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<br />Utvmoant Covexnwrs. Borrower and Lender covenant and agree as follows: V7=~ " O ~ `•*'~
<br />1, Payment of Primlpt$ 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 [he Note, and the principal of and interest
<br />on arty Future Advances secured by this Mortgage.
<br />2. Fnndv for Tares artd Inisarence, subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender nn the day monthly installments ~f principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds") aqua) to one-twelfrh 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 insti[utiort 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). t_e^der shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for 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 Lander may agree in writing at the' time of execution of this
<br />Mortgage that interest on the Funds shall be paid ro Borrower, and unless such agreement is'inade or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shalt 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-secured
<br />by this Mortgage.
<br />[f 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 they fall due, such excess shall be, at Borrowers option; either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shalt not be sufficient to pay taxes, assessments. insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lander any amount necessary to make up the deficiency within 3o days [rom the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment ]n full of all sums secured by this Mortgaga. Lender shall promptly refund to Borrower any Funds
<br />hold by Lender. If under paragraph 1S hereof the Propeny is sold or the Propeny is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the Sala of the Property' or its acquisition 6y Lander, any Funds head by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Nore anL paragraphs 1 and 2 hereof shall be applied by Lender 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 on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxis, 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 net 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 dui under this paragraph, and in the event
<br />Borrower shall make payment directly', Borrower shall promptly furnish to Lendar receipts evidencing such oaymen[s.
<br />borrower shall promptly discharge any lien which has priorit}' over this Mortgage; provided, that Borrower sh.. 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 Lender, or shall in good laith contest such lien hy, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the I:en or forfeiture of the Property ur any part thereof.
<br />5. Hazard Itrsueance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against toss by fire, hazazds included within the term "ax[ended coverage", and such other hazards as Lender may require
<br />and in such amounts and ter such periods as Lender may require; prm•ided, that Lender shall not require that the amount of
<br />such coverage exceed [hat amount of coverage required to p:ry the soma secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject ro approval 6y Lender, provided,
<br />that such approval shall not be unreasunahly withheld. Al! premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such mamter, t?y Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall tx in form acceptable to Lender and shall include x standard mortgage
<br />clause in favor of and in farm acceptable to Lendar. Lender shall have the right to hold the policies and renewals thereof,
<br />and Bo=rower shall promptly furnish to Lender all renewal natives and all receipts of paid premiums. In the event of loss,
<br />Borrowar shall give prompt notice to the insurance carrier and Lender. Lander may make proof of loss it not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in venting, insurance proceeds shalt be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically taasible and the security of this Mortgaga is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Morigagc would
<br />be impaired, the insurance proceeds shall be applied io the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. ti the Property is abandoned by Dorrower, or it Borrower tails 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, Lendar
<br />is authorized to collect and apply the insurance proceeds at Lender's option zither to restoration or repair ~f the Property
<br />or io the stuns secured 6y this Mortgage.
<br />Utttess Lender and Borrower utherw•ise agree in venting, any such application of proceeds to principal shalt not extend
<br />or postpone the due date of the monthly installments referred to iu paragraphs I and ?heraof or change the amount of
<br />such installments. li under pazagraph 18 hereof the Property is acquired by Lander, all right, title and interest of &m'ower
<br />in and to any insurance policies and in and to the proceeds thereol resulting from damage to the Propeny prior to the sale
<br />or acgtrisitioa shall pass m Lender to the extent of the sums secure) by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6, Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit I)evelopmanLS. Borrower
<br />shall keep the Property in good repair and shall net commit waste or permit impairment or deterioration of the Property
<br />artd shall comply with the provisions of any lease if thts 141ongage is on a leasehold. If this hlortgagc is on a unit in a
<br />condominium or a planned unit development. Barrower shall parfonn all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium er planned unit development, the by-laws and regulations of the
<br />condominium or punned urnt development, and constituent documents. If a condominium ar planned trait development
<br />rider is executed by Borrowar and raA:orded together with this Mortgage, the covenants and agreements of such rider
<br />shat: 6e ins~trporated into and shall amend end supplamam the covenants and agreements of this Morigagc as if the rider
<br />ware a part heraof.
<br />7. Protection of Legdecs sarnrity. If Bonowar fails to perform the covenants and agreements centnined in this
<br />Mortgaga, ar if any action or prtaeeding is commenced which materially affects l.andar's interest in the Propane,
<br />irtclu$ing. but not limited ia, eminent domain, insolvency, code enforcemem. m' arrangements or proceedings involving a
<br />haakrvpt or $ecadattl, then Landat of Lender's opti(ut, upon notice to Barrower, rosy make such appearances, disburse such
<br />sums. and take loch aetioo as is necessary to protect Lender's interest, utcfuding, but not limited to. disbutscment al
<br />rea#ronabte attamey's teas and entry upon the Propeny to make repair. li Lendar required mortgage insurance us :+
<br />con$ition of making the loan sas:urad by tfus Mortgage, Barrower shall pay the premiums requred to maintain such
<br />intrttratrca in artist unid tucta #:ox as the requirement fur such Insurance terminates m accardancc wlQt Borrower's and
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