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<br />U:vzFOxna Cavetvxrtrs. Harrower and Lender covenant and agree as follows: ~~~ t~
<br />2. P~ymenf of'Yrinelgid toad IMrrest. Borrower shad promptly pay when due the principal of and interest on the
<br />indebtedntxs-evidtnced'bytlie Note, prepayment and late charges as provided in the Note, and fhe principal oP and interest
<br />on say Parttire Advances secured by this Mortgage.
<br />2. Fonds for'Ts>iee[ and Insantnee. Stabject to applicable law or to a written waiver by Lender, Borrower shalh pay
<br />to Lerzdet on the day monthly iistallments of principal and interest are payable under the Note, until the Note is paid in full;
<br />a stmt (herein "Funds") equal to one-twelfth o€ the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and gronnd rents nn the Property, if any. plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus Otte-twetfth'of yearly premium instaltmenax for mortgage insurance, if any, alt as reasonably estimated initially and from
<br />Fimeto time by Lender an they basis of assessments and bills and reasonable estimates thereof,
<br />T1ne Funds shat be )tek! in an institution the deposits ar accounts of which are insured or guaranteed by a Federal or
<br />stale agertey (incftxlingLander if Lender is •>uch an institution). Lender shall apply the Ponds to pay said taxes, assessments,
<br />ttaurantx premiums sod grotrtad rents, Tender may not charge far so holding and applying the Funds, analyzing said account,
<br />or verifying and compitirtg said assessments and bids, unless Lender pays Bartower interest on the Funds and applicable law
<br />permits Leander to make such a charge. Borrower and Lender may agree in writing at the time of exewtion of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applieabie law
<br />requires such interest to be paid, Ixoder shall not be required to pay Borrower env interest or earnings nn the Funds. Ixnder
<br />shaft give to Borrower, without charge, an annual accounting of the Ponds 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 />If the amount of the Funds held by !.ender, together with the €trture monthly installments at Funds pawabte prior to
<br />the due dates of taus, assessttmnts, insurance premiums and ground rents, shall exceed the amount required za pay said taxes,
<br />asseawnents, insurance premiums and gro end rents as they fall due, such excess shalt pee, at 8orrower's option, either
<br />gromptly repaid. to Borrower ar credited _,, Borrower an mnmhly installments of Funds. I# the amount of the Funds
<br />hdd hy' Leader shat! not Ix stafi;cient to pay taxes, assessments, insurance premiums and grauttd rents as they tall due.
<br />$orrowsr shall pay to Lender any amount necessary to make up the deficiency within 30 days from the data notice is mailed
<br />by Lender to Botranver regtusting payment thereof.
<br />Upon praymeaxt in full. of ail sums secured by this Mortgage. #_ender shall promptly refund to Borrower soy Funds
<br />held by Leader. If under paragraph 1 H itnreo{ the Progeny is sold or the Pmpeny is otnerwise acquired by Lender, Lender
<br />sital4 apply, no lacer xhan itnntediateiy prior to she laic of the Property ar its acquisition by Lender, arty Funds held by
<br />L.eaxkr at Chet bane of application as a credit against the sums seczued by this Mortgage.
<br />3. A!! d JPayseMS. unless applieabie Saw provides oaherwise. ail payments received by Lender under the
<br />Note axed paragraphs 1 sold 2 hez~f shalt be applied by Lender ferst m payment at amoums payable to L.etader by Borrowe:
<br />utsdet paragraph .'. faereof, there to interest payable art the Note, then to the principal nt the :'rote, and then za interest and
<br />principal on any Future Advances.
<br />4. E#ntges: IJerr. Harrower shall pay all taxes, ssxswaatcnu and other charges, titre and tmpcn3tians attxthutabte to
<br />the Property which ttnty auxin a priority over this Mortgage, and leaseleoid payments or ground rents, if any, in the manazer
<br />provided tttader paragraph .'. hextot or. if not paid in such manner, by Borrower making payment, when due, ditt:ctly to the
<br />payee thenoof. Borrowetr shalt prwnptly fnrntsh to E.ender x31 notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payattent dirextly, Btarrowcr shall pratnpzly turmsh So Linder receipts evidencing such payments.
<br />Borrower shall promptly discharge any :ten which has priority .jvz-r than Mongagc: provided, that Barrnwer shall not be
<br />raquinxi to discharge any such lien so long as Hisrrawer shall egret in writing to the payment ai the obligation secured by
<br />sttclt Bost in a manner aexrptaF* to Leader. ar shall. in good faith ctxttcst such 6ien hy, ar defend enforcement of such lien in,
<br />legal ptxace;alrttgs which operate to prcrrent the tntarcemcnt of the lien or iorfttture at tnc property or any part thereof.
