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Urrtwottat COVENxtd7's. Borrower and Lender covenant and agree as follows: 8 ~ ° ~ } ~) 3 7 ~ ~
<br />1. Payment of Principe! and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />intkbttdntes evidenced by She Note, peepayment 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. Ptmds for Ta:es aed iusuraece. Subject to applicable law or to a written waiver by Irnder, Borrower shall pay
<br />to Lentkr on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a attm (herein "Fonda") equal to oce-twelfth of the yearly taxes and assessments which may attain priority ever this
<br />Morigage, and ground rants on the Pmperiy, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus ottatwelfth of yearly premium installments for mortgage insurance, if any, alt as reasonably estimated initially and from
<br />time to time by Lender on the basis of as~ssmenis and bills and reasonable estimates thereof.
<br />The Fursds shall be held in an institution the deposits or accounts of which are insured ar guaranteed by a Federal or
<br />state agency (incitrding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance ptmtiums 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. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Ftmds shall be paid to Borzower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shalt 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 arc 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 due dates of taxes, assessments, insurance premiums and Around rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance pretttiums and graursd rents as they fal! 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 />held by Lender shall not be sufficient to pay taxes, assessments. insurance premiums and ground rents as they fall due,
<br />Bortcwer shall pay to Lender any amount necessary to make up the deficiency within 30 days from the dale notice is mailed
<br />by Lender to Bertower requesting payment thereof.
<br />Upon payment in full of aB stuns secured by this Mongage, Lender shag promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />snail apply, no later than immediately prior to the sale of the Froperty or its acquisition by Lender, any Funds held by
<br />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />3, AppBentioa of Psymtnts Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note sad paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />tinder 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. COatEes; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mongage, and leasehold payments or ground rents, 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 thereof. Borrower shall promptly ftunish to Lender all enures of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, 3orrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, chat Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree .n writing to the payment of the obligation secured by
<br />such lien in a manner accepta:,:_ to Lender, or shall in goat faith contest such Lien by, of defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien er forfeiture of the Propeny or any part thereof.
<br />5. }tarard Iosarance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agaimtloss by Sre, hazards included within the term "extended coverage', and such other hazards as Lender may require
<br />sad in such amounts and for such periods as Lertder may rcquitr; provided, that Lender shalt not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by [his Mortgag:.
<br />The insurance cazrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall not be tuueasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under pazagraph 2 hereof or, if trot paid in such manner, by Harrower 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 shall include a standard mortgage
<br />clause in favor of and in form acceptable to Leader. Lender shall have the right ui hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shalt give prompt notice to the insurance carrier and Lender. Lender may make pra?f of loss if not made promptly
<br />by Borzower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt be applied to restoration or repair of
<br />the Pra~erty damaged, provided such restoration or repair is economically tensible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is net economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the stints 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 respond to Lender within 34 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the instuance proceeds at Lender's option either to restoration or repair of the Propeny
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to princtpal shall not extend
<br />or postpone the due date of the monthly installments referred to in pazagraghs 1 and Z hereof or change the amount of
<br />such installments. If under puagraph i8 hereof the Property is acquired by Leader, all right, title and interest of Borrower
<br />in and to any insurance policies sad in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender !o the extent of the sums secured by this Mortgage immediately priot.iu such sale or
<br />acquisition.
<br />te. Frseervatioa and Maintenance of Property; Leaseholds; t'oodominiums: Planned Utrit Lhvelopnrenls, Borrower
<br />shall keep the Froperiy in good .repair and shall not commit waste or permit impairment or deteriorazioo of the Property
<br />anti shall comply with the provisions of any tease if this Mortgage is on a leasehold. If this Mortgage is on a unit iu a
<br />condominium ar a planned unit development, Borrower shall perform alt of Borrcwer's ohligations under the declaration
<br />or covenants relating or governing the condominium or planned unit development, the by-taws and regulations of the
<br />condorainittm or planned unit development, and constituent documents. If a condominium or planned anh development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplemerst the covenants and agreements of thts Mortgage as rt the rider
<br />were a part hereof.
<br />7, PwlMien of Lterder's Secarity. If Botrawer faits to perform the covenants and agreements contained in this
<br />Mongagt, o[ if any at:tion or proceeding is commenced which material}y aStxzs Lender's interest in the Proper}'.
<br />including, but not limited to, eminent domain, insolvency, tale cnE~rcement, or arrangements or proceedings involving a
<br />bankrupt ar decedent, then Leader at Lender ~ option, upon notice to Borrower, may make such appearances, disburse such
<br />sstms sad take such actron as is necessary to protect Lender's interest, including, but not limited m, disbursement oI
<br />reasonabk attorney's fete and entry upon the Property to make repairs. if Lender required mortgage insurance as a
<br />condition of making iht loan secured by thts Mortgage. BorrewC'r shall pap the premiums enquired to maintain such
<br />iasuratxx in effect troll! sorb time as the requirement for such insurance termtnares in accordance with Borrower's and
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