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ineured or guaranteed by t? Fc~ieral or stale agency lincludiug I.cu~ler if I.ender is sucl? an institution). I.ender
shsll spply the Funds to pay said taxcs, ussess~uents, insurance ~~remiun~a nnd qroun~l rents. I.ender shall make no
charge for so holding ~tnd applying the ~nde or ~•erif,ying ouyd compiliug r•Kid assessn?ents and bille. Aoriower and
T.ender may agcee in writing at the timc oi execution of tl~fs ~tortgage that intemst on the Funds shall bc paid to
IIorrowcr, and unless such agreement is made, I.cnder shall nat I~c rc~uirecl to pay Rorrov?er any interest on thc
F~nds. Lender shall p~ivc to Borrower, wit~hout ci~arge, an nnnual accounting of thc ~ncis showing credits and
debita to tl~e Funds and the pun~ose for whict~ eacl~ ciebit to the Funds was made. Thc ~nds are pledgcii as addi-
~ional eeousity for the sums aecured by this Wortgage.
If the amount at the ~nds held by I.ender, togetl~er ~vitl~ llie tuturo n~onti~ly instali~nents of Funds ~ayAble
prior to the due dates of taxes, asse8sa~ents, insuraucc premiunu and ground rents~ shall exceeci the amount re-
quired to pAy said taxes~ as~sments~ insurancc:.~~remiums nnd ground rent~ as they fall due~ such excess shall be,
at Borrower's o~tion~ cithcr promptly repaid to Borrower or creditecl to Borrower on monthly installments of
Funds. If the amount oi the Funds heid i~a• Lc~nder shall not be sufficicnt to pay taxes~ assessments, insurance pre-
miums and ground rents as they fall due, Borrower shall I~av to I.ender Any amoimt necessary to ~nake up the
defioiency within thirty days after notice from I.ender to Borrower reyuesting payment thereoi.
IIpon payment in f~~ll ot ali sums secureci by tl~is \~tortga~e, 1.ender shall pro~n~~tly retund to Borrower any
Funda held by Lender. ~
• If uader paragrnph 181~ereof the Property is sol~i or tl~e Property is othenvise acquired by I,ender, Lender
shali apply, no leter than immecliately prior to the salc of the Property or its acquisition by I.ender, nny ~nds
held by I.ender at tho time of application as a creclit a~ainst the sun~e secureci by this v[ortgage.
3. Ap~lioation of paymonts, Unless npplicable la~• ~~ro~ ides othern~ise, nll ~~aymeuts received by Lender
under the Note and ~?aragraphs 1 and 2 hereof sl~ull I~c applicd 1,~ I.endcr first in payment of amounts payable to
Lender by Bormwer under ~~aragrapM 21~ereof, tl~en to intcrest ~,ayablc on the Note und on F~ture Advances, if
any, and then to the principal ai the Note and to the ~~rincipal of Future Ad~•ances, if any.
4. Chargss: Liens. Borrower shall pav All tuxes, assessments nn~i otl~er charges, fines and im~iositions attrib-
utable to the Property which may atti?in n priority over this ;14ortgage, and ~round rents, if any~ at Lender's
option in the n~anner ~~rovided under paragraph 2 Lereof or {?v Borro~ver ~naking pay.ment, ~nhen due, directly to
the payee thereof. ~orrower shall ~~romptly furnisl~ ta T.endcr nll notices of nmounts due under tl~is paragraph, -
and in the event Borrower sl~all make payment directly, Borro«er shall promptlv furnish to T.ender receipts evi-
dencing such payments. Bortower shall promptly discl~argc Anv lien hich has ~~riority over this ~iortl;age; pro-
vided, that Borrower shall not hc required to discl~argc nny s?icl~ lien so long us Borro~cer shall agree in writing to
the pAyment of the obligation securecl b,y such lien in n manner acceptnble to T.ender, or shall in good faith conteat
such lien by, or defend enforcement of sucl~ lien in, legal procec~fin~ ~vhich operAte to prevent the enforcement of
the lien or forfeitur8 of the Pmpertv or any ~~art. tl~ereof.
S. Hazard ?nsurance. Bornower shall kee~~ tl~e impro~~ements no«• existinq or I~ereafter erected on the Prop-
crt,y insured against loss by fire, l~aEards included within the term "extendecl coverage", and such other I~aaarda as
I.ender may require and in such amounts und for sucL ~~eriaic :~s 1 cmler nln~ require; providecl, that T.ender ahell
not require that the amount of such coverage exceed tl~at aroount of coverage requireci to pay the sums secured by
this Mortgage.
The insurance carrier ~iroviding tl~e insurance si~uil l,e cl~aen l~y Borrower ~uhject• to approval by Lender;
~~rovidecl, thut sucl? approval shall not be unressonably withheld. All premiums on insurance policies shail be paid
E at T.ender's option in the manner providecl under parag~~x~~L 2 hercof or hy Borro«er making pay~nent, when due,
i directly to tlie insi~rance carrier.
