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$(~--i~Q~438
<br />Urttrosu Covntvat.-rs. Borrower and Leader covenant and agree as follows:
<br />1. Payarent of Ptiaclirel sad I~erest. Borrower shall promptly pay when dtu the principal of and interest on Lhe
<br />indebtedness evidenced by the Nou, prepayment and tau charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by the Mortgage.
<br />2. Ftmds for Taus ate &tate~ee. Sub;ect to applicable law or to a written waiver by Lender, Borrower shag pay
<br />to Lender on the day monthly installments of principal and tautest aze payable under the Note, omit the Note is paid in full.
<br />a sum (herein "Ftmda'~ equal to orre-twelfth of the yearly taxes and assessments which tray attain priority over this
<br />Mortgage, and ground rents on the Propery, if any, plus one-twelfth of yeazly premium iasialiments for horned inssuance,
<br />plus nee-twelfth of yearly premium installments for mortgage Insurance. if any, all as reasonably estimated initially and from
<br />tame to time by Lender on [be basis of asxssments and bites and reasonable estimates thereof.
<br />'fhe Funds shall 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 taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying aid compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make sttah a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shat! be paid to Borrower, and udess such agreement is made or applicable taw
<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 credits and debits to the Funds and the
<br />purpose ter which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />by Phis Mortgage.
<br />Tf the amount of the Funds held by Lender, together :vith the future monthly installments of Funds payable prior to
<br />the due dates of razes, assessments, inswance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />asxssments, inswance premiums and ground rents as they fall due, such excess shall 6e, at Borrowers option, either
<br />promptly repaid to „°., owes or cred'.ted is Borrowwer on monthly irstallmenis cf Fords. If the amcuni of the Fu ads
<br />held by Lender 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 Leader to Borrower requesting pa}irtent thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Leader shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 16 hereof the Property is sold or the Property is otherwix 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 xcured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwix, all payments received by Lender under the
<br />Note and pazagraphs t and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under pamgraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Futttre Advances.
<br />4. Cha,~es; Liens. Borrower shall pay all taxes, asxssments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leaxhold 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 furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shalt make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: trovided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to [he t.ayment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in goad faith contest such lien by, or defend enforcement of suet: lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property er any part ttserea..
<br />S. Hazard Imurarrce. Borrower shall keep the improvements now existing ar hereafter erected cn the Property insured
<br />against toss by fire, hazards included within the farm "extended covrrag~e ', and such other hazards as Lender may requtre
<br />and in such amounts and for such periods as Lender may require: provided, that Lender shalt net require that the amount of
<br />such cnveragt exceed that amount of coverage required ro pay the sums secured 6y this Mertgagc.
<br />'17te insu:a;.ce ~ °r p:uvidirg t.'-,.° iasurar,ce s.`,all F- chosen by Burrower subject t; approval G _ender: pr.;vtd~.l.
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid m the manner
<br />provided under paragraph Z 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 acceptable to tender and shall include a standard mortgage
<br />elaux in favor of and in form acceptable to [xnder. Lender shall have the right to hold [he F~olicies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender aft renewal notices and all receipts of paid premiums. In the event of toss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly'
<br />by Borrower.
<br />Unless Lender 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 the security of this Mortgage is
<br />not thereby impaired. if such restoration or repair is not economically feasible or if the xcurity of this Mortgage would
<br />be impaired, the insurance prceeuis shall be applied to the soots xcured by this Mortgage. with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to Leuder within 30 days tram the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to coilee! and apply the inswance proceeds at Lender's option either to restoration or repose of the Property
<br />or to the Burns secwed by this Mortgage.
<br />Unless Linder and Borrower otherwise agree m writing, any such application of prexeeds to pnncspal shall nn cxtentl
<br />or postpone the due date of the monthly installments referred ro in paragraphs 1 and 2 hereof or change she amount of
<br />such installments. if under pazagraph t8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisitions shall pass [o Lander to the talent of the sums soured by this Mortgage immedsately attar to Bach sole ur
<br />acyuisiiiun.
<br />o. Presen'stiotr and Mainianance of Property; Leaseholds: Condominiums; Planned Unit I~veiopmcuts. Bc?rrowcr
<br />shalt kelp iht Property in goal repair and shall not commit waste or ptrmu impmrment or deterioration of the Property
<br />and shalS comply with the provisions of any lease if ihss btortguge ~s on a leasehold. if this Mortgage i, on a unit in a
<br />condatninium or a planned unit development, Borrau~cr shall perform all of Barron-er's obhgsaons under the declaration
<br />or covenants creating or gavernmg the condominium ar planned unit deveopment, the by-laws and regulations of the
<br />condominium or planned unit development. and constitutor documents. I(a rondominium or planned amt Jevelopntent
<br />rider is executed by Borrower and raorded together with rhea Mortgage, the covenants and agrc'enicnt of such ndrr
<br />shall E,~_ incorporated into and shall amend and supplenrtnt the covenants and agreements at thts Mortgage as d the rider
<br />were a part hereof.
<br />7. Protectio» of Leader's Secndty. If Rarou~er fads to perform the covenants xnd agreements .untamed in thu
<br />Mortgage, ur if any action nr prceteding ss comrumrced which materially alferts Leuder'., m[eress in the P•openy,
<br />including, tns4 oat limited to, eminesn domain. insolvency, cc?de enfnrctmtnt. or arrongemenix or prc><~eedings involving v
<br />baukntgi ar dtex^dent, then Lander at I..endeis option, upon mice to Harrower. may make such apperranrt,, dssl?une ±uch
<br />stints and take such ae.tion as is necessary' to protect I_cnder's interest. nsclusbng, bur not limned ro, disbursement ezf
<br />zeaso;tabit atterneVS fees and entry upon the Property to make repasts. If t.eader required mortgage iururanrc :s
<br />corrdnian at rnakrng the luau secured by t6sx Mattgage, Borrower shall pay the prenuutns required n, maintaus ruck
<br />#P..S'.Sr3T~ in ?rC$i',i cL-rill iYwii !;.„.~ c. irtY tgtencnkent iCi xtt~h .nxurance ermrP.93e3 :tt :tC~OCdat:~e t_it,^. Har lOwei'-v n:i
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