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VoliFe llr Cermses. Borrower and Lender covenant and agree as follows: 86- 405854
<br />1. PAYMENT OF PRINCIPAL AND INTEREST. Borrower shot# promptly pay when due the principal of and interest on the indebtedness
<br />evidenced: by the Note. any lampsymem and late charges provided in the Note and all other sums secured by this Instrument.
<br />L FUNDS FOR TAXES, INSURANCE AND OTHER CHARGES. Subject to applicable law or to a written waiver by Lender. Borrower shall
<br />pay to Leader out the day monthly i sta@ate. of principal or interest an payable under the Now (or on another day designated in writing by
<br />Leisder), ttmil the Nose is paid in full. a vim (herein "Fonda ") egwl to one - twelfth of (aI the yearly water and sewer rates and taxes and
<br />asKainew *Web may be levied on the Property. (b) the yearly ground tents, if any. (c) the yearly premium installments for fire ar s other hazard
<br />inwaaoe, rem loss insurance and such other insurance covering the Property as Lender may require pursuant to paragraph S hereof, (d) the yearly
<br />premium iawNtnents for mortgage insurance. if arty, and (e) if this Instrument is on a leasehold, the yearly fixed rents, if any, under the ground
<br />lens, all a reasonably estimated inisiaNy and from time to rime by lender on the basis of assessments and bills and reasonable estimates ibereof.
<br />Any waiver by Leader of a requirement that Borrower pay such Funds may be revoked by Lender, in Lender's sole discretion, at any time upon
<br />motioe is wand" so Borrower. Lender may malaise Borrower to par to Lender, in advance, such other Funds for other uses, charges, premiums.
<br />amenwemu and impositions in connection with Borrower or the Property which Lender shall reasonably deem necessary to protect Lenders
<br />interests: ( herein "Other Impositions") - Unless otherwise provided by applicable law, Lender may require Funds for Other Impositions to be paid
<br />by Borrower in a lump sum or in periodic instanmeam at Lender's option.
<br />The Funds shall be held in an institutionls) the deposits or accounts of which are insured or guaranteed by a Federal or slate agency
<br />(isdeding lender if Lender is sack an institution). leader shall apply the Funds to pay said rates, rents, taxes, assessments, insurance premiums
<br />and Other Impositions so long as Borrower is nor in breads of any covenant or agreement of Borrower in this Instrument. Lender shall make no
<br />charge for so holding and applying the Funds. analyzing said account or for verifying and compiling said assessments and bills, unless Lender pays
<br />Borrower interest, earnings or profits on the Funds and applicable law permits Lender to make such a charge. Borrower and Under may agree in
<br />writing at the time of execution of this lastroment that interest on the Funds shall be paid to Borrower, and unless such agreement is made or
<br />applicable law requires interest, earnings or profits to be paid. Lender shall not be required to pay Borrower any interest, earnings or profits on the
<br />Funds. Lender shall give to Borrower, without charge. an annual accounting of the Funds in Lenders normal format showing credits and debits to
<br />the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this
<br />Itwrsutent.
<br />If the amount of the Funds held by Lender at the same of the annual accounting thereof shall exceed the amount deemed necessary by Lender
<br />to provide for the payment of water and sewer rates, taxes, assessments, insurance premiums, rents and Other Impositions, as they fall due, such
<br />excess shall be credited to Borrower on the next monthly mstallmem or installments of Funds due. Ifni any time the amount of the Funds held by
<br />Lender shall be less than the amount deemed necessary by Lender to pay water and sewer rates, taxes, assessments, insurance premiums, rents and
<br />Other Impositions, as they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within thirty days alter notice
<br />from Lender to Borrower requesting payment thereof.
<br />Upon Borrower's breach of any covenant tit agreement of Borrower in this Instrument. Lender may apply, in any amount and in any order as
<br />Lender shall determine in Lender's sole discretion, any Funds held by Lender at the time of application 10 1 to pay rates, rents, taxes, assessments,
<br />insurance premiums and Other Impositions which are now or will hereafter become due, or In j as a credit against sums secured by this Instrument.
<br />Upon payment in full of all sums secured by this Instrument. Lender shall promptly refund to Borrower any Funds held by Lender.
<br />3. APPLICATION OF PAYMENTS. Unless applicable law provides otherwise, all payments received by Lender from Borrower under the Note
<br />or this Instrument shall be applied by Lender in the following order of priority (a ► amounts payable to Lender by Borrower under paragraph 2
<br />hereof; (o) interest payable on the Note. (fit 1 principal of the Note: (nv) interest payable on advances made pursuant to paragraph g hereof; (v I
<br />principal of advances made pursuant to paragraph It hereof: l vi) interest payable on any Future Advance, provided than if more than one Future
<br />Advance is outstanding. Lender may apply payments received among the amounts of interest payable an the Future Advances in such order as
<br />Lender, in Lenders sole discretion, may determine. (vial principal of any Future Advance, provided that of more than one Future Advance is
<br />outstanding. Lender may apply payments received among the principal balances of the Future Advances in such order as Lender, in Lender's sole
<br />discretion, may determine. and (viii) any other sums secured by this Instrument in such order as Lender, at Leader's option, may determine;
<br />provided, however, that Lender may, at Lenders option. apply any sums payable pursuant to paragraph g hereof prior to interest on and principal
<br />of the Note, but such application shall not otherwise affect the order of priority of application specified in this paragraph 3
<br />l CHARGES; WENS. Borrower shall pay all water and sewer rates, rents, taxes. assessments, premiums. and Other Impositions attributable to
<br />the Property at Lender's optxm in the manner provided under paragraph 2 hertvrf or. it not paid in such manner. by Borrower making payment,
<br />when due, directly to the payee thereof. or in such other manner as Lender may designate in wntmg Borrower shall promptly furnish to Lender all
<br />notices of amounts due under this paragraph 4, and in the evem Borrower shall make payment airectly. Borrower shall promptly furnish to Lender
<br />receipts evidencing such payments. Borrowtz shall promptly discharge any ben which has, or may have, priority over or equality with, the lien of
<br />this Instrument, and Borrower shall pay, when due, the claims of all persons cupplyng labor or materials to or in connexion with the Property.
<br />Without Lenders prior written permission. Borrower shall not allow any lien inferior to this Instrument to be perfected against the Property.
<br />S. HAZARD INSURANCE Borrower shall keep the improvements now existing or hereafter erected on the Property insured by carriers at all
<br />times satisfactory to Lender against loss by lire, hazards included within the term "extended coverage', rent loss and such other hazards, casualties,
<br />liabilities and contingencies as Lender ( and, if this Instrument is on a leasehold. the ground lease) shall require and in such amounts and for such
<br />periods as Lender shall require All premiums on insurance policies shall Ix paid, at Under 's option, in the manner provided under paragraph 2
<br />hereo(, or by Borrower making payment, when due. directly to the carrier, or in such other manner as Lender may designate in writing.
<br />All assurance policies and renewals thereof shall he in a form acceptable to Lender and shall include a standard mortgage clause in favor of
<br />and in form acceptable to Lender Lender shall have the right to hold the polices, and Borrower shall promptly furnish to Lender all renewal
<br />notices aad all receipts of pad premiums At least thirty days prior to the expiration date of a policy. Borrower shall deliver to Lender a renewal
<br />policy to form satisfactory to Lender. If this Instrument is on a leasehold. Borrower shall furnish Lender a duplicate of all policies, renewal notices,
<br />renewal policies and receipts of paid premiums if, by virtue of the ground lease, the originals thereof may not be supplied by Borrower to lender.
<br />In the event of loss. Borrower shall give immediate written notice to the insurance carrier and to Lendn Borrower hereby authorizes and
<br />empowers Lander as anorney -m -fax for Borrower to make proof of loss, to adjust and compromise any claim under insurance polices, to appear in
<br />and pmeamite any actin arising from such insurance policies, to collect and receive insurance proceeds, and to deduct therefrom Lender's expenses
<br />incurred in the collection of such proceeds: provided however, that nothing contained to this paragraph S shall require Lender to incur any expense
<br />or take any action hereunder. Borrower further authorizes Lender, at Lenders option, (a) to hold the balance of such proceeds in he used to
<br />reimburse Borrower for the cost of reconstruction or repair of the Property or ( h ) to apply the balance of such proceeds to the payment of the sums
<br />secured by this Instrument, whether or not then due, in the order of application set forth in paragraph 3 hereof t subject, however, to the rights of
<br />the lessor under the ground lease if 11141, Instrument is on a leasehold)
<br />If the assurance proceeds are held by Lender to reimburse Borrower for the cost of restoration and repast of the Property, the property shall he
<br />restored 10 the equivalent of is original condition or such other condition as Lender may approve in writing Lender may, as Lender's option.
<br />condition disbureemem of said proceeds on Lender's approval of such plans and specifications of an architect sat4 factory to Lender, contractor's
<br />cost estimates, architect's certificates, waivers of liens, sworn statements of mechanics and matenalmen and such other evidence of costs, percentage
<br />completion of construction, application of payments, and %xinfactxsn of liens as Lender may reasonably require It the insurance proceeds are
<br />" appled q the payment of the sums secured by that Instrument, any such application of proceeds to poncspal shall not extend set postpone the due
<br />data of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amounts of such msisllments If the Property is sold
<br />pursuant to paragraph 27 hereof or if Leader acquires title to the Property. Lender shall have all of the right, tide and interest of liorrowcr to and to
<br />any mswance policies and unearned premiums thetroo and in and to the proceeds resulting ftom any damage it, the Property paw,r to son h sale or
<br />acquisition
<br />i. PR SERYA 1110041 AND MAINTENAM V Of PROPf.R IA; ii:ASFHUI J►k nca rower f a 1 +hail ma a +mmn +mac rrt (xtmo trnprrrmrnl .•r
<br />elererxxataan ,d the !'m(+eny, t h I shall not sharp'" the Property. (c ) that fencer or mNir promptly and in a r. „d and a tirr ai:
<br />Uwifortw ('ovenamI% Muitehamdy 1i7, MMA41ILMC Inform Iraltument trivial 4000 r..r• ',� teeter•;
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