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Uttmoattt Covetvstvrs. Borrower and Lender covenant and agree as follows: ~ ~ -~~ () ~ r
<br />I. PayreeM o[ Prfselpal aed Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtednea evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Ftmtrc Advances sectued by this Mortgage.
<br />2. Faedt for Tara and Iaarermee. Sltbject to applicable law or to a written waiver by Leader, Borrower shell pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a stun (herein "Futids'~ equal to one-twelfth of the yearly' taxes and assessments which may attain priority over this
<br />Mortgage, and ground retire oa the Property, if any, pins one-twelfh of yearly premium installments for hazard insurance,
<br />plus otxrtwelfth of yearly premium installrttents for mortgage insurance, if any, al] as reasonably estimated initially and from
<br />tirnt to tftne by Lender on the baste of assessments and bills and reasonable estimates thereof.
<br />The Funds shah 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, at~smeots,
<br />imurattce premiums acrd ground rents. Lender may not charge for so holding and applying the Funds, analyzing strict' account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds sled applicable-law
<br />permits Lender tit 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 />requites such interest to be paid, Leer shall not be required to pay Borrower any interest or earnings an the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds amd the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums setvred
<br />by this Mortgage.
<br />If the amount of the Futtds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, ittsurancc premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as ,they fall due, such excess shall be, at Borcawer's option, tither
<br />promptly repaid to Borrower or credited to Harrower on monthly installments of Funds. If the amount of the Funds
<br />Geld by Lender shall 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 the date notice is mailed
<br />by Lender [o Borrower requesting payment thereof.
<br />Upon payment in full of all stints secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Leader. If under paragraph 18 hereof the Property is said or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later [Iran immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at ehe time of application as a credit against the sums secured by this Mortgage.
<br />3. Application M Paymears. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall Fx apphed by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note. [hen to the principal of the No[e, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liege. Borrower shall pay all taxes, assessments and ether 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 paragraph 2 hereof or, iE not paid in such manner, by Borrower making payment, when due, directly to the
<br />payer [hereof. Borrower shall promptly turntsh to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Barruwet shall promptly futntsh to lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any i,en which has pnonty over this Mortgage: provided. that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree m urinng to the payment o! the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall to good fanh contest such hen hy, or defend enforcement of such lien in
<br />legal proceedings which opei..te to prevent the enforcement of the hen nr iarftnore of the Property or any part thereof.
<br />S. Narard Insatawse. Harrower shall keep the improvements now eaistmg or hereafter erected en the Property insured
<br />agaitut toss by fine, hazards included within the term 'extendeJ coverage"", :tnJ such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require: pn+vided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage regwred to pat the sums .cY.tvtti by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subiect to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. .~I premiums on insurance poiictes shall tie paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. Jtrectly to the
<br />insurance earner.
<br />All iosurattce policies and renewals thereat shalt be in form acceptable to Lender and shall mdude a standard mortgage
<br />a~~st in favor of and m form acceptable ••+ Linder. Lender shall hate the right to hold the policies and renewals thereof,
<br />atxi Borrower shall promptly furnish to Lender all renewal rauces anti all receipts of paid premiums. In the event of lass,
<br />Borrower shall give prompt notice to the insurance carder anJ !.ender. Lender may make prwt ci[ loss if not made promptly'
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall rte apphed to restoration or repair of
<br />Iht Property ,iamagui, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. !f such restoration or repair is not eco,wmically feasible or it the securely of this Mortgage would
<br />bt impaired, the insuratttt proceeds shall be applied to [he sttrtts secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower falls to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier afters to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance prxeeds at Lender's option either to restoration er repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unle,, Lender and Borrower otherwise agree m writing, any such application of pra:eeds to pnncipal shall not extend
<br />or postpone the due date of tree monthly installments referred to in paragraphs t and 2 hereof or change the amount of
<br />stub installments. If under paragraph I8 hereof the Property is acyuired by Lender, ail right, ti[kand interest of Borrower
<br />in and to any insurarht policies and im and ;o the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the Burns sen:ured by this Mortgage itnmediately prior to such sale or
<br />acgwsitttut. '
<br />6. Prmervatba and Maiatraswce of Property; Leaseholds; Condorniniutms; Plantced Unit Developments. Borrower
<br />shat! keep the PropetYy in goad repair and sha13 not commit waste oc permit impairment or tkttriomtion of the Pruptrt}'
<br />sled shall comply with the provisions of any tease i[ this Mortgage is on a leasehold. tf this Mortgage is on a unit in a
<br />condominium tar a planned unit dtvelopmen4 Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing iht condominium or planned unit development, the by-laws and regtdations of the
<br />comdotttinium or platuaed unit devcloprnent, and constiwent Jcx;uments', if a condominiur or planned unit Development
<br />rides is executed by $orrower and retarded together wnh this Mortgage, the covenants and agreements ,+f such ndtr
<br />stall 6t incorporated into acrd shall amend and supplement the cotenants and agreements of this Mortgage as ,f the rider
<br />were a pall hereof.
<br />7. Protection of Leader't Sectrti/y. if Harrewcr fails to perform the covenants and agreements cuntaincd m this
<br />Mortgage, or i# any action or proceeding ,s comrnenceJ which materially' atlects Lender's interest in the Propen},
<br />inc4ttding, but net limited ta, tmiaent tlamain, insolvency, code en(oreement or arrangements ar proceedings involving a
<br />bankrupt or detetient, then Lender at Lender's option, upon realist to Borrower, relay make such appearattcts, disburse such
<br />sutras aced take such aetiom as is necessary to protect !..antler's interest, including, but Hirt limited to, disburaemtot of
<br />rx-asortabk utorney's [etc and entry upgn the Prapertr to retake repairs. If Lender ri~quired mortgayt insurance as :r
<br />Guadition of rnakittg tbt loan sccureJ by this Martgagt. &*trower shal9 pay she 1>remiums mqutres{ to maintain such
<br />it»uratxx in effect Until sUCh lime as the rtquiremttnt far xuch insurance rcrmirtates in accordance with Borra+utr's anD
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