All insurance ~mlicies und rene~~•nis thereof ~l~ull bc iu forn~ acce~?t~ble to I.ender and shall include a stsndard
mortgage clause in iavor of und in forn~ acceptable to ixndcr. Lender ~liall ha~•c the right to hold the policies and
renewals tl~ereof, and Borrower sl~all ~~ro~uptJy furnisl~ to T.enclcr all rene~vAl notices and alt receipts of ps?id pre-
miums. In the event. of loss, Borro~r•er ~hnll give pmm~it uotice to the insurance carrier and I.ender, and I.ender
may make proof of loss if not mudc promptly bv Borno~ver.
Unless i.ender nnd Borroner otlierwise ugrce in writing, ios~~r,~ncc proceeds shall l~c applieci to restoration or
repair of the Pro~~ert~ damageci, pro~ided such restoration or repair is econoroicall~ fcasiblc and the security of
this \tortgage is not, thereby in~pairecl. If sucl~ restoration or re~iair i~ not economicall,v fe.nsible or if the security
of this ~tortguge ~voulci t~e impaired, thc insurance ~~rocceds shall bc applied to tl~c sums sccutecl b~ tliis 141ottgage,
~vith the excess, if any, paid to Borro~ver. If the Property is abun~loneci by Borron~er or if Rorro«er fails to respond
to T.ender ~cithin 30 days after notice b~ 1.ender io Borro~~•cr that the insurnnce carrier oflcrs to settle a claim for
i insurance benefits, I.ender is authorizeci to collect and appl~• th~~ insurnnce ~~roceeds at I.ender's option either to
~ restoration or repair of the Propert,y or to the swus secureci by tliis \Iortgage_
( Unless Lender and Borrower othenvise ugree in ~vriting, an~ sucl~ applicntion of proceeds to principal shall
not extend or postpone t.he due datc of the monthh~ instatiments reterrecl to in paragraphs l and 2 hereof or change
the $mount of such installments.
If under paragraph l8 Lernof the Propert~~ i~ acquired by 1.endcr, all right, title anti interest of Borrower in
~nd to an~ insurance ~olicies and ih an~l to tl~e proceeclc thereof (to tlic cxtent of thc ~~uu, secured bv this Mort-
gage immediately prior to such ~tlc or .~cquisitionl resultinfi frow ~lan~ngc to tlic Yro~~erty prior to the sale or
~ acquiaition shall pas.s to Lender.
~ 6. Fieservation and Maintenm~ce of Property; Leaseholds; Coadoaiiniums. Borrower sl~ull keep the Prop-
etty in good repuir snd shalt no~ ~>ern~it or con~mit «:~ste, im~~ainnent, or deterioration of tl~e Property and shall
comply with the provisions of :~ny le.lse, if this ~Iottgage is on a lenschold. If this liortgage is on a condominium •
unit, Barrocver shall ~~erforn~ i~ll of Borro~ver's obligations under thc ~teclarution of condominium or master deed,
the by-l:~ws and regulations of the condoininium ~?rojcct and constituent dceuments.
7. Protectioa o! Lender's Security. If Borro~~~cr fails to ~~erforn~ t.he covenants anci a~reements contained in
this ~~tortgage, or if uny action or ~~rocecding is commenceci «hich ~nateriall~ uffects I.ender's interest in the Prop-
esty, ineluding, buE not limitecl to, eminent. do~nain, insolvency, codc cnforcement, or urran~ements or proceed-
ings involving a bankrupt or dececicnt., then l,ender at I.ender'~ o~ition. upon notice to Borrower, inay make such
~ uppearances, disburse such sums and take sucli acti~u as is nec~ury to protect T.ender's interest, including, but
not limited to, disbursement of reusonablc nttorncy'~ fces zn~i entn upon the Yro~iert.y to inake repain+. Any
~ amounts disbursed by I.endcr ~ntrsuant to this p:?ragraph 7. «•itl~ infcrest. thereon, shall I~ecome additional indebt-
edn~cs of Borrower seeureci by this ~fortgage. Unle~s Rorrower nn~t I.encier agree to other tenns of payment, sueh
amounts sl~all !~e p&yable upon notice'from I.ender to Aorro~~cr requesting J~ayment~ thereof, and shall bear inter-
est from the date of disbursement at thc rate statecl in the ~otc unle~.v ~~ayment of interest nt such ratc would be
contrary to applicable la~v, in ~vhich event such :?mounts ~I~:ill beur interest at. thc highest ratc ~~ermissible by
applicable IAa. ~othing containeci in this ~~arxgrapl~ 7 ~liall mquirc 1.ender to incur any expense or do any act
f hereunder. -
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~ , ee~~ ~45 PACE1597
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