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~Q~- 00454$
<br />Ux[FOtetst CovexnxTS. Borrower attd Lender covenant and agrce as follows:
<br />1. Payment of PtSncipai attd Interest. Borrower shall promptly pay when due the principal of and inttrest on t}te
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Noie, and the principal of attd iatereat
<br />on any Future Advances secured by this Mortgage.
<br />2. Fonda for Tares and insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on fhe day monthly installments of principal and interest are payab3e under the Note, until the Note is paid in fu8,
<br />a stun (herein "Fonda") equal to one-twelfth of the yearly [axes and assessments which may attain priarity over this
<br />Mortgage, and grotmd rents on the Property, if any, plus ono-twelfth of yeally premium installments for hazard insurance,
<br />plus ono-twelfth of yeazty premium installments for mortgage insurance, if say, all as reasonably estimated initially and from
<br />time to time by Leader on the basis of assessments and bills and reasonable estimates 26ereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed 6y a Federal or
<br />state agency {including Lender if Lender is such an institution ). Lender shall apply the Funds to pay said taxes, assesstttents,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said amount,
<br />or verifying artd compiling said assessments and bills, unless Lender pays Borrower interest oo the Funds sad applicable law
<br />permis Lender tv make such a charge. Borrower aad Lender may agrce in writing at the lime of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made yr applicable-law
<br />requires such imerest to be paid, Lender shall not be required to pay Borrower any interest or earnings on Ne Funds. Leader
<br />shat! give to Borrower, wittmut 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, insumnrx premiums and eround rents, shall exceed the amount required to pay said [axes,
<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 />held by Lender shall not be stdEcient to pay taxes, asussments, insurance premiums and ground rents as 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 Lender to Borrower requesting payment thereof.
<br />Upan payment is full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower arty Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold 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 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 law provides otherwise, all 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 2 hereof, rhea 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 />d. Charges; Liens. Borrower sha{I pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if ary, 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 evens
<br />Borrower shall make payment directly, Borrower shall promptly furnish 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 agrcez in wnnng to [he payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such ]ten in.
<br />legal proceedings which operate to prevent the enforcement of the lien ar Corfeiture of the Property or any part thereof.
<br />3. Hazard Inwrance. Borrower shall keep the improvements now existing er hereafter erected on the Property insured
<br />against loss by free, hazards included within the term "zxtended roverage". and such other hazards as Lender may require
<br />and in such ammmts and Car such periods as Lender may reyuiri; provided, that Lender shall nor require that the amaunt of
<br />such coverage exceed that amount of cavorage required to pay the sums secured by this Mortgage.
<br />The insurance cazrier providing the insurance shall lie chasm by Borrower subjzct to approval by Linder, provided,
<br />that such approval shall not be unreasanahly withheld. AIi premiums an insurance paiicies shalt bi paid 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 />insurance earriu.
<br />AB insurance policies aad renew;ds thereof shall be in form acceptable to Lender and shall include a slander) mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals therenL
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event o[ loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender Lender may make proof of loss if oat made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance praceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically Feasible and the security of this Mortgage is
<br />no[ thereby impaired. ]( such restoration ar repair is nut economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeas shall be applied to the sums secure) by this Mortgage, wuh the excess, if any. paid
<br />to 9ozrower. !f the Pro~rt} is abandaned by Borrower. <r it Borrower Fails to respand to Lender within 30 days from the
<br />date notice is mailed by [.ender w Borrower that the insurance carrier offers to outs a claim fur insurance benefits, Lender
<br />is authorized to calkct and apply the insurance prae:eeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by thu Mortgage,
<br />Unless Linder and Barrewer otherwise agree m writing, ary such application of proceeds to pnncipai shall not extend
<br />or postpone the due date of the monthly installments refirrid to in paragraphs I and 2 hereof ar ch:mge the annnuu of
<br />such installments. 1t undo paragraph 18 hereaf the Property is acquired by Linder, all right, title and interest o[ Borrower
<br />in and to any insuratce policiu and in and m the praaeds thereoY resulting from damagz to the Propzrty prior to the sale
<br />or acquisition shall pass to Lender to the eaten[ of the sums secured by this Mortgage immediately prior to such sale or
<br />as.gitisiiion.
<br />6. Preservation a~ Mainienauce aF Property: l.eaaehoids; Cnrtdomiaiumx; Plpnned i.lni[ 6cvelopntcnts, i rower
<br />shall keep the Praperty in geed repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall wmply with the proris+ons of any lease d th+s Mangagr a on a leasehold. 1[ this Mortgage is tin a unit in a
<br />condominium or a planned unit develapment, Borrower shall perform :dI of Borrower's obligat+ons under the Jzchu:uum
<br />or roveaants ueating ar gaverning the condominium or planned uun divdopntent, the by-laws and regulatiuus of the
<br />condominium or planned unit development, and constituent dceumints. If a condominium or phuuted amt de~elapment
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrzemcnts of such refer
<br />shall be incorporated into and shall amend and supplemem the covenams and agrcanents of this Mortgage as d the riJe+
<br />were a pan hereof.
<br />9. Protsetlon of header's Security. If Borrower fails io perform the covenants anJ :+greemints conwineJ m this
<br />Mortgage, oz if any action ur proceeding is smmencrd which materially affects I cutler's interest in the Propiny,
<br />including, but not limited to, eminent domain, insolvzncy, code entorczmrnt, ar :u rangements or prw.eedings involving :+
<br />bankrupt or decedent, then Louder at Lender's aption, upon nouci a? Morrow-er. may make such appu:trances, disburse such
<br />suns and take such action as is recessary to proter. Lender's nvirest. u?duding, but oat limned to, d+sbursement of
<br />reasonable aztomey's Cees and entry upon the Property to make repay. Ef Lender reyuired mortgage inwrance a.
<br />condition OF making fbz loan secured by this idiutgage, Borrower shall pat ihi premiums required to maintain sudt
<br />insurance in affect until such time as the royuiriment for such insurance terminates m aecordmu~e with Bortx+wrrs ,uul
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