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Uxtt+atzs toti+niv,ertr6, Iiorrowor and Lender covenant' and agree as follows: t:3 S; -- 1) ~1 +~ ~ ~ 1
<br />1. f"aymest e[ pthiclpd earl IMeresf. Borrower shalt promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured lay fhis Mortgage.
<br />2. IRt®ds for Tales aai Iermaece. Subject to applicable law or to a written waiver by Lendeq Borrower shall pay
<br />to Lert~r on the day tnonth(p installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds' equal to cne-twelfth of the yearly razes and assessments which may attr'.: priority over this
<br />Mortgage, and ground rents on the Property, if any, plus ono-twelfth of yearly premium installments for :.azard insurance,
<br />*dus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />,lime to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />'tlte Funds shalt be held in an institution the deposits or accounts of which are insured or guaranteed by a Faders! of
<br />state agency (including Lender if [..ender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance 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 Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in wriring 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 />requires such inceresi to be paid, Lender shall not ~e required to pay Borcower any interest or earnings on the Funds. Lender
<br />shall givt to Borrower, without charge, an annual accounting of the Funds showing credits and debits to'the Funds and the
<br />purpou 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 We amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the dtu dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />attseasments, 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. 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 />Borrower shalt pay to Lender any amount necessary to make up the deficiency within 30 days from the date n.ttice is mailed
<br />by Lender to Borrower requpting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Leader. 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 the sums secured 6y this Mortgage.
<br />3. A~pBcalion of Prtymeab. 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 first in payment of amounts payable to 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. Cltar;a; Liars. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manor
<br />provided trader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />pays thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower snail make payment directly, Borrower shalt promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority aver this Mortgage; provided, that Borrower shall not be
<br />tegttired to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lieu in a manner acceptable to Lender, or shat: 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 lien or forfeiture of the Property or any part thereof.
<br />S. )Eiasard Irsrraa~Y. Borrower shall keep the improvements now existing or hereafter erected on the Property insueed
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />a~ in such amounts and for such periods as Lender may reyuire; provided, that Lender 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 />Tho ituuranes carrier providing the iasurauce shall ba chosen by Borcower subject to approval by Lender; provided,
<br />that such approval shag not Ix unreasonably withheld. All premiums on inwrance poliaiea snail be paid in the mannee
<br />ps+trvided trrder paragraph 2 hereof or, if not paid is such manner, by Borrower making payment, when due, directly to the
<br />imytr~te carrier,
<br />AB imurance potitks and renewals thereof shall be in form acceptable to Linder and shaft include a standard mortgage
<br />~ iu favetr of andrn farm acceptable to Linder. Lender shall have the €ight :.a hold the policies and renewals thereof.
<br />seed Harrower shalt promptly furnish to Lander all renewal notices and all receipts of paid pccmiums. In the event of loss,
<br />tiprrower 51aa3t give prompt notice to the insurance carrier amt Ltrtdtr, i_cr:c#er may make prose of low if trot marls promptly
<br />Isy Brower.
<br />Urbp Lender and Ilorrowar otherwise agree in writing, insurance prtx:eeds shall bt appliai to restoration or repair of
<br />the Property damaged, provided lath restoration or repair is economically feasible and the sa:urity of this Mortgage is
<br />rot t6erehy impaired. If such etstoration or repair is not economically ftasible or +l the seeunty of this Mortgage would
<br />be impaired, the inwrance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrottvor. If the Property is abandoned by Harrower, or if Borrower fails to respond to Lende: within 3U days from the
<br />date tsotice is mailed by Candor to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />u autlwrimd to collect and apply the insurance proceeds at Lender's option either to restoration or repair o[ the Property
<br />or to the sums secured by this Mortgage.
<br />Udwc Londtr earl Borrower otherwise agree in writing, arty such application of prceetds to pnttcipat shall not extend
<br />or postpone the due dace of the monthly installrents referred to in paragraphs I and 2 hereof ar change the amount of
<br />etich insnNrtsonis. fi under paragraph I8 hereof the Property is acyuireJ by Ltndee, all right, title and interest of torrower
<br />fn and to any instuance policies and in earl 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 the sums secured by this Mortgage immediately prior to such sale of
<br />acquisition.
<br />f, 11'traarvatlsa art Mairiswarctl of Property; Leaseholds; Condomtafuma; Planned Udl I;kvelopmentw Harrower
<br />shall keop the Property is good repair and shall trot commit waste or permit impaimm~t or deterioration of the Property
<br />earl shtdf comply with the provisions of any lease if this Mortgage is on a leasehold, if this Mortgage is un a unit in a
<br />condQminittta ar a planned unit development, Borrower shall perform all of Borrower's obligations under the dechtration
<br />or cavettanta crcatpg or governing the condominium or planned unit devtlopmmu, the by-aws and regulations of the
<br />eoadonsinituu Dr planned ttttit development, and constituent dtxuments. If a condominium or planned unit development
<br />rider is oxecutad by Borrower and ruorded together with this Mortgage, the covenants and ugretments of such rider
<br />shah be i»cotporated into sad shall amend and suppleritent the covenants and agrcernents of this Mortgage :+~ if the rider
<br />room a pact hnrtaaf.
<br />7. rrataeaMsq M Leader's Secrit(y. If Borrower fails to perform the covenants and agreements contained in this
<br />' Mortgage, ar if amy settee or proceoding is commenced which materially affects Lender's interest fi the Property,
<br />ipchrding, but oat limited tq, eminent domain, insoivepcy, colt enforcement, or arrangements or prctceedin~s involving a
<br />baakrupt or deadest, tlcen lender at Lender's option, upon notice to Borrower, may make such appearances, dishurse such
<br />sums and. take such action as is necessary to protect Lender's interest, including, but not limited tu, disbursement of
<br />reuoaabla a440NeYs fats and entry upon the Property to make repairs. It' lender required mortgage insurance as a
<br />condition of making tlce Iona secured by rhea Mortgage, Narrower shall pay the. premiums required to maintain such
<br />itntuataa in e!€eet tsati! shah twist as the requirement for such inwrattc,c terminates in accords+tce roan Norruwer's seed
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