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Utv[potit+r Covnxxr+rs. Borrower and Lender covenant and agree as follows: ~.L'-" ~~~) L ~'y
<br />t. paeyteeet of Prbttlpsl asd Interest. Aorrower shat! promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Nott, prepayment and Tare charges as provided in the Nore, and the principal of and interest
<br />tin ally Fture Rdvancts secured by this Mortgage.
<br />2. IRS fear Tttttes asd traearee. Subject to applicable law or to a writaen wa=ver by Lender, Borrower shall pay
<br />to Lender on the day monthly irrsta!ltnents of principal and interest are payable under the Note, until the Note is paid in foil.
<br />a slim (herein "Funds"} equal to one•twelt.h of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property. if any. plus one-twelfth of yearly premium installments for hazard inu+rance.
<br />pica out-twelfth of yearly pranitim itisfa!lments for mortgage insurance. if any. all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and hilts and reasonable estimates thereof.
<br />The Eu[tds shat! be lxld in an institutian the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency finciuding ietrder if Lender is such an irGtituiian}. Lender shalt spply the Funds to pay said taxes, assessments,
<br />ir~trraact 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 !silts, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lemler to make such a charge. Borcower and Lender may agree in writing at the time of execution of this
<br />Marigage that interest on the Funds steal! be paid to Borrower, and unless such agreemert is made or applicable law
<br />requires such interest to be paid, Lender shall not be reauired to pay Borrower any interest or earnings an the Funds. Lender
<br />slut!! give to Horcowtr, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debt[ to the Funds was made. TTte Funds are pledged as additional security fdr the sums secured
<br />try r' is Mortgage.
<br />U the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the dtu dates of taxes, assessmenu, insurance premiums antl ground rents. shall exceed the amount required to pay said taxes,
<br />assetxmentx, insuratce premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrowe: an monthly installments of Funds. If the amount of the Funds
<br />held by Lender steal} no[ be sufficient to pay taxes. assessments, insurance premiums and ground rents as they fall due.
<br />Borrower shalt pay to Lender any amount necessary to make up the deficiency within 3Q days from the date notice is mailed
<br />by Ltndtr to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by th+s Mortgage. Lender shalt promptly refund to Borrower any Funds
<br />held by Lendu. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, rto later than irttrxtliately prior to the sale of ¢he 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 />3. Ap~tieallaa of II'syseeats. Unless applrcable law provides otherwise, ail payments received by Lender under the
<br />Nate arnd paragraphs S and 2 hereof shalt be applied by Lender First to payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, thin to interest payable an the Note, then to the principal of the Note. and then to interest and
<br />principal on any Future Advances.
<br />A. Cimrges; 11effi. Banowtr shall pay all taxes. assessmenu and other charges, fines and impositions attributable to
<br />the Proptrtv which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under pazagraph 2 hereof or, tf not pa+d m such manner, try Borrower making payment, when due, directly to the
<br />payx thereof. Borrower shat! prompdy furnish to Lender all nouces of amounts due under this paragraph, and in the event
<br />Hor;wwer shall make payment directly. Borrower .hall prompdy tumtsh to Lender receipts evidencing such paytents.
<br />Borrower shalt promptly discharge any ]ten wMch has pncruy over this Mortgage: provided. that Borrower shat) not be
<br />requtrtd to discharge any such lien sa long as harrower ,halt agree in wnung to the payment of tfie obligation secured by
<br />strsh lien in a manner acceptable to Lender, or shall in good faith contest such lien hp, or defend enforcement of such lien ir.,
<br />legs! piaceedings which operate to preveat the enforcement o[ the hen or farfeirure of the Property or any part thereof.
<br />s'. e"laatatru $na[trapst. Borrow°er shaL' kssrp the ¢rrtprovement5 ret:w e:isiirg ar hereafter erected an the Property insured
<br />against loss by fire, hazards included within the term 'extended coverage'. and such other hazards as Lender may require
<br />sad in stub amounts and for such periods as Lender may regwre: provrded, that Lender shall not require that the amount of
<br />su^.h coverage exceed that amount of coverage requred to pay the sums secured by th+s Mortgage.
<br />The irisuratsct carrier providitrg the insurance shall be chosen b}• Burrower subject to approves) by Lender; provided,
<br />that such app[aval shall not be unreasonably withheld. .All premiums on insurance policies shall be paid in the manner
<br />provided udder paragraph 2 hereof or, if not paid in such manner. by 8orrcwtr maktng payment, whin due, directly to the
<br />itistirance carrier.
<br />A!! ittsurartcc policies and renewals thereof .halt he in form acceptable to Lender and shall include a standard mortgage
<br />chose in favor of and in form acceptable to Lender. Leneier shall have the right to hold the policies and renewals thereof.
<br />and Borrower steal! promptly furnish to Lender a!1 renewal nouces and all receipts of paid premiums. In the event of loss,
<br />Borrower shsH give prompt notice to the tnsurance carr!er and Lender. Ltndee may make proof of loss if not made promptly
<br />by Borrower.
<br />Uakss I.mdtr and Borrower otherwise agree in wnung, insurance proceeds shall be applied to restoration or repair of
<br />fix Property damaged, provided such restarauan ar repair is economically feastbie and the suurity of this Mortgage is
<br />trot thereby impaired. If stub restoration or repatr +s n¢x ecanamuaily feasible or .f the security of th+s Mortgage would
<br />be impaired, the insura~ proceeds shall bt applied to the sums secured by this Mottgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandorxd by Borrower, or it Borrower fads to respond to Lender within 3t) days from the
<br />date rwtice is mailed by Lender to Borrower that the insurance canter offers to settle a claim for insurance benefits, Lender
<br />is unaorized to collect and apply ih[ insurance proctxris at Lender's option etcher to restoration or repair of the Property
<br />or [o tbt aunts secured by this Mortgage.
<br />Uakss Lender and Harrower otherwise agrce in writing, any such application of proceeds to principal shall not extend
<br />or paatpotte the dtx daft of the monthly instaHmtnis referred to +n paragraphs !and 2 hereof or change the amount of
<br />such ittstallrtxnts. If under paragraph lg htreaf the Property is acgwrtd by Lender, alt right, title and interest of Borrower
<br />in aad eo say inwrance policies and in and to the proceeds thereof resulting from damage [o the Property Aria- to the safe
<br />or auluisition shat! pass to Lender to the extent of the sums secured 6y this hfortgage immediately prior to such sale or
<br />arquisittoa. ,
<br />f, Pltaervatias anA iNaitumnice o[ IProperty¢ txaseholds; Candomia}utns; Plsneed UMt 1Dtwebpmtnts. Borrower
<br />steal! keep the Property in goad repair arrd sltatt not catntnit waste or permit impairment or deterioration of the Property
<br />sad anal! comply with the provisions of any lease if this Mortgage is on a leasehold. }f this Mortgage is on a unit in a
<br />condmainium or a planned unit develotxoen4 Borrower shall perform all of Borrower's obligations under the declaration
<br />at covenants crtatitig or govermag the tondominium or planned unit development, [he by-laws and regulations of the
<br />condomioitim ar p'i~it~ uHt"i des-elaprtent, and canstituem dcuumcnu. if a condominium or planr,~ unit developrttent
<br />tidq' is exeeute[I by Borrower and r~erded togtthtr w+th this Mortgage, the covenants ared agreetrxnts of streh rider
<br />shall era itswxporatad into and shalt afrtend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hcrotat.
<br />7, d9Nalatltlae a[ LestAar'a SaeWiiy. If Borrower faits to perform the covenants and agreements contained in this
<br />~, of if asy ~ ar proc~li~ +s cattirrsetxed which matesia}ly affects Leac}er's interest in tlx Properly,
<br />Wig, but oat limibtd ¢o, tminem domain, insolvency. crvdt en#orcemenL or arrangements or praceedirigs involving a
<br />~ ar dectdaatr than I,ettder at Ltadet's option, upon trotice to Borrower, may make such appearances, disbruse such
<br />attars sad nke suit actiart as is ttectswy to protest 1_enders intcttst, +ircluding. but urn limited to, disbursement of
<br />t~ atttralaelrs fe¢ta and furry upon the FtvptnV to make repairs. If Lender rtxluirtA mortgage insurance as a
<br />of ~ the Loan sec:[ared hY Fhis Metrtgagt. Harrower :lea!! pay the premiums requ+rtxt to maintain such
<br />iaiprraal~ Iat rrt unfit such tiara as the .+aquiren~nt for such :nsurantt ttrmtnaits cn ac<:atdance w+th Bormwtr's and
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