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8l-- ~~ti 1381
<br />Uxtroxat CovexxxTS. Borrower and Lender covenant and agree as follows:
<br />1. Ptsy®eat of Principal and lnferest. Borrower shall promptly pay when due the principal of and interest on the
<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. Fonds tar Tales aml Immraare. Subject to applicable law or to a written waiver by [.ender, Borrower shall pay
<br />to Lender on the day monthly installme^ts of principal and interest are payable under the Note, until the Note is paid in full,
<br />a stun ('herein "Funds") equaE to one-twelfth of the yearly taxes and assessments which may attain prtiotiry ovee this
<br />Mortgage, and ground ants on the Property, if any, plus one-twelfth of yearly premium installments for haaard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to tithe 6y Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />Tile Funds shall be held in an instimtion the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lander 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 sa holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bias, unless Lender pays Borrower interest on the Futtds 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 rte paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall hat be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual ac:ounting of the Ponds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Foods 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 />atttrettstaents, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />proroptty repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />6dd by Lender shall not be sulBcient to pay taxes, assessments, 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 ib Harrower requesting payment thereof.
<br />Upon payment io ftdl of all sums secured by this Mortgage, t-ender shall promptly refund to Borrower nay Funds
<br />held by Lender. If under pazagraph 18 hereof the Propene s sold ar the Propert}' s otherwise acgmred by Lender, Lender
<br />shalt apply, no later than immediately prior to the sale of the Propem ar us acquisttion by Lender. any bonds held by
<br />Lender at the time of application as a credit against the sums secured by thts Mortgage.
<br />3. A~licatlon of Ptrymemmte. Unless applicable law provides otherwise. a!! payments received by Lender under the
<br />Nate and paragraphs t and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the '.Vote, then to the principal of the Nate, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes. assessments and other charges. Fnes and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, tf any, in the manner
<br />provided tinder paragraph 2 hereof or. if not paid m such manner, 6y Borrower mzkmg payment. when due, directty to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under thts paragraph, and in the event
<br />Borrower shall make payment directly, Harrower shall promptly furntsh to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: provtded. that Harrower shall not be
<br />tegtrired to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured b°
<br />such lien in a manner acceptn6le to Lender, or shall in good faith contest such Tien by, or de[end en[orcemen[ of such lien in,
<br />legal proceeaings which operate to prevent the enforcement of the lien ar forfeiture of the Property ar any part thereof.
<br />5. Hs>erd Insneantt. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agaittsfloss by fine, hazards 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; provided, that Lender shall not require the! the amount of
<br />such coverage exceed that amount of coverage regwred to pay the sums secured by thts Mortgage.
<br />The inuurance cazrier providing the insurance shall (>e chosen by Borrower subject to approval by Lender; provided,
<br />Shat such approval shall not be unreasonably withheld. Atl premiums on insurance policies shall 6e paid in the manner
<br />provided under pazagrap6 2 hereof or, tf not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All utsurance policies and re~,zowals 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 bald the policies and renewals thereof.
<br />and Borrower shall promptly ftuttlsh to Lender all renewal notices and ail receipts o[ paid premiums. In the event of loss,
<br />$orsower shall give prompt notice 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 proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repatr is economically feasible and the security of this Mortgage is
<br />not, thereby impaired. !f such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall he applied to the sums secured by thts Mortgage, with the excess, if any, paid
<br />to Borrower [f the Property is abandoned by Borrower, or rf Borrower fails to respond to Lender within 30 days from the
<br />date rmuce is mailed 6y Lender to Borrower that the ttuurance carrier oi{ers io settle x claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceed: at Lender's option either to restoration or repair of the Property
<br />or to the stints secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree +n writing, any such application of proceeds to principal shall no[ 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 irstal}menis. If under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest of Borrower
<br />in a~ io any insurance policies and in and to the proceeds thereoY resulting front damage to the Property prior to the sale
<br />or acquisition shalt pass to Lender to the extent of the sums secured by this Mortgage immediately prior fo such sale or
<br />acquisition.
<br />6. Ptatrvtstion atad Maintettaace of Froperty; Leasetrolds; Coadomiruums; Planned Unit Dcvelopmenls. Borrower
<br />sttaB keep the Property in good repair sad shall not commit waste or permit impairment or deterioration of the Property
<br />~ shall ccxnply with the provisions of any lease if this Mortgage is on a leasehold. It this Mortgage is an a unit in a
<br />condumi Hum ar a planned :shit d.°.•elep,^t~ BerzaLLer steal! uerfaz:n ail of Bern,wer s „hiioatians under the declaration
<br />or covenants cresting or governing ills condominium ar planned unit development, the by-}awl and regulations of the
<br />condominium oz planned unit development, and constituent documents. If a condominium or planned unit development
<br />ride[ is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag be iocorparated info and shall amend and supplement the covenants and agreements of this Mortgage a if the rider
<br />were a part txreof.
<br />T. thaueNna of Leader's Seeuriiy. If Horrowtr faits to perfarnt the covenants and agreements contained in this
<br />Mcutgage, or if airy action ar proceeding is cammerued which materiall}• affects Lender's :merest in the Property,
<br />including, but hat }trotted ta, cmtncnt domain, iusotvenc:y, code enforcement, or arrangements oz proceedings involving a
<br />baukrupf or decedent, then L.endet at Lender's option, upon holies to Harrower, may make such appearances, disburse such
<br />suwtt aaai hike suds akniap as is maaessary to protect Lender`s :aterest, including, but nut limited to, disbursement of
<br />raaaottable sttorn~ys fees attd eni€y upon the Property to make repairs. if txndcr reyuired mortgage insurance as a
<br />ctmditign of making the Ipso secured by this Mortgage, Borrawrr shalt pay the premiums required to maintain such
<br />irituraaee in et[frct unlit such lithe as the requirement far such tnsuratxc iermtnates tit accordance with Berntwer's and
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