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<br />OcY,",10375E
<br />If Borrower pays Funds to Lender, the funds shall be held in an
<br />institution the deposits or accounts of which are insured or guaranteed by a
<br />Federal or state agency (including Lender if Lender is such an institution).
<br />Lender shall apply the FuL~d3 to pay said taxes, assessments, insurance
<br />premiums and ground rents. Lender may not charge for so holding and applying
<br />the FUnds, analyzing said account or verifying and compiling said assessments
<br />and bills, unless Lender pays Borrower interest on the Funds and applicable
<br />law peni ts Lender to lIake such a charge. Borrower and Lender lIay agree in
<br />writing at the time of execution of this Mortgage that interest on the Funds
<br />shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay
<br />Borrower any interest or earnings on the Funds. Lender shall give to
<br />Borrower, without charge, an annual accounting of the Funds showing credits
<br />and debit~ to the Funds and the purpose for which each debit to the Funds was
<br />made. The Funds are pledged as additional security for the sums secured by
<br />this Kortgage.
<br />
<br />If the amount of the Funds held by Lender, together with the future
<br />installments of Funds payable prior to the due dates of taxes, assessments,
<br />insurance premiums and ground rents, shall exceed the amount required to pay
<br />said taxes, assessments, insurance premiums and ground rents as they fall due,
<br />such excess shall be, at Borrower's option, either promptly repaid to Borrower
<br />or credited to Borrower on installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance
<br />premiums and ground rents as they fall due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more payments as Lender
<br />may require.
<br />
<br />Upon payment in full of all aums secured by this Kortgage, Lender shall
<br />promptly refund to Borrower any Funds held by Lender. If under paragraph 17
<br />hereof the Property is sold or the Property is otherwise acquired by Lender,
<br />Lender shall apply, no later than immediately prior to the sale of the
<br />Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Mortgage.
<br />
<br />3. ADDlication of Payments. Unle.. applicable law provides otherwise,
<br />all payments received by Lender under the Note and paragraphs I and 2 hereof
<br />shall b. applied by Lender first to late charges due under the Note; second,
<br />to prepayment charges due under the Note; third, in payment of amounts payable
<br />to Lender by Borrower under paragraph 2 hereof; fourth, to amounts disbursed
<br />by Lender pursuant to paragraph 7 hereof; fifth, to interest payable on the
<br />Note, and then to the principal of the Note.
<br />
<br />4. Prior Kore,a,es: Char~es; Liens. Borrower shall perform all of
<br />Borrower's obligations under any mortgage or other security agreellent with a
<br />lien which haa priority over this Mortgage, including, without limitation,
<br />Borrower's covenants to make payments when due. Without the prior written
<br />consent of Lender, Borrower shall not agree to any modification or amendment
<br />to any prior lien mortgage or the terms of any indebtedness secured thereby.
<br />Borrower shall payor cause to be paid all taxes, assessments and other
<br />charges, fines and impositions attributable to the Property which may attain a
<br />priority over this Hortgage, and l~asehold payments or ground rents, if any.
<br />Borrower shall promptly furnish to Lender all notices of amounts to be paid
<br />under this paragraph and receipts evidencing the payments.
<br />
<br />5, HAzard Insurance. Borrower shall keep the improvements now existing
<br />or hereafter erected on the Property insured against loss by fire, hazards
<br />included within the term -extended coverage,- and such other hazards as Lender
<br />may require and in such amounts and for such periods as Lender may require.
<br />
<br />The insurance carrier providing the insurance shall be chosen by Borrower
<br />subject to approval by Lender; provided, that such approval shall not be
<br />unreasonably withheld. All insurance policies and renewals thereof shall be
<br />in a form acceptable to Lender and shall include a standard 1I0rtgage clause in
<br />favor of and in a form acceptable to Lender, Lender shall have the right to
<br />hold the policies and renewals thereof, subject to the terms of any mortgage.
<br />deed of trust or other security agreement with a llen which has priority over
<br />this Hortgage. If Lender requlre., Borrower shell prollpt ly give to Lender all
<br />receipt~ of paid premlums and renewal notices.
<br />
<br />In the event of 10SD, Borrower Ihall give prompt notice to the inlursnce
<br />carrier and Lender. Lender may make proof of loss if not made promptly by
<br />Borrower. Unle811 Lender and Borrower otherwise agree i,l writing, insunmce
<br />proceeds shall be applied to restoration or repair of the property damaged,
<br />unle.. the reetoration or repair ls not Ilconolllcally feasible or L,mdpr's
<br />.ecur i ty would be lessened, then, 1 n such 8 Cllse, tha lnsuronCt' prclClHHis ",ho 11
<br />be applied to thlll ..WIlD secured by thlll Hortl',sjI,l', wht'lIwl' "1' not 1'111'11 <It..., with
<br />sny excess pald to Borrower,
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