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<br />FJNIFORN Covsxexrs. Borrower and Lender covenant and agree as follows:
<br />Y. Payment of Principal and Interest 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 in the Note, and the principal of and interest
<br />on any Future Advances se: urea by this Mcttgage.
<br />2. Funds for razes and Iasuraaee. 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, omit the Note is paid in full,
<br />a slim (herein "Funds") equal to one-rivetfih of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if am•, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, atl as reasonably estimated initially -and from
<br />time tv lime by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall 6e held in an institution the deposiu ar 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, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. anaivzing 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 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 no[ 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 vas made. The Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />Tf the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior tv
<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 shall be, at Borrower's option, either
<br />promptly repaid to borrower or credited tv Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall no[ be sufficient to pay taxes, assessments- insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to Lender any amount necessary tv make up the deficiency within 30 days repro the date notice~is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds,
<br />held by Lender. If under paragraph 13 hereof the Poepery is sold or the Property is otherwise acquired by Lender, Lender ~~
<br />shall apply, na la[or tha.•t immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by,
<br />Lender 2t the time of application as a credit against the sums secured by [his Mortgage.
<br />3. Application of Payments. Ltnless applicable law provides otherwise, aft payments received by Lender under the ~.
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower.
<br />under paragraph Z hereof, then to interest payable on the Note. [hen to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay ail taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a prior:ry over this Mortgage, and Leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof ar, if not paid in such manner, 6y Borrower making payment, when due, directly to the
<br />payee thereof. &orrower shall promptly furnish m 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 priority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall a^.ree in :vetting to the payment of the obligation secured by
<br />such lien in a man„zr aeeeptabie to Under, or shall in good faith contest such lien by, cr defend enforcement a[ snub lien in,
<br />legal praceedings which operate to prevent the enforcement v[ the Vien or forfeiture of the Property or any part thereof.
<br />5. Hazard insurance. Borrower shall keen the rmprovemants non existing yr hereafter erected on the Property insured
<br />against loss by fire, hazards loci::ded wuhtn the term "'extended .iuverare'", and ;ueh other hazards as Lender rxay require
<br />and in such amounts and fur such periods as Lender may require; provided, that Lender shalt net a~quirc that the amount of
<br />such coverage exceed that amount of cdve;age ,-squired to pay nc~ sums secur::d t;y th:s hte=tgage.
<br />° .. u -. '°° ice ~~ ,.auir,g [r,c _ urance 3hai1 be coerce ov f's~r~avcr sttF jcci '___.•al h ~cndPti prtvined
<br />that such japproval shall nerr6e unreasonably +vithhald. All premrums on insuratce pollutes shall be paid in iha manner
<br />provided under paragraph_ hereof c;, kf not paid in such manner, by Hvrrv+var making payment, when due, directly tv the
<br />insurance carrier.
<br />All insurance policies and rtncwals thertvf shall be in form acceptable to I.endcr and shall include a standard nrortgaga
<br />clause in favor o[ and in form acceptable tv Lender" Lender shelf have the right to held the policies and renewals therevt.
<br />and Burrower shall promptly furnish to Lender all renewal notices and ail receipts of paid premiums. [n the event v[ loss,
<br />Borrower shall give prompt nuuce to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower othewist agree in venting, insurance proceeds shall bt applied tv restoration or repair of
<br />the Property damaged, provided such restoration yr repair is ecvnumically feasible and the security of this Atnrtgage i+
<br />not thereby imparted. If such restorauon ar repxu is oat ecunumically feasible yr :f the security of tills Afvrtgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured 6y this Mortgage, with the excess, iE any, paid
<br />to Borrower. if the Prvficrty is abandcacd by Bvrrewer, or if Borrower fails to respond ro t.tnder withinsU days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier vllera to s'tttlt ^ claim for trout.+nce benefits, Lender
<br />is authorized to collect and apply the insurtnct proceeds at Lender's option either to restoration yr repair oY the Praperty
<br />yr to the sums secured b}' this rbicrtgagt.
<br />Uotass Lender and Borrvwor otherwise agree in writing, any such application of proceeds w prittaipal shalt oat extend
<br />or pastpona the due date of the mon[h!y instaihnnants inferred to in paragraphs 1 and ' harlot yr change the amount of
<br />such irntalimants. If under paragraph IS hereof the Property is acyuired by Lender, alt right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior tv the sale
<br />,- r:gessiFictt c_ti. !! F_sv to I. c_.S_r tv eke e<rtent a( thz :,ant-. ecured by t~ ',lvrigase ;...t.te~ta ..i; prier to aueh sale •vr
<br />acquisition.
<br />E, Preaerwatiou and kiaiatenance of Property; Leasehalds; Condominiums; Planned Unii i3ecalopmen[s. Borrower
<br />shall keep the Property ir. gaod repair and shall not commit waste or penttit impairment ar deterioration of the Property
<br />anti shall comply with the provisions of any lease if this Mortgage is vn a leasehold. I[ this 3lnrtgage is on :t Unii in a
<br />candomutium or a planned unit davelopntent, Borrower shall per[arm all vF Borrower's o66gativns under the rteclaratiua
<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 constituent documents. if a cvndominiuro or planned urns development
<br />rider is executed 'try Harrower anti recorded together with this Mortgage, the cpvenxrt[s and agreements' of such ndtr
<br />shall bn incorporated into and shall amend and supplement [he covenants and agreements of this Mfortgage us if the rider
<br />ware a pars haceof.
<br />7. Protection aE Leader's Sscuriiy. If Borrower fails to perform the covenants and agreements contained in this
<br />hfortgaga, or if any action ur proceeding is commenced which materially affects Lender's irttrest in the Preptrty,
<br />including, bttt nap limited [o, eminent domain, insotvency, code enforcemtnt, yr arrangements or prsxeedings mvvlviirg a
<br />baakrup•, ar d =lent, then Larder at Lender's aptivn, upvr, notice to Borrower, may make such appearances, dtsbuest such
<br />su.•ns and tars suck action as is neccssarry to protect Lender's interest, inclining, but not limited to, disbirsement of
<br />reasonable attot'tte_v's teas and entry ipon the Property to make repairs. li I,endet regiirtd mortgage insuranet as a
<br />consiition of making the loan secured by this Mvrtear~a, Harrosvze shall nay the premiums required tv maintain such
<br />insuranco- in elfecp until such time as the requirement for such insirance ttnnirrucs m aceordanec •a•uh Horn>wer's and
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