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<br /> Uxrno2at Covex�rrrs. Borrower and Lender covenant and agree as follows :
<br /> 1. Paymmt of Princlpd and Inter�t. Borrower shall promptly pay when due t6e principal of and interest on the
<br /> indebtedneas evideaced by the Note, pnpayment and late charges as provided in the Note, and the principal of and interest
<br /> on any Future Advances ucured by this Mortgage. �
<br /> 2. Fands Yor T�es and I�urance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br /> to I.ender ors the day monthly installments of principal and interest are payable under the Note, until the Note is paid in futl,
<br /> a sum (herein "Funds") equal to one-twelfth of the yearly taxes and azsessments which may attain priority over this
<br /> Mortgage, and ground renffi on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br /> plus one-tweifth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> time to time by Lender on ffie basis of assessments and bills and reasonable estimates thereof.
<br /> The Funds shap be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br /> state agency (including I.ender if Lender is such an instimtion) . Lender shall appty the Funds to pay said taxes, assessments,
<br /> insurance premiums and gound rents. Lender may not charge for so holding and appiying che Funds, analyzing said account,
<br /> or verifying and compiling said assessments and bi11s, unless Lender pays Borrower interest on the Funds and appticable law
<br /> permits Lender to make such a charge. Borrower and L.ender may agme in writing at [he time of execution of this
<br /> Mortgage that interest on the Funds shall bc paid to Borrower, and unless such agreement is made or applicable law
<br /> requires such interest to be paid, Lender shall not be required ro pay Borrower any interest or eamings on the Funds. Lender
<br /> shat[ give to Borrower, witE►out charge, an annual accounting of the Fuods showing credits and debits to the Funds and the
<br /> purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br /> by ffiis 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 ground rents, shatt exceed the amount required to pay said taxes,
<br /> assesamenu, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, eilher
<br /> promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br /> held by Leader shall not be suf6cient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br /> Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by Lender to Borrower requesting' payment chereof_
<br /> Upon payment in full of all sums secured by this Mortgage, Lender shall prompdy refund to Borrower arty Funds
<br /> held by Leader. If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lmder
<br /> shalt apply, no later ffian immediately prior to the sale of the Property or its acquisition by Lender, any Funds hetd by
<br /> L.ender at the time of applicadon as a credit against the sums secured by this Mongage.
<br /> 3. Applicstlon of Payments. 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 firs[ in payment of amounts payable to Lender by Bozrower
<br /> under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest ar.d
<br /> principal on any Future Advances.
<br /> 0. C6arges; Iiens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> the Property which may attain a prioriry over this Mortgage, 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_ Horrower shall prompdy furnish to Lender all notices of amounu due under ihis paragraph, and in the event
<br /> Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evideneing such payments.
<br /> Borrower shall prompdy discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br /> such lien in a manner acceptable to i.ender, or shall in good faith conrest 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 /> 5. Hazrrd l�reurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> againet loss by firo, hazards induded within the term "extended coverage", and such othcr hazards as Lender may nquire
<br /> aad in such amounu and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br /> such covuage excced that amount of coverage required to pay the sums secured by this Mortgage.
<br /> The insuraace carrier providing the insurance shall be chosen by Borrowcr subject to approval by Lender, provided,
<br /> that such appraval shall not be unreaionably withheld. All premiums on insurance policies shall be paid in the manner
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcUy 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 /> ctause in fsvor of and in form rlcceptabte to Lender_ Lender shall have the right to hold the poticies and renewais thereof,
<br /> � and Borrower shnll promptly furnish to Lender all renewal notices and a�l receipts of paid premiums. In the event of lass.
<br /> Borrower shall give pwmpt notice to the insurance carrier and Lender. Lender may make pmof of loss if not made promptly
<br /> '� by Borrower_ .
<br /> Unless Lender and Borrower otherwise agrce in writing, insurance proceeds shall be applied to restoration or repair of
<br /> �f the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br /> 'i not thereby unpaired. If such rutoration or repair is not economically fcasible or if the security of this Mortgage would
<br /> � be impaired, ffie insurance proceeds shall be applied to the sums sewred 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 ro Lender within 30 days from the
<br /> ,,� date notice is mailed by L,ender to Bonower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> is aut6oriud to collect and apply the 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 I.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shatl not extend
<br /> '?, or postpone the due date of the monthty installments referred to in paragraphs I and 2 hereof or change the amount of
<br /> � such installments. If under paragraph 18 hereof the Property is acquired by Lender, all rigbt, tiUe and interest of Borrower
<br /> ' � in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Properry 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 or
<br /> acquisitioa.
<br /> 6. Prexrvatlon and Maintensnce of Property; Leaseholds; Condominiums; Planned UNt Devdopments. Bonower
<br /> sshall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> a� s6a11 comply with the provisions of any lease if this Mortgage is on a leasehold. lf this Mortgage is on a unit in a
<br /> � condominium or a planned unit development, Borrower shatl perform all of Borrower's obligations under the declazation
<br /> : � or covenants creating or governing the condominium or planned unit development, the by-laws and regutations of the 4
<br /> � condominium or planned unit development, and constituent documents. If a condominium or planned unit development ^�
<br /> rider is executed by Borrower aad recarded together with this Mortgage, the covenants and agreements of such rider
<br /> shall bo- incorporated into and shall amend and supplement the covenants and agreements oF this Mortgage as if the rider ,-y
<br /> were a part hereof. � � ' �
<br /> 7. Protectioo oE Le�er's Securiry. If Borrower fails to perform the covenants and agreements contained in this � ` "
<br /> � Moctgage, ar if aay ac4oa or proceeding is` cotamenced which material[y aft'ects Lender's interest in the Properry, ; �
<br /> including, but not limiud to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a , ' '-'�'
<br /> banknt� or decedent, theo Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such � %
<br /> �e sums and take suc6 action as is necessary to protcct Lendcr's interes4 including, but not limited to, disbursement of
<br /> ::z zeasonAble attcrney's feu and cntry upon tlx Property to make rcpairs. If Lcndez zequired mortgare insurance as a � �`
<br /> condidoa of making the loan securnd by: this Mortgage, Sorrowcr shall pay the premiums required to maintain svch
<br /> ,"Y imurance in effxt until snch time as the requ'vetn�nt for such insurance terminates in accordancc with Bormwer s and
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