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<br />Utvttrow.r Covit+arirs. Borrower and Lender covenant and agrce as follows: _ ~~ t~ e~ ~ `~
<br />I. Ptyment M Pr6tclpd set? Irefeaswt. Borrower shall promptly pay when due the principal of and intertst on the
<br />irtdebtedtteu evidenced by the Note, prepayment and fate charges as provided in the Note, and the principal of and interest
<br />on any Firture Advances secured by this Mortgage.
<br />2, for Tatcea turd hrsece. 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 sera{ (heron °Fumis'7 equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and grotmd rents on the Property, if any. plus one-twelfth of yearly premium instattm¢nts far hazard insurance,
<br />plus otwtwetfth of yearly premium installtetents for mortgage insurance, if any. a8 as reasonably estimated initially and from
<br />titeee to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lettdtr if Lender is such an institution)- Lender shall apply the Funds to pay said taxes, assessments,
<br />irtsarance premiums and ground rents. Lender may not charge for so holding and apptying 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 nn the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requites such interest to be paid, Lender shall nor ire required to pay Harrower 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 eaa;h 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 monihty installments of Funds payable prier to
<br />lire dtte dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />aasesstteents, insurance premiums artd ground rents as they fa!{ due. such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to iorrower nn monthly instaiimenis of Funiu. if tie a :' - . Fuad°°
<br />held by Lender shall not be su8icieat to pay taxes, assessments, insurance premiums and ground rentsuas [hey fail due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 3f) days from the date notice is mailed
<br />by Lemdtr to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />hekt by Lender. If under pazagraph l8 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, tto later than itnmediateiy prior to the sale of the Property ar its acgwsition by Lender, any Funds held by
<br />Leader ai the time of apglication as a credit against the sums secured by this Mortgage.
<br />3. Appileatfoe erf Payments. Unless applicable law provides otherwise, all payments received by Lendee under the
<br />Nate a>~ paragraphs 1 and Z hereof shalt be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 herwf. [hen to interest payable on the 'Note. then eo the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />d. Charges; Leas. Borrower shalt pay alt taxes. assessments and ether charges, fines and impositions attributable to
<br />the Property which may attair. a priority ever this Mortgage. and }easehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if not patd m such manner, by Borrower making payment, when due, directly to the
<br />payee /htttxtf. Borrower shall promptly furnish to Lender all notices of amounu due under this paragraph, and in the event
<br />Borrower shall make payment dtrextly, Borrower shall prampdv fumtsh to Lender receipts evidencing such payments.
<br />Sorrower shall promptly discharge any uen which has pnonty aver this Aortgage; provided, that Borrower shall na[ be
<br />required to discharge any such lien sa long as Borrower shall agree m wnttng to the payment of the obligation secured by
<br />such Itta in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien it ,
<br />legal proceedings which ope,e.e io prevent the enfortetnent of the hen ur forftr,ure of the Property or any part thereat.
<br />5. Hrtard tswtraeee. Borrower shall keep the Improvements now existing ar hereafter erected on the Property insured
<br />against(ass by fire, hazards included within the term "extended leverage`, and such other hazards as Lender may require
<br />sad in such amounts and for such periods as Lender may reywre; provided, that Lender shall not require That the amount of
<br />such coverage exceed that aenaunt of coverage reyutred to pay the sums centred by [hts Mortgage.
<br />'Rte insurance carrier providing the insurance shall be chasm by Borrawer subject to app. oval by Lender; provided,
<br />that such approval shall not be unreasonably withheld. .4i1 premiums an insurance policies shall be paid in the manner
<br />provided under pazagtaph 2 hereof or, i( not paid in such manner, by Borrawer 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 she!! include a standard mortgage
<br />clause 9n favor o€ and in form acceptable: to Lender. Lender shat{ have the right to hold the policies and renewak thcreaf,
<br />and Borrower shalt prampdy furnish to Lender all renewal sauces and all receipts of paid premiums. In the event of loss.
<br />Borrower shall give prompt notice to the insurance caner and Lender. Lender may make proof of loss if net made promptly
<br />by Borrower.
<br />Unless Lender and Borrower othetwtse agree in writing, insurance prxeeds shat! be applied to restoration or repair of
<br />the property damaged, provided sexh resturatton ar repair is ewnomitatly feasible and the security of this Lortgage is
<br />isai th:rcby impaired. if such restoration tit repair is net economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance prxeais shall lx applied to the sums secured by this Mortgage, with the excess. if any, paid
<br />to Borrower. if the Property as abandoned by Eorrower, ar tt Borrower [ails ro respond to Lender within 30 days from the
<br />date notice is mailed bp' Lender to Barsower that the msuran%e terrier a'fers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to reuoration or repair of the Properly
<br />or to the sums settued by this Mortgage.
<br />Unless Leader and Harrower otherwise agree .n writing, an} such application of proceeds to pnncepal shall not extend
<br />or postpone the due date of the monthy instalhrttnts referred to tit paragraphs 1 and 2 hereof or change the amount of
<br />such Installments. It udder paragraph I8 hereof the Property is acyuued b} Lender, akl right, title and intertst of Harrower
<br />in atui eo any insurance policies sad in and to the proceeds thereof resulting Tram damage to the Properq~ prior to the sale
<br />ar acquisitieut shill pass to lender to the txeent of the sutra secured by this Mortgage immediately prior 4+ such sate ar
<br />acquisition.
<br />6 Ptresarvatiaa sad Maiatenaoce M Property; Learebuttls; Camdomiaiuaxs: Planned Unit ihvelopmeats. Borra+ver
<br />shah keep ttte Froperty in good repair and shall not commit waste or pe::mu impairment or deterioration of the Property
<br />and shall comply wiffi the provisions of any lease if this 3fartgage vs tin a leasehaid. If this ~tortgagc is on a unit in a
<br />camtiomuuum or a piantxd unit deveiopmcnt, Borrawer shalt perfann alt of Borrowers obligations under the dcdaratian
<br />or covenants creating ar gavcraing [he condominium at planned unit development, the by-laws and regulations of the
<br />toadomittiitm or planned attic developmenC, and Constituent documents. If a condominium or planned unit development
<br />rider is exctuted by Harrower and retarded together wath :his Mortgage, the covenants and agreements of such rider
<br />shall be irttutporated into and shall amend and sitppltment the covenants and -agreements of this Mortgage as tC the rider
<br />were a part hereof.
<br />7, ha~ttisa o[ header's Scearity. tf Borzower fads to perform the covenants and agreements contained In this
<br />lrlorsgage, ur if any action ur praceedtng is commenced which materially atTetis lender's interest in the Property,
<br />iattealint, btti toot limited io. tminem domain, insolvency, exit enforcement. or arrangements ar proceedings inva{vmg a
<br />baaksttgt or decedent, then I.cudtr at Ltndcr's ap<ian, upon nand to Borrower, ma} make such appearances, disburse such
<br />sums anti take stint atti:ati as is utetssary to prottet Lender's interest, intiuding, but not limited to, dtsbucsemtnt of
<br />retuaxtabla aunrtary's fees atttt entry upor•. tits Praptrts' t+± make repairs. It Lender rtyuircci marigagL insurance as a
<br />ccxtdittan of nmking the loan •tturtd by this Mortgage, Borrawer shall pay the premiuttts required [o maintain such
<br />insurance in eiTtxt until such time as ttx reyuiretntnt far sticir /ttsuxanex terminates In a>:cordan:t with Barruwer's and
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