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<br />8I-r o0281~
<br />Utvtroatvt Cover+ert•rs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Pdndpal 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 6y this Mortgage.
<br />2. 1§+nds for Ta=es and Insaraece. Subject m applicable law or to a written waiver by Lender, Borrower shad pay
<br />to Lender on the day monthly instatlrnents of principal and interest are payable under the Note; until the Note is paid in-full.
<br />a sum (herein "Funds") equal [o onatwelfth of [he 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 hills 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 sail( 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 said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender. to make such a charge. Burrower and Leodcr may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall tte paid to Borrower, and unless such agreement is made or applicable law
<br />regtrines such interest to be paid, Ixttder shall not be required to pay Burrower 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-tn the Funds and the
<br />pury~se for which each debit to the Funds w•as 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 manthh~ installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rent.. shall zxczed the amount requtred to pay said taxes,
<br />assessments, insurance premiums and ground rents as they tall doz. such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly msiailmen_s of Funds. if the amount of the- Funds
<br />Geld by Lender shall not be sufficient to pay taxes. assessments. +nsnrance premtums and ground rents as they fall due.
<br />Borrower shall pay to Lender any amount necessary to make up the defie:encv wtthin 30 days from the daEe notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. I iodic shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph lR hereof the Properly :~ svlil or the 1'ropen: a otherw~isc acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the .ale of the Properly or ns acgmsttton M' Lender, any Funds held by
<br />Lender at the time of application as a credit against [hc sum. ucured h} this Mortgage.
<br />3. Application of Payments. Unless applicable law prastdes otheruitie. a31 payments received by [.ender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender hot :n. pa}meat of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable un the \+xe. lher. to the princpal of the Note. and then to interest and
<br />principal on any Future Advances.
<br />A. Charges; IAens. Borrower shall pay all rases. assessments and ocher .hargzs. fines and mtpositivns attributahle to
<br />the Property which may attain a priority over thn Mortgage. and Izaschold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or. +f not pa+d m such manner, h} Borrower making payment when due, directly to the
<br />payer thereof. Borrower shall promptly turmsh to Lender a[I nouces of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Bcxrowzr .hall prrmptly tutntsh to Lendrr rzceipts cvidzncmg Bach payments.
<br />Borrower shalt promptly discharge any lien which has prux+ty +ner tMs Morgage; pawtded, that Borrower shall not bz
<br />required to discharge any such lien so long as Borrower .hail :agree in wnttng to the pa}ment of the obligation secured by
<br />such lien in a manner acceptablz to Lender, or shall 'n good faith conic,! such hen ~y, or defend enf<rezment of such lien in,
<br />legal proceedings which operate to prevent thz enforcement of the iten r.r tarrenun• of the Pmpertp ar am' part thereat.
<br />S. Hazard lasutance. Borrower shall keep the impruvcments now cauttng or herzaftcr zrenetl on the Property insured
<br />against toss by fire, hazards included within the term "eviendzd cuvzrage-". and such oihzr hazards as Linder may require
<br />and in such amounts and for such periods as Lender may reyuirz: pnneded, that Lendrr ,hall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay ttx .urns secured by this !vfon~age.
<br />The insurance carrier providing the insurance shall be chosen by Burrower utblect w approval by Lender, provided,
<br />that such approval shag not be unreasonably withheld. Atl premiums en insurance policies shall ne paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment whin due, directly to the
<br />insurance carrier.
<br />AH insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of cad in form acceptable to Lender_ Linder shall have the right n~ hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renews! nouces and :dl receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender ma} make proof of Toss if cot made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance prexceds shalt be applied to restoration ar repair of
<br />the Property damaged, provided such rstoration or rzpatr is econumkally feasible and thz security of this Istortgage a
<br />not thereby impaired. If such restoration or repair is oat economically icasihle or d the securin~ of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the stuns secured by this Mongage, with the excess, if any, natd
<br />to Borrower. IC [he Property is abandoned by Burrower, or +i Borrower faits to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that thz insurance carrier offers to settle a claim for insurancz benefits, Lender
<br />is authorized W collect and apply the insurance proceeds ai Leader's option either to restoration or repair of the Properq•
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred 0.? in paragraphs I and 2 hereof yr change the amount of
<br />such installments. If under paragraph f k? hereof the Property is acyuaed by Lender, all right, title and interest of Borrower
<br />in and to coy insurance policies and in and tv the proceeds thereof resulting Crom damage to tbz Property prier to the sale
<br />or acquisition shall pass to Lender to the extent of the scans secured by this Mortgage immediately privr,to such sale or
<br />acquisition.
<br />6. Preservation and Maintenance of Propert}; Leaseholds; Condominiums; Planned Unit I-evelopments. Borrower
<br />shall keep the Property in good repair and shag not commit waste ur permit imoairment or deterioration of the Property
<br />and shall comply with the provisions of any Icase it this Mortgage is on a leasehold. If this Mortgage is an a unit in a
<br />condominium ar a planned !alit development. Borrower shall pzrfnrm all of Borrower's obligations under the declaration
<br />or covenants treating or governing the condominium ar planned :mil development. the bylaws and rzgulatiuns of the
<br />candorrtinium or planned unit development, and constituent documents. It a condominium ur planned unit development
<br />rider is tbxecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shaill?e incarpotaECd into and shaft amend and supplement the covenants and agreements of this Mortgage as it the ricicr
<br />weto a part heieof.
<br />~. Proterfion of i,ander's Secarlty. If Borrower faits to perform the covenants and agreements contained in this
<br />llortggge, or 3f any action or proceeding is commenced which materially affects Lender's interest •in the Prvpeny.
<br />including, but not limned ta, eminent domain, inx~lvency, lode enforeemetit. i?r arrangements or prsxecdings involving a
<br />6ankruptor desedemlt,-Shen Lender at Lender's option, upon notice to Borrower, rosy make such appearances, dishursz such
<br />&tattS tuEd take atreh action as is tttace$sary to prr?tzct Lertdeis interest, including, but not iiiuited tu, disbursement of
<br />rettscatslrle atutrney's fees and entry upon the Propsny to make repairs. It Lender required morn;-age insurance as a
<br />eoed+titnt of-retaking the Inxn sxured by this Mongage, Hofrowzr shall pay the przmiuna, rzgnireil to maintain such
<br />imEa^-nca in tatfcc`t trntiJ such time as the regtdrement for such insurance ierminatz5 in aceordartcc vvuh Bnrn?wcr's and
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