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80- ~r~~8
<br />UrriroaM COVENANTS. Borrower and Lender covenant and agree as follaws:
<br />I. Payment of Prindpal and Interest Borrower shall promptly pay when due the principal of and interest en the
<br />indebtedness evidenced by the No[e, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for Toes and I~uottce. Subject to applicable law or to a written waiver by Lender, Barrawer shalt pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in fulh
<br />a som (herein "Funds") equal to one-/welfth of the yearly taxes and assessments which may attain prorit}• over this
<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-yearlypremiutt: 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 />T]te Funds shall be held in an institution the deposits or accounts of which are irsured or guaranteed by a Federal or
<br />state agene}' (including Lender if Lender is such an institution ). 1_ender shall apply the Funds ro pay said taxes, assessments,
<br />insurance 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 pa}•s Borrower interest an the Funds and applicable law
<br />pe[mits 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 oat he required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to $orrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit [n the Funds was made. "Cho Funds are pledged as additional security for ...c sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prier to
<br />the due dates of taxes, assessments, insurance premiums and ground rants, shall exceed the amount required to pay said Saxes,
<br />assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly msrailments of Funds. [f the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, iasurancc premiums and ground rents as they fall due,
<br />Borrower shall pay to Lander any amount necessan• to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Aorrower requesting payment thereof.
<br />Upon ga}mtent in full of all sums secured 6y this Martgage. Lender shall promptly refund to Bcrrovver arty Funds
<br />held by Lender- If under paragraph 1g 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 6y Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this bortgage.
<br />3. A~liratiott of Payments Unless applicable law provides athernise, alt payments received by Lender under the
<br />Note and paragraphs 1 aad 2 hereof shall be applied by Lender first m, payment of amounts payable to Lender b}' Borrower
<br />under paragraph Z hereof. then to interest payable on the Vote. then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />J, Chuges; L3etu. Borrower shall pay all taxes. assessments and other fiarges, fines and mtpasitions attributable to
<br />the Property which may attain a pnorit}• over thrs Mortgage, and leasehold payments ur ground rents, if any, in the manner
<br />provided under paragraph 2 hereof ar. 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 r.~tices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Barrawer shall promptlg~ furnish w Lender receipts evtdeoang such pavments.
<br />Borrower sha13 promptly discharge zn}• 3ierr which has pnorny over this M1ior[gage: provided, that 9orrower shall not be
<br />required w discharge any sash lien <a long as Borrower shall agree in .+~riung to the payment of the obligatian secured by
<br />such lien in a manner acceptable to Lender. ar shall in giwd Earth contest such lien by, or defend enforcement of such lies in,
<br />legal proceedings which operate io prevent the enfarcement at the hen or iorfe+[un of :he Property ar any Dart thereof.
<br />5. Illa:ard Itssarance. Borrower shall keep the tmprovements new cxisung or hereafter erected an rho 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 aad Tor such periads as Lender may reyuire: provided. the[ Lender shat{ not reyuire that the amount of
<br />such rnverage exceed that amount of coverage r,.gmred to pac the sums secured by this Mortgage.
<br />'the insurance carrier providing the iasurancc shall be chasen by Borrower subject to appravat by Lender: provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance paticies shall he paid m the manner
<br />provided under paragral:. L hereof ar, if not paid i^ such manner, by Borrower making payment, when duo, duectlV to the
<br />insurantt carrier.
<br />All insurance policies and renewals thereat shall be i^ form acceptable to Lender and shall inchide a standard mangage
<br />clause in fever of and in .`arm acceptable to Lender. Lender shall hsve the right to hold rho policies and renewals thereat,
<br />and Borrower shall promptly furnish io Lender al! renewal nouces and al! receipts of paid premium>. In the went of loss.
<br />Borrower shall give prompt rtoiice to the insurance carrier and i_ender. t_endcr nta} make prai+t cf loss rt rot ruade prompt!}
<br />Uy Borrower.
<br />Unless Lander aad Borrower athemrse agree in wasting, insuranx proceeds shun be appLed to reatorarion or repair of
<br />the Property' damaged, provided such restorauan or repur is ecanomicaily teaaible and the security of this Martgage ~~
<br />oat tlteteby impaired. if such restoranan or repair :s not ecomtmicatf}' 7easible or ii the soeuruy of this Mortgage would
<br />he impaired, the insurance proceeds shaft be applied to the sums ;ecured h} this Mortgage. with the eactas, if any. paid
<br />to Borrower. If the Property is abandaned by Borrower, ;rr it Barrower fella to reapond to 1_ender wuhin 30 days from the
<br />dale notice is mailed by Lender to Barrower that the insurance carrier utters to settle a claim for iasurancc henefita, Lender
<br />is authorized to collect and apply the insurance proceeds :rt Lender'a opuaii zither to reataration or repau of the Pmgerty
<br />or to the sums soured by [his Mortgage.
<br />Unless Lender and Barrower otherwise agree +n untmg, an} such apghcation of praceeda tc principal .}tall oat estend
<br />or postpone the due date of the monthly ittstalimenu referred tc in paragraphs 1 and ? hereof ar change. the amount of
<br />such imtallments. If under paragraph 1S herecf the Praperty i; acquved h} Lender, al! right, title and interest or 8orr»ver
<br />itt and to env insuraix'~e policies and in and to the prxeeds thereat resulung from damage to the Proln:rt} prior to the attic
<br />or acquisition shalt pass to Lender to die extent of the sums secured by this 'viurtgage ,mniedtately prior to such sole or
<br />acquisition.
<br />i. lrssercatfon and MsWeaaoce of PropcAi-; Le~ho#ds; Condominiume; Planned Unit Developments. Borraucr
<br />shall keep the Property itt goad repair and shall not cammit waste or pormH intgairment or detoriaratian of the Property
<br />and shag comply with the provisions of aay lease if this Mortgage .s on a leasetivld. if this hartgage +, an .+ wort in x
<br />condominium or a planned ivtit dcvalopmcnt. Barrower snail perform alt e:f Borrawer's ~+bligations under rho declaration
<br />ar covettams creating or govuning the condominium ar planned anti development, the by-laws and regulations of the
<br />catrdomioitun or planned tutu devcloptnent, and constituent dacumenu. It a condominium cr planned !toil devs4+pmottt
<br />rides is executed by Barrawer and reworded tcgezher with this ?4langage, the cavenants and agreement, .,t such rder
<br />shag ix itxx~rporatpd into amt shall amend a»d supplement the covenants and agreements c+t thin Martgage as if the rider
<br />wen a part hereof.
<br />?. 11'rafceYOi of Isudar'a Security. ]f Barrower faits to perform r-he covenants and agreements contained in thu
<br />Mortgage, or if any action or pra.cxding rs rnrttmenced which materially affects I_cndt:r's interest tit the Pn,pert}.
<br />including, but oat-limited to, eminent domain, insalvency, code entoreemertt, or arrangetnettta or proceedings involving a
<br />badirupt ar dei:edatt, then Lender at Lender's option, upon notice to Barrower, may make such appcarina5, disburse such
<br />items and take such action as is rtECessary to protect Lender's ~nierest, ins.liidiog, but aai limited n>, disbursenrent of
<br />reatioaable attorney's fees and entry upon the Property to make regairs~ if Lender required mortgage insurance as .+
<br />wnditioa of making-the inert scoured by this Martgage, Borrawvt shall pay the premiums required ti,, maintain Bach
<br />irsurance itt effect until such time as the requirement for such rnstuance termutates in accordance with Borrower's and
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