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81-- c)(-36~~
<br />Utvmoatt COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Priacf~tai and Itaterest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Noie, 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. Ponds for Tacos and Ioaoraaee. Subject to applicable law or to a written waiver by Lender, Borrower shall 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 s-.rr.. (herein "Funds") equal wone-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Froperty, if any, plus one-twelfth of yearly premium installments for hazard insurance.
<br />plus ottatweifth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to tithe 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 tinchtding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />inuurance 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 Leader pays Bonower interest on the Funds and applicable law
<br />prrrtttts 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 unless such agreement is made or applicable law
<br />rtxluires 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 debits to the Funds and the
<br />purpose far 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 Lender, together with the future monthly installments of Funds payable prior to
<br />the ds- dates of to=-~, acsessrnents, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground repo as they fail due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />hdd by Lender shall hat be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Bottower 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 [hereof.
<br />Upon payment in full of aA stuns secured by this Mongage. Lender shalt promptly refund to Borrower arty Funds
<br />held by Lender. If under paragraph lg 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 a[ the time of application as a credit against the sums secured by this Mortgage.
<br />3. Ap~catbe of Ptttyttxats. Cinless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs f and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hert:of, then to interest payable on the Nate, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />3. CCrwges: I3eas. Borrower shat( pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which they attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided tinder pazagraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due. directly to the
<br />payee thereof. Borrower shall promptly tarnish to Lender a!1 notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly famish [o Lender receipts evidencing such payments.
<br />Burrower shall promptly dixharge any lien which has priority over tF.is Mortgage: provided, that Borrower shall not be
<br />required to dischazge any sac` '°cn so long as Borrower shall agree in writng to the payment at the obligation secured by
<br />such hen in a manner acceptable to Lender, or shalt in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the {ten or forfeitar_ of the Propeny or any part thereof.
<br />5. Heard Enwraaee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage'. and such outer 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 amount of
<br />such coverage excexd that amount of coverage required to pay the sums cewred by this Mcrtgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approve[ by Ixnder: provided,
<br />that such approval shall not be unreasonably withheld. Ail premiums an insurance policies shall be paid in the manner
<br />provided under paragraph ?hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shalt include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shalt have the right to held the policies and renewals thereof,
<br />and Borrower shall promptly ftu»ish to Lender alt renewal twnces and al! receipts of 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, 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 />trot 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 [he excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or ii Borrower tails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the i~urattce carrier offer to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply tbe insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m venting. any such application of proceeds to principal shalt rcr_ extend
<br />or postpone the due date of the momhly installments referred to in pazagraphs ! and Z hereof or change the amount of
<br />such installments. If under paragraph I S hereof the Property is acqured 6y Lender, ail right, title and interest of Borrower
<br />in and fo any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of [he Bunts ~earreal by this Mortgage immediately prior [o such sale or
<br />at;.ytttsttton.
<br />6. Praservatltm atsd Msiotetrattce of Property; Leaseholds; Coadominiuats; Pltmaed Unit Developments. Borrower
<br />shall keep the Property in good repair and shall not coaunit waste or permit impairment or de[erioratian of the Property
<br />sad shalt comply with the provisions of any lease if this Mortgage is on s leaxhold. If this Mortgage is on a unit in a
<br />coadominittm or a planned trait development, Aorrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating ar governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium ar planned unit development, and constituent da:uments. If a wndominium or planned unit development
<br />rider is executed by Borrower' and retarded together with this Mangage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as it [he rider
<br />were a part hereof.
<br />7. PttsteaBan ~ Leader's Seceuity. If Sarrowet fails to perform the covenants and agreements captained in this
<br />Iwiortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but cwt limited to, eminent domain, insolvency, cads enforcement, or arrangements or proceedings involving a
<br />bankrupt ar decedent, then Lerxler at Lender's option, upon native to Aorrowcr, may make such appearances, disburse such
<br />sums and take such artictn as is necessary to proUCt Lender's interest, including. but not limited ta, disbursement of
<br />rearwaable attorney's tees ettd entry upon the Property to maker repairs. It Lender required mortgage insurance as a
<br />cturdittan of making the lawn stxtued by [his Mortgage. Aanuwer shall pay the premiums requiw.d to maintain such
<br />itratrtanCt in cited Imtil such time as the requuemem for such insurance terminates .n aceardance with Borrower's and
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