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<br />L[NIF(Sa'+i CovExnn-rs. Borrower and Leader covenant and agree as follows:
<br />1. Paymenf of Pdacipai and Merest 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 fn the Note, and the principal of and interest
<br />or. any Future Advances secured by this Mortgage.
<br />=• iN~ads for Taws and liosarance. Sub}ect to applicable taw or to a written waiver by Lender, Borrower shall pay
<br />to Lender cn ilse day monthly installments of principal and interest are payable-under the Note, until the Note is paid in foil,
<br />a stem (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 insfallmen[s for hazard insurance,
<br />plus one-twelfth of yearlyptemium installments for mortgage insurance, iE any. all as reasonably estimated irritialiy and from
<br />time to time by Lender on the basis of assessments and bias and reasonable estimates [hereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency linduding Lender if I_cnder is such an institution). tender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and appiyfng the Funds. analyzing said account.
<br />or verifying and compiling said assessments and bills- unless i_ender 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 Y"ands shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requsres such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings nn the Funds. Lender
<br />shall give to Borrower, without charge. an annual accounting of the Funds sh«wine credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. 7lte Funds are pledged as additional security "for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds acid b}' Lender, together with :he future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums aitd ground rents, shall exceed Ihe.amount required to 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 />held by Lender shalt not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary ro 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 alt sums secured by this Mortgage, i_ender shall promptly refund to Borrower any Funds
<br />held by Lender If under paragraph Ig hereof the Properly is sold or the Property is otherwise acquired by Lender, Lender
<br />shalt apply, no 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. Applieafion of Payments. Unless applicable law provides otherwise. ail payments received by Lender under the
<br />Note and r.a=_ graphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under p~: agraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />princtpal on at y Future Advances.
<br />4. Charges; Liens. 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 tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly [o the
<br />payee thereof. Borrower shall promptly furnish to Lender ati notices «f amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish t« 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 shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, n shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />le¢aI proceedings which operate to prevent the enforcement of the Tien or forfeiic~e pf the Propert}' or any past thereof.
<br />5. Hazard Insnrance. Borrower shall keep the improvements now existing ar hereafter erected on the Pml±erty insured
<br />against loss by fire, hazards included within the term "extended coverage". and such other hazards as Lender mac reycire
<br />and in such amounts and far such periods as Lender may require: providei. [hat i.cnderr ,halt not n;quire that the amount of
<br />such coverage exceed that amount oC coverage required t« pay the sums secured by this Morgage.
<br />s 3nsur ante carrier providing the insurnce shalt be chosen by Boreuwer sub}eel t« approval by Lender: provided.
<br />[hat such approval shall not be unreasonably withheld. All premiums «n insurance policies shall bC paid in the mariner
<br />provided under paragraph 2 hereof or, if not paid in such mamter, by Borrower making payment, when due, directly to the
<br />insurance- earlier.
<br />Ai! insurance policies and renewals thereof shall be in loan acceptable t« 1_enucr and shall include a standard mortgage
<br />clause in favor of and in form acceptable ro Lender Lender shall have the right to h«Id the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. L[ the even[ of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss it not made pr«mptly
<br />by Burrower.
<br />Unless fender 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 [hC security o[ thrs Mortgage is
<br />not thereby impaired. If such restoration or repair is nut economically feasible err if the security of this Mortgage would
<br />bC unpaired, the insurance proceeds shat) be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is ahandonCd by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier otters to settle a claim for uuurance 6epelits, Lender
<br />is suUtorized to collect and apply the insurance proceeds at Lender's option caber to restoration or repair of the Properq~
<br />or to the sums secured h}' this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shat! not extend
<br />or postpone the due date of the manthiy installments referred m in paragraphs I un.l ?hereof or change the auwunt of
<br />such installments. if under paragraph IS hereof the Property rs acyuireD by Lender, all right, tide and interest of Bonvwer
<br />in and W ant insurance policies and in and m the proceeds [hereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to i_e:nder to the extent of the sums secured by this Mortgage immediately prior to such sale ur
<br />acquisition.
<br />F_ '--'?`•-~-•,. --.,, sad Rf:.l.:fenuu~ce of Prr;perfy; I.easebctds; Css>•v:::aia;utus; PI>_nued l!nit i9evelapmeats. Burrov.er
<br />shall keep the Prepert}' in good r•_patr and sha(I ^«! comma tsaste or lxrmu impairment or deterioration «f the Propern'
<br />and shah campiywi[h the provisions of any lean it this Mongagc !s un : leasehold. if this Mortgage is on a unit in a
<br />condominium or a planned unit development, B«rr«wer shall Ixdorm all o! Borrower's ublig:ttions under the declurwon
<br />or covenants Creating err governing the c+ndomimvm «r planned un!t development. the by-laws and regulations of the
<br />condominium or planned unit development, and cunstiment di+CUmenB. If a condominium or planned amt Jeccl«pment
<br />rider is executed by Borrower and recorded together Hith this Mortgage, the covenants and agreements of ,uch odor
<br />shall l~ incorporated iota and shall amertd and suppkntent the covenants and agreements of this Mortgage as if [he rider
<br />were a part hereof.
<br />7. Protection of Lender's Security. If Borzuwer tai Lc to perform the covenants and agreements wntained in thrs
<br />?Mortgage, or if any action or proceeding rs commenced whuh materially allects Lender's interest in rite Properly.
<br />including, but not limited to, eminent domain, irvsolvcncy, code enk+rcemcnt, or arrangements or proceedings Involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice m R«rrowor, ma} make such appearances, Disburse such
<br />Sums and take such action :rs is necessary to protr~t Lender's interest, mcluDtng, but not Invited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lrndcr repaired mortgage insurance as a
<br />candition 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 rzquiretvent for such insurance terminates m accordance wnh Borrower's and
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