<br />3. bard larrraact. Borrower shall keep the tmprnvements now existing nr htreaftet erected on the Property insured
<br />against leas by tile, hazards ittciuded within the terttt "txtendcd coverage". and such atlzer hazards as !:ender may reyuire
<br />and in such amounts and for such peraods av Lender may reyuire; provided, that Itndir +hali not reyuire that the amount of
<br />such t:ovetage exceed that atxwuat .af coverage reyuartd to pay t#te vtm+ sct:ured by this Mortgage.
<br />The ituaarance cattier providing the insurance shall he chtsien by Horrawtr sultject to appravai by lender; provided,
<br />that. such approval shag oat be urueasanalaly withheld. Ali premiums on insurance policies shalt be paid in she manner
<br />provided uatkr guagraph 2 hereof or, if not paid in such mauntr, by Borrower making payment, when due, directly to the
<br />iawtance carrrrr.
<br />All insurance polfcies and reaxwak thereof shall bt in farm acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to lender. !.erodes shalt have, the right to paid the. policies and rrnew~ls thereo#.
<br />sad Borrower shalt praamgt#y fornis6 to Lender all reatev ,f nouets and all receipts at paid premium.. in the event of loss,
<br />Bottvwu shall giwtz prompt naftt:e to the insurance earner axed lender. Lender may make pra~nf of loss if not made promptly
<br />by .Borrower.
<br />Unless Lender and Bonawu otherwise agree in writing, insurance praceuls shall bt: applied to restaratiatt ar repair of
<br />the. Pro~ptrty dautaged, provided stash teswratioa or repair is economically tensible and tor: security of this Mortgage 3s
<br />oat tbrereby unpaired. If such restoration or repair is oat ccorromicaliy feasible ar iE the stcurzty of this Mortgage would
<br />be itagttix+ed, the iniuraxtee praceexls shall be applied to the sums secured by dais Mortgage, with the excess, if any, paid
<br />to Borrowrr_ If the 1?ropert}' is abandoned try Borrawet, ar ;3 Bortawer fails to respond to lender within 3fp days Pram the
<br />date twticC is mailed. by I;endu to Borrower that the anwrarxx earner offers zo settle a claim for insurance benefits, !.ender
<br />is autlwnzcd to cullsxt and .apply ttg anstarance proceeds at Lender's option either to restoraion or repair of the Property
<br />oa to tlx stews secured. by this '.Mortgage.
<br />Unless Leatder att$ Borrower otherwise agree in writing., easy such application of przxtads to principal shall not extend
<br />or postpone the dace date of the anantbly installments referred to in paragraphs I and 2 hereof ar change the amount of
<br />sudh ipsiaUments. 1# ttttdcz parsg'apdr i8 heretof the Property is acyuircd by Letader, all. right, tide and interest of Harrower
<br />is and zo any insurance policies a:;id in and to slat praceeecls tisereof resulting from. d'arrtage to the Property prior to the sale
<br />or acquisition sleet! pass w Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />6. Prraervtttttioa a~ Nai>tteaatace of Property; l.eaae6oids: f:oadom#atinans; Plon~d Unit i?ewelopments. Borrower
<br />shaiL keep the Property is good repair and. sltai3 not commit waste ar ptrrnit impairment ar de;teriocanon of the Property
<br />and shalt catttply wstlt the provisipns of any lease f# this Martgagt is an a leaseboid. If this Sortgage is an a unit in a
<br />candomimtust ar a pfanated atoll development, Harrower shaft ptrfarm alt of Borrower's obligations under the declaration
<br />o: covenants creating ur govertung the; condominium or planned unit deveioprnent, the by-laws and regulations of the
<br />condominium or planaxd unit tlewtlopment, and constituent documents. If a condominium or planned unit development
<br />ridetr i$ execnttd by Harrower anti. recot'ded together with this Mortgage, the covenants and agreements of such rider
<br />shat} I>` incorporated iota and shall amend and szrpplement the covenants and agreements of ibis Mortgage as it the r'sdtr
<br />were a part fttretaf:
<br />7. iPraatectieaa td I,etxkr's Security, If Borrower tads to perform the covenants and agreements cuntaint:d in 4his
<br />MortQagt, or if any actiaa ar proceeding is commenced which materially affects l.tndtr's interest in the Progeny,
<br />ittc3udiny, but oot limited to, eminent domain, insolvency, code trsfarcement, or arrangements or proceedings involving a
<br />bankrupt or decetitnt, then Ltrsdt a? Lender's aptfon, upon notice to $orrower, may make such appeararxz~s, disburse sorb
<br />3tutu end take such action as iii ne<aessary to protect Tinder's. interest, irxiudng, but naC 3imited to. dtsbursen:~nt of
<br />rcascrnablc atzamey's fens acrd` entry upon the Praptrty to make- repairs, If I.trsder required margagt insurance as a
<br />caatditlon a# mai.ing the loan suaued by this A~lQrigage, Btsrrawes shall pay the premiums required to ntainta?n such
<br />iosurarrcc tin sliest until sash time as tlke teyuirement for suck insurance zermin:tzcx in accardaoce with Bazre~wtr's and
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