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<br />Urstratetsr CovatNlttrs. Borrower and Lender covenant and agree as follows'
<br />1. Payment of Irincipal and Interest. Borrower shall promptly pay when due the principai o€ and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principai of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. bonds for Toes amt $ttsarance. Subject tp applicable law or to a written wai°rer by Lender, Borrower shalt 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 sure (herein "Funds") 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 instatimenis far hazard insurance,
<br />plus one-twelfth of yeazly premium installments for mortgage insurance, if any, all as reasonably estimated initial{y and from
<br />time to time by $xnder on the basis of assessments and bills and reasonah{e estimates cheroot.
<br />-i'he Funds shall be held in an institution the deposiLe ar accounts pf which are insured or guaranteed by a Federal or
<br />state .agenc}• (including Lender if Lender is such an institution}, Lender shall apply the Funds to pay said taxes, assessments,
<br />insuramce premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and appftcable law
<br />permits Lender to make such a charge. Aorrower and Lander may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Harrower, and unless such agreement is made or applicable law
<br />requires such interest to he paid, Lender shall not he required m pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits ro the Funds and the
<br />purpose for which each debit to zhe Funds was made. The Funds are pledged as additional security foe the sums secured
<br />by this Mortgage.
<br />$f the amount of the Funds held by Lender, together with the future monthly installments pf 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 prerrdums and ground rents as they tall due. such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to $orrower on monthly installments of Funds. If the amount of the Funds
<br />held Iry Lender shalt not be sufficient to pav taxes, assessmenu, insurance premums and ground rents as they fall due,
<br />Borrower shall pay io Lender any amount necessary u? make up the deficiency within ;0 daps from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of al[ sums secured by =.his Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. if under paragraph 1& hereof :he Propery cs sold or the Property is otherwise acqucred by Lender, Lender
<br />shall apply, no Later than immediately prior tp the sale of the Properly or its acputsttion by i_ender. any Funds held by
<br />Lender at the time of application as a credit against chc sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Nara and paragraphs land =hares s -'; be app,ted by I __r t;,K -. vnte ,.tins.- ., avahle ±n 1-ender by Borrower
<br />under paragraph Z hereof, then to interest payable on the More, then to the principal of *.he Vote. and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Bens. Borrower ;ball pay all ;axes. assessments and other char,cs. tines 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 tinder paragraph' hereof or, if not paid m such manner, by Horrc+wer making payment, when due, directly to the
<br />payee thereof. Borrower shalt promptly furnish to Lender all nouces of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly tarnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has pnonry rner flits Mortgage: provided, that Borrower shall not be
<br />required to discharge any such Tien so long us Harrower shall agree in t,nrmg ro the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall m good faith contest such lien by, or defend enforcement of such lien m,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insvrattee. Harrower shall keep the improvements now esisung cr hereafter erected on the Property insured
<br />against lass by fire, hazards included within the term "extended coverage". and such other hazards as Lender may squire
<br />and in such amounts and for such periods as Lender may require; provided. that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage regwred to pay the wars secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by [-ender; provided,
<br />[hat such approval shall not be unreasonably withhrid. All premiums on insurance policies shall be paid in the .canner
<br />provided under paragraph 2 hereof ur, r[ not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance cazrier.
<br />All insurance policies and renewals ihereaf shalt be is form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the tight to hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal npuces 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 toss iY npt made promptly
<br />by Barro:ver.
<br />Unless Lender and Borrower otherwise agree: in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is ewnomically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economicaEly feasible or if the secun[y of this bfortgage wo id
<br />be impaired, the insurance proceeds shall he applied to [he sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property as abandoned by Hon~awer, ar it Borrower fails to respond to Lender w•ithtn ,C days from the
<br />date notice is mailed by Louder to Borrower that the insurance carrier offers to settle a claim for irsurance benefits, L.cttder
<br />is autlforized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured h}• this Mortgage.
<br />unless Lender and Borrower othnrv.~ise agree to writing. any such application of proxeeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs ! and Z hereof ar change the amount e(
<br />such installments. If under paragraph 38 hereof the Property is acyuired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereoT resuhing 2iom damage to the Property prior to the sale
<br />or acgtiisitioa shall pass [o Lender Co the extent of rho sums secured by this ;Mortgage immediately prior to such sale or
<br />acquisition,
<br />b. Presenafion and ilaiatenance of Property; l,caseholds; Condominiums; Planned Unit vevefopments, Borrower
<br />shall keep the Property in gpod repair and shall not commie waste or permit impairment ar dcteriaration of the Property
<br />and shall imply with tl:e prpvisipns of any lea_~ if this tytprto~ge. ~> on a )easchold. ff this Mortgage is on a unit in a
<br />coudominium ar tt planned unit developme-tit, Borrowe; shall per£o:m all of Borrower's obligations under the deciaraiinn
<br />,.. ~ ,,t..,aang :; gp - rig tint ...t.d:»ni.^.ium ar ~!an at asst raev~elr, the by-laws and -egulatioris of the
<br />condominium or planned unit ~develapment, and constituent documents. !f a condominium ar planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the ceveaauts and agrecmcnu „f .uch rider
<br />shall ire incorporated into acrd shall amend and supplemcni the ;uvcnants and agreements of this Mortgage as if the rider
<br />watt a part hereof.
<br />7. Protecting of Leader's Security. if Hetno.vcr tails to perfcv~m the covenants acid agreements contained .n this
<br />Mortgage, or if any actspn or proceeding !s atmmenccd which materially affects Lender's i-tterc,t it: the Propc*tv.
<br />it[cluding, but not limited to, eminent domain, insolvency, crde enforecrnent, or anuigements nr prcvecdints involving a
<br />baakrupi or deccdene then Linder at L.endec's option, up.?r, notice to Harruvver, mag mske such nppv:aranccs_ disburse ~u.h
<br />stuns aria take such actipn as 'ss aecesxary 4a protca Lender'> retcrest, ~nctndcng, but tit*t i+m;~ed to, d .bursemt~;tt o£
<br />rexsesnabla attorney's fees and entry upcat the Property to make rv1>ars- 1f 1_crnfcr •ecluira! rn,?rtgugc^ r r_ trance :c~ .,
<br />c4tid2tiatt pf making tku' loan securcci h}- ibis ~iortg:age. Born~a •r shah pis tt~e r r n'numa rc ir~red ut i tai.tiarr su,:h
<br />insuraracx ict effect tln.ul ouch :erne .cs tt:e regaircmezt[ far sts:;h on-,,, an~c scr tn:xi•~a n a, ., <. r:fa --<. .c ..;. H. tr,ex~e: ~ ancd
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