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<br />UrrrrroRaa Cova[antvas. Borr€>wer attd Lender covenant and agree as follows:
<br />t. lsymeet M PiaxltwYtm[t ielere~st. Borrower shag promptly pay when due the principal of and interest on the
<br />indebtci3itess evidenced by the Nate, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secureit by this Mortgage.
<br />2. Xrrndrtor Tara >md itnwnea. Subject to applicable law ar to a written waiver by Lender, Borrower shall pay
<br />ro Lender nn the day monthlytnstallments of principal and interest are payable under the Nate, until the Note is paid in full,
<br />a anm Ihtuein "Funds") equal to one•twelfth of the yearly taxes and assessments which may attain priority over this
<br />Martgago and gmtmd rents on the Ptupetly. if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus ot[c-twelfth of yearly premium iastalhttents for mortgage insurance, if any, all as reasonably estimated initially and from
<br />timesio tfma by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />•Ihc Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or
<br />state agency fitxludirg Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insuranix premiums and-ground rents. Lender may not charge for so holding and applying tht 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 io make such a charge. Borrower and Lender may agree in writing at rite time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrawer, and unless such agreement is made or applicable taw
<br />requiressuch interest to be paid, Lender shall not be required to pay Barrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annuaC accounting of the funds showing credits and debits'to the Funds and the
<br />ptirpase 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 />If the amount of the Funds held by Lender, together with the future monthly instaiimen[s of Funds payable prior to
<br />[he due dales of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />asxsaments, 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 Borrawer on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sutTtctent to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Sorroziver shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lrnder to Borrower requesting payment thereof.
<br />IIpon payment in full of atl sums secured by this Mortgage, Lender shall promptly refund to Barrower any Funds
<br />held by Lender. If under pazagraph t8 hereof the Property is Bald ar the Property is otherwise acgaired by Lender, Lender
<br />Sha11 apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at Lhe time of application as a credit against the sums secured by this Mortgage.
<br />a. Aptlicatlon of Payments Ltnless applicable law provides otherwise. all paymems received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shat{ be applied by Lender first in paymenz of amounts payable to Lender by Borrower
<br />under paragraph Z her~f, the.^, to interest payable an the Note, then to the princioa# of the Note, and then to interest and
<br />principa[ on any Future Advances.
<br />4. C3arsa; Liem. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this bortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if rat paid is such manner, by Borrower making payment, when due, directly LO the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and iu the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Barrower shag promptly disch:uge any lien which has priority over this Mortgage; provided, that Borrawer shall not be
<br />required to.dischatge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a meaner aceeptable to Lender or shall in goad faith contest such lien by, or defend enforcement of such. lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereat.
<br />5. 1[iarud Inauraace. Borrower shall keep the imprrn•ements now existing or hereafter erected on the Property insured
<br />against loss by fire, hszards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and tar such periods as Lender may require; provided, that tender shall not require that the amount of
<br />such coverage exceed that amount of coverage requred W pay the sums secured by this Mortgage.
<br />The instrance carrier providing the insurance shaft be chaser by Barrower subject to approval by Lender; provided.
<br />that such approval shag not be utueasonably withheld. AI3 premiums an insurance pofioies shall be paid in the manner
<br />provided under pazagrap6 2 hereof or, if ant paid in such manner, by Borrawer making payment, when due, directly to the
<br />insurance carrier.
<br />AB insurance policies cad renewals thereof shall be in form acceptable to Lender and shall inehtdc a xtandard mortgage
<br />clause i» favor of and. in £orm acceg[able W Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shal# prampdy famish to Lender all renewal notices and al! receipts of paid premiums. In the event of 3oss,
<br />Borrower shall giye prompt notice to the insurance carrier and Lender. Ixnder may make proof of loss. if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied is restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Aortgage is
<br />nor thereby impaired. If such restoration or repair is nest economically feasible or if the security of this Mortgage. would
<br />fie.impaired, the insurance proceeds shall be. appticd to the sums secured 6y this Mattgage, with the excess, if any, paid
<br />to Borrower.. If Che Property is abandoned. by Borrawer, or i( Borrower faits to respond t6 Lender within 30 days from the
<br />date twiice is mailed by Lender is Borrower chat the insurance carrier otters to seine a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Properly
<br />or to the sums: secrued by this Mortgage.
<br />IJniess Lender and Borrower otherwise agree in writing, any such application of pr<x:ceds to pnncipa3 shall not extend
<br />or pctsfpone thedue date of the monthly installments referred to in paragraphs !and ? hereo€ or change the amount of
<br />such installments. IE utuier paragraph 1$ hereof the Property' is acquired by Lender, all right, title and interest of Borrower
<br />in andto a»y insurance policies and io and to the proceeds thereof resulting from damage to the Property prior W tltc sale
<br />or acquisition shaft pass io Lender to the extent of the sum, secured by this !vf ortgage immediately pror io ,uch. sale ar
<br />acquisition.
<br />ti.. PreaervtuionasdMairatena~e of Property; Leaiseho[ds; Cottdominiunts; Planned unit Devefopmcnts Borrower
<br />shall kelp the Property u[ good repair and shall no[ commit waste or permit impairment nr dt:teriorauon of the Property
<br />atul shall ca~mpl}' with the giovisioris of any Seale if [his Mortgage is an a lcaseltold. if this MaRgage is an a unit in a
<br />40~ ioxinium or a planned tmiz development, ~ rwmr cha31 carCarm all of Borrower's obligations under the des;.[aration
<br />or covenants creating ar governing the eondamiriim'n ar planned unA devclopmen4 the by-laws and regrxiatiars of the
<br />eosidominiust or plart~d unit development, and croustituent documents. If a condominium oz planned unit development
<br />ridci is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />:hall be inmrparated.intn and shall amend and supplement the covenants and agreements of d[is Mcrrtgagc as if the rider
<br />were a psrt hereof.
<br />7. Protection of. 1,eaider's Stcurify. if Borrawer faits W perform the s:avenants and agreements contained in ih,s
<br />Marzgage, o: if any action or, pit>t~cding is commenced which materiaiiy atFetas Lenders interest in the Property-,
<br />including, but not ;:mired W, etnirunt dermal», insolvency. eerie enforcement, oz arrangements nr proceedings involving ::
<br />vans.rupt or decrden;,. then Lander 9Y Lender's apuan, upon notice W Barrower, may make such appeara~nccs., dzsbursc such
<br />s uttxs atsd take such attin[t as is necessary [o protect tinder's interest. inch:ding, but not limited to, dubursernent a~i
<br />rezitr~abic atterreg's fees ;rod entry upon Lhe Property to make repairs. if Lender required mestgagc insiuartce as .r
<br />.:~nd:tiou oC nrakang tttt loan secnrod try this &iarigage, Borrower shalt pay the e}remu:ns rcqun art to nnnnia,n sr+ch
<br />iaauranLe ut. effect until such time as the requirement for such insurancr. terminates in accordanzc with Boarttw€r's and
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