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3Q-^ X04657
<br />UxraottM Covex.sxts. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and InMrest. Borrower shall 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 Future Advances secured by this Mortgage.
<br />2. Fmtds far Ttaes and I~arance. Subject 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, until the Note is paid in full.
<br />a sum (herein "Fonda") 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-twelfth of yeazty premium installments for hazard ittsurarrce,
<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 hdd 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). Lender shalt apply the Funds to pay said taxes, rsswsments,
<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 ar_d 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 ai the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borcower, and unless such agreement is made or applicabk law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Futtds. 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 Fursds are pledged as additional security for the sutras secured
<br />by this Mortgage.
<br />If the amount of the Funds hdd by Lender. together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assess,ents, insurance premiums and ground rents, shall exceed the amount required io pay said taxes,
<br />assessments, insurance premiums and ground rents as. they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />hdd bw Lender shad not be stdlicient to pay [axes, 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 nofice is mailed
<br />by Lender to Borrower requesting pavmen[ thereof.
<br />Upon payment :n full of alt sums secured by this Mortgage, Leader shall promptly refund to Borrower nay Funds
<br />herd t:y Ixnder. tf under paragraph Ig hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shalt apply. no lacer than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Leader at the nmc of appliadon as a credit against the sums secured by this Mortgage.
<br />3. Applic~ioa of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraph=_ 1 and 2 hereof shall be applied by Lender fits[ in payment of amounts payable to Lender by Borrower
<br />under paragraph ?hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />prinnpal on any Furore Advances.
<br />4. Charges; Lietts. Borrower shall pay ail taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a prinrty 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 therwf. Borrower shall promptly furnish to Lender all ^nuces rat amounts due under this paragraph, and in the event
<br />Borrower shall make paymen[ directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower sisal! promptly discharge any tiara which has pnonty over this Mon¢age: 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 m a manner acceptable to Lender, or shall in good (with contest such hen h}', or defend enforcement of such lien in,
<br />legal proceedings which operate ro p:everst the enforcemrnt of rho hen or forfeiture of the Property nr any part thereof.
<br />5. Hazard lasurance. Borrower shall keep the mtprovements now existing or hereafter erceted on the Property insured
<br />against loss by hre, hazards included within the term "extendeil caverage'~, and such ether hazards as Lender may requtre
<br />and in such amounts and far such periods as Lender may rcyutre; provided, that Lender shall not require Thai the amount of
<br />such coverage exceed that amount of coverage regwred to pay rite sums sentrcd sty this Mortgage.
<br />the insurantt carrier providing tie insurance shall rte chosen by Borrower subject to approval by Leader: 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 due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewas thereof shall tx: 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 politics and renewals thereof.
<br />and 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 carrier and Lender. Lender may make proof of loss if nut 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 and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasihle or if the security of this Mortgage wnuW
<br />be impaired, the insurance pry Beds shall be applied to the sums secured by this Mortgage, with the excess, iP any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to responJ to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance currier offers to scale a claim for insurance benefits, Lender
<br />is authorizW to collect and apply the insurance proceeds rat Lender's option either to rtstorntion or repair of the Property
<br />or to the sums secured by this Mortgage,
<br />Unless Lender and Borrower otherwise agree in wrong, any such application of proceeds to pnnctpal shall nut extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 ;rod 2 hereof or change the amount of
<br />such installments. If under paragraph I8 hereof the Property is acyuveJ by Lender, all right, title rand interest of Borrower
<br />in and to any insurance policies and in and In the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass m Lender to the extent of the sums secured ray this Mortgage immediately Prior to such ,ado or
<br />acquisition.
<br />6. Prnervation and M1faintename of Property; Isasehoids; Condominiums; Planned Unit pevelopmmtts. Oorrowcr
<br />shall keep the Property in good repair and shall not commit waste or permit impairment ur deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage ix on a leasehold. If this Mortgage is nn a unit 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, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. if a condominium or planned unn development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of e:ch rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of the Mortgage as it the rider
<br />were a part hereof.
<br />7. I'rotcetioo of Caroler's Security. If Borrower fails to perform rho covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially attests Lender's inerest in the Property.
<br />including, but ^ot limited to, eminent domain, insolvency, code enforcement, or arrangements 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 attomeyi fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />canditiar, of making ibe tuna secured by this Mortgage, Borrower sfiall pay the premiums reyuired to maintain such
<br />insurance in effrt unfit sack ti...e as the reyuirement for such insurance terminates ir, accordance wtth Born~.wei s and
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