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$~-- U04C56
<br />UxmoxM Coxrnxnxrs. Borrower and Lender covenant and agree as follows:
<br />Y. Payment of Prfncipai sad letereaf. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayarent and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by chic Mortgage.
<br />2. Fonds for Taws and Imtaaeee. Sltbject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, umil 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, tad ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be Geld in an institution the deposits or account of which are insured or guaranteed by a Federal or
<br />state agency finduding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessment,
<br />insurance premiums and ground rears. Lender may not charge for so holding and applying the Funds, anatydng said at:count,
<br />or verif}~ng and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds-and applicable law
<br />permiu Lender to make such a charge. Borrower and Lender may agree in writing at the time of ezecudon of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agrcemeat is made or applicable l:w
<br />requit•~ such interest fo be paid, Lender shall not be required to pay Borrower any interest or etunings on ibe Funds- Leader
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credit and debit to the Funds tad the
<br />'purpose for which each debit to the Funds was made. The Funds are pledged as additional sorority for the sums secured
<br />by Utis Mortgage.
<br />If t!rv 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 rent, shall exceed the amount required to pay said taxes,
<br />assessment, insurance premiums and ground rents as they fall due, such excess shall be, ai Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower on momhfy installment of Funds. [f the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessment, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lander any amount necessary to make up the deficiency within 30 days from the date notice is malted
<br />by Lender to Borrower requt^ting payment thereof.
<br />Upon paymrnt in full of all stuns secured by this Mortgage, I-ender shall promptly refund to Borrower any Funds
<br />held by Under. If under pazagraph 18 hereof the Pcopetty is sold ar the Proporty is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition 6y Lender, any Funds held by
<br />Lender a[ the time of application as a credit against the sums secured by this Mongage.
<br />3. Appiicedon of PaJ~aents. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note tad paragraphs I and 2 hereof shall be apphzd by Lander first m payment nt amounts payable to Lender by Borrower
<br />under pazagraph 2 hereof, then to interest payable an the Noce. [hen to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Lives. 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 ar ground rent, if any, in the manner
<br />provided under paragraph 2 hereof or. rt not pall in such manner. by Borrower making payment, when due. directly to the
<br />payee thetp..of. Borrower shalt promptly furnish to 1-ender all nouces of amount due under this paragraph, tad in the event
<br />Borrower shall make paymem direcdv. Burrower shall promptly famish to Lander receipts evidencing such payment.
<br />Borrower shall promptly discharge any lien •.vhich has pnoriq• over this Mortgage: provided, that Borrower shalt not be
<br />required to discharge an}' such lien so long as Borrower shall :agree in writing to the payment of the obligation secured by
<br />such lien to a manner acceptable to 1_ender, nr shall in good tai[h comcsl such lien by, or defend enforcement of such lien in.
<br />legal prcn~eedings •.vhich operate to prevent the enforcement of the ;ten or forfeiture of the Property or any part thereof.
<br />s. I3csd Iesarasce. Baaew~±r shall keep the improvements now existing ar hereafter erected on the Property insured
<br />against ions by fire, hazards include) within the term "zr,tendzJ coverage", and such other hazards as Lender ;nay require
<br />anJ in suv'$ ag[ount and Coe su=h ozriads as f..zndzr may rzquirz: provided, that l,.r:nder shall not require that the atnount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mongage.
<br />The insuranet carrier providing the insurance shalt he chosen by Borrower subject to approval by Lender, provided.
<br />that such approval shall not be unreasonably withheld, .Alt premiums nn insurance policies shall be paid m the manner
<br />provided under paragraph 2 hereof or, +f no[ paid in such manner, by Borrower making payment, when due. Jircctly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereat shall be in Corm acceptable to Lender and shall include .a stnnJard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renzwais thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices anJ alt receipts of paid premiums. In the rvem of loss.
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make praot of Ions d not made promptly
<br />by Borrower.
<br />Unless Lznder and Borrower otherwise agree in writing, insurance proceeds shall tx applied to restoru«on or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the secw~ity at this Mortgage is
<br />not thereby impaired If such « s[oration or repair is not economically feasible or rf the security of thrs Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, wuh the excess, if any, pall
<br />to Earrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lrnder wnhin 3U days [rom the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers ro scale n claim for insurance henefits, Lender
<br />is authorised to collect and apply the insurance proceeds at Lender's option tither to restoration or repair of the Proptrq•
<br />or to the stuns secured by this Mortgage.
<br />Unless Lender and Borrower otherwise aga~t in writing, any such application of proceeds to principal shall not extend
<br />of postpone rho due date o[ thz monthly installments referred to in paragraphs 1 :rod ~ hereof or change the amount of
<br />such instatement. It under paragraph 1 g hereof the Property is acquired by Lender, :di right, title and interest of Borrower
<br />in and to ring insmm~ce policies rind in and to the proceeds thertot resuhing frmn Damage to the Propzrq• prior to the sale
<br />or acquisition shall pass to Lrnder to the eaten[ of the sums secured by thin Mortgage immediately prier to such salt or
<br />acquisition.
<br />6. Preservation and A7rintenance a[ Property: Ixaseholds: Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairmem or deterioralian of the Properq•
<br />arse shall comply with the provisions of any lease if this Mongage is un a leasehold. if this Mortgage is an a unit in a
<br />condominium or a planned unit development, Borrower shall perform ell o[ Borrower's obligations under the Declaration
<br />or covepants creating or governing the condominium or planned unit development, the by-laws and regul+uions of the
<br />condominium or planned unit development, and constituent document. if a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage. the covenant and agreements of such rider
<br />shall be itxorporated 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 of Lender's Security. If Borrower fails to petCorm the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding +s commenced which materially aHccts Lender v interest in the Property,
<br />indtuiing, tint not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />ban-krupt or decedent. than Lends at Lendei s option, upon notice to Sarrower, may make such appearances, disburse such
<br />autos and take such action as is necessary to protect Lender's interest, induJing, tint nM limited ta, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this Morgage, Borrower shall pay the premiums required to maintain such
<br />insurance in ttieet until such time as the requirement for such insurance terminates in accordance with Borrowers anJ
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