJer, „phun enhcr to rear,na~on or rcpa?r of rhr Pnyxrty
<br />or to the sums ,ecutCJ h7 flits Mortgage.
<br />Unless Lender and Burrower atherwtse. ugtrc m wrrtmg, :m} wash applnatrun ,+I pf ocrcJ, ro prom y?al .hall not cVCmi
<br />or postpone the due date of the monthly installments rcfetred fo m pamgr,?ph, r .rn.i_ hereof ur .han.e flit .unowu ,n
<br />such uatallntenta. B under paragraph Ili hereof the Propel ty n .,tymrcJ b} Leudar all right, ode anJ interest ,~! Bon nw cr
<br />irr and to an} uuurance policiCS and m and tc the proceeds theruw reaulung from damage ro the I'rol?cuy error to :hc ,.rle
<br />or acyinstuun shall pass to Lender h? the evtem of the wnta crewed by Ihn \longagc ~mu?edratch~ ptnn ;. ,u:h ,.?Ic „r
<br />acquistuon.
<br />5. Prrsenatiwt cad :+taiatenant'e of Property; Ls;ivrhulda; Coudnntiniuots; PiannCd L-nit Ihvaloprna•uta. lic•rr.,a.:t
<br />shall keep the Property ;n gawd repair and shall nut comma waste or perms rmp:utnn-n; or Jetenotauan of the Prapcr;,
<br />and shall comply with the provts,uua of any lease rf th., Morgage „ ou ,. It,c,cholJ II th„ Nwtga~,v r, ou curt ~~ .,
<br />condmnnuum or a planned nun Jcvclopman, Buuowrt ,h,Jl ixriuuu ell of Bun nw e(s obligations unJrr rhr dcc Ln corn
<br />or wvenants creating or governing the :ondomm;um ,,r planned unn ilevrlopment, the hp laws .rod rcgui;d con, al rhr
<br />condominium or planned unit development, .wd .aa?,unrart down?cm, It ., couduu?nuum or planned mm dr, rlopn?cot
<br />rider a executed by' Borrower and tceordCJ li:gethet ,a nh rhr+ ~~\lor lgagc, thc• aovcu.uus and agr uuu?rut, ,~t ,udr uJrr
<br />shall be incorpattaied into and shall antcnd anJ ,upplcnunt me ~oacuants :?nJ rgt ccmenn .q rhr, Mortgage ;u n rhr ndcr
<br />were a unn hereof.
<br />7. Protection oP Leader's Secttrily. It Borrower tads to pertunn the covenants and agrecmenu ,otrtauxd m thu
<br />Marlgage, ar i( any croon or proceeding a commmtceJ whrch m:derially :dtecta LenJer ~. rnrerutir u, fhe Roper,,.
<br />including, but nol limited tu, eminent domain. insulacncs, code eutoraUUeur, ;: :u ru?gc•n?e ntn ri -,. reJinh, ~ -nl,:ng .
<br />hankrupl of Jt•trdcnl, then t enJCr al LendCr's npurm, ulxm notrn• to Ro: rower, mat snake ,u. h .r pi,rrr.?n: a+. dnhw,c ~m6
<br />sums .old take ouch sawn as a necCasary w protect Lenders ~ntemst. ~uchtJurg, bar :?ot Looted ?,:. ,h,lm:+emem • .
<br />reasnnalrle agorney~s tees and entry upon the Property to make rrparrs ti I ruder rcgoucJ martteage u?ut r.uxe ,,
<br />condtunn ul rocking the luau secured tt} thin Mortgage. Batu~wcr stroll Was the rrenuums rrqu.reJ !-~ mmuta::r w,.h
<br />rnsurance m c(Irct until ,uch time as the reyutrtmem fur ,uch u?,u; once tcuourates :u ,,.:.+rdan,c -.,uh Bor;,,w c:, nnu
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