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litvrroasr Covexxrm. Borrower acrd Lender covenant and agree m follows: .' ~..~ {~ t ~ ~' J t3 ~
<br />I. Pa,~eat of !•rLeital sad feteraet. l;orrowa shag promptly pay when due the principal of and interest on the
<br />iarkbtedaesa evidenced by the Note, prcpaytttrnt a~ late cha: gel as provided in tM Nee, and the principal of a~ interaY
<br />on any Ftatrie Advalrces secured by this Mortgage.
<br />~• ~ fas• Tess aN 1ASarx. Subject ro applicable law a to a wtittrn wirvsr by tender. Borrower shill pay
<br />to Lender on the day monthly installttxnts of principal acrd imerert are payehk under tbe Note, unlit the Note is paid in full,
<br />a strut (harsin "Funds' equal to ate-twelfth of the yearly taxes and assasrnents which may attain priority over this
<br />Mortgage, and grwrrld rents on the Property, ff any. plus orre-twelfth of yeary premium istaBmrnts for heard irgraaAx,
<br />pats onatwetfth of yearly premium irstallmenta for tttortgage irourartce, if soy, ail as reasonably estimated imtiaily and from
<br />time io time by Leader on the trasis of assepmrnts and bills and rnsonabk estimates thereof.
<br />The Funds shall be beki in an instiitrtfon the drpoaiis or accounts of which acs imttisd or guaranteed by a Federal or
<br />slate agency (including Lender if I.rnder is such an institution). Lender shall apply the Funds to pay sai9~taxs, asse9[nents,
<br />insurance premiums and ground rents. I-ender may not charge for so holding altd applying the Funds, analyzing said acewnt,
<br />or verifying and compiling said assessrttents and bills, unless [.ender pavs Borrower interest oa ilx Funds and applicahle law
<br />permitr Lender to make such a charge. Borrower and Lender may agree in writing a[ the time of ezecvtion of this
<br />Mortgage that interest on the Futtds shall be paid to Borrower, and tmiss such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any inters[ or earnings on the Funds. Leader
<br />shall give to Borrower, wrthoui charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each dehit !o the Funds was made. The Funds are pledged as additional security for the sums stxtrred
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly irutallmeats of Funds payable prior to
<br />the doe dates of taxes, assessmentr, insurance premiums and ground rents, shag exceed the amount required to pay said tars,
<br />assessments, insurance premiums sad ground rents as they fall due, such excess shag 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 />hdd by r_~nd=r s!ta7! net be sdl'iren[ t:, pay taxes, assessments, insurance premiums and groun6 tents as they fall dtx.
<br />Bozrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Letsler to Borrower requesting payment thereof.
<br />Upon payment in Evil of all sums secured by this Morgage. Lender shall promptly refund to Borrower arty Funds
<br />hold lay Lender. I€ under paragraph 18 hereof the P. opera is ;old or the Property is otherwise acquired by Lender, trnder
<br />shall apply, no later than irrtmediately prior to the sale o[ the Property or its acquisition by 1-endeq any Foods held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. A,pplicatiou of PaYmeab. Unless applicable law provide otherwise, all payments received by Lender under the
<br />Note and paragraphs I and Z hereof shall be applied by finder first in payment of amounts payable tv Lender by Borrower
<br />under paragraph ? hereof, [Iran to interest payable on [he Nate. then m [he principal of the Note. and thin to interest and
<br />principal on any Future Advances.
<br />4, Chuas; 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 teaxhold payments or ground rents, if any, in the rnattner
<br />provided under paragraph 2 hereof or, if na pard in such manner, by Borrower making payment, when due. directly to the
<br />payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under the paragraph, and in the event
<br />Borrower shall make payment daectly. Borrower shall promptly furnish ro Lender receipts ewdencmg such payrneots.
<br />Borrower shall prompdy discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br />required to discharge soy such lien so long as Borrower shall agree in wnuog to the payment of the obligation secured by
<br />such ties is a manner aecep#abie to reader, or shall in good Eaith comes[ such Tien by, or defend enforcement of such lien in,
<br />legal prs~eedir~s which operate to prevent tl±e enforcemcat of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard IestrraAee. Borrower shall keep [be improvements now exisang or hereafter erected on the Property insured
<br />against loss by Rte, haztuds included within the term "extended coverage", anJ such other hazards as bender may require
<br />and to stt.^.h amt-ants an,# fur such aricds :u J_ender may teyuire; provided, than Len<kr .hail not require fiat rite amount et
<br />such co'+erage exceed that amount of wverage reyuired to pay the sums secured by this Mortgage.
