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80-- ;~~t4250
<br />UnrFOxx Covex~nTS. Borrower and Lender covenant and agree as follows:
<br />i. Payment of Prtascipai amf Interest Bornwet shalt promptly pay when dire the principal of and interest on the
<br />fnd.btedness evidenced by the Note, prepayment and lau charges as provided in the Note. artd the principal of and iaurest
<br />on any Future Advances secured by this Mortgage.
<br />1. Frmds for Tales wad I»asaance. Subject to applicable law or to a written wairer by Lender, Borrower shag pay
<br />to Iznder 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 "Futtds'") 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 />alas one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time io time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />'Ihe Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal oc
<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 [he Funds, anal}zing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Bortower interest on the Funds and applicable law
<br />permits Ixnder 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 imerest 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 />purpoea 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 />If the amount of the Funds held 6y Lender, together with the future monthly installments of Fords payable prior m
<br />[Ile due dates of taxes, assessments, insurance premiums and ground rents, shalt exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borcoweis option, either
<br />promptly repaid to Borrower or credited to Borrower om monthty installments of Funds. If the amount of the Funds
<br />held by Lender shell not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br />Borrower shat! pay to Lender any amount necessary to make up the deficiency within 30 days from 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 pazagraph Ig hereoC the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, ro later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured 6y this Mortgage.
<br />3. AppBcation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereot 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 />3. Charges; Lterrs. Borrower shall pay all taxes, assessments and other charges. (rtes and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and IeasehnlJ payments er 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 shs1l promptly furnish to Lender ail nouces of amounts due under this paragraph, and is the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shal3 promptly discharge any lien which has pnonty over this Mortgage: provided that Borrower shalt not bt
<br />required to discharge any such lien so long as Borrower shall agree in +vnung to the payment of the obligation secured 6y
<br />such lien ir. a manner acceptable to Lender, or shall in good fmih contest such lien by, ur defend enforcement o[ such lien in,
<br />Iegat proceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
<br />S. Hazard insurance. Borrower shall keep the nnprovemem=, now existing or hereaitzr zrezud on the Property insured
<br />against loss by fire, hazards included within the term "extendeJ coverage", and such ether hazards as Lender may requue
<br />and in such amounts and for such oeripds as Lender may require: provided. that Lender chap not requice that the amount oP
<br />such coverage exceed that amount of coverage required w pay the sums secured by this Mortgage.
<br />Tie insurance carrier providing [he insurance shall bz chosen by Borrower subject to approval by Lender: provided.
<br />that such approval shall not be unreasonably withheld. All premwms on insurance policies shall be paid m the manner
<br />provided under paragraph 2 hereof or. if not paid in such manner, by Burrower making payment, when due, Jvectly to the
<br />insurance cazrier.
<br />All insurance policies and rene~.vals thereof shall bz m form ucctpia6lt to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies xnd renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal nouces anJ all receipts ui paid premwms. In the event of loss.
<br />Borrower shall give prompt notice ro the insurance earner and Lender. Lender may make proof of loss it not mode promptly'
<br />by Borrower.
<br />Unless Lender and Harrower othenvrse agree in writing, insurance protetds shut: be applied to restoration or repair of
<br />the Property damaged, provided such restorauon or repair is economically tensible and the security of this Mortgage ~s
<br />not thereby impaired. I( such restoration or repair is not economically leavble ur if the securty of this .Y,ortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured 6y this Mortgage, with the excess, if any. paid
<br />to Borrower IP the Property is abandoned by Horrower, or it Borrower Lids m respond to Lender within all days from the
<br />date notice is mailed by Lender to Borrower that the insurance earner pliers to scale a claim for mscrance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's opton crther to restoration or repair n( the Pmpert}
<br />or to the sums secured by this Mortgage.
<br />Utiless Lender and Borrower otherwise agree m writing, any such application of proceeds to pnnup:d shall not extend
<br />or postpone the due date of the monthly instalments referred ro in paragraphs 1 anJ 2 hereof or change the amount of
<br />such installments. II under paragraph IB hereof the Property is acyuned be Lender. ail right, ode and interest of Borrower
<br />in and m any insurance policies and in and to the proceeds thereof resuhing from Jamage to the Property poor to the sale
<br />or acquisition shall pass to Li:ndzr io tht extort of the sums secured by this M1lortgagc ~mmcdstzly poor to sac!: sole er
<br />acquisition.
<br />6. Preservation aad Maintenance of Property; Leaseholds; Condominiums; Planned Unit Develupmcnts. Oorrowzr
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of [he Propert>'
<br />and shall comply with the provisions of any lease it this Mortgage is on a leasehold. if this Diongage is en a amt in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's nbitgations under tht dtclarauen
<br />or covenants creating or governing the condominium or planned unit development, the by-lows and rcguiatimis of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit .izvelopmm~t
<br />rider is executed by Borrower and recorded ingather with this Mortgage, the covenants and ngreemenu nl such riJcr
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of Iha Mortgage as ~t the rider
<br />were a part hereof.
<br />7. Prxdection of Lender's Security. If Borrower Coils to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commented which materially affects Lender's interest in the Property.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invoh•ing a
<br />barfkrupt or decedent, then Lender at Lender'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, incietling, bin not limited to, Jubunement of
<br />reasonsbte attorney's fees and entry upon the Property to make repairs. ff Lender reyuired mangage insurance as a
<br />condition of making the loan secured by this Mortgage, Horrower shall pay rile premiums required to maintain such
<br />insurance in efteet until such ume as the requiremem.for such insurance terminates in accordance with Borrower's and
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