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<br />82---00282.1
<br />Ummoast Covetantvrs. Borrower and Lender covenant and agree as follows:
<br />1. ta+~otettt of Pr6telpal artd ltateresf. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedtiaa evidenced by the Note, prepaytttent and late charges as provided in the Ncm-, and the principal of and interest
<br />on• any Ftth[re Advantxs secured by this Mortgage.
<br />Z. 1Pads ~r Taxers aai lfasteaace. Subject to applicable law or to a written waiver by Lender, Borrower shalt pay
<br />to lender on the day moathty installments of principal and interest are payable-under the Nott; until the Nuns is paw in full,
<br />a stmt (herein "Funds") equal to one-twelfth of the yearly taxes and assesstttents which -may attain priority- over this
<br />Itfortage, and ground tents on the Property, if any, plus one-twelfth of yearly premit[m installments for haurd insuratce
<br />plus o~twelfth of yearly ptamium installments for mortgage insurance, if any, alt as reasonably estimated initially -and from,
<br />titre to tittteby Lender on the-basis of asseasmet[ts and hilts and reasonable estimates iheretif: -
<br />The Fonder shall be held in an institution the deposits or accounts of which are itts»red o; guarantet#-2ipra Federal: or
<br />state agency (inctuding Lender if Lender is such an institution). Lender shall apply the Funds fo pay said taxes, assessments,
<br />insurance pretnntms attd ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assess[itertts and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />ptrmifs Linder 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 fx paid to Borrower, and unless such agrcernent is made or applicable law
<br />requires such interest to be paid, Lender shall rtot be required to pay Borrower any interest or earnings on the Ftmds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to ttte Funds and the
<br />purpose-for which each debit to the Funds was made. 7'}te Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />Tf the amount of the Funds hedd 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, shalt exceed the amount required to pay said taxes,
<br />asseatmtents, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. df the amount of the Funds
<br />held by Lender shall not be suffic~nt 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 to Borrower requesting payment thereof.
<br />Upon paytnem in full of all sw•tts secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, tto later 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 sceured by this Mortgage.
<br />3. AprBcatioo of Payments. Unless applicable law provides otherwise. all payments received by Lender under [lie
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable [o Lender by Borrower
<br />under paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4, C6xge~ IfJeas. Borrower shat! pay all taxes, assessments and other charges. fines and impositions attributable to
<br />the Property which tray attain a priority over this Mortgage, and leasehold payments or ground rcn[s, 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 to the
<br />payee therrof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and is the event
<br />Borrower shaft make payment directly, Borrower shall promgtty furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be
<br />required to disdtazge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a mant~r acceptable io L.ender, or shall i^ good faith corneal such Lien by, or de€end enforemem of such lien in,
<br />kga- proceedings which operate to prevent the enforcement of the lien or fortei[ure of the Property or any pan thereof.
<br />S. Bmrd lasaraace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agaitistloss 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 ss Lender may require: provided, chat Linder shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />'line insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
<br />that such approval shall not be unreasonably withheld. .41I premiums on insurance policies shall be paid in the manner
<br />provi~d under paragraph 2 hereof ar, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />instttattse curter.
<br />AB insurance policies and renewals thereof shall be in torm 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 hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal rwtices and all receipts of paid premiums. In the event of foss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borsower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance prxeeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoratica or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. 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 the Property is abandoned by Borrower, or if Borrower fails to respaod to lender within 30 days trom the
<br />date rauice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is atulwrized to collect and apply the insurance proceeds at Lender's option either [o r-atoratson or repair of the Property
<br />or to the stt~ secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of prxeeds to principal shall not extend
<br />or postpone tht dire daft of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such instaBt[tents. If tutdu paragraph 18 hereof [he Property is acquired by fender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the prxeeds thereof resulting from damage to the Properly prior to the sale
<br />or acquisition shall pass to Lender to t}x extern of the sums secured by this Mortgage immediately prior to such sale or
<br />aaquiaitioa.
<br />f. lhaservatlaa and Maiateoaace of Property; Leaseholds: C.ondomiainms; Planned Unit Developments. Borrower
<br />shall keep the Property is good repair and shall not commit waste or permit impatrrnent or dtteriorauon of the Property
<br />and shall-comply with the provisions of any Lease if this Mortgage is on a leasehold If this Mortgage ii on a unit in a
<br />contfa[tsinium or a ptantxsd unit development, Borrower snail perform a!i of Borrower's obligations under the declaration
<br />of covertaats creating-or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned tout development, and constituent dxuments. if a condominium or planned unit development
<br />rider is exxitttd by Boaowet and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall basin€orpprated into and Thal! amtnd and supplement [he c:ovenanis and agr~ments of this Mortgage as if [he rider
<br />+wpro a part ltsrwf.
<br />7. ~ of header's Stcarip•. If Borrower faits to perform the covenants and agreerents contained in this
<br />lj¢oxE,gage, Rr if say action or procseeding is commeoctd which materially affects Lerdcr`s ,nter~t in the Property,
<br />iriChtr, but rw[ limned. ter, emint:nx domain, insolvency, axle en[orcement, or arrangements err prtxeedinys mvolvrng a
<br />batskrttytos decedent; then. Lender at l.mdcr's itpiiae, upon rnvtict io Burrower, may make such appcarant~. disburse such
<br />suers and takt such action as is ?mcessaiy to prMect hendtr's interest, including, but rapt limited to, drsbursenreru r+r
<br />reastxtable attorney's f~ and tatty upon tht Prupeny to make repairs. If I_rnder rcquirr<d nx:rtgage insurance as a
<br />6opdilKUl.Of nuking the Iosn sxuratl by [his Mortgage, 8or[owu' shall fray the premiums requtrcd to maintain such
<br />itpinrsacm ht tjfcet tmtit such titttt as the rtquirttrttnt for such insurance tcrntina[es an accordance with Borrowrrs amt
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