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<br />l'vtt na nt (~nar :,hip B„rrowcr and Lender covenant m+d tierce as follow-,:
<br />1. Payment of Principal and hderrst. Bar n!wer chill promptly pay when due the pnncip,+l tit .u+d overeat .+n the
<br />mdebtadncss es ulenceJ by the Nnte. prcpaymem and hoc chi roe, ^, provided m the Nnle, and the prinopal of and interest
<br />on any Future Advances eecured by th+, Mongege.
<br />2, Funds for 'l'azes and Insurance. Subject in applicable low or tit a written warvcr by Lender. Borrower shall paY
<br />to Lender nn the d:ry monthly installmenn of principal and interest ore payable under the No[e, until the you is paid in loth
<br />a sum (herein "Points'"} equal to one-twelfth of the yearly tales 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 an}=, all as reasonably estimated initially and from
<br />time to ume by Lender on the basin of assessments and bills and reasonable estimates thereof.
<br />"T•he Funds shall he held in tin instiwuon the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency tinrluding Lender if Lender is such an mstitution)_ I ender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender ntuy not charge for so holding and applying the Funds. analyzing said account,
<br />nr verifying and compiling said assessments and bills- unless lender pays Borrower interest on the Funds and applicable law
<br />permits Lender m make such a charge. Borrower and Lender may ^gree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall he paid [o Borrower, and unless such agreement is made or applicable law
<br />royal res such interest to he paid, Lender shall ^nt be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shag give to Borrower, without charge. tin annu:d accounting of the Funds ,bowing credits and debits to the Funds and the
<br />purpose Ior which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />by this S1ortgagc.
<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 rants, shall exceed the amount required to pay said taxes,
<br />assessments. insurance premiums and ground rents as they f:dl due, such excess shall be, at Borrower's 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 shall not he sufficient to pay taxes, assessments. insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender :my amount necessary to make up the deficiency within i0 days [rum the date notice is mailed
<br />by Lender to Borrower reyues[ing payment thereof.
<br />Upon payment m full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph I K hereof the Properly is sold ur the Property is otherwise acquired by Lender, Lender
<br />shall apply, no Inter than immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held by
<br />Lender at the ume of application as a credit against the sums secured by thrs Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 'hereof shall he applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on [he Note, then to the principal of the Note, :md then to interest and
<br />pnnapai on an}' Fwure Advances.
<br />i. Charges; Liens. Borrower shall pap .ill +.nc,..+,aenmcnts .uxl oths rharees. fines anJ impositions attributable to
<br />the Property which may auain a priority over thu \lortgagc. and leasehold payments or ground rents. if any, in the manner
<br />provided under paragraph 2 hereof or, d not p:ud m such manner. by Borrower making payment. when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices ul amounts due under this paragraph, and in the event
<br />Borrower shall make payment direc0}~. HUrrlwer ,h:dl promptlc lunush to Lender receipts evidencing such payments.
<br />Borrower shalt promptly discharge any' hen which has pnor+t' oaer this Mortgage: provided, that Borrower shall no[ be
<br />required to discharge any such lien so long as Borrower shall agree in wnting m the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good I:uth euntc,t ,aril lien by, a' defend enforcement o(such lien in,
<br />legal proeeetlings which operate to pre-vent [he enfureemcnt of ~hc hen mr Corfenure of the Property or any part thereof.
<br />5. Hazard Insurance. Harrower shall keep the inq+msement, now caisung or hereafter erected on the Property insured
<br />against loss by fire, hazard, ~ncluJtd uithm the term '~caiendcd u,s arecc'~. and ~+~rh other hazards as Lender may require
<br />and in such amounts and fur suci+ periods as lender me} require; pin +deJ. that Lender shall not require that the amount of
<br />such coverage exceed that amount nl eoser,ge roywred to pa} the ,ums ,eau red h}' thn Mungage.
<br />The insurance carrier providing the msau:mea shall be chosen bt~ Borrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasonably withheld. :111 prenuuntn nn insurance policies shall be paid in the manner
<br />provided under paragraph' hereof or. ii not p:ud in such manner. h} Burrower making payment, when due, directly to the
<br />insurance carrier.
<br />AI! insurance polieie<_ and renewals thereoi ,h::!! b form .+ _ept :b!c to Le:;Jcr end shall include a sutndard martgage
<br />clause in favor of and in term acceptable to Lender. Lender ,hall hale the right w hold the policies and renewals thereof.
<br />and Borrower shall promptly IIumsh u? Lender ail renewal nonce, and :dl receipts of paid premiume. In the event of loss,
<br />Borrower shall give prompt noua• to the iusur:utee earner and Lender. L.enJer nn+y make proof of loss if no[ made promptly
<br />by Borrower.
<br />Unless Lender and Borrower o[hencue agree in writing, inuuanee praceeals shall be applied to restoration or repair of
<br />the Properly damaged, provided such resasrauun or repair is economically leas~hle and the security of this Mortgage is
<br />not thereby impaired. If such res3onawn or repay is not ecunomicaltc feasible ur :f the securiq• of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured b} this Mortgage, with the excess, if any, paid
<br />to Borrower. if the Property is abandoned by Horrower. or d Borrower tai6 to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Horrower [hat the insurance carrier offers to ecule a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option etther to restoration or repair of the Property
<br />or to the sums secured by this Dlortgage.
<br />Unless Lender and Borrower othenaise agree m wnting, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the memhl}• installmenn referred n. in paragraphs I and 2 hereof or change the amount of
<br />such installments. I[ under paragraph t 8 hereof the Prupeny is acquired by Lender. all right, title and interest of Borrower
<br />in and to any' insurance policies and in and to the proceeds thereof resulting from damage to the Property prior [o the sale
<br />o[ acquisition shall pass to Lender to the extent of the sums secured by th+s Mortgage immediately poor [o such sale or
<br />acquisition.
<br />b. Pttecen'ation and Maintenance of Property; Leaseholds; Condominiums; Planned C~nit Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waltz or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease tf this btortgage +s on a leasehold. if this blurtgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development. the by-laws and regulations of the
<br />condominium or planned unit development, and constituent eiocumcnts, if a condominium or planned unit developmem
<br />rider is executed by Borrower and recorded together wtth this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shat) amend aad supptentent the covenants and agreements of this Mortgage as i( the rider
<br />were a pan hereof.
<br />7. Protection of Lertdar's Security. If borrower fails to perform the wvenants and agreements contained in thts
<br />Mortgage, ar if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but nit limited to, eminent domain, insnlveoay, code enforcement, or arrangements nr nrmeedinga invuhdng a
<br />bankrupt or dectident, then Lender at Lender's opiian, ulxan nonce [0 borrower, may make such appearances. disburse such
<br />sums and take sash action as as neaasssary to proteea 1_onder's interest, uu~hrdmg, but not hntrted to, d~sbursament c+t
<br />reasonable auorney's _fces and entry upon the Properly to make repa+rs. It Lender requtred nx>rtgage insurance as a
<br />amdcUOn a( making the li+au secured by this Mortgags;, llnrrow er shalt pa} the preamun. rcyaued to mauuain struh
<br />insurance to c~,leaa until such time as the rnquircntent for such insurance sirnirtares w .t rerdau~c w~nh Bnrmweri and
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