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$0-~CM4732
<br />UNIFORM Coverenrrrs. Borrower and Lender covenant and agrce as follows:
<br />I. Payment of Principal and Interest. Borrower shat! promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and ]ate charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fnn~ for Taxes and Irlsltrance. 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 "Foods") equal to one-twelfth of the yearly taxes and azsessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if an}•, 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 Fends shat) 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). Lender shall apply the Funds to pay said razes, assessments,
<br />insumnee pzemiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verif}ting and compiling said assessments and bills, unless Lender pays Borcower interest on the Funds and applicable law
<br />permits Lender tc 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 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 earnings on the Funds. Lender
<br />shall give m Borrower, without charge, an annual accounting of the Funds showing credits and debits ro the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged az additional security for the sums secured
<br />by this Mortgage.
<br />Sf the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the dot dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Horrowels 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 reins as they fall due,.
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 3Q days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph Ig hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, ^o later 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 1 and 2 hereof shat) be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to toreros: 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 ail taxes, assessments and ether charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if an}•, 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 shat! make payment directly, Borrower shall promptly (umish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shat] agree in writing to the payment o[ the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such Tien by, or defend enfumement 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 />S. Hazard Insurance. Borrower shall keep the improvements new existing ur hereafter erected un the Property insured
<br />against toss by fire, hazards included within the term "extended coverage", and such other hazards as I-ender may require
<br />and in such amounts and far such periods as Lender may reyuire; provided, that Lender shall not require that the amount oI
<br />such coverage exceed that amoum of coverage required to pay the sums secured by thts Rtortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject m approval by Lender, provided,
<br />that such approval shall not he unreasonably withheld. All premiums on insurnnce policies shall he 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 renewals thereof shall be in form acceputble to Lender and shall include ;: standard mortgage
<br />clattse in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrawer shall promptly famish to Lender all renewal notices and all receipts ut paid premiums. In the event of loss,
<br />Borzower shall give prompt notice to the insurance carrier and Lender. Lender may make prop( 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 o[
<br />the Property damaged, provided such restoration ur repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such rya+oration or repair is not economically feasible ur i( the security of this Mortgage would
<br />be impaired, the insurance pra:eeds shall be applied to the sums secured b}• this Martgage, with the excess, if nn}•, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days Tram the
<br />date notice is mail ~tl by Lender to Borrower that the insurance enrrier offers to settle a claim for insurance benefits, l..ender
<br />is authorized to collect and appl}• the insurance proceeds at Lender's option ei lher to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Utiless Lender and Borrower otherwise agree in writing, any such application of proceeds m principal shall not extend
<br />or pastpmre the due date of the monthly installments referred to in paragraphs I and Z heron( ar flange the amount of
<br />such insmllments. If under paragraph Ig hereof the Property is acyuircd by Lender, all right, title and interest o[ Borrower
<br />in and to any insurance policies and in and m the proceeds thereof resulting from damage to the Properly prior to the s ale
<br />or acuuisiuon shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior m such sale or
<br />acquisition.
<br />£. I?tservatina attd A1aiateaarct of Property; Leaseholds; Condominiums; Planned Unit 1)evelupmrnts. Borrawer
<br />shall keep the Propert}• in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shell comply with the previsions of any lease if this Mortgage is un a Iexsehuid. If this Mortgage is ou a unit in u
<br />condominium er a planned unit development, 0orrower shall perform alt of Borrower's obligations under the declaration
<br />or covenants creating ur governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development. and constituent da:uments. 1(a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of etch rider
<br />shall be incorpom[ed into and shall amend and supplement the covenants sod agreements of this Mortgage as d the rider
<br />were a part hereof.
<br />7. Protectbn of Lender's Security. If Barowee fails to perform the covenants and agreements cmrtained in this
<br />Mortgage, or if any action ar proceeding is commenced which materially affects Lender's interest in the Property.
<br />including, but not limited to, eminent domain, insolvency, code enturcemenL or arnmgements or proceedings involving a
<br />6aakrupt or decedent, then Lender st Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action az is necessary m protect Lender's interest. including. but not limited to, disburemem 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 Mortgage, Borzower shall pay the premiums required to maintain such
<br />insurance in e&eea until such time as the reyuirement for such insursnce terminates in accordance with Borrower's and
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