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<br />Uxrnotut Covst+srvTS. Borrower and Lender covenant and agree es follows:
<br />I. Paymtot of PrlucE$al sad Interest. Borrower -shall promptly pay when due the-principal n€: and interest'. on fhe>
<br />ittdebtedness evidenced by the Note, prepayment and fate charges as provided in the Note. and [lie- principal of and ii'lteresC ,
<br />on any Ftrturo Advances stcund 6y this Mortgage.
<br />Z: Floods for Tares and lasanneY. Subject to applicable law or to a written waiver by Lender, Borrower shalt pay
<br />to i.ender on the day monthly installments of principal and interest are payable under the Note,~until the Note is-paid in-fifil;-
<br />a atrm Qteroin "Funds") .equal to one-twelfth of the yearly taxes and assessments which may. attain -.priority over -this
<br />Mortgage, and ground yenta on the Property, if any, plus one-twelfth of yearly premium installments for hazard insitratice,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, i6 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 Fiends shall be held in an institution iht deposiu or accounts of which are -insured or guaranteed. by a Fedeiai or'
<br />state agency {includiug-Lender if Lender is such an institution). i.ender shag apply the~Funds to pay said- taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and apptying the Funds; analyzing said-acconpt;-
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds-and applicable law
<br />permits I:endtr to make such a charge. Borrower and-Lender may agree in writing at the'-time 'of txecufioti of ~this-
<br />Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
<br />rtquires such interest io be paid, Lender shall not be required to pay Borrower any interest or earnings on the-Funds. Lender-
<br />shatl give to Borrower, without charge, an annual accounting of the Funds 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 scooted
<br />by this Mortgage.
<br />If the amount of the-Funds held by Lender. together with the furore monthly installments of Funds payable-prior to
<br />the due darts of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required fo pay said taxes,
<br />assesatnents, insurance premiums and ground rents as :hey fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Bornwer on monthly installments of Funds. If the amount of- the Funds.
<br />held by Lender shalt not be-sufficient to pa}• taxes. assessments, insurance premiums and ground rents as they-fall -due,
<br />BarrowershaH pay to Lender any amount necessan~ ro make up the deficiency within 30 days from the date notice is mailed
<br />by Lendee m Borrower requesting paymem thereof.
<br />Upon payment in full of all sums secured 6y this Mortgage. Lender shall promptly refund to Borrower any Funds-
<br />held by Lender. !f under paragrapb 18 hereof the Property +s said or the Yrapeny is otherwise acquired by Lender, tender
<br />shag apply, no Tatar than immediately prior to the ,ale o[ the Property or its acquisition 6y Lender, any Funds held by-
<br />Lender at the dine of application as a credit against the sums stxured by this Aortgage.
<br />J. Appticatfon of Payments. Unless applicable !nu• {?rovities otherwise. all payments received by Lender under the
<br />Noce and paragraphs 1 urd 2 hereof shall be applied by 1. ender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal oa any Future Advances.
<br />4. Charyteat Luna. Borrower shall pay alt taxes, a.*sessments and other charges. fines and impositions attributable to
<br />the Property which may auxin a priority over this Mortgage. and leasehold payments or ground rents. if any, in the manner
<br />provided under paragraph 2 hereof or. if nut paid in such manner. by Borrower making payment, when due, directly to the
<br />payer titertof. Borrower shall promptly tucntsh to i.ender al[ nuuces of amounts due under this paragraph, and in the event
<br />Borrower shall make pat'mtnt dimtfy, 9orrower shalt promptly' famish to Lender receipts evidencing such payments.
<br />Borrower shat[ prampNy discharge any lion which fias prionty over Ibis Mortgage; provided, that Borrower shall- not be
<br />required io discharge an}• such lien w long as Burrower shall agree in writing to the payment oC the obligation secured by
<br />such lien en a manner aec;eptahie to Lender, or shall in gaud faith contest such lien 6y, or defend enforeemeur " °uch lien in,-
<br />Itgal proceedings whtch operate to prevent the en[orcement of the lien or forfeiture of the Property or aa} part thereof.
<br />5, Hazard faaeraace. Borrower shat) keep the rmpnn•ements new existing or hereafter erected on the Property insured
<br />against foss by $re, hazards included wrdttn the term °extended e:overagc'", anti such other hazards as tender may require
<br />sad in sen:h amounts and for such periods as Lender pray teyuire: provided, that bender shall not require that the amount of
<br />such coverage exctrd thst amount of aiverage reyuved to pay the sums secured by this Dortgage.
