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8fl- X04'734
<br />Uxti`oeM Cov2xnxrs. Borrower and Leader covenant and agree as follows:
<br />I. Paymen! of Principal and Interest Borrower shall promptly pay when due the principa! 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 />oa any Future Advances secured by this Mortgage.
<br />2. Finds for Taws aad Irrsorance. Subject to applicable law or to a written waiver by Lender, Borrower shag pay
<br />to Leader 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 "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-twelfth of yearly premium instaltments for hazard instuance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, ail as reasonably estimated initially and from
<br />time to time by Lender cn the basis of assessments and bills and reasonable estimates thereof.
<br />'t'he Funds shall be held in an institution ehe deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Ixnder if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing saie+ account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable taw
<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 be paid to Borrower, and unless such agreement h 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. Leader
<br />st:ail give to Bortower, without charge, an annual aceouneing of the Funds showing credits and debiu to the Funds and the
<br />purpose for which each Debit to the Funds was made. 'lire 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 with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, ir.sv: once pzmiums and ground rents, shag exceed the amount required to pay said taxes.
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borcower's opton, 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 sut5cient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to Lender am' amount necessary to make up the deficiency within 30 Jays from the date notice is mailed
<br />by Lender to Bortower requcst3ng payment thereof.
<br />Upon payment in ful] of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 1 E'. hereof the Properly is sold or the Property is otherwise acquired by Lender, Lender
<br />shat[ apply, no later than immediately prior to the. sale of the Property or its acquisition 6y Ixnder. any Funds held by
<br />Lender at. tF.c time of spplication as a credit against the sums secured 6y this Mortgage.
<br />3. AppB^_atioo of Payments. Unless applicable taw provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and '_ hereof shall b[: applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under pazagraph< hereof, [hen [o interest payable en the Note. then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Cha[ges; IJens. Borrower shall pay all taxes. assessments and other charges, fines anJ impositions attnbutabie to
<br />the Property which may attain a priorir~ over this hfortgage, and leuehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, ,t 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 Jue under this paragraph, aad in the event
<br />$orrower shall make payment d:rec[1v, Borrower shall promptly tarnish to Lender rewipts evidencing such payments.
<br />Borrower shall aromptly discharge any lien which has onority over this Mortgage: provided. that Borrower shall not tx
<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 faith contest such lien by, or Defend enforcement of such lien in.
<br />legal oraccedings which operate to prevent the enforcement of [hc lien or farferture of the E'roperty or any part thereof.
<br />5. Hazard leautance. Borrower shall keep [hc improvements now existing ar hereafter erected on the Property insured
<br />sasinet Toss by fire, hazards included within the rortrt "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require: provided, that Lender shall not n:quire that [hc amount of
<br />such ceserage exceed that amount of coverage required to prey the sums secured by this Rfortgage.
<br />'the insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shalt not be unreasonably withheld. All premiums nn insurance politics shall be paid in the manner
<br />provided under paragraph 2 hereof or, if oat paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance cazrier.
<br />All insurance policies and renewals thereof shall 6c in form acceptable [o Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Ixnder. Lender shall have the right to hold the policies and renewals thereof,
<br />aad Horrewer shall promptly furnish to Lender all renewal notices and all receipts o[ 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 i( not made promptly
<br />by Borrower.
<br />Unless Lender snJ Borrower otherwise agree in writing, insurance pnxeeds shall be applied to restoration or repair of
<br />the Property Damaged, provided such restoratioe or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the se vrity of this Mortgage would
<br />be impaired, the insurance proceeds shall be applieJ to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is ,bandoneJ by Borrower, or if Borrower fails to responJ to Leader within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to sente a claim fur insurance benefits, l..ender
<br />is authorized to collect and apply the insurance proceeds at 1_enJer s option either to restoraton or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and $orrower otherwise agree m writing, any such application of proceeds to pnnapal shall oat extend
<br />or postpone the due date of the monthly insu[Ilmen[s referred to in paragraphs 1 anJ 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquire) by Lender, nil right, title and interest of Burrower
<br />in and to any insurance policies and in and to the proceeds thereof' resulting from Damage to the Property prior to thu sale
<br />or acquisition shall pass to Ixnder to the ext^nt of the scans seuureD Lw This Mortgage immediately prior a+ such sale ur
<br />acquisition.
<br />6. Preservation sad M1taialenaace of Property; ixeseholds; Condominiums; Planned Uni[ Ocvelopmen[s. Burrower
<br />shall keep the Property in goad repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with [he provisions of any lease tf this Mortgage is on a leasehold. It' this Mortgages is on .~ unit in a
<br />condominium or a planned unit development Borrower shall perform ail of Borrower's obligations under the Jeclarution
<br />or coveuaats creating or governing the condominium ar planned unit development, the by-laws anJ regulations of the
<br />condominium ar planned unit development, and constituent Ja.umenis. It a condominium or planned unit Development
<br />rider is executed by $orrower and recorded rogether witlr this Mortgage, the covenants anJ agreements of such rifer
<br />shall be incorporated into and shall amend and supplement the covenants anD agreements of this Mortgage as if the rider
<br />were a pazY hereof.
<br />7. PrntecNoo of Leader's Security. If Borrower fails to perform the covenants anJ agreements contained in this
<br />Mortgage, or if any action or proceeding is commenceD which materially alfects Lender's interest in the Property.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, ur arrangements ur proceedings involving a
<br />bankrupt or decedent, then Leader a[ Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and ±ake such actior, as is necessary to protect Lender's interest. including, but not limited to, disbursement of
<br />reasonable attoroey's fees and entry upon the Property to make repairs. If Lander reyuircJ mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance trnninntes in accordance with Borrvwer's and
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