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80~~~48~4
<br />L'xmoaxt Covexnnrt's. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Prhrcipal and Interest. Borrower shat{ promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Funrre Advances secured by this Mortgage.
<br />2, Faede for Trues and Iaserance. Subject to applicable law or to a written waiver by Lender, Borrower shag pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in fall,
<br />a Bran (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 Property, if any. plus one-twelfrh of yearly premium iastallmwts for hazard irtsuratue,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />dme to time oy Lender on the basis of assessments and bills and reasonable estimates [hereof.
<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 institution). Ixnder shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. trader 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 Ute Funds and applicable !aw
<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 fie paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Ixnder shall not be required to paq Borrower any interest or earrringa on the Ftmds. Lender
<br />shat! give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds acrd the
<br />purpose For which each debit to the Funds was made. 7be Funds are pledged as additional security for the Burns secured
<br />by this Mortgage.
<br />If the amount of the Foods held 6y [.ender, 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 artd ground rents as they fall due, such excess shall be, at Borrowers 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 sufficient to pay taxes, assessments, 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 Leader to Borrower requesting payment thereof.
<br />Upon payment rn full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower arty Funds
<br />held by Lender. If under paragraph lg hereof the Propetty is sold or the Progeny is otherwise acquired by Lender, Lender
<br />shall apply, no laser than immediately prior to the sale of the Property or its acquisition by Lender, 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 paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender 6y Borrower
<br />under pazagraph 2 hereof, then to interest payable on the More, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall 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 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, sad is the event
<br />Borrower shall make payment directly, Borrower shag promptly famish to Lender receipts evic'encing such payments.
<br />Bo: rower ctrl! promptly discharge any lien which has priorit}' over this Mortgage: provided, that Burrower shalt 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 sh:dl in good faith contest 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 par. thereof.
<br />5. Hazard Iosunmce. Borrower shag keep the improvements now existing or hereafter erected nn the Property insured
<br />against 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 such periods us Lender may require: provided, that Lender shell not require thm the amount of
<br />such coverage exceed that amount of rnverage reywred to pay [he sums secured by thts Mortgage.
<br />The insurance carrier providing tae insurance shall be chosen by Borrower w6ject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shalt he paid in the manner
<br />provided under paragraph 2 hereof nr, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />iasumnce cazrier.
<br />.411 insurance policies and renewals thereof shalt be in form acceptable to Lender and shalt include a sumdard mo«gagc
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right m hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event nF loss.
<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 proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible surd the security of this Mortgage is
<br />not thereby impaired. If such restoration ur repair is not economically feasible or if the security of this Mortgage would
<br />fie impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower, 1t the !'roperty is abandoned by Borrower, or d Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender m Borrower that the insurance currier oilers to settle n claim fur insurance benefits, !.ender
<br />is authorized to wllect and apply the insurance proceeds at Lender's option either to restoration or repair of the Prupeny
<br />ar to the Bunts se vred by this Mortgage.
<br />Unless tender and Borrower otherwise agree m writing, any such application of pnxeeds to principal sh;dl nut extend
<br />or postpone the due date of fhe monthly installments referred m iu paragraphs I and ? hereof or change the amount of
<br />such installments. If under paragraph t8 hereof [he Property is aaryit'ed by Lender, all right, title and interest of Borrower
<br />in and m any insurance policies and in and w the proceeds thereat resulting from damage to the Progeny prior to the sale
<br />or aeti~i:ion =6xlt pass ttr Lender to the extent ni the sums secured by this Mottgagc unntediatcly' prwr :o such sate or
<br />ncquisittou.
<br />S. Presarvatiou and Mahrtenanca of Properly; Leaseholds; Cmrdaminiums; Planned Utdt I~velopnrenis. liarnnvcr
<br />shall keep the Property in good repair and shall not commit waste or permit intpuirmeut ur deterioration of the Properq'
<br />and shall comply with the provisions of any lease it this hfortgagc is on a leasehold. If this Atottgagc i+ on .i writ in a
<br />Condominium or a planned unit development, Borrower shall perform all of Bonvwer's obhgauons under the declar.WOn
<br />or covenants craating or governing the rnndumiuium or planned unit development, the by-law's :Ind regulauuro of the
<br />condominium or planned unit developrttent, and eernstituent documents If a condominium ar planned anti development
<br />rider is executed by Boerower and race+rded wguther +vnh this Mortgaga, the covenants surd agrcemems of uidt nder
<br />shall be incorporated into and shall amend anJ supplement the covenants :md agmements of thu Mortgagu as it the ridci
<br />were a part herwf.
<br />9. Protection of trader's Security. 1[' Bonvwer fails w perform nc~ covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which rnaterinlly aifecu Lender's mtamst in the Progeny.
<br />inehtding, but not limited to, eminent domain, insolvency, code en(orcemenL or arrangements or prcxccdings involving a
<br />bankrupt or du:edent, then Lender tit Lender's option, upon notice to Borrower, may make such appearances, .lisbursc such
<br />soma and take such action as is necessary to protect Lender's mtmest, including, but not limned m, disborsement of
<br />reasonatae attomsy s 'sec and entry upon the Property to make rep;tirx. tf 1 ender rcyuund mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall na} the premiums required to maintain such
<br />insurance In effect until such time as the requirement for such msurance terminates m accordance with Bonawer's and
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