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80- (iQ4580
<br />Uv:FOaat Covatcnvrs. Borrower and Lender covenant and zcree as follows:
<br />2. Payment of Principal and Interest Borrower shal3 promptiv pap when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepa}'ment and late charges as provided in the Note, and the principal of and interest
<br />on zny Future .Advances secured bt• this Moneage.
<br />2. Funds for Taxes and Insctrance. Subject **-o applicable law or to a written waive; by Lender. Borrower shall pay
<br />to Lender on the da}• monthly installments of principal and interest are payable under the Note. un[il the Note is paid in full.
<br />a sum therein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground revis on the Property, if any. plus one-twelfth of yearh• premium installments for hazard insurance.
<br />plus one-twelfth of yearly premium insta}Iments for mottgage insurance, if an}'. all as reasonably estima[ed initially and from
<br />time to time b}~ Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall 6e held in an institution the deposits or accounu of which are insured nr guaran[eed 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 around rents. Lender may not charge for so holding and applying the Funds. analyzing said account,
<br />or verifi•ing and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds ayd applicabk 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 not be required to pap Borrower an} inrerest 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 pied¢ed as additional securin~ 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 [aces, assessments, insurance premiums and ground rents. shall exceed the amount required to pay said taxes,
<br />assessments. insurance premiums and ground route as they fall due, such excess shall be. a[ Bonewer's option, either
<br />~promptl}• repaid to Borrower or credited to Borrower on month)}• installments of Funds. If the amount of the Funds
<br />held b}• Lender shall not be sufficient to pay taxes, assessments. insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender an}~ amount necessan~ to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender [e Borrowez reques[ing payment thereof.
<br />Upon payment in full of all sums secured b_c this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If uvdez paragraph IS hereof the Property is sold or the Progeny is otherwise acquired by Lender, Lender
<br />shall apply. no later than immediate]}' prior to the sale of [he Propem• 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. ail payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shalt be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />unda~ paragraph Z 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 />4. Charges; bens. Borrower shall pa}' ail taxes, assessments and other charges. fines and impositions at[ributable to
<br />the Properts• 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 prompt]}' furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directh~. Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Bonower shall promptly discharge an}• lien which haz priority over this Mongaee: provided, chat Borrower shall not be
<br />required to discharge env such lien so long as Borrower shall a¢ree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such tier. hy, or defend enforcement of such lieu in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Propem• or any part thereof.
<br />5. Hazard I[[sarance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agt[ivst less by fire. hazards included within the term "extended coverage", and such other hazards as Lender mac require
<br />and iv such amounts and ter such periods as Lender may require: provided, that Lender shall net require that the amount of
<br />such coverage exceed that amount of wverage required to pay the sums secured by this Mortga¢e.
<br />The insurance tamer orovidine the insurance shall be chosen by Borrower subject to approval by Lender: provided.
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if no[ paid in such manner, b}' Borrower making payment, when due. directiv to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable 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 and renewals thereof.
<br />and Borrower shall promptly furttish to Lender all renewal notices and alt receipts of paid premiums. In the event of loss.
<br />Borrower shall gtve prompt nonce to the insurance earner 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 proceeds shall be applied to restoration or repair of
<br />the Propen}' damaged, provided such resoaration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such ratorauen or repair is not economeeallr feasible or d the secunq• of this Mor[gage would
<br />be impaired, the insurance proceeds shall be applied [n the sums secured h} rhos Mortgage, wnh the excess, if any, good
<br />to Borrower. If the Property is abandoned by Borrower, or it Borrower fads to respond to 1-:rider within 30 days from the
<br />date notia. is mailed by Lender to Borrower that the ietsuravice career often to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds a[ Lender's option either to restoration or repair of the Property
<br />or to the sums soured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m wrung, an}~ such application ni proceeds to principal shall not extend
<br />or postpone the due date of [he monthly installmenrs referred to in paragraphs 1 and_ hereof or change the amount of
<br />such installments. If under paragraph l8 hereof the Property is acquired by Lender, all right, uile and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting tram damage to the Propem• prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured b}' then h4nrtaage tmmediatel}• prior to such sale or
<br />acquisition.
<br />ft. I'ratiervation and Mafotenance of Propcrt}•; Leaseholds; Condominiums; Planned Unit t)eveiopments. Borrower
<br />shall keep the Property in good repair and shall not commit wasce or permit tmpaumem or deterioration of the Proper}
<br />and shall comply with the provisions of any (ease it then Mortgage es on a leasehold. [i this Mortgage is on a unit m a
<br />condominium er a planned trait development, Borrower shall perierm all et Borrower's obligations under the declaration
<br />or covenants creating or governing [be condominium or planned umt development, the by-laws and regulations of the
<br />ctmdominium or planned unit developmen[, and constituent documents. if a condominium or planned umt development
<br />rider is executed by Borrower and recorded together wnh tMs Mortgage, the cmenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7, Protection trf Cooler's Securlry. If Borrower tails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proc:eedtng is commenced whtch materially affects Lender's interest in the Propem,
<br />including, but no[ limited to, emitunt domain. insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedutt, then Lender at Lender's option, upon notice to Bonower, ma} make such appearances, disburse such
<br />sums ^^.:l •ak¢ such action a s necessary to protect Lender's ;nterest, including, but not limited to, disbursement of
<br />reasonable anomey's tees and entry upon the Property to make repairs. If Lender required mortgage insurance as .:
<br />condition of making the loan secured by this Mortgage, Bonower shall nay the premiwns reautred to maintain such
<br />insurance in effect until such time as the requirement for such insurance termtnates m accordance wnh Borrower's and
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