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81--002085
<br />UtvmoaM CovarrnNTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. 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, Fond for Ta:es and Irtsoranee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender an the day monthly installments of principal and interest are payable tinder the Note, until the Note is paid in full,
<br />a elan (herein "Funda'~ equal to one-twelfth 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 insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time 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 />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 bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrawer 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 />requires 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 debitrto the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds arc 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 Fttnds 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 />assessments, insurance premiums and ground rents as they fal! due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrawer on monthly installments of Funds. If the amount of the Funds
<br />held by Ler[der shat) not be sufficient 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 [he date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured b}' this Mortgage. Lender shalt promptly refund to Borrower any Funds
<br />held by Lr_nder. If under paragraph 18 hereof the Property is sold or the Property is otherwise acgmred by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Propettc 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. AppBcafion of Payments. 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 m payment of amounts payable to Lender by Borrower
<br />under paragraph 7 hereof, then to interest payable on the Note. then to the principal of the No[e, and then to interest and
<br />principal on any Future Advances.
<br />1, Charges; Lierss. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
<br />[he Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or. if not paid in such manner. by Borrower making payment, when due, directly [o the
<br />payee thereof. Borrower shall promptly furnish to Lender all nouces of amounts due under this paragraph, and in [he event
<br />Borrower shall make payment directly. Borrower shall pramptly iumtsh to Lender receipts evidencing such payments.
<br />Borrower shat! promptly discharge any lien which has priority over this Mortgage; pravrded, that Barrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation severed by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such Tien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcemem of the hen ar forfenure of the Propeny or any part thereof.
<br />5. Iitazard Insrrraaca Borrower shalt keep the improvements nave existing or hereafter erected on the Property insured
<br />against loss by fire, 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 that the amoum of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insuram~e shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall oat be unreasonably withheld. .All premiums on insurance policies shalt be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance cazrier.
<br />AB insurance palic -and renewals thereof steal{ be in farm acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shat! have the right to hold the policies and renewals [hereof,
<br />and Borrower shall promptly furnish to Lender all renewal nohees and all receipts o[ paid premiums. In the event of loss,
<br />Borrower shall 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 Borrower otherwise agree in writing, inwrance proceeds shall be applied to restoration or repair of
<br />[he Property damaged, provided such restarauon or repair is economically feasible and the security of this Mortgage s
<br />not thereisy ;.Paired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
<br />to Borrower. If [he Property es abandoned by Borrower, ar if Barrower fails m respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance earner oltere to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option enher to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Uakss Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />ar postpone the due date of the monthly installments referred to ht paragraphs 1 and 2 hereof ar change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquued by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the pra:eeds thereat asulung tram damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Martgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservation and Maintetrance of Property; Leaseholds: Condominiums; Planned Unit IDevelopmenls. Borrower
<br />shalt keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Propeny
<br />and shall comply with the provisions of any lease if this Aortgage is an a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condemmmm or Alarmed unit development, the by-laws and regulations of the
<br />condominium or planned uait development, and constituent dtkuments. If a condominium or planned unit devclapntcnt
<br />rider is executed by Borrowe€ and recorded together write this Martgage, the covenants and agreements of such rider
<br />shall be incocperaied into and shalt amend and supplement the cotenants and agreements of this Martgage as if the rider
<br />were a part heceof.
<br />7. Peohetiea of Ceroder'a Secarityo If Burrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or procceding is commenced which materially affects Lender's interest in-the Property,
<br />iacttsding, but rtat limited to, entirtent domain, insalvcncy. Cade enforcement, ar arrangements ar prxcedings involving a
<br />bartkrupt or decedent, then Letuler at Lendei s apuon, upon notice to Borrower, may make such appearances, disburse such
<br />awns and take ouch action as is nes~sary to protect Lender's interest, including. but oat limited te, disbursement et"
<br />reatonable attorrwy's fete and entry upon tree Propeny in make repeat. if Ixnder require) mongage insurauce as a
<br />i:ouditioa of making fire loan secured by this Mongage, Borrawer shalt pay the premiums required to maintain such
<br />iasurarrce in effat until such time as the requirement for such insurance tecminatcs in accordance wuh Borrower's and
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