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<br />~ UNSFORM CovexnNrs. Borrower and Lender covenant and agree as fo3lows:
<br />I. Payment of Prh[cipai end Interest Borrower shall promptly pa}• when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and tare charges as provided in the Note, and the principal of and interest
<br />frr on any Future Advances secured by this Mortgage.
<br />! 2. Funds far Tazes and Insurance. Subjut to applicable law or to z written waiver by Lender, Borrower shall pay
<br />1 to Lender on the day monthly installments of principal and interest are payable under the Nate, 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, iE any, plus ono-twetfrh of yeazly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lander on the basis of assessments and bias and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposiu 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 and compiling said assessments and bids, unless Lender pays Borrower interest on the Funds and applicable-law
<br />permits Lender to make such a charge. Borrower and Ixnder may agree in writing at the ume 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 to be paid, Lender shall not he 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 for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />by [kris Mortgage.
<br />~- If the amount of the Funds held 6y Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums ahd ground rents, shall exceed the 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 />protttptIy repaid to Borrower or credited to Borrower on monthly installments of Funds. If [he amount of the Funds
<br />held by Lender shall not be sufficient to gay taxes, assessmenu, 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 a11' sums secured by this Mortgage. Lender stroll promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lander, 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 [he time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received 6y Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender firs[ in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Nute, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; I1eas. Borrower shall pay all [axes, assessments and other charges, fines and impositions attributable to
<br />the PrnY,.ny v:hich 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 [o the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this pazagraph, and is the event
<br />- Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrowver 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 wriung to the payment of the obligation secured by
<br />' such lien in a manner acceptable to Lender, or shale in good faith contrast such lien by, ur defend entorcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
<br />5. Hazard Insunnc¢. 1orrower shall keep the improvcnrents now existing or hereaker erected on the P: operty insured
<br />against Tess by fire, hazards included within the term. "extended coverage", and such other h;szards as Lender may reyuire
<br />and in such zemuunts and far such periods as 1_ender may reyuire; provided, that Lender shall not reouire that the amount of
<br />such coverage exceed that amoum of ;:overage required to pay the =urns secured by this Mortgage.
<br />Th= insurance cattier Providing the insurance shall be chosen lr}' Borrower subject to approval b}. Lender: prnvidad,
<br />that such approval shall not 6c unteasonably withheld. Atl premiums oa insurance polictes shall be paid in the manner
<br />provided under paragraph 2 hereof ur, if not paid ir, such manner, by Borrower making payment, when due, directly to the
<br />insurance cazrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standara mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shat! promptly furnish to Lender all renewal notices and all receipts of 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 if not tootle promptl}
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt be applied to restoration ur repair of
<br />the Properly damaged, provided such restoration or repair is economically feasible and the security of this Mnngage is
<br />not Thereby Impaired. If such restoration or repair is not economically feasible or if the securin• of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, wnh the excess, if any, paid
<br />[o Bnr'rowcr. it tyre f-roperty is abandoned 6y Borrower, or it Borrows tails to respond to Lender within 30 days irum the
<br />dale notice is mailed by Lender to Borrower that the insurance earner offers to scale a claim for insurance benefits, Lender
<br />is autkrurized to collect .md apply the insurance proceeds at Lender's option either to restoration ur repair of the Property
<br />ar to the runts secured ny this Mortgage.
<br />Linters Lt;nder and Borrower otherwise agree :n wrtiog, any such application of proceeds to pnnap;0 shalt not extend
<br />or postpone the due date of the monthly installments retorted to in paragraphs I and 2 hereof or change the amount of
<br />suAh installments. If under paragraph 1 R hereof the Property is acyuireJ b} [_ender. all right, title and interest ut Aorrower
<br />is and to any insurance policies and in and to the proceeds thereof resulting from damage ro the Property prior to the sale
<br />err ;ecquisie~oa shall paw to L ender to the extcn+. of th•_ rut??s s_ ~trtd ! r- !I?is Mortaa ee imtt?ediately peter !. +uch sale o.
<br />acquisition.
<br />6. Preservation and Maiutenauce of Property: Leaseholds; Cmrdmninhtms; Planned unit Ikvelopnrems. Burrok er
<br />shall keep the Property in good repair and shall not commit waste ur permit impairment m' detcriuration of the Proper[}
<br />' and shall comply with the provisions of any lease i( this Mortgage is on a teasehuld. If this Mortgage is on a uuh in .t
<br />condominium or a planned unit development, Borrower shall pcr(onn all ut Borrower's obligaucns wider the declarauou
<br />or covenants creating ur governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. if a condominium rr planned amt development
<br />rider is executed by Borrower and recorded together wnh this Mortgage, the covenants and agreements of such odor
<br />shall b¢ incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as d the rider
<br />were a pan hereof.
<br />7. Peofeetion of fead¢r's Security. If Borrower tads to perform the covenants and agreements cuntarned in this
<br />. Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but not limited Eo, enrineni domain, insolvency, code enforcement, or arrangements or pruccedirgs mvolr~ng a
<br />bankrup! or dw¢dent, then I~nder at Lender's option, +!poo notice to Borrower, may make such appearances, disburse <.uch
<br />sums and take such action as is n¢c¢ssaty to prot¢it Lenders interest, including, but nut limited t<?, disbursement ++f
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender reyuircd mortgage insurance as e
<br />condition of making the Loan sectued by this Mortgage, Borrower strati pay the premiums reywreri to maintain such
<br />insurattee in etTect until such time as the requirem¢at for such insurance terminates m accordance wnh Borrower's :mJ
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