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<br />Utvraotetvr Covex,ixrs. Borrower and Lender covenant and agree as follows: 8~'~ ~~G08s~ ,
<br />I. Payment of Principal and Interest. Borrower shall 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 by this Mortgage.
<br />2. Funds for Tana and Irtatiruice. Stitbjec[ to applicable law or [o a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sttm (herein "Fonda") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may no[ charge foe 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 writing 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 auch interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, wiUtout charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Foods was made. The Funds are pledged as additional security for the sums secured
<br />by this 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, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as thev fall due, such excess shall be, a[ Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly insmllments of Funds. If the amount of the Funds
<br />held 6y 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 notice is mailed
<br />by Lender to Borrower requesting- 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 Lender. If under pazagraph IS 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 by this Mottgage.
<br />3. Application 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 first in payment of amounts payable [o Lender by Borrower
<br />under pazagraph Z 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 />6. Charges; Liens, Borrower sha31 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 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. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the even[
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br />required to discharge any such lien so Tong as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcemem of the hen or forfeiture of the Property or any part thereof.
<br />5. Hazard Insurantt. Borrower shall keep [he improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may require
<br />and 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 [hat amouN of coverage required to pay the sums secured by [his Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />Utat such approval shall not be unreasonably 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, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereat shall 6e in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable [o Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender a!1 renewal notices and alt receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided auch restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance groceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is auUtorized to collect and apply the insurance proceeds at Lender 5 option either to restoration or repair of the Property
<br />or to the soots secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and ?hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and io any insurance policies and in and [o the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shalt pass to Lender to the extent of the sums securui by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />8. Preservation and Matuteoance of Property'; Ixaseholds; Condominiums; Planned Unit llevelopmenis. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property'
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this hortgage is on a [mil in a
<br />condominium or a planned unit development, Borrower shall perform a!I o[ Borrower's obligations under the declaration
<br />or covenants creatittg or governing the condominium or planned writ development, the by-laws and regulations of the
<br />condominitm or planned unit development, and cons[i[ueat documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together wnh this Mortgage, the covenants and agreements of such rider
<br />stroll be irteotltorated into and shall amend and supplement the covenants and agreements of thts Mortgage as i( the rider
<br />weer a part hereof.
<br />7. PraMCtion ~ Lenders Security. It Borrower fails to perform the covenants and agreements contained in thts
<br />Mortgage, or if any action i~r groeceding is commenced which materially affects Lender's interest in the Propeny,
<br />including, but eat limited to, eminent domain, insolvency, exit enforcement, or arrangements or proceedings mvoh-ing a
<br />bankrupt or decxdotit, then Lender at l.eiuier a option, upon notice to Harrower, [tray make such appearances, disburse such
<br />sums and take tuoh action as is necessary to protect Lender's interest, including, but not limited a,. dtsbursemcnt of
<br />rtsattnabit auomeyi fete and entry upott the Property t[r make repairs, If Lender reyuired mortgage insurance as a
<br />nondiiion of making the ban stxuttd by this hkrngage, Harrower shat! pay the pre;ntiums reyuued to maintau[ such
<br />ins[srartct in tdaxt until such time as the regttirement [or such it[aurancc tcrntinates tit accordance with Borrower's and
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