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<br />Ut:tr:oant COVgn,tNTS. Borrower and Lender covenant and aaree as follows:
<br />i. Pavmem of Principal and interest Horrowe: shall promptly pay w~nen due the principal of and interest or_ the
<br />indebtedness evidenced be the Note. prepayment and late charges as provided in the Note. and the principaS of and interest
<br />on any Future Advances secured be this Mongage.
<br />2. Fonds for Taaes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrowtr shall pay
<br />to Lender on the da-y :uonthly installments of principal and interest art papahle under the Note. until the Note-is paid in fvH.
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which map 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 />plus one-twelfth of yearly premium installments for mottsage insurance. if any, all as reasonably estimated initially and from
<br />time to time by Tinder on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or amounu of which are insured or guaranteed by a Federal or
<br />Matt agenry (including Lender if Lender is such an institution). Ltnder shall apply the Funds to pay said taxes. assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applyine the Funds, analyzing said account.
<br />or verifying and compiling said assessments and bills. unless Ixnder pays Borrower interest on the Funds and applicable law
<br />permits Trader 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 a¢reement is made.or applicable law
<br />requires such interest to be paid. Lendtr shalt not he required to pay Borrower any imerest 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 was made. The Funds are pled¢ed as additional security for the sums secured
<br />by this Mortgage.
<br />if me amount of the Funds held by Lender, together with the future monthly installments of- Funds payable prior to
<br />the due dales of taxes. assessments, insurance premiums anti ground repo, 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 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 />Geld by lender shall not be sufficient to pay taxes, assessments. insurance premiums and ground rents as. they fall due.
<br />Borrower shall pay to Lender any amount necessan• to make up the deficienry within 30 days from the dace notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment is full of all sums secured by this Mongage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagrap6 18 hereof the Propery is sold or the Property is otherwise acquired by Lender. Lender
<br />shall apply, no later than immediately prior to the sate 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 b}' this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments rectived 6v Lender under the
<br />N ore and paragrphs 1 and 2 hereof shall be applied b}• Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to in*.erest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Chatgesp Litres. Borrower shalt pac all razes. assessments and other charges. fines and impositions attributable to
<br />the Propert}' 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 shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borewar shall make payment dirrtl}~, Borrower shall promptly furnish to Lender receipts evidenang 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 agree in wnhng [o the payment of the obligation secured by
<br />such lira in a manner acceptable to Lender. or shall in good faith conitst such litre by, or defend eafotcemen*. of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the litre or forfenure of the Property or any part thereof.
<br />~. i-iaavd '.nsaranc~. Barrowtr shall i.tep tht improvtmtnts paw txisnng or htrtafter erecttd on iht Properly insured
<br />against loss by fire. hazards included within the term "extended coveragt", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require: provided, that Lender shaii opt require that the amount of
<br />such wvtrage exceed that amount of coveragt required to pav the sums secured b}• [hrs Mortgage.
<br />The insurance carrier-providing the insurance shall be chosen by Borrower subject to approval by Lender: provided.
<br />[hat such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direMly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Linder 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 Leader all renewal notices and all receipts of paid premiums. In the event of loss.
<br />Borrower shall give prompt notice m the insuranct carrier and Lender. Lender may make prop! of loss i! nrn madt promptly
<br />by Borrower.
<br />Unltss Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied tp restoration or repair of
<br />the Propert}' damaged, provided such restoration or repan is economiculh' feasible and the security of this Mortgage is
<br />not thtzby impttirad. If such ;estoration or repair is not economically feasiblt ar it the security of this A9ortgage would
<br />be impairod, the insurance proceeu; shall be applied to the sums secured by this Mongage, with the excess, if any. paid
<br />to Borrower. If the Properr}~ is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date nutlet is mailed by Lender to Borrower that the insurance carrier pfiers w settle a claim for insurance 6enefi[s, Lender
<br />is authariztd to collect and appl}' the insurance proceeds at Lender's option erther to restoration or repair of the Properly
<br />or [o the stints secttred 6y tilts Mortgage.
<br />Unless Ltnder and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the tiro dale of the monthh~ installments referred ro in paragraphs t and 2 hereof or change the amount of
<br />such installments. if under paragraph I S hereof the Property is acquired by lender, ill tight, title and interest of Borrower
<br />in and to nay insuranct paiicies area m and to tilt proceeds thcrtot resulnng from damage to the Froperty prior to the sale
<br />or ucc}uistuop shaii pass to Lauder to the extent u[ the sums secured h} tins Mortgage immediately poor to such rule or
<br />acquisition.
<br />6. Preservation wad Mainteaaoce of Property; Leaseholds; Condominiums; Plamred Unit llev'elopments. Borrower
<br />shall keep the Property in good repair and shall not commit waste ar permit impairment or deterioration of tht Property
<br />and shall comph• with the provisions of any least if this Mortgage is on a leasehold. if this Mortgage is on a unit in a
<br />condominium ar a planntd uan develapmtat, Borrnw'er shall perform all of Borrower's obligations under the declaration
<br />or covenants crtating or govtrmng the condommwm or planned unit dtvelopment, [he by-laws and regulations oC the
<br />condominium or planned upit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded rogtther woth this Mongage, the covenants and agreements of such rider
<br />shall he incorpozattA into and shall amwd and supplement the covenants and agreements of this Mongage as if the rider
<br />were a pari hereof.
<br />7. Pratectlon of Leader's Seearity. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or pratxtding is commenced which materially adects Lender's interest in [he Property,
<br />intludittg; but not limited to; eminent domain, insolvtncu, code enforcement, or arrangements or proceedings invoking a
<br />bankstrpt or decedent, thtn Lendtr at Letuiu's option, upon notice to Borrower, may make such appearances, disburse such
<br />stuns and take such action as is nectssary to protect Lender's interest, including, bur not limited ta, disbursement of
<br />reasonable attorocy's fees and ertt~y upon tht Prapert}• :o make repairs. if Ltnder rtquired mortgage insurance as a
<br />condition o7 making tilt loan soured by [his Mortgage, Bortower shaii pay the premiums required to maintain such
<br />irutuaace i,. effect until such timt as the requirement foz such insurance tetmina[es in accordanct wnh Horrowers and
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