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<br />Utvaas[er CovHrrewrs. Borrower and Lender covenant and agree u follows: $ ~ -- f) ~ ~ 8
<br />!. ItayaseN of . sled !®terat. Borrower shall promptly pay when due the principal of and interat on the
<br />~rdebtetia~e evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interat
<br />on any Future Advances secured by this Mortgage.
<br />Z. Fsis for Trro<m trod lertnesce. Subject to applicable law or to a written waiver by Lender, Borrower shall-pay
<br />to Lembr on the day tnarthly installments of principal and interes4 are payable under the Note, until the Note is paid in full,
<br />a stmt (herein "Funds") equal to onatwelfth of the yearly razes rind assessments which may attain priority over- this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfrh of yearly premium installments for hazard irrstaraace;
<br />ply oao-twelf4h of yearly premitam installments for mortgage inwrance, if soy, all as reasonably estimated inifiatly sari -from
<br />time to time by Letader on the basis of assessments and bills and. reasonable estimates thereof.
<br />The Fumis shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Feral or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes; atiaaslsttteots,
<br />inatrnarx ps+emitattu and ground rents. fender may not charge for so holding and applying the Funds, analyzing said'account,'
<br />of verifying a»d compiling said assessments and bills, unless Lender 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 utiless such agreement is made or applicable law
<br />requires stack interest to be paid, Leader 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 debits to'the Funds and the
<br />'purpose for which each debit to the Funds was 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 Ixader, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums a;td ground rents, sha» exceed the amount required to pay said fazes,
<br />assessments, 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 rf Funds. If the amount of the Funds
<br />held by Letnfer 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 Leader to Borrower requesting" payment thcreaf.
<br />Upon payment in foil of all stuns secured by this Mortgage, Lender shall promotty refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender; Lender
<br />shall apply, no 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 [he sums secured by this Mortgage.
<br />3. Appticatton of Paymeda. 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 fits[ in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then m 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. Charges; Bens. Borrower shall pay all taxes, assessments and other charges, fines and imposi4ions 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 tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whin due, directly to the
<br />payce 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, Harrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall ptompt[y discharge any lien which has priority aver this Mongage: provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in goad faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of [he Property or any part thereof.
<br />S. IEia~rd Iewranca, Borrows, shalt keep the improvements now existing or hereafter erected on the Property insured
<br />agaiaat 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 Let+.der 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 />The ittaurance carrier providtag the insurance shall be chosen 6y Borrower subject to approval by Lender, provided,
<br />first such approval shall no[ 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 manver, by Borrower making payment, when due, directly to the
<br />iowtancc carrier.
<br />AB insurance policies and renewals thereof shall be in font acceptable to Lender and shall include a standard mortgage
<br />clsuae in favor of and in form acceptable to Lender Lender shell have the right [o hold the policies and renewals thereof,
<br />sad Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shat! give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Ualou Lender and Borrower otherwise agree in writing, 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 restoration or repair is not economically feasible or if the security of this .Mortgage would
<br />ba impaired, the inwrance proceeds shall be applied to the sums secured by this Mongage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, ar if Borrower fails t~ respond to Lender within 30 days from the
<br />date notice s mailal by Lender to Borrower the[ the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply tbt insurance proceeds at lxnder's option wither to restoration or repair of the Property
<br />ar to the roams secured by this Mortgage.
<br />Uattees Ixnder sad .Borrower otherwise agrce in writing, soy such application of proceeds to principal shall not extend
<br />ar postpone the due data of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />stark imuBmeots. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />is and to say insurance poticles sad in and to the proceeds thereof resutung from damage to the Property prior to the sale
<br />ar atxpaisitioa shall pass to 1-ender to the extent of the sums sexured by this Mortgage immediately prior to,such sale or
<br />f. isawrvHitso srtl Mai«eaaace o! Property; teaKhoWs; Coodo®ioiams; 1?laaaed Unit Ikvelopraents. Borrower
<br />shall keep the Property is good repair and stub ~t commit waste ar permit impaittnen[ ar deterioration of the Property
<br />sad shah comply with the provisions of any lease if [his Mwtgage is on a leasehold. If this Mortgage is on a unit in a
<br />txwdtttainium ar a plantrai unit development, Borrower shalt perform all of Borrower's ahligations under the declaration
<br />ar coreaaats crcatiug or governing ttx condominium or planned unit development, ttte by-laws and regulations of the
<br />etzadmaiaium a planmd unit devdoprnettt, sad constituent documents. If a condominium or planned unit development
<br />rider is executed by Botrowar and recorded together with this Mortgage, the covenants and. agreements of such rider
<br />shaft be int~aparated unto sari shah amend and supplement the covenants sad agreements of this Mortgage as ii the rider
<br />wer'o s part Itermf.
<br />7, Ipraleelisst of I(.pies's If Borrower fails to perform the covenants and agreements contained in this
<br />ar if say action or pracsadirrg is commenced which mazetiatly affects Lender's interest in 'the Property,
<br />itkfuditt)j, biaiC trot tiaoited to, emittem domain, insolvency, code enforcement, or arrangements ar proceedings involving a
<br />buakrupt ar doc+~ri6 then Loader u Leader's option, upon tratice to Borrower, may make such appearances, disburse ;uch
<br />starts atttl udtc arch action as is necessary to protect l,cttder's interest, including, but sot limited to, disbursement of
<br />ra#MSStabft attorney's fees sari entry upon the Property to make repairs. If Lender required mortgage insurance ss a
<br />condition of gtaking the boo stxtued by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />irtatt4 ht adect until weft titnc es the requiretacnt for such insurance tcrmianies in accordance with Borrower's and
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