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M 80-' ~ ~ {_' ~ ~ 1
<br />UnrFOxtt CovEn.a4-rs, Bonowcr and Lender ~rnant and agree as fn?icxws:
<br />1. Paytneot of Prtacipal and Interest. Borrower shalt promptiq pay whir. ~Iue the principal of and imerest on the
<br />indebtedness evidenced by the Note. prepayment and late charges as provtded in the Nate. and the ptinctpai of and tntetest
<br />er[ any Future Advances secured by this 'mortgage.
<br />2. Pusdt for Taxes and Imnranee. Subjett to applicable )aw or to a written waver 6y Lcrtder. Borrower shah pay
<br />to Lender on the day monthly installments of principal and imerest are payable under the Note, 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, if any, plus one-tweifrh of vearty premium installmems for hazard iawrarue.
<br />plus orte-twelfth of yearly nremium installments for mortgage insurance. if any, all as reasonably estimated initially and from
<br />time to time by Lender on the base of assessments.and bills and reasonable estimates thereof.
<br />The Ftmds shall be 6eid in an institution the deposits or accounts of which are insured or guaranteed by a Federal cr
<br />state agent}' (including Londe: tf Lender is such an institution I. Lender shall apply the Funds to pay said taxes, assessments,
<br />irtstrrance premiums and ground re^,~. [xnder may not efiarge for sa holding and applying the Funds. analyzing said account.
<br />or verifying and compiling said assessments and bd1s. unless Lender pays Borrower ;nteres* 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 an the Funds shall he paid t.a Bocrower. 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. Ixnder
<br />shall give to Borrower- without charge, an annual accounting of the Funds showing credits and debits to the Punds 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, shalt exceed the amount required to pay said taxes,
<br />assessments. insurance premiums and ground rears as they tall duc. such excess shall be, at Borrower's option, either
<br />promptly repaid [o Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds
<br />Reid by Lender shall not be sufficient to pay loxes, assessments, insurance premiums and ground rents as they fall due.
<br />8onower 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 al( sums secured by thts Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph LS hereof the Property is sold or the Property is otherwise acqutred by Lender. Lender
<br />shall apply, no lacer than immediately prior to the sale of the Property or its acquisition by Lendeq any Funds held by
<br />Lender a[ the time of application as a credit against the sums secured by this Mortgage.
<br />3. Apidicatian of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under pazagraph Z hereof, then to interest payable on the Note. then to the principal of the 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 at[ributa6le to
<br />the Propperiy 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 [hereof. Borrower shall promptly furnish to Lender all notices of amounts duc under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evtdencmg such paymems.
<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, or shalt in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien ar forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements new existing or hereatter erected on [he Property insured
<br />against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provideil, that Leniler shall not require that the amount of
<br />such coverage exceed That amcum of coverage required to par the sums ~ccured by this Mortgage.
<br />The insurance carrier 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 shall be paid in the manner
<br />provided u-uier paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance cazrier.
<br />Atl insurance policies and renewals thereof shall be In form acceptable 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 and renewal thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the went of loss,
<br />Borrower sha[I give prompt notice to the insurance carrier and Lender. Lender may make proot of loss if nut 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 tensible and the security of this Mortgage is
<br />not [hereby impaired. If such restoration or reparr is not cconumically feasible or if the security of thts Mortgage would
<br />be impaired, the insurance proceeds shall be applied to [he sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, cr if Borrower tails to respond to Lender within 3t) days from 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 collect and apply the insurance proceeds at Lender's option either to restoration ar repair of the Property
<br />or to the sums secured 6y this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to pnnctpal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under pazagraph 18 hereof the Property is acquired b}' 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 Properry• prior to the salt
<br />or acquisition shall pass to Lender to she extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />5. Preservatitm and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Ueveiopmenls. Borrower
<br />shalt keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease .f this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or 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 or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortttaee, the covenants and agreements of such rider
<br />shelf be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />?. Protection of Lender's Security. If Borrower fails to perform [he covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property.
<br />including, but no[ limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt ar decedent, then Lender at Lender's option; upon notiw to Borrower, may make such appearances, disburse such
<br />stuns and ta-tte such action as is necessary to protect Lender's interest, including, but no[ limited to, disbursement of
<br />reasonably attorney's fees a_nd entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition 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 requirement for such insurance terminates in acenrdance with Borrower's and
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