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X30-- ;~s5254
<br />UwmoaM Cavert~Nrs. Borrower and Leader covenant and agree as follows:
<br />1. Aymnt of trlaclpal asd IsteresP. Borrower shall promptly pay when due the principal of and interest on [he
<br />indebtedtrest evidenced by the Note, prepayment and late charges as provided m the Note, and the principal of and interest
<br />on say Future Advances secured by this Mortgage.
<br />2. IPtsds for Te=a and Iisaraece. Subject to applicable law er to a written waiver by Lender, Boerower shall pay
<br />to Lender on the day monthly instal}rotors of principal and interest are payable under the Note, until the Note is paid in full,
<br />a aeon (herein "Funda'q 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 yeazly premium instaJlmeMS for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially sad from
<br />time to time by Lander on the basis of assessments and bills and reasonable estimates thereof.
<br />17te Ftmds ahaB 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 Linder is such an instimtion). Lender shall apply the Funds 20 pay said taxes, assessments,
<br />imutanoe premiums-and ground rents. Lender may no[ charge for so holding and applying [he Funds, analyzing said account,
<br />or verifying and compiling said assessments and 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 at the time of execution of this
<br />Mortgage that interest on the Ftmds shall be paid to Borrower, and unless such agreement is made or applicable taw
<br />requires such interest ro be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual aecoun[~ng of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The 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, insurance premiums and ground rents, :tall exceed the amount required to pay said taxes,
<br />astwments, insurance pretiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower ar credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Leader shall not be sutlicreat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necasvary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all stuns secured by this Mortgage. Lender shall promptly refund to Borrower arty Funds
<br />held by Lender. If tinder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shag apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Linder at the time of application as a credit against the sums secured by this Mortgage.
<br />3. A~Beatlaa s[ ?ayareols, Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note sad paragraphs 1 sad 2 hereof shalt be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under garagraph 2 hereof, [hen to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal oa any Future Advances.
<br />4. Ciatgea; IJesa. 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 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 thereof. Borrower shall promptly furarsb to Lender ail notices of amounts due under this paragraph, and is the event
<br />Borrower shall make payment directly, Botzower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has prrority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so tong as Borrower sha{I agree in writing to thz payment of the obligation secured by
<br />such lien in a manner acceptabk to Lender, or shall in good faith contest such lies by, or defend enforcement of such lien iq
<br />kgal proceedings which operate to prevent the enforcement of the Lien or forfeiture of the Property or any part thereof.
<br />5. BLard Iaaeaee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against lass by file, hazards included within the term "extended coverage". and such other hazards as Lender may require
<br />std in sttclr amounts sad for such periods as Lender may require: provided, that Lender shall not require that the amount of
<br />strcb coverage excad that amount of coverage required to pay the sums secured by this rifortgage.
<br />The imuraoce cattier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shat; be paid in the manner
<br />provided under paragraph 2 Iterrof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />iosunmce cattier,
<br />AB insurance policies std renewah thereof shaft be in form acceptable to Lender and shall itrclude a standard mortgage
<br />clatue in favor of and in form acceptabk to Lender. Lertdtr shall hale the right to held the policies and renewals thereof,
<br />sad Borrower shalt promptly furnish to Lender all renewal nonces and all receipts of paid premiums. In the event of ions,
<br />Borrower shalt give prompt notice to the ittxurance carrier sad Censer. lxnder may make proof of loss if not made promptly
<br />Sty Borrower.
<br />Udas Leader said Hotrowu otherwise agree in writing, instuaace prxeeds shall be applied to restoration or repair of
<br />the Property damaged, provided such [estoratioa or rcpa:t is ernnomically feasible attd thz security of this Mortgage is
<br />not thereby itnpaited. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the imursoce proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Bottowet, if the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Leader to Borrower that tlx ittsurante carrier otTrn to settle a claim for insurance ~nefits, Lender
<br />is atrdforined to collect and apply the irnuraace proceeds at Lender's option erther io restoration or repair of the Property
<br />or m the sums secetred by this Mortgage.
<br />Unkse Lender and Borrower otherwise agree to wrtiiag, nny such application of proceeds to principal shall no[ extend
<br />or postpone rite dot date of the monthly insialiments referred to in paragraphs f and 2 hereof or change the amount of
<br />srrcb iowllmentt. If undes paragraph t8 beteof the Propvry is acquired by Leader, cell right, ti[it and interest of Borrower
<br />in and to arty ittsttrsnce policies and in and io the pra:ecds thereof restdting from damage to the Property prior to the sale
<br />ar acquisition shall past to Lender to the extcat of the sums secured by this Mortgage immediately prior to such sate ur
<br />acgrtwrttan.
<br />f. ltassFatlaa sal !-hhiateaiaee sf Prnpetty; traseioMs; Cowdsasida+ot: Phtuaed Umt llevelopmeats. Borrower
<br />shall keep the Property in good repair and shall not roatmrr wore or permit impairment or deterioration of the Property
<br />and shall cautply wieh the pwvisiau of say lease if this Mortgage is an a leasehold. If this Mortgage is on a unit in a
<br />cmods@laium of a planned tutu developrneni, Borrower shaft perform all of Borrower's obligations under [hz declaration
<br />o[ cOrepanb cleating of governing the condominium or planned unit development, the by-laws and regulations of the
<br />candoraiaitsae ~ plapaed trait derelclpment, sad coiutittteni documems. If a condominium or planned unit dzvzlopnteni
<br />[irllr is executed by Borrower attd recorded together with this Mortgage, the covenants and agreentems of such rider
<br />s6aB be ia0c~tded lino std shag amend and suppleatent ttx eovtnants and agreements of this rifortgage as it the rides
<br />lucre a pint bared.
<br />T. raalsefisr, d Laadsr'i ~-0`• If Borrower fails to perform the covenants and agreements wmained in this
<br />or if say action ar ptoeeediag is commenced which materially affects Lender's interest in the P~openy,
<br />iacladiaj. but not limited to, eminent domaira insolvency, code enforcement, or azrangements ar proceedings involving a
<br />bNduttpl ex decedent, than Lester a1 LeadeYs option, upon notice to Borrower, may make such appearances, disbursz such
<br />sraas anti ulte such adios as is niceasary to protect Lender's interest, including, but not limited ta, disbursement of
<br />tassoaabb sttotaay's feels and entry upon the Ptoger[y to make repairs. If lender required mortgage insurance as a
<br />ceatdilion of makioj the Man secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />iesurnlee is ellset emtil aoch time: as the requirement far such insurance terminates in accordance with Borrower's and
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