<br />"?'hs insur~-r~~ .-arriei provid$ng the insurance stroll he chascn by Harrower subJCC# to approval by Lender, provided,
<br />that such approval shag not be unreasrmably withheld. All premiums on insurance twiiceea shall be paid m the manner
<br />providsd •Ynder paragraph 2 hzreof err, d nm paid in such rztanner, by Ilorrower making paymrnt, when due, drrectly to the
<br />rnSiliaL:e CarFler.
<br />All insurance policies and renewals thereo( shall be in form acceptable to Lender and -shall include a standard mortgage
<br />clause in favor of and in form acceptable to tender. Lender shall have the right tx+ hold the policies and renewals thereat,
<br />acid Borrower shall promptly furnish to Lender ail renewal ponces and all receipts of paid prcmwms. In the even of loss,
<br />Borrower steal{ give prompt notice to the insurance comer avd Lender. tender may make proof et loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in wriung, insurance procseds shall be applied to restoration nr repair of
<br />the Property damaged, provided such restorauon or repair a ecotomically feasible and the security of this Mortgage is
<br />sot thereby impaired. {f such restoration or repay +s net economically feasible or d the securty of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, wah the excel, if any, pard
<br />m Borrower. If the Procerty is xbandaned by Borrower, or it Borrower tails to rzspond to Lender wrthm 30 days trom the
<br />date notice is mailed by-Lender to Borrower that the insurance carrier offers to ssttle a claim for insurance benefits, 1_ender
<br />is authorized to collect sad apply the msurarlce prucseds at Lender's option either to restoravon or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to pnncrpal shall nut extend
<br />or postpone the due dale of the monthly iosiallments referred to in paragraphs t and 2 hereof or <ha,~ge the an:uum of
<br />such installmevts. if under paragraph t8 hsreot the Propern is acquired 6y lxnder, all right, Gtle and merest of Borrower
<br />in and to any fffiurance policies and io and to the proceeds thereo( resulting from damage to the Property prior to the sale
<br />r}r acquisition ahaB pass to Lender to the extent of the suers secuued by this Mortgage immediately prior w wch sale or
<br />acquisition.
<br />6. 1'tsaervatloa sad iN+iateAaACe of Pr'opertY; LeageMlds; CoAdamidutos; PLAaed Unit UevelopmeAts. Borrower
<br />slraB keep the Prc~rty in good repair and shall !ter[ commit waste or permit impairment or deteriorauoa of the Property
<br />and shall comply with the pravisioos of any lease rf this Mortgage is on a leascbuld. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obbgatiovs under the dedaravon
<br />[u wveuaats creating or governing the condominium err planned unit developmen4 the by-laws and regulatiurs of the
<br />rxu[daminium or planned trait devcloprtxnt, and constituent documenu. If a condominium or planned unit deveWpment
<br />rider is axecUted by Borrower sad recorded together with this Mortgage, the covenants and agreements of such rider
<br />sba6 be itrcarporated into and shall amend and supplement the covenants and agrcemenie of this Aiortgagc as rf the rider
<br />wars a part hersof.
<br />'+ i=eaicerieA of i.eedet'a sw~tvNy. It Hortowtr fads to perform the covenants and agreements contained in this
<br />Mortgage. ur if any action ur proszeding is colrrmenced which materially aHet;ts Lender's interest in the P+openy,
<br />including, but na limited tv, sa[inent domain, insolvcru;y, ride en:orcement. or arrangerrrenu or prrxeuiings involving a
<br />bankrupt or decedent. then Lender at Leader's npvon, upon nonce w Barrewer. rna} make such appearan.:rtr. disburse such
<br />sums and take stash action as is necessary *_o protect trndcr"s interest, ~n,:luding. but not limucd ra, desbursement .i
<br />reasonable afeomsy's fats acrd crtry• upon the Propene to make repairs. If tender requred mortgage nt+urance as .,
<br />condirias of r[raking the Jaen secwrd by this Mortgage. Borrower shalt pay the premiums rtqutrcd !o maintain such
<br />rtu°arraor:e ir, 'cuac# until such lime as tine requuetttau for such msutance tenninatcn .o a~c.rrdance with Burwwer~s and
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