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<br />81--(1(113"7
<br />UxtaoAM Covexnxrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Frlnci~t and (Merest. Borrower shall promptly pay when due the principal of and interest on th«
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Ptrnda for Tam cued htsnrance. Subject to applicable law or to a written waiver by Lender, Botsower shall pay
<br />to L,cnder on the day monthly installmrnts of principal and interest are payable under the Note, until the Note is paid in full,
<br />a aum (herein "Ftmda") equal to one-twelfth of the yearly taxes and assessments which may aN.ain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurantx,
<br />plus Otte-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time fo lima by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The 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 />ittaut'ance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying artd compiling said assessments and bills, unless Lender pays Borrower interest 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 on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />regttircs 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 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. shall exceed the amount required to pay said taxes,
<br />assesaatents, ittsuraace premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower an monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay razes, assessments, insurance premiums and ground rents as they fall due,
<br />Bazower shat! gay 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 all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Leader. If under paragraph i8 hereof [he Property is sold or the Propeety is otherwise 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 secured by this Mortgage.
<br />3. Appiisafba of Paymea~. 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 6y Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, thin to the principal of the Note, and then to interest and
<br />priacipal an any Future Advances.
<br />4. C-eargea; Liaas. Borrower shall pay al! taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the meaner
<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 amounu due under this paragraph, and in the event
<br />Borrower shall 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; 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 E
<br />such i;en in a manner acceptable to Lender, or shall 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 hen or forfeiture of the Property or any part thereof.
<br />S. liaxard lusatante. Borrower shall keep the tmprovemenis now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "zxtended coverage", and such other hazards as Lender may require
<br />and is such amounts aad for such periods as Lender may require; provided, that Lender shall ^ot require rhat the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval 6y Lender; provided,
<br />that such approval shall not be unreasonably withheld. .A71 premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if noc paid in such manner, by Borrower making payment, when due; directly to the
<br />i~urance carrier.
<br />AB insurance policies and renewals thereof shall be m form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of aad in form acceptable to Lender. Leaner shall have the right [o hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish [o Lender all renewal notices and all receipts of paid premiums. In the even[ of loss,
<br />Borrower shall give prompt nonce to the insurance carrier and Lender. 1_ender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance prcnecds shall be applied to restoration or repair of
<br />the Propeny damaged, provided such restoration or repair a economically feasible and the security of this Mortgage is
<br />trot tftueby impaired. If such restoration or repair is net economically (easible or rf the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by thu Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails w rzspond to Lender within 30 days from the
<br />date troller is malted by Lender to Borrower that the insurance earner ofFers ro settle a claim far insurance benefits, Lender
<br />is authorized to collect and apply [he insurance proceeds at Lender's option etcher to restoration ar repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree i[i writing, any such application of proceeds to pnnctpal shall not extend
<br />or postpone t;.c due date of [he monthly installments referred to in paragraphs t and 2 hereof or change the amount of
<br />such installments. If under paragraph i8 ttertaf the Property is acquired by Lender, all right, title and interest of Borrower
<br />m and to any insurance policies and in and to the procztds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to'such sale or
<br />acAuisition.
<br />6. Prettervation ate Maintenance of property; Leaselmlds; Condominiums; Planned Unit Ikvelopments. Borrower
<br />shall steep the Property in good repair and shall not commit waste or perms[ impairment or deterioration of the Progeny
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Sfortgage is on a unit in a
<br />cce:~^~'~-~=^im ar a planned unit declopmcr.t, 3n..r-.o:ver ~:ka!! perform a!! of Betteuei= ~t•ligations under the declaration
<br />or covenants creating or governing the condommitun or planned unit development, the by-taws and reguia[ions of the
<br />condominium or glanned unit development, and constituent documents. Sf a condominium or planned unit development
<br />rider is ex~uted by Borrower and recorded together wuh this Mortgage, the covenanu and agreement. of such rider
<br />shall 6e incorporated into and shalt amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part Hereof.
<br />7. Paatactlan of Letter's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />141ortyaYe• or if any action or proceeding is commenced which materially afttcts Lender"s interest in the Property,
<br />including, but not limiiu! to. eminent domain. insolvency, Cade enforcement, or arrangements or proceedings involving a
<br />bankrupt or decrdmt, then Lender at Lender's option, upon noticz to Borrower, may retake such appearances, disburse such
<br />Burns and take. stub action as is necessary to ptutecE Lendcc`s interest. including, but riot limited tu, disbursement of
<br />reasonable attorney's fete and entry upon the Property to make repairs. If ixndec required mortgage insurancz as a
<br />condition of making the lean secuued by this Mortgage, Harrower shall pay the premiums require) to maintain such
<br />insurance in eRtct until such time as the rcquirctuent for such insurance ttnrtinates in :tcca~auce with Barnewer's and
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