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$0-'" ©~4E~49
<br />Ut;roxnt Cot'EN;,Nis. Borrower and Lender covenant and agree as follows:
<br />i. Pavmcat of Principal aad Interest. Borrower shall prompth• paq when due the principal of and interest on the
<br />inde'utedness evidenced by the Note, prepayment and late charges as provided in the Note. and the principal of artd interest
<br />or, ary Future Advances secured by this Mortgage.
<br />2. Funds for Taxes and Insurance. Subject to applicable taw or to a written waiver by Lender. Borrower shalt pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Noe, until the Note is paid in full.
<br />a sum (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 Propery-. if am. plus one-twelfth of yearly premium installmenu far hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance. if any. alt as reasonably estimated initizlly and from
<br />tint to time by Lender on the basis of assessmenu and bills and rezsonable estimates thereof.
<br />The Funds shall be Geld in an institution the deposiu or accounu of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessmenu.
<br />insurance prer.:iums and ground renu. Lender may not charge for so holding and applying the Funds. analyzing said account,
<br />of verifying and wmpiling said assessmenu and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />petmiu Leader 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 shat] be paid to Borrower, and unless such agreement is made or applicable taw
<br />requires such interest to be paid, Lender shall not be required to pal Borrower am' interest or earnings on the Funds. Lender
<br />shalt give to Borrower. without charge. an annual acmuntin¢ of the Funds showing credits and labia to the Funds and the
<br />purpose for which each debit to the Funds u~as made. "Ilte 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 ~u'ith the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessmenu. insurance premiums and eround renu, shall exceed the amount required m pay said taxes,
<br />assessmenu, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option. either
<br />prompd}- repaid to Borrower or credited to Borrower on monthly installmenss of Funds. If the amount of the Funds
<br />held by Lender shall not be sutficieat to pay taxes. assessments. insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to Lender any amount nectssan- to make up the deficienn• within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon paymem in frill of all sums secured by this Mortgage. Lender shall prompth' refund to Borrower an}' Funds
<br />held by Leader. If under pazagraph 18 hereof the Propertc is sold or [he Properly is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Properly or its acquisition 6y Lender, nay Funds held by
<br />Lender at the time of .application as a credit against the sums secured by this Mottgage.
<br />3. Application of Paymenu. 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. Uten 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 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 eround rents. if am', in the manner
<br />provided under pazagraph 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 amounu due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrowes shall promptly furnish to Lender receipts evidencing such paymenu.
<br />Borrower shall promptly discharge app lien which has pnonty over [his Mortgage: provided. that Borrower shall not be
<br />required to discharge an}' such lien so long as Borrower shall agree in writing [o the payment of the obligation secured by
<br />such lien m a manner acceptable to Lender, or shalt in good [aith comes[ such lien h}', or defend enforcement of such lien in,
<br />itgrd procceding< which apera[t to prevent the enforcement of the lien or forfeiture of the Prnptrty or any pan thereof.
<br />~. hazard Insaranct. Borrower shall keep the improvements now existing or hereafter erecred on the Property insured
<br />against !ass by fire, hazards included wtthm [he term "extended coverage -, and such other hazards as Lender ma}' require
<br />and to ~xh amounu and for such periods as Lender mat revutre: provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pa} the sums secured by thu Mottgage.
<br />-)°ae insurance :artier providing the insuranet shall be chosen by Borrower subject m approve! by Lender: provided,
<br />that such approval shall not be unreasonabl}' withheld. All premiums on insurance policies shall be paid in the manntr
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
<br />inrurance carrier.
<br />Ali 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 shell promptly furnish to Leader all renewal notices and all receipts of paid premiums. In the event of loss.
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender ma} make proof at loss if not made promptly
<br />by Borrower.
<br />Unless Lender aad Borrower otherwise agree in .writing. insurance proceeds shell be applied to restoration or repair of
<br />the Property damaged, provided such restoranon or repau is economically feasible and the securin~ of this Mortgage i>
<br />not thereby impaimd. If such rector>tion or repau is not economically feasible or d the securnv of this Mortgage upuid
<br />bt impaired. the insurance proceeds shah be applied to the sums secured by this htongage. wnh the excess, if any, void
<br />to Borrower. if the Property is abandoned by Borrower, or rt Borrower tails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier nflers to settle a claim for insurance 6evefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option et.lber to restoration or repair of the Proptny
<br />or to the stems secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to pnnctpal shall not extend
<br />or postpone the due date of the monthly iastallmen[s roferrcd to m paragraphs I and :hereof or change ehe amount n[
<br />such installments. It under paragraph iS harlot tht Property is acgwred by Lender, all right, title and interest of Borrower
<br />in and w anl~ insarantt policies attd iu and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass tv Lender to the exttat of [he sums secured h} this Mortgage ~tnmediatziy prior to sueh salt or
<br />acgtisition.
<br />6. Preservation and MniWenance of Property: Leaseholds; Condominiums; Panned Unit Developments. Borrower
<br />shall keep the Property iv good repair and shall pat commit wasu ur permit impairmtm ar deterioration of the Property
<br />and shat! comply with ttte proviwons of any' lease i~ this Mortgage is as a leasehold. if this Mortgage is on a unit in a
<br />condominium or a plattnad unit development. Borrower shall perform all of Borrower's obhgauons under the declaration
<br />or covenants creating w governing the condominium or planned unit development, the bylaws and regulations of the
<br />condominium or planned unit dtveopment, and constituent documents. If a wndominium or planned unit developmem
<br />rider is executed by Borroww and rtcorded together with this Mortgage, the covenants and agreements of such plot
<br />shall bt incorporated into and shalt amend aad suppttment the covenants and agreemems of this Mortgage as if the rider
<br />were a pan hereof.
<br />7. }'rotectioa of Leuder'e Security. It Borrower [ails to perform ehe covenants and agreements contained in this
<br />Mortgage, or if any action or proceedrng is commenced which materially affects Lender's interest in the Property.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt ar d~edant, then Coolly at 1, =nderb option, upon notice m Borrower, may make such appearances. disburse such
<br />sums and 4^„kt such actior. as is accessary to protect Lender's interest. including. but not limited to. disbuisemrnt of
<br />reasonable attorney's fats and entry upon [he Property to make repairs. If Lender required mongagz insurance a< a
<br />condition of making the loan secitred by this Mortgage. Borrower shalt pay the prcmiurns rcquued to maintain such
<br />instuance in effect until such timz as the inquirement for such insurance tei'tninatts m accordance wnh Bnrmwti s and
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