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~Q®-. (i~5417
<br />Untmoxat Covetv,+N'rs. Borrower and Lender covenant and aBee as follows:
<br />1. Payvtertt of I.'iine3pd sad Interest. Borrower shall promptly pay when due the principal of and interest en the
<br />ittdebtedneas evidenced by the Note, prepayment and Tate charges as provided in the Nate, and the principal of and interest
<br />oa any Future Advances secured by this Mottgage.
<br />2. Funds fefr Tatt¢s aad Iasuroaee. Subject io applicable law or io a written waiver oy Lender, Borrower shag pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, wait the Nate is paid in full.
<br />a sum (herein "Funds") equal to one-twelfth of the yearly !axes and assessmrnts which may attain priority over this
<br />Mortgage, and ground rents on the Property, iE any, plus orn-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments fot 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 reasonzble estimates thereof.
<br />The Funds shall be held in an institution the deposits oz accounts of which are instued or guaranteed by a Federal or
<br />slate agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said'iaxes, assessmenu,
<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 and bills, unless Lender pays Borrower interest oa the Funds and appliwbie law
<br />permits Lender to make such a charge. Borrower and [,ender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shalt 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 to Borrower, without charge, an annual accounting of the Funds showing credi+s and debits fo 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 [h¢ 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, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and gmund rents as they fall due, such excess shall be, at Borrower's option, either
<br />praruotig repaia' to Borrower or credited [o Borrower on monthly instaBmerts of Funds. If the amount of the Funds
<br />held !ry Leader shall 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 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 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 +s otherwise acquired by Lender, Lender
<br />shall 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 />B. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then ?o interest payable on the Note, then to the principal of [he Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />rh¢ Property which may attain a priority over this Mortgage, sad 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. Burrower shalt promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shalt promptly discharge any lien wESch has priority ever this Mortgage; provided, that Borrower shall not be
<br />required [o dixharge 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, ar shall in good faith contest such lien by, or defend enforcement of sort; lien in,
<br />legal proc¢edings which operate to prevent the enforcement of the lien or [orfeiture of the Property or any part thereof.
<br />5. Hazard Instttantt- Borrower shall keep the improvements new existing or hereafter er-act¢d en the Froperty insured
<br />against loss 6y frre, hazards intluded within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as !..ender may require; provided, that I_endt<r shall not r-aquirc° chat the emeunt of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />TTte insurance sarri¢r pmvidieg the insurance shall lse cl[ns;:n by Borrower subject to approve; 6y Lender; provided,
<br />that such approvat shall not be unreasonably withheld. All premiums on insurance policies shall be paid ur the manner
<br />provided under paragraph 2 hereof ot, if no[ paid ur such manner, by Borrower making payment, when due, Directly [n the
<br />insurance cazrier.
<br />RII insurance policies and renewals thereof shalt be in form acceptabfe 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 policies sod renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the even of loss,
<br />Bottower shall give prompt notice to the insurance carrier and Lender. Lender may make proot of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied ro restoration ar repair of
<br />the Property dgmaged, arovided scch restoration or repair is economically feasible and the security of this lvtortgage is
<br />no[ thereby impaired. If such restoration or repair is oat economically feasible ur d' the security of this Mortgage would
<br />be impsved, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower, II th¢ Property is abandoned by Borrower, or ii Borrower fails ;c respond to Lcnd¢r within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier oll¢rs to sonic a claim for insurance benefits, lender
<br />is authorized to rolled and apply the insurance proceeds at Lender's option either to restoraion or repair of the Pmpcny'
<br />or to the runts securest by this Mortgage.
<br />Unless i.ender and Borrower otherwise agree m writing, any such application of praaeds to pnnc~pal shall oat extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount at
<br />such installments. If under paragraph 18 hereof the Proaerty is acquired by Lender, ail right, title and interest oY Borrower
<br />in and to any insurance polities and in and to the proceeds thereof resulting from damage to the Properly prior to the sdc
<br />or acquisition shall pass to Lender to the extent of the sums sea:ur¢d by this Mortgage immediately prior n, such side or
<br />acquisition.
<br />6, Ptresan'atlttn and hlAtnfensttce of Properly; Ixas¢he!ds; f'ondamiaiutns; Planned Unit Ikvelopnrents. borrower
<br />shall keep [he Property in good repair and shall not commit waste or permit impairment or deterioration of the Prnp¢rty'
<br />and shall comply with thu provisions of any lease it' ihts Mortgage +s on a leasehold. 1[ this Mortgage is o^ a unit in a
<br />eondomittium or a planned unit d¢v¢lopm¢nt Borrower shall perform all of Sorrcrwer's obligaurnts under the dcclaratiou
<br />or covenants creating or governing th¢ condominium or planned umt development, the by-laws and regulations of the
<br />condomittiwu or planned snit development, and constituent documents. I(a condominium or planned umt development
<br />rider is executed by Borrower and recorded togedt¢r wuh thts Mortgage, the covenants and agrecmcnts rat such r~DCr
<br />shall be incorporated iota and shall amend and supplement the cotenants and agreements of th+s hlartgagc as d the ride[
<br />wer¢ a part hereof.
<br />1. protection of I,eatkr's :cecndty. I[ Borrower [ads to Ixrlarnr the covenants anD agrecmeuts romanced in this
<br />Mortgage, or it any actren ar proceeding +g a+mmcnced which matcdally adeets Lender's uueres: in the Propcrt}.
<br />including, but oat limited to; eminent domain, insolvent}', cads enforcement, or an~angcments ar {traz<aedings invaleing a
<br />bankrupt or decedent, then Lender ni Lender's option, upon notice to Borrower, may make such zplxarauces, Duhurse ,nth
<br />s~>mm_, a~ tukc such a<'tiott as is necessary to prnt~xt 1_eader's imer::st, mtluding, hu: nut limited w, drbur..ement o,
<br />rta_=onahlr ahem?--}"s fo'x'y a,d entry upon the Property !o mske rapatrs. if I_cuder rcqui; e;i mortgag;; invurunct as
<br />condition o[ making the loan secured by this Morrgsge, Borrower shall puy tits premiums reymred to maintaut .uch
<br />insurance in efietr until such rime as the requirerneut for such msurante [crn[inatcs in :ttcordsrce with Bv+r ~.ver':: and
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