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~1-- C)[-138~
<br />Utvrpoxr.t Coverrnrrrs. Borrower and Lander covenant and agree as follows:
<br />1. Peat of Hrrleelldd tmd interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evinced by tare Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on arty Puture Advances secures by this Mortgage.
<br />2. Narde for ?aa asd iaseratce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Len&r ov the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a as~i (bes21n "Fw-rds") equal to onatwelfih of the yearly taxes and assessments which may attain priority over this
<br />Mnrtgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />tirrre to time by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the dtposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution}. 1_ender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling mid assessments and bills, unless Leader 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 uuless such agrcement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Burrower 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 ter the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security far the sums seared
<br />by this Mortgage.
<br />Ff the atttount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />tine due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay mid taxes,
<br />assessments, insurance premiums and ground rents as [hey fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower ar credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />heW by Lender shall not be sufficient [o pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Letrder any amount necessary to make up the deficiency within 30 days Trom the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon paymem in full of all sums secured by [his Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender If under paragraph 18 hereof the Property is sold or the Properly is otherwise acquired by Lender, Lender
<br />shall apply, no lazer 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. dppbcadoa of Payments. Unless applicable law provides otherwise, ail payments received by Lender under the
<br />Note sad paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />trader paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />prircipa! ov any Future Advances.
<br />4. Charges; ISeos. 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 leasehold payments or ground rents, if any, in the manner
<br />provided under pazagraph 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 amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receip*s evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority aver [his Mortgage: provided, that Borrower shall not be
<br />requited to discharge any such lien so Song as Borrower shall agree in wriung to the payment of the obligation secured by
<br />such lieu in a mantrer acceptable to Len:.er, or shalt in good faith contest such lien by, or defend enforcement of such lien in,
<br />toga! pr^ceedi:.b^s wLtich or..r ie to prevent :he enforcement a, :he lien ar forfeiture of the Fropeny ar any part thereof.
<br />S. Haaard lrosrance. Borrower shall keep the improvements now esisung or hereafter erected alt the Property insured
<br />against loss by fire, hazards atcluded within the term "extended coverage". and such other hazards as Lender may requit,.
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage regwred to pay the sums secured by this Mortgage.
<br />the insurance carrier providing the insurance shall be chosen by Borzower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in [he manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, w}ten due, directly to the
<br />insutatxx carrier.
<br />All insurance policies sad renewals thereof shall be in form acceptable to Lenuer and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall here the right to hold the policies and renewals thereof,
<br />and Harrower shall promptly furnish to Lender aft renewal nauces and all receipts of paid premiurs. in the event of loss,
<br />Borrower shat( give prompt notice to the insurance carrier and Lender. Lender may make proof of toss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borzower otherwise agree in wriung, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoratiou or repair is not ecunomicall} feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied ro the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If tbe FropeMy is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Ixndu tc Borrower that the insurance carrier aKers ro settle a claim for insurance benefits, Lender
<br />is authorized to ealhxt and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of prae:eeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred [o in paragraphs t and ?hereof or change the amount of
<br />such installments. if utuier paragraph I8 bereof the Proper(} is acywred by Lcuder, all right, title and interest of Borrower
<br />in sled to any insurance policies azrd in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Leader to the extent of the sums secured by this Mortgage immediately prior to such sale cr
<br />acquisition.
<br />6. Preservation a~ Maiateaance of Property; Leaseholds; Condomiaitems; Plsaaed Unit Derebpmen[s. Borrower
<br />shall keep the Property in good repair acrd shall not commit waste er perruit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is an a unit in a
<br />c~dominitun ar a planned unit development, Borrower shall perform a- aE Borrower's obligations under the declaration
<br />or covenants creanag or governing tire; cnnclcr:siniura c- .cd v...t development, the by-laws and re¢ulations of the
<br />eovdominium or pisaved trait development, and constintentpdauments. If a condominium or planned unit development
<br />ride is executed by Borrower aird recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag be incorpotazed imo and shall amend and supplement tbe cavenanu and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />~• iii of ieatiu's Sscnrsy. if Harrower faits to perform the covenants and agrcemenls contained in this
<br />L1/ortgage, ai it say action or proccedivg is commenced which materials}' affects Leader's ioterest in the Property,
<br />including, but not limited to, eminent danrain. inulvenc}; code enforcement, or arrangements eir ptvc:eedings invo}ving a
<br />bankrupt or decedatt, thou L.errdcr at Lender's option, ue..:n Hoare to Burrower, ma}' make such appearances, disburse, such
<br />solos sad take such acrtiov as is necessary to protect l.etrdet's interest, ;nciuding, but not tirnited to, disbutsemcut of
<br />reawnable abottxy`s fees and urtry upon the Proper(( to make repairs. If Lender required mortgage insurance as a
<br />cortdrtion of makitrg tfre bran stctued b}' this Mortgage. Borrower shall pay the premiurtrs required to maintain such
<br />irrmraarx in et~ct tartil such tittle as the requirement for such >n_sisrance terminates ~n accordance with Borrower's and
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