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<br />Urrtt=oatt CovExex7•s. Borrower and Lender covenant and agree as follows:
<br />2. Payment of Ptincipat and Interest. Borrower shall promptly pay when due the principal of and interesk on tht
<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 secured by this Mortgage.
<br />2. Foods for Tazea sad Itrenance. Subject to applicable law or to a written waiver by Lender, Borrower sha8 pay
<br />to Lender on the day monthly installments of principal and- interest are payable under the Note, until the Note is paid in fuII,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Pmperty, if any, plus one-twelfth of yearly premium installments for hazard insurartce,-
<br />plus one-twelfth of yearly preminm inualtments for mortgage insurance, if any, all as reasonably estimated ittitially 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 instirirtion). Lender shall apply the Funds to pay said taxes, assessrnenta,
<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 pays Borrower interest on the Funds and appliwbte law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of Phis
<br />Mortgage that interest on the Funds sha8 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 [o pay Borrower any interest or earnings o4 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. The 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 payable 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 shall be, at Borrowers Option, either
<br />promptly repaid to Bormwer or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be suificient to pay taxes, assessments, insurance premiums and ground rents u they fall due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment in fart of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than irnrttediately prior to the sate of the Prcper[y or its acquisition by Lender, any Funds held by
<br />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable taw provides otherwise, all payments received by Linder under the
<br />Note and paragraphs 1 sad 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 [he principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Lfens. Borrower shall pay all taxes, assessments and other charges. fines and impositions attrbutable 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 shalt promptly famish to Lender alt notices of amounts due under this paragraph, and in the event
<br />Harrower shall make payment directly, Borrower sha8 promptly furnish to Lsnder receipts evidencing such payments.
<br />Borrower shall promptly dixharge any lien which has priority over this Mortgage; provided. that Borrower shall not rte
<br />required to discharge any such lien so Tung as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender. ar shall in goad faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings wfiich apera:a to prevent the enforcement of the hen or forfeiture of the Property ar any part thereof.
<br />5 "• - „:~. Bntrawer shall keep the +mprovements now existing nr hereafter erected on the Pr operts• insured
<br />rgainst loss ny fire, hazards included within the rum "extended coverage", and such other hazards as Lander may requiro
<br />ad in such artaunts and for such perious as Lender may require; provided, that Lender shalt rot reyuire that the amvunt of
<br />such coverage exceed that amount of cmerage reuuired to pay the sums secured by this Mortgage.
<br />The irsurance carrier providing the insurance shall be chosen by Burrower subject to approval by Lender, provided.
<br />that such approval shall not be unreasonably withF.eld. All premiums nn 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 shall be in form acceptable [u 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 and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal nmices and all receipts of paid premiums. In the even of lass.
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss it not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance pnxeeds shall be applied to restoration or repair of
<br />the Property damaged, provided ouch restoration ar repair is economically feasible and the security^ of th+s Mortgage u
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the secunty of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the soma aecnred by mis Mortgage. wrth the excess, if any, paid
<br />to Borrower. If tote Propert}• is abandoned by Burrower, or i( Borrower tails to respond to Lender wuhm 3U da}•s Iron the
<br />date native is mailed by I-ender to Borrower that the insurance carrier pliers a, seine :+ claim for msuranee benefits, 1 ender
<br />is authorized to collect and apply' the insurance proceeds at Lender's option enher to rramraumt or repair of the Prolx:rty
<br />or [o the sums secured by this Mortgage.
<br />Uuless Lender and Borrower otherwise agree in writing, any such application of pnxeeds to pnnopal shall nut extend
<br />or postpone the due date of the monthly inst:.ilments referred to in paragraphs I and '_ hereof ur change the arnoum oI
<br />such installments. 1f under paragraph 1$ hereof [he Propery is acquired by l-endue, all right, title and imercnt of Borrower
<br />in and to any insurance policies and in and to the pnrceeds thereat resulting from damage ro the Pmpen_r pnar to +he sale
<br />or acquisition shall pass to Lender to the extent of the sums securod 6y this Mortgage uuuxdiately pave n~ sorb sale ur
<br />acyttisitiva.
<br />6. l reservation and i4laintenaoce of Property; Leaseholds; Condominimns; Planned Unit Uevelupmrnts, Borrower
<br />shalt ketp the Property in goad repair and shall nut commit waste or permit impairment or deterioration of the Property
<br />attd shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a amt iu :+
<br />condominium or a planned unit development, Borrower shall perfonu all of Borrower's obligauons under the dcelaranan
<br />or covenants a'catiug 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 condominium or planned unn development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shalt be incorporated into and shall amend and supplement the covenants and agrcemeuts of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Proteetlon of Lender's Security. ff Bornnvor fails tt+ perform the covenants and agreemcros contained m [hie
<br />Mortgage, or it any action or proceeding is ummenced which materially affects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, ar arrangements or pra:eedings imoh•ing a
<br />6ankrunt or deceden6 then Lander at Lender's option, upon notice [a Borrower, may make such appearances, disburse such
<br />sums sad take such action as is necessary tc protect Lender's interest, mcludmg, but not limited to, disbursement of
<br />reasonable attamey's Ices and entry upon the Property to make repairs. If Lender required mortgage insur:utce av :+
<br />condition of making the foss sectued icy this hiortgagc, Borrower shall pay rite premiums require) tv maintain .inch
<br />insurance in etiect until such time as the requirement for such inwrance terminates in accerdmtec with Borrower'. and
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