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<br />U~tt=osat CovFwRtrrs. 13orower and Lender covenam and agree as follows:
<br />1. Payment of Principe! sod Interest Borrower shalt promptly pay when due the principal of aad interest on the
<br />indebtedness evidenced by the No*.e, prepayment and late charges as provided in the No[e, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />Z I•ttnds for Taws and Insurance. Subject to applicable law or to a written waiver try Lender, Borrower shah pay
<br />to Lender nn the day monthly installments cf principal and interest are payabte under the Note, until the Note is paid in full.
<br />a stun (herein "Funds") equal to one•twetfrh of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Froperty, if any, plus one-twelfth of geazly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initialty a~ from
<br />time to time by bender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in ar, institution the deposits or accounts of which are insured or guaranteed. by a Federal ar
<br />state agency (including Lender if Lender is such an institution). Lender shalt apply the Funds to pay said Razes, assessments,
<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 applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />iortgage 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 pay Borrower any interest or earttings on [he Foods. 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 additionat sectrity 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 [o pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
<br />promptty repaid to Borrower or credited to Borrow-^r on monthly installments of Funds. If [he amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shat! pay to Lender any amotmt 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 a1! sums secured by this Mortgage. Lender shall promptly refund to Borrower arty Funds
<br />held by Lender. If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lendc4 Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by LendeG any Funds held by
<br />Lender 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 paaagraphs I and i hereof shall he applied by 1_ender first in payment of amounts payable io 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 />4. Charges; liens. Borrower shat! pay alt taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over [his 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 />Borrower shall make payment directly, Borrower shalt promptly furnish to Linder receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over [his Mortgage; provided. that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith comes[ such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />againsi loss by fire, hazards included within the term "extended coverage"'. and such other hazards as Lender may require
<br />and in such amounts and for Bach periods a, Lender may require; provided, that Lender shalt not require that the amount of
<br />such coverage exceed that amount of coverage required m pay the sums secured 6y this Mortgage.
<br />The insurance cazrier providing 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 not paid in such manner, by Borrower making payment, when dve, directly io the
<br />insurance cazrier.
<br />AB insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />douse in favor of and in form acceptable to Lender. Lender shr.ll have the right to hold the policies and renewals thereof.
<br />aad Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
<br />Borrower shall give prompt notice to the insurance earner and Lender. Lender may make proof of loss if not made promptly
<br />by 13orrawer.
<br />Unless Lender and Borrower o:~erwise agree in writing, insurance proceeds shall be applied to restoration or repair o!'
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible ur if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. wnh the excess, it :my, paid
<br />to Borrower. If the Property is abandoned by Borrower, or it Borrower tails to respond to Lander within 30 days Irom the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim [ur insurance benefits, i_ender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to pnnctpal shall oat extend
<br />or postpone the due date of the monthly installments referred to in paragraphs t and 2 hereof or dtaoge the anwunt of
<br />such installments. If under paragraph t8 hereof the Property is acquired by Lender, all right, title and interest of Burrower
<br />in anti to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to ~Ite sale
<br />or acquisitior. shall pass to Lender to the extent of the sums secured by [hie Mortgage immediately prior to such gale or
<br />acq~sitinn.
<br />6. Prexrvatian aad Maintenance of Property; Leaseholds: Condominiums; Planned Llnii Developments. Borrower
<br />shall keep the Property in good repair and shall no[ commit waste or permn impairment or deterioration of the Property
<br />nod shall comply with the provisions of any (ease if this Mortgage is on a leasehold. I( this Mortgage is on a trait in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, [he by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. tf a condominium or planned oral development
<br />rider is executed by Borrower and recorded rogether with this Alortgagc, the rovenants and agreements of such rider
<br />shalt 6e incorporated into and shall amend -and supplement the covenants and agreements oC this Mortgage as if the rider
<br />were a part hereof.
<br />7. Frotectton of Lender's Sonority. If Borrower fails to perform the covenans and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property.
<br />including, but not limited to, eminent domain, iosnivency, code enforcement, nr arrmgements or proceedings involving a
<br />bankrupt 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, including. but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property k) make repairs. tC [.ender required mortgage insurance as a
<br />condi4ion of making the loan secured by this Mortgage, Burrower shall pay the premiums required m maiutain such
<br />:.:urns w° in off°^t anti! such ti.•ne as the requirement for such insurance turminates in xccerdance with Borrower's and
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