<br />The imuratxt carrier providing the insurance shat) be chosen by Borrower subject to approval by Lender: provided,
<br />chat such approve[ shall not lx unreasonably withheld. Ail premiums an insurance policies shall be paid in the manner
<br />provided tinder paragraph 2 htrrnf ur, rf nut pa+d in such manner, by Burrower making payment, when due, directly to the
<br />insurancx carrier.
<br />Alt insurance pl*lictes and renewals tttarcof shall 6e in farm acccpn+bte to Leader and shall include a standard mortgage
<br />clause in favor et sort m form acceptable to lender. Lender ,hail have the right to hold the policies and renewals thereof,
<br />and Harruw•er shall promptly furnish to Lender all rertewa[ nuuccs and all receipts of paid premiums. In the event of loss,
<br />Bortewer shat[ give prompt notice to the insurance career and Lender. Lender muy make proof of loss if not made promptly
<br />by BOfFJWer.
<br />Uakas Lender and Borrower othcrwtse agree tit u-Hung, insurance pnxeeds shall be applied to restorntion or repair of
<br />the Property damaged, provided suctt resturauon or repair is econumica3ly feasible and the security of this Mortgage +s
<br />not thereby impaired. 12 such resturauon or repmr is nut scunomically Ica5ibie or if the security of this Mortgage would
<br />Im impaired, the insurance proceeds shall be applied to the 5ntrtS secured by this Mortgage, with the excess, if any, paid
<br />to Borrower, If the Property is abandoned by Barcower, nr if Borrower tails to respond to Lender within 30 days from the
<br />date notice a mailed by Lender to Borrower that the insurance carrier afters to settle a claim for insurance 1?enefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the attms soured by this Mortgage.
<br />Unless Lender apd Borrower otherwise agree in writing, any such application of proceeds to pnacipai shall sot extend
<br />ur postpone the due date of the monthly installments roferred to in paragraphs I and 2 hereof or change the amount of
<br />ouch iastalltnenis. It under paragraph 18 hereof the Property is acgwred by Lender, all right, title and interest oC Borrower
<br />is amt ro any itz$uranca policies and in and to the proceeds thereat resuittag from damage to the Progeny prior to the sale
<br />or atxlnisition shalt pass to Linder to the extent oT- the sums secured by this Rfortgage umnediateiy poor to such sale or
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<br />ti. Preaarvatloa and Matotenaoct of Property; L.ease-alds; toadominiums; Platmed Unit [?eveiopments. Borrower
<br />shtfi keep the Property in good repair and shall not commit wazte or permit impatrment or deterioration of the Nroperty
<br />and shalt comply with the provisions of any lease if this Mortgage i, on a leasehold. If this Mongagc is nn :+ unit in a
<br />ctttintuut ar a planned tutu devalopntcnt, Hottower shall perform aII a( Borrower's obligations under the declaration
<br />m earunanta treating or govtmmg the cmtdotninium or planned unit development, the by-laws and regulations of the
<br />condom#nittM or plaanod unit development, and ceustituetts documents. If a camduminium ur planned unit deveiapnteat
<br />i4da[ es exesixitral try Bortaw$r and recorded together wnh this ;xiortguge. the envenoms sad agreements of <uch tiller
<br />shall ba iittxttporatad iota and shat! amend and suppkmem the covenants and agreements of thix Mortgage as if the rider
<br />wore a pan heravt.
<br />7, PrearMma ed Leadm'e 8rtcgefty. 1f 8orrcwtr fails to perfortzt the covenants sail agrotmeuts canfaincd in this
<br />;~, or i# say actitttt ar proceeding ig c~atrtutierued which materially affects Lender s interest in the Property,
<br />ittelttdipg, Ixtt inn limited to, otuinent dorttain. inw lvttte}', rude enfwetnxnt, of arrnngements or iircxcedings involving a
<br />bttgittupt or dt>t~aiattt, than ~ at t.entite's option, upon notice to Borrower, may make surlt appearances, disbutst such
<br />[sings and [aka Eeteh- avtiun an is nary to pratoct C.eetdct•'x micreak, ittcltnilttg, ben not !trotted tn. dishtnsrntcnt of
<br />t'8aiu,dtks attrxntiy"s and entry upon .het Progeny to make repairs. It I.ettder rege+itcd mortgage insuroncc as a
<br />eanNtron of tnah'sitg fb6 kta.n srxurtd by this '~4ortgage. Bortowci silo!! pay the premiums rryuired to mainta+u such
<br />etvaaraa~ca try cifect until sue7i limo ac tMc rmquira+tteae for such +asurance tcrminarex in acca:txianco with BvrreSw,er